Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 699

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 699
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 release of $6.1 million in contingent consideration, which was recognized as a gain in other
                                            income during the year ended December 31, 2024, and

●The
                                            forgiveness and conversion of approximately $5.7 million in accrued interest on the Promissory
                                            Notes, resulting in the issuance of approximately 1.9 million shares of the Company’s
                                            common stock. The remaining forgiven interest, totaling $3.86 million, was recorded as a
                                            capital contribution to additional paid-in capital (APIC) due to the related-party nature
                                            of the transaction.

These
modifications resulted in a substantial reduction in the total consideration payable under the original purchase agreement.

    F-16

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

4.
ACQUISITIONS AND DIVESTITURES (continued)

Discontinued
Operations

On
November 22, 2024, Eightco Holdings Inc. (the “Company”) entered into an Asset Purchase Agreement (the
“APA”) to sell substantially all of the assets of its wholly owned subsidiary, Ferguson Containers, Inc. (the
“Corrugated Packaging Business”), to Ferguson Containers, LLC, a New Jersey limited liability company controlled by
certain management employees of the Corrugated Packaging Business (the “Buyers”). This sale was completed on April 7,
2025. See Subsequent events Note 22 for more details.

As
a result of entering into the APA, the Company has classified the operations of Ferguson Containers as discontinued operations in the
consolidated financial statements for all periods presented. Assets and liabilities associated with Ferguson Containers have been classified
as “held for sale” as of December 31, 2024.

The
following summarizes the components of the assets and liabilities from discontinued operations to be divested for the years ended December
31, 2024 and 2023:

SCHEDULE
OF DISCONTINUED OPERATIONS 

    December 31,  
    December 31, 

    2024  
    2023 

    ASSETS 

    Current assets: 

    Cash and cash equivalents 
    $168,323  
    $- 
  
    Accounts receivable, net 
     788,317  
     625,293 
  
    Inventories