Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 717

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 717
---

Assets”) in consideration for, among other things, the Former Parent assuming certain obligations of Emmersive, hiring certain
employees, and issuing preferred membership units (“Preferred Units”) in EVNT Platform, LLC to Emmersive and/or its shareholders
(“Preferred Members”) pursuant to a First Amended and Restated Operating Agreement for the Former Parent dated as of April
17, 2021 (“Amended Operating Agreement”). Certain put rights are associated with Preferred Units, which if exercised by the
Preferred Members, obligates the Former Parent to purchase the Preferred Units in exchange for shares of the Former Parent’s common
stock (“Put Rights”). In addition, the Preferred Members have the opportunity to earn Conditional Preferred Units if certain
conditions are satisfied for earn out targets (“Earn-Out Targets”).

    F-27

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

20.
COMMITMENTS AND CONTINGENCIES (continued)

On
February 25, 2022, the Former Parent and Emmersive entered into a Termination and Release Agreement, terminating certain transaction
documents dated April 17, 2021, and a Milestone Agreement for the earnout shares to be earned and any remaining consideration to be paid
by Eightco Holdings Inc. with an effective date of the agreements upon the spin-off being declared effective (“Effective Date”)
Upon the spinoff, the agreements release Emmersive of the opportunity to earn the additional shares of common stock of the Former Parent
from the Asset Contribution Agreement. The contingent consideration to be paid by Eightco Holdings Inc. upon the successful completion
of the spin-off are described below:

Earned
Shares: Issuance of 6,000 shares of common stock of Eightco Holdings Inc. (“Eightco Shares”). The Company recorded $609,000
of share-based compensation related to the Eightco Shares.

Milestone
1: In the event that the Company generates a minimum of $5,500,000 in annualized booked revenues from the operation of the Musician &
Artist Platform (“Attributed Revenue”) ending eight (8) months following the Effective Date (“Tranche 1 Milestone Date”),
the Emmersive Parties shall receive 2,000 restricted Eightco Shares (“Tranche One”) within thirty (30) after the Tranche
1 Milestone Date. In the event that the Company does not satisfy this milestone for any