Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 937

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 937
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segment items on an interim and annual basis and provide in interim periods all disclosures about a reportable segment’s profit or loss
and assets that are currently required annually. The ASU does not change how a public entity identifies its operating segments, aggregates
them, or applies the quantitative threshold to determine its reportable segments. The new disclosure requirements are also applicable
to entities that account and report as a single operating segment entity. ASU 2023-07 is effective for fiscal years beginning after December
15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The Company adopted the guidance for the annual
reporting period ended December 31, 2024. There was no impact on the Company’s reportable segments identified.

Segment
Reporting. The Company uses “the management approach” in determining reportable operating segments. The management approach
considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions
and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating
decision maker is the Chairman and Chief Executive Officer (“CEO”) of the Company, who reviews operating results to make
decisions about allocating resources and assessing performance for the entire Company. The Company’s primary revenue streams include
inventory management solutions and the sale of corrugated packaging materials. Based on the CODM's evaluation and internal reporting, the Company has
two reportable segments: Inventory Management Solutions and Corrugated Packaging.

Reclassifications.
Certain prior period amounts have been reclassified to conform to the current period presentation, including amounts related to the
Corrugated Packaging Business, which was classified as a discontinued operation as of December 31, 2024. These reclassifications had
no impact on previously reported net income or stockholders’ equity.

3.
GOING CONCERN

The
consolidated financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its
assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has negative cash
flows from operations, incurred a loss since inception resulting in an accumulated deficit of $112,570,049
as of December 31, 2024 and further losses are anticipated in the development of its business. These factors raise substantial
doubts about the Company’s ability to continue as a going concern for a period of 12 months from the date of this annual report.

As