Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 600

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 600
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 Eightco Shares (“Tranche Three”). In the event Milestone Three is achieved, then Milestones One and Two
shall also be deemed to have been achieved. In the event that the Company does not satisfy Milestone Three for any reason by September
30, 2024, time being of the essence, the Emmersive Parties shall have no rights to Tranche Three. In the event that the Company satisfies
Milestone Three in the time prescribed they shall have the right to receive an additional 100,000 restricted shares of Eightco Shares
(“Bonus Tranche”). In the event that the Company does not satisfy Milestone Three for any reason, the Emmersive Parties shall
have no rights to the Bonus Tranche.

None
of the above milestones were met as of December 31, 2024.

21.
SEGMENTING REPORTING

The Company’s
principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are
consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments
for the years ended December 31, 2024 and 2023 were the Inventory Management Solutions segment and the Corrugated Packaging Business. The
Company’s chief operating decision maker has been identified as the Chairman and CEO, who reviews operating results to make
decisions about allocating resources and assessing performance for the entire Company.

Segment information is
presented based upon the Company’s management organization structure as of December 31, 2024 and the distinctive nature of each
segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no
inter-segment revenue transactions and, therefore, revenues are only to external customers.

    F-28

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

21.
SEGMENTING REPORTING (continued)

The CODM evaluates segment performance based on net
revenues, cost of revenues, gross profit, and selling, general and administrative expenses. These items are reviewed by segment. Depreciation
and amortization is also monitored by management and presented below. Certain other costs, such as interest expense, other income (expense),
and income taxes, are managed on a consolidated basis and not allocated to segments.

Segment operating profit is determined based upon
internal performance measures used by the chief operating decision maker. The Company