Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 72

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 72
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 indicate that it is more likely than not that our goodwill and other indefinite-lived intangible assets are impaired, a quantitative
impairment analysis would be performed to determine if impairment is required. We may also elect to perform a quantitative analysis of
goodwill initially rather than using a qualitative approach. The impairment testing for goodwill is performed at the reporting unit level.
The valuation methods used in the quantitative fair value assessment, discounted cash flow and market multiples method, requires our
management to make certain assumptions and estimates regarding certain industry trends and future profitability of our reporting units.
If the fair value of a reporting unit exceeds the related carrying value, the reporting unit’s goodwill is considered not to be
impaired and no further testing is performed. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is
recorded for the difference. The valuation of goodwill is affected by, among other things, the Company’s business plan for the
future and estimated results of future operations. Future events could cause the Company to conclude that impairment indicators exist,
and, therefore, that goodwill may be impaired.

Contingent
Liabilities. The Company, from time to time, may be involved in certain legal proceedings. Based upon consultation with outside counsel
handling its defense in these matters and the Company’s analysis of potential outcomes, if the Company determines that a loss arising
from such matters is probable and can be reasonably estimated, an estimate of the contingent liability is recorded in its consolidated
financial statements. If only a range of estimated loss can be determined, an amount within the range that, based on estimates, assumptions
and judgments, reflects the most likely outcome, is recorded as a contingent liability in the consolidated financial statements.
In situations where none of the estimates within the estimated range is a better estimate of probable loss than any other amount, the
Company records the low end of the range. Any such accrual would be charged to expense in the appropriate period. Litigation expenses
for these types of contingencies are recognized in the period in which the litigation services were provided.

Warrants.
The Company classifies a warrant to purchase shares of its common stock as equity on its consolidated balance sheets as this warrant
is a free-standing financial instrument that is indexed to the Company’s own stock and meets the criteria for equity classification.
Each warrant is initially recorded within equity at the date of grant, net of issuance costs, and is not subsequently re-measured. Changes
in the fair value of the warrant are not recognized after the initial measurement. The