Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 217

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 217
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    Shares reserved for contingent consideration for acquisition of Forever 8 Fund, LLC  
     -  
     74,000 
  
    Total common stock equivalents  
     43,598  
     850,615 

Deferred
Financing Costs. Deferred financing costs include debt discounts and debt issuance costs related to a recognized debt liability and
are presented in the balance sheet as a direct deduction from the carrying value of the debt liability. Amortization of deferred financing
costs are included as a component of interest expense. Deferred financing costs are amortized using the straight-line method over the
term of the recognized debt liability which approximates the effective interest method.

    F-13

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Income
Taxes. The Company accounts for income taxes under the provisions of the FASB ASC Topic 740 “Income Taxes” (“ASC
Topic 740”). The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that
have been included or excluded in the consolidated financial statements or tax returns. Deferred tax assets and liabilities
are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting
amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected
to reverse. The Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement
of a tax position taken or expected to be taken in a tax return. Management has evaluated and concluded that there were no material uncertain
tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2024 and 2023.
The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date. The
Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and
administrative expenses in the consolidated statements of comprehensive income. The Company is subject to routine audits by taxing jurisdictions;
however, there are currently no audits for any tax periods in progress.

Fair
Value Measurements. The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair
Value Measurements and Disclosures” (“ASC 820”) which defines