Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 27

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 the circumstances.

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. Historically, the Company operated two reportable segments: (i) Inventory Management Solutions (“Forever
8”) and (ii) the Corrugated Packaging Business. On April 7, 2025, the Company completed the sale of the assets comprising the Corrugated
Packaging Business. Following this divestiture, Forever 8 remains the Company’s sole revenue-generating operating segment.

On
September 8, 2025, the Company adopted a Digital Asset Treasury (“DAT”) Strategy and began actively deploying capital into
the acquisition and long-term holding of digital assets. The Company initiated digital asset treasury management activities as part of its corporate strategy to diversify
its cash and liquidity management. These activities are not operated as a separate business unit and are managed centrally within the
Company’s corporate function. Accordingly, they are not considered a separate operating segment under ASC 280, Segment Reporting.

Accordingly,
as of September 30, 2025, the Company has one operating segments:

●Forever
                                            8 (Inventory Management Solutions) – the Company’s operating business and only
                                            revenue-producing segment; and

Corporate-level
functions consisting primarily of centralized finance, treasury (including DAT-related
activities), stock-based compensation, board costs, public company costs, interest expense, income taxes, and other non-operating items
are not allocated to the Forever 8 segment. The CODM reviews Forever 8 working capital and operating assets to assess performance. Corporate
assets include digital asset holdings, cash not used in Forever 8, goodwill, and other long-term corporate assets, none of which are allocated
to operating segments. Segment assets reviewed by the CODM primarily include working capital assets for the Company’s operating business.
Digital asset balances are monitored as part of corporate treasury and are not allocated to a segment.

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