Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 598

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 598
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 rate of 4.5%.
The Safety Harbor lease was terminated in 2023 and there currently are no other material operating leases. The Company has elected
not to recognize right-of-use assets and lease liabilities arising from short-term leases.

On
October 19, 2022, the Company entered into a commercial lease agreement with Foxx Trot Tango, LLC to lease approximately 25 acres of
land, including approximately 250,000 square feet of warehouse space in Sylvester, Georgia for $87,500 on a month-to-month basis, effective
July 2022. Owners of Foxx Trot, LLC are also shareholders of the Company.

Rent
expense for the years ended December 31, 2024 and 2023 was $255,444 and $849,575, respectively. Rental payments are expensed in the statements
of comprehensive income in the period to which they relate.

Emmersive
Sellers: On April 17, 2021, the Former Parent entered into (and closed on) a certain Asset Contribution Agreement (“Asset Contribution
Agreement”) with Emmersive Entertainment, Inc. (“Emmersive”), pursuant to which Emmersive contributed/transferred to
the Company the assets used for Emmersive’s business, which include digital assets, software and certain physical assets (the “Contributed
Assets”) in consideration for, among other things, the Former Parent assuming certain obligations of Emmersive, hiring certain
employees, and issuing preferred membership units (“Preferred Units”) in EVNT Platform, LLC to Emmersive and/or its shareholders
(“Preferred Members”) pursuant to a First Amended and Restated Operating Agreement for the Former Parent dated as of April
17, 2021 (“Amended Operating Agreement”). Certain put rights are associated with Preferred Units, which if exercised by the
Preferred Members, obligates the Former Parent to purchase the Preferred Units in exchange for shares of the Former Parent’s common
stock (“Put Rights”). In addition, the Preferred Members have the opportunity to earn Conditional Preferred Units if certain
conditions are satisfied for earn out targets (“Earn-Out Targets”).

    F-27

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

20.
COMMITMENTS AND CONTINGENCIES (continued)

On
February 25, 2022, the Former Parent and Emmersive entered into a Termination and Release Agreement, terminating certain