Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 1185

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1185
---
2024  
    2023 

    Tax at federal statutory rate 
     21.0% 
     21.0%
  
    Income from pass-through entities taxable to noncontrolling interests 
     0.0% 
     0.0%
  
    Warrant valuation 
     0.0% 
     -14.5%
  
    Nondeductible expenses 
     -1.7% 
     -0.1%
  
    State and local income taxes 
     12.9% 
     0.0%
  
    Foreign income not subject to U.S. federal taxes 
     -24.0% 
     -0.2%
  
    U.S. income taxes subject to valuation allowance 
     0.0% 
     -6.2%
  
    Change in valuation allowance 
     -33.8% 
     0.0%
  
    Total income tax provision 
     -25.6% 
     0.0%
  
    Less: adjustment for discontinued operations 
     -62.0% 
     0.0%
  
    Income tax provision (benefit) from
    continuing operations 
     -87.6% 
     0.0%

The Company recorded an income tax benefit of approximately $(135,337) and $0 for the years ended December 31, 2024
and 2023, respectively. This benefit reflects the release of certain foreign tax obligations and changes in deferred tax balances, including
adjustments for valuation allowances. The Company recorded a full valuation allowance against its deferred tax assets in both 2024 and
2023 due to cumulative losses and the lack of objectively verifiable positive evidence. A separate tax benefit of approximately $(9,127)
related to the discontinued operations of Ferguson Containers is presented within discontinued operations on the consolidated statements
of operations.

The
Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the
statement of operations. As of January 1, 2024, the Company had $0 unrecognized tax benefits and $0 charges during 2024, and accordingly,
the Company did not recognize any interest or penalties during 2024 related to unrecognized tax benefits. There is $0 accrual for uncertain
tax positions as of December 31, 2024.

The
Company files U.S. income tax returns and a state income tax return. With