Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 541

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 541
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 consideration,

●An
                                            additional $1.1 million in accrued interest was converted into 1.4 million shares of common
                                            stock, and

●All
                                            remaining payments under the Promissory Notes were deferred to October 30, 2024.

On
March 27, 2024, the Company issued 120,974 shares of common stock which retired a portion of the Promissory Notes.

On
June 14, 2024, the Company executed further amendments to accomplish the following:

●The
                                            Company recorded a gain of $6.1 million related to the full release of contingent consideration,
                                            originally recognized at the time of acquisition. This was recorded as other income in the
                                            consolidated statement of operations.

●The
                                            Sellers also forgave $5.4 million of principal outstanding under the related-party Promissory
                                            Notes. Due to the related-party nature of the transaction, the forgiveness was recorded as
                                            a non-cash gain directly to additional paid-in capital (APIC) in accordance with ASC 470-50
                                            and ASC 850-10.

●In
                                            a concurrent amendment to the Purchase Agreement, the Sellers waived their contractual right
                                            to receive 215,000 Preferred Units, eliminating a significant future equity obligation.

On
December 19, 2024, the Company entered into a final amendment, under which:

●Approximately
                                            $1.6 million in accrued interest was converted into 485,381 shares of common stock, and

●The
                                            payment deferral period under the Promissory Notes was extended through October 30, 2025.

In
total, these amendments resulted in the forgiveness or conversion of approximately $5.7 million in accrued interest. The related-party
forgiveness and equity conversions generated a combined non-cash gain of $3.86 million, which was recorded directly to APIC as a capital
transaction. In addition, the forgiveness of $5.4 million was recorded directly to APIC as a capital transaction.

Series
A Preferred Stock Designation and Dividend

On
January 17, 2023, the board of directors of the Company declared a dividend of one one-thousandth of a share of Series A Preferred Stock,
par value $0.001 per share, for each outstanding share of the Company’s common stock, par value $0.001 per share to stockholders
of record at 5:00 p.m. Eastern Time on January