Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 685

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 685
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ing notes are an integral part of these consolidated financial statements.

F-7

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

1.
NATURE OF OPERATIONS AND BASIS OF PRESENTATION

As
used herein, “Eightco” and the “Company” refer to Eightco Holdings Inc., a Delaware corporation originally
incorporated on September 21, 2021 (date of inception) under the laws of the State of Nevada, and subsidiaries. On March 9, 2022,
the Company converted to a Delaware corporation pursuant to a plan of conversion entered into with its former parent, Vinco
Ventures, Inc. (“Vinco” or “Former Parent”). The Company operates in two main businesses: Forever 8
Inventory Cash Flow Solution and Corrugated Packaging Business. Forever 8 Fund LLC (“Forever 8”), which focuses on
purchasing inventory for e-commerce retailers, was acquired by the Company on October 1, 2022, and is part of its Inventory Solution
Business. The Company previously sold BTC mining equipment and developed an NFT character set under its Web3 Business but has no
intention of continuing this business at this time. The Corrugated Packaging Business manufactures and sells custom packaging for a
wide variety of products and helps customers generate brand awareness and promote brand image through packaging. Prior to the
Separation (as defined below), the Company was 100%
owned by Vinco.

As
of December 31, 2024, Eightco had three wholly-owned subsidiaries: Forever 8, Ferguson Containers, Inc. (“Ferguson
Containers” or “Corrugated Packaging Business”) and BlockHiro, LLC. Ferguson Containers owns 100%
of 8co Holdings Shared Services, LLC. Eightco owns 51%
of CW Machines, LLC which is consolidated under the voting interest entity model. Under the voting interest entity model, control is
presumed by the holder of a majority voting interest unless noncontrolling shareholders have substantive participating rights.
Forever 8 owns 100%
of Forever 8 UK, Ltd and Forever 8 Fund EU Holdings BV.

During
2021, the Former Parent announced it plans to spin-off (the “Separation”) certain of its businesses. The Former Parent has
included Ferguson Containers as well as other subsidiaries of the Former Parent (the “Eightco Businesses