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

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 be measured at fair value, with changes in
fair value recognized in earnings each reporting period. Digital assets that trade in active markets and have readily determinable fair
values, including Worldcoin (WLD and WCWLD), Ethereum (ETH), and U.S. dollar-denominated stablecoins, are classified within Level 1 of
the fair value hierarchy. Digital assets are valued based on quoted market prices obtained from principal market exchanges where the
assets are actively traded.

The
Company’s financial instruments that are not measured at fair value, including cash, accounts receivable, accounts payable, accrued
expenses, and short-term borrowings, approximate fair value due to their short-term maturities.

No
transfers between Level 1, Level 2, or Level 3 occurred during the periods presented.

Concentration
of Credit Risks. Financial instruments that potentially subject the Company to concentrations of credit risk are cash equivalents,
digital assets, and accounts receivable. The Company maintains cash balances and digital asset custodial accounts with multiple institutional-grade
financial institutions and digital asset custodians, including Kraken, FalconX, and Coinbase. Balances held with digital asset
custodians are not federally insured.  Balances held with institutional-grade financial institutions may
exceed federally insured limits or similar protections. The Company manages custodial risk through the use of multiple counterparties,
ongoing evaluation of each custodian’s financial stability, and review of their security and safekeeping practices. The Company
has not experienced any losses on deposits or digital asset holdings. With respect to trade receivables, the Company performs ongoing
evaluations of customer credit worthiness and does not require collateral. As of September 30, 2025, two customers represented approximately
51% and 29% of total accounts receivable, respectively. The Company maintains an allowance for expected credit losses based on historical
experience and forward-looking information.

Leases.
The Company accounts for leases under ASC 842, Leases. Upon adoption on January 1, 2022, the Company recognized right-of-use assets
and lease liabilities for operating leases based on the present value of future lease payments. The adoption did not materially impact
the Company’s balance sheet or results of operations. The Company does not have any finance leases. Lease expense is recognized
on a straight-line basis over the lease term. Short-term leases with a term of 12 months or less are not recognized on the balance sheet.

    15

EIGHTCO
HOLD