Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 34

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 nine months ended September 30, 2025, the Company recorded a write-off of $680,000 and $680,000, respectively. The write-off
relates to the decision to exit our liquidation business for brands that the Company was operating the stores to liquidate inventory
to recover outstanding receivables. The Company is in discussions with the brands to return them for a discount.

8.
INVENTORIES

Inventories
consist of the following at September 30, 2025 and December 31, 2024:

 SCHEDULE
OF INVENTORIES

    September 30, 2025  
    December 31, 2024 

    Raw materials 
    $-  
    $- 
  
    Finished goods 
     6,444,428  
     8,435,928 
  
    Reserve for obsolescence 
     (1,100,000) 
     (500,000)
  
    Total inventories 
     5,344,428  
     7,935,928 
  
    Less: inventories – discontinued operations 
     -  
     (101,577)
  
    Inventories – continuing operations 
    $5,344,428  
    $7,834,351 

For
the three and nine months ended September 30, 2025, the Company recorded a reserve of $600,000 and $600,000, respectively. The reserve
relates to the decision to exit our liquidation business for brands that the Company was operating the stores to liquidate inventory
to recover outstanding receivables. The Company is in discussions with the brands to return them and sell the inventory to them for a
discount.

    19

EIGHTCO
HOLDINGS INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9.
PREPAID EXPENSES AND OTHER CURRENT ASSETS

Other
current assets consist of the following at September 30, 2025 and December 31, 2024:

 SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT
ASSETS

    September 30,  2025  
    December 31, 2024 

    Advances for inventory purchases 
    $271,245  
    $949,641 
  
    Prepaid insurance 
     16,628  
     53,601