Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 688

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 688
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 of discontinued
operations are aggregated and presented separately in the Consolidated Statement of Operations. Assets and liabilities of the discontinued
operations are aggregated and reported separately as assets and liabilities of discontinued operations in the Consolidated Balance Sheet,
including the comparative prior year period. The Company’s cash flows are reflected as cash flows from discontinued operations
within the Company’s Consolidated Statements of Cash Flows for each period presented.

Cash
and Cash Equivalents. The Company considers all highly liquid, short-term investments with original maturities of three months or
less when purchased to be cash equivalents.

    F-9

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Accounts
Receivable. Accounts receivable are carried at their contractual amounts, less an estimated allowance for credit losses. Management
estimates the allowance for credit losses using a loss-rate approach based on historical loss information, adjusted for management’s
expectations about current and future economic conditions, as the basis to determine expected credit losses. Management exercises significant
judgment in determining expected credit losses. Key inputs include macroeconomic factors, industry trends, the creditworthiness of counterparties,
historical experience, the financial conditions of the customers, and the amount and age of past due accounts. Management believes that
the composition of receivables at year-end is consistent with historical conditions as credit terms and practices and the client base
has not changed significantly. Receivables are considered past due if full payment is not received by the contractual due date. Past
due accounts are generally written off against the allowance for credit losses only after all collection attempts have been exhausted.
The allowance for credit losses was $60,000 and $67,350 as of December 31, 2024 and 2023, respectively. There were two customers who represented
30% and 18% of total accounts receivable as of December 31, 2024, respectively.

Inventories.
Inventory is recorded at the lower of cost or net realizable value on a first-in, first-out basis. The Company reduces the carrying value
of inventories for those items that are potentially excess, obsolete, or slow moving based on a review of recent sales trends and expected future demand.

Property
and Equipment. Property and equipment are stated at cost, net of accumulated depreciation and amort