Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 938

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 938
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of December 31, 2024, the Company had approximately $0.2
million in cash and cash equivalents as compared to $5.2
million at December 31, 2023. The Company expects that its current cash and cash equivalents, approximately $0.5
million as of the date of this annual report, will not be sufficient to support its projected operating requirements for at least
the next 12 months from this date.

The
Company expects to need additional capital in order to increase revenues above current levels. Any additional equity financing, if available,
may not be on favorable terms and would likely be significantly dilutive to the Company’s current stockholders, and debt financing,
if available, may involve restrictive covenants. The Company’s ability to access capital when needed is not assured and, if not
achieved on a timely basis, will likely have a materially adverse effect on our business, financial condition and results of operations.
In 2023, the Company began reducing headcount to reduce the corporate overhead. The Company raised capital in 2024 and
will continue to look to reduce costs in 2025 and raise capital as required for its operations.

    F-15

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

4.
ACQUISITIONS AND DIVESTITURES

Effective October 1, 2022, the Company acquired 100% of the issued and
outstanding membership interests of Forever 8.

During
fiscal year 2024, the Company entered into multiple amendments with the former owners of Forever 8 that significantly altered the original
acquisition consideration. These changes included:

●The
                                            forgiveness of $5.4 million in principal on the Promissory Notes,

●The
                                            waiver of 215,000 non-voting preferred membership units initially included in the acquisition
                                            terms,

●The
                                            release of $6.1 million in contingent consideration, which was recognized as a gain in other
                                            income during the year ended December 31, 2024, and

●The
                                            forgiveness and conversion of approximately $5.7 million in accrued interest on the Promissory
                                            Notes, resulting in the issuance of approximately 1.9 million shares of the Company’s
                                            common stock. The remaining forgiven interest, totaling $3.86 million, was recorded as a