Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 722

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 722
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4. The total consideration includes:

●$557,835
                                            in cash paid at closing,

●$2,500,000
                                            million senior secured promissory note issued by the buyer,

●and potential earnout
                         payments of up to $250,000
                         for each of 2025 and 2026 based on defined EBITDA thresholds.

The
buyer assumed certain liabilities associated with the Corrugated Packaging Business. A side letter agreement established an
effective operational date of April 1, 2025, for purposes of accounting and tax allocations.

As disclosed in Note 4
to the consolidated financial statements, the Company classified the Corrugated Packaging Business operated under Ferguson
Containers as discontinued operations as of December 31, 2024.

F-29

ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM
9A. CONTROLS AND PROCEDURES

Disclosure
Controls and Procedures

The
Company’s management, with the participation of the Company’s Principal Executive Officer and Principal Financial and Accounting
Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Annual Report. Based on such evaluation, the Company’s
Principal Executive Officer and Principal Financial and Accounting Officer have concluded that, as of the end of such period, the Company’s
disclosure controls and procedures were not effective to provide reasonable assurance that information that it is required to disclose
in reports that the Company files with the SEC is recorded, processed, summarized and reported within the time periods specified by the
Exchange Act rules and regulations.

As
of December 31, 2024, management completed an effective assessment of the Company’s internal control over financial reporting based
on the 2013 Committee of Sponsoring Organizations (COSO) framework. Management has concluded that as of December 31, 2024, our internal
control over financial reporting was not effective to detect the inappropriate application of U.S. GAAP. Management identified the following
material weakness set forth below in our internal control over financial reporting.

    The
    Company was unable to provide a timely financial reporting package in connection with the year end audit. This was primarily the
    result of the Company’s limited accounting personnel. This also