Hello, @Adnan Habib,
1 license of the theme can be used on 1 staging site + 1 live/production site = 1 end project.
According to the ThemeForest license policy, you can use 1 license for 1 project (dev site, production site, localhost but the same project) – https://themeforest.net/licenses/terms/regular
If you want to get a new installation and face the activation limit, contact us, so we check and reset activations for you.
Regards 8Themes Team.