Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 232

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 232
---

limited ability to monitor or control the advisor’s activities or to recover damages if it fails to perform. Further, the advisor
in the strategic operating agreement is not bound by any time commitment for providing its services. If the advisor fails to advise effectively
because it is too busy or otherwise, we may not get the benefit of the services, which could cause a material and adverse impact on the
Company.

Risks
Related to Worldcoin

Opaque
governance, concentration of ownership, and a potential lack of meaningful separation between the World Foundation and Tools for Humanity
may create conflicts of interest; material decisions may be made to the detriment of third-party holders of WLD and could also adversely
affect the value of WLD and the Company.

Tools
for Humanity, a for-profit company, was created to develop and operate the core hardware and software behind the WLD protocol. It established
the World Foundation as a separate non-profit entity to steward the protocol. The World Foundation relies on Tools for Humanity for engineering,
product and operational execution and it may provide WLD as consideration for these services. According to Worldcoin’s blog, the
total supply of WLD when launched was 10 billion. Before launch, 75% of the total WLD were allocated to the World Foundation (the “WF
WLD”), and 25% of the total of WLD were allocated to Tools for Humanity, those individuals linked to the owners of Tools for Humanity,
and other early founders of Tools for Humanity (the “TFH WLD”). As of April 2025 [NTD – can this be updated?], about
1.3 billion or 13% of the total supply was in circulation.

The
timing and conditions under which the tokens are released into circulation are important to understand the governance of the WLD ecosystem
and the potential impact on the value of WLD. While the World Foundation and Tools for Humanity are legally separate entities and have
separate allocations, the decision-making authority governing when and how tokens are released may rest with a small group of individuals.
The allocations and governance of TFH WLD and WF WLD are governed by arrangements that are not transparent to the public, and there is
no autonomous on-chain code, third party reporting, audit or other objective processes that tie the statements made to the public to
those actions of World Foundation or Tools for Humanity.

44

With
respect to WF WLD, it is unclear what the WF WLD release schedule is, but it is