Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 170

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 170
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 and may materially affect
our financial condition and results of operations.

In
September 2025, we adopted a Digital Asset Treasury Strategy under which a substantial portion of our liquidity, including proceeds from
financing transactions, is allocated to the acquisition and holding of digital assets. Digital asset markets are highly volatile and
historically subject to significant price fluctuations. As of September 30, 2025, we held approximately $287 million of digital assets
measured at fair value under ASU 2023-08. Future fluctuations in the prices of these assets, including Worldcoin (WLD and WCWLD), Ethereum
(ETH), and other crypto assets, may result in material gains or losses in our consolidated statements of operations.

Significant
declines in digital asset prices may reduce our liquidity, impair our ability to execute our operating strategy, reduce the value of
our balance sheet, and adversely affect our stock price.

The
fair value measurement model required under ASU 2023-08 may increase earnings volatility.

Effective
January 1, 2025, we adopted ASU 2023-08, which requires us to measure eligible digital assets at fair value, with changes recognized
in net income each reporting period. As a result, our earnings will be sensitive to short-term price movements in digital asset markets.
This may produce material period to period volatility, reduce comparability to prior periods, and result in losses independent of our
operating performance.

We
may be unable to liquidate digital assets at favorable prices or in a timely manner due to limited market liquidity or trading halts.

Digital
asset markets may experience illiquidity, exchange outages, trading halts, or disruptions. Some of our digital assets are custodied or
executed through a limited number of regulated and unregulated trading venues. In periods of high volatility or market stress, we may
be unable to convert digital assets into fiat currency at acceptable prices or within required timeframes, which may impair our ability
to satisfy operational or financing needs.

Digital
asset custody, exchange, and counterparty risks may expose us to loss of assets.

We
rely on third-party custodians and trading counterparties, including Kraken, Coinbase, and FalconX, to safeguard and execute transactions
relating to our digital assets. The digital asset industry has experienced failures of exchanges, custodians, trading firms, and stablecoin
issuers. A cybersecurity breach, insolvency, operational failure, or misappropriation at any cust