Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 236

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 236
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 likely to have a material adverse effect on the value
of the Company’s common stock.

Privacy
risks from biometric verification are extensive and may lead to significant barriers to entry.

Worldcoin’s
identity-verification process relies on collecting biometric data through its Orb iris-scanning hardware. Because an iris pattern is
a unique biometric identifier, there are numerous concerns about how that data is protected, retained, used, controlled and deleted,
in addition to what happens to the data if it is stolen and fraudulently used. Regulators globally have opened inquiries or expressed
concern regarding data protection and privacy due to its biometric collection practices through Worldcoin’s Orb iris-scanning device.
The concern about the risks of biometric data has been linked to privacy issues in other contexts. For example, in the U.S., while the
Health Insurance Portability and Accountability Act (“HIPAA”) does not apply directly, the statute illustrates the heightened
security standards regulators evaluate when considering biometric data, including HIPAA’s standards for encryption, consent, data
protection and breach notification. There are additional privacy concerns that are relevant under applicable law, such as the accuracy
of data, the age of the participants, cross-border transfers, and national security implications, all of which may heighten regulatory
scrutiny. There are also risks, such as key employees that may be focused on building an infrastructure to enter new markets, and obtaining
new users may otherwise be focused on building an infrastructure that complies with multiple different and inconsistent regulatory frameworks.
Litigation and regulatory scrutiny can take significant amounts of time and resources and create uncertainty, which can lead to business
delays, which may threaten the business overall even if the product is ultimately found to be acceptable. If Worldcoin is unable to comply
with these regulations, adoption of Worldcoin technology and the utility of WLD may be limited. Collectively, these privacy concerns
could present substantial barriers to adoption and could materially and adversely affect the value and long-term viability of WLD tokens
and the Worldcoin project, which, because of the Company’s focus on its WLD treasury strategy, could have an adverse impact on
the value of the Company’s common stock.

46

Worldcoin’s
requirement for in-person iris scans could create a significant adoption barrier compared to digital-only identity systems.

Worldcoin’s
reliance on in-person iris scanning through proprietary Orb devices may present a significant hurdle to Worldcoin’s adoption. Digital-only
identity protocols or other Web