Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 152

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 152
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12

We
may face various security threats, including cyber security attacks on our data (including our vendors’ and customers’ data)
and/or information technology infrastructure. Although we utilize various procedures and controls to monitor and mitigate these threats,
there can be no assurance that these procedures and controls will be sufficient to prevent penetrations or disruptions to our systems.
Furthermore, a penetrated or compromised data system or the intentional, inadvertent or negligent release or disclosure of data could
result in theft, loss, fraudulent or unlawful use of customer, employee, or company data which could harm our reputation or result in
remedial and other costs, fines or lawsuits and require significant management attention and resources to be spent. In addition, our
insurance coverage and indemnification arrangements that we enter into, if any, may not be adequate to cover all the costs related to
cyber security attacks or disruptions resulting from such events.

Our
insurance coverage may not be adequate to cover all possible losses that we could suffer and our insurance costs may increase.

We
seek to maintain comprehensive insurance coverage at commercially reasonable rates. There can be no assurance that our insurance will
be sufficient to cover the full extent of all losses or liabilities for which we are insured, and we cannot guarantee that we will be
able to obtain insurance policies on favorable terms, or at all.

Our
management has limited experience in operating a public company.

Our
executive officers have limited experience in the management of a publicly traded company. Our management team may not successfully or
effectively manage its transition to a public company that will be subject to significant regulatory oversight and reporting obligations
under federal securities laws. Their limited experience in dealing with the increasingly complex laws pertaining to public companies
could be a significant disadvantage in that it is likely that an increasing amount of their time may be devoted to these activities,
which will result in less time being devoted to the management and growth of our business. We may not have adequate personnel with the
appropriate level of knowledge, experience and training in the accounting policies, practices or internal controls over financial reporting
required of public companies in the U.S. The development and implementation of the standards and controls necessary for us to achieve
the level of accounting standards required of a public company in the U.S. may require costs greater than expected. It is possible that
we will be required to expand our employee base and hire additional employees to support our operations as a public company, which will
increase our operating costs in future periods.

The
requirements of being a public company may