Company: OWLS
Filing Date: 2025-01-24
Form Type: DRS/A
Source: 0000950123-25-000547
Chunk: 40

Company: OBOOK HOLDINGS INC.
Filing Date: 2025-01-24
Form: DRS/A
Chunk 40
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 in us or our ability to effectively manage customer
balances, could lead customers to discontinue or reduce their use of our products and services or reduce customer balances held with us, or significant penalties and fines and additional restrictions, any of which could significantly harm our
business.

While we have processes and measures developed and maintained aiming to protect customer funds, hackers, employees or service
providers could still circumvent these processes and measures to improperly access our systems or documents, or the systems or documents of our customers and their payment counterparties, agents or service providers, and improperly access, obtain or
misuse customer digital assets and funds. The tactics used to obtain unauthorized access, disable or degrade service or sabotage systems are also constantly changing and evolving and may be difficult to anticipate or detect.

We have also entered into business partnerships with third parties, such as with Circle, the issuer of USDC, where we or our partners receive
and hold customer funds. See “Business—Our Partnerships.” Our and our partners’ abilities to manage and accurately hold customer cash and cash held for our own operating purposes require a high level of internal controls. We have
a limited ability to manage the controls and processes of our partners or other third-party vendors and may rely on our partners’ and vendors’ operations, liquidity and financial condition to manage these risks. As we maintain, grow and
expand our products and services offerings, we may not be able to scale and strengthen our internal controls and processes, and monitor our third-party partners’ and vendors’ abilities to similarly scale and strengthen.

Our ability to maintain insurance also depends on the insurance carriers’ ongoing underwriting criteria. Any loss of customer cash or
digital assets could lead our insurance coverage to lapse, which could cause a substantial business disruption, adverse reputational impact, inability to compete with our competitors, and regulatory investigations, inquiries or actions.
Additionally, any security incident where customer assets are compromised could impose substantial costs on us and necessitate the notification of impacted individuals, and in some cases regulators, potentially exposing us to regulatory enforcement
actions, including substantial fines or limitation of

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our ability to provide services, subjecting us to litigation and significant financial losses, damaging our reputation, and adversely affecting our business, operating results, financial condition and cash flows. Acquisitions, strategic investments, new businesses, joint ventures, divestitures and other transactions we enter into could fail to achieve strategic objectives, disrupt our ongoing operations or result in operating difficulties, liabilities and expenses, harm our business and negatively impact our results of operations