Company: ORBS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001493152-25-012159
Chunk: 16

Company: Eightco Holdings Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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The
Company’s management, with the participation of the Company’s Principal Executive Officer and Principal Financial and Accounting
Officer has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Based on such evaluation, the Company’s
Principal Executive Officer and Principal Financial and Accounting Officer have concluded that, as of the end of such period covered
by this Quarterly Report, the Company’s disclosure controls and procedures were not effective to provide reasonable assurance that
information that it is required to disclose in reports that the Company files with the SEC is recorded, processed, summarized and reported
within the time periods specified by the Exchange Act rules and regulations due to the reasons set forth below.

As
of December 31, 2024, management identified the following material weakness in our internal control over financial reporting: the Company
was unable to provide a timely financial reporting package in connection with the year end audit. This was primarily the result of the
Company’s limited accounting personnel. This also limits the extent to which the Company can segregate incompatible duties and
has a lack of controls in place to ensure that all material transactions and developments impacting the financial statements are reflected.
There is a risk under the current circumstances that intentional or unintentional errors could occur and not be detected.

Management
has concluded that the material weakness described above currently exists as of June 30, 2025. The Company plans to engage with outside
consultants to strengthen its capabilities and help the Company in the design and assessment of its internal controls over financial
reporting to further reduce and remediate existing control deficiencies during 2025.

Changes
in Internal Control over Financial Reporting

During
the three months ended June 30, 2025, there were no changes in our internal control over financial reporting that materially affected
our internal control over financial reporting as of June 30, 2025.

37

PART
II. OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS

From
time to time, the Company is party to legal actions that are routine and incidental to its business. However, based upon available information
and in consultation with legal counsel, management does not expect the ultimate disposition of any or a combination of these actions
to have a material adverse effect on the Company’s assets, business, cash flow, condition (financial or otherwise), liquidity,
pros