Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 104

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 104
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 Company files with the SEC is recorded, processed, summarized and reported within the time periods specified by the
Exchange Act rules and regulations.

As
of December 31, 2024, management completed an effective assessment of the Company’s internal control over financial reporting based
on the 2013 Committee of Sponsoring Organizations (COSO) framework. Management has concluded that as of December 31, 2024, our internal
control over financial reporting was not effective to detect the inappropriate application of U.S. GAAP. Management identified the following
material weakness set forth below 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’s
Report on Internal Control over Financial Reporting

Management
is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under
the Exchange Act.

Because
of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement
of our financial statements would be prevented or detected. Under the supervision of our Chief Executive Officer and Chief Financial
Officer, the Company conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31,
2024 using the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (“COSO”) (2013 Framework).

A
material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on
a timely basis. In our assessment of the effectiveness of internal control over financial reporting as of December 31, 2024, we determined
that there were control deficiencies existing that constituted a material weakness.

As
a result, our Chief Executive Officer and Chief Financial Officer concluded that the Company did not maintain effective internal
control over financial reporting as of December 31, 2024 based on criteria established in Internal Control — Integrated
Framework