Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 118

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 118
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The process of integrating acquired businesses and assets may involve unforeseen difficulties and may require a disproportionate amount
of our managerial and financial resources. The integration of acquisitions is a complex, costly and time-consuming process, and our management
may face significant challenges in such process. Some of the factors affecting integration will be outside of our control, and any one
of them could result in increased costs and diversion of management’s time and energy, as well as decreases in the amount of expected
revenue. Our failure to achieve consolidation savings, to incorporate the acquired businesses and assets into our existing operations
successfully or to minimize any unforeseen operational difficulties could have a material and adverse effect on our financial condition
and results of operations.

Additional
ability to achieve the objectives of our business strategy depends in significant part on our ability to obtain equity and debt financing.
If we are unable to obtain equity or debt financing on favorable terms or at all, we may not be able to successfully execute on our business
strategy.

Decentralized
finance arrangements may expose us to risks of smart contract risk, operational failures and cybersecurity threats.

From
time to time, we may generate income through the use of digital assets including WLD or stablecoins in decentralized protocols including
decentralized finance (“DeFi”) applications. DeFi applications include over-collateralized borrow-lend vaults, token-exchange
pools, and other financial or commercial arrangements. Although these protocols are largely designed to limit counterparty risk in transactions,
they introduce novel risks relating to software code bugs, liquidation risks, and governance risks that are designed to operate in decentralized
environments but can be subject to failures or exploits. In addition: (a) network congestion or downtime can increase the likelihood
of asset loss or liquidation; (b) the volatility of digital assets deployed into DeFi applications may increase the likelihood of liquidation
due to market downturns, liquidity crises, governance attacks or other exploits, leading to substantial financial losses; (c) the uncertainty
in the accounting treatment of certain DeFi applications; (d) DeFi applications generally operate on a user-to-protocol basis where a
user of a DeFi application does not know the identity of other parties utilizing the DeFi application; and (e) the use of monitoring
and forensics software to mitigate risks of engaging in DeFi application may not prevent engaging in DeFi pools that are also used by
bad actors.

42

The
Company will face risks relating to the custody of its digital assets.