Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 212

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 212
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 espionage, and insiders. In addition, certain types of attacks could harm us even if our systems are left
undisturbed. For example, certain threats are designed to remain dormant or undetectable, sometimes for extended periods of time, or
until launched against a target and we may not be able to implement adequate preventative measures. Further, there has been an increase
in such activities due to the increase in work arrangements. The risk of cyberattacks could also be increased by cyberwarfare in connection
with the ongoing Russia and Israel conflicts, or other future conflicts, including potential proliferation of malware into systems unrelated
to such conflicts. Any future breach of our operations or those of others in the Worldcoin industry, including third-party services on
which we rely, could materially and adversely affect its financial condition and results of operations.

47

Breaches
could also lead to class action litigation, regulatory investigations, mandatory breach notifications, substantial fines under the EU
GDPR, India’s DPDP Act, or similar regimes, a permanent loss of user trust, or damage to the ecosystem, among other risks. Even
if a hack or breach does not actually occur and is only an advertised threat, for example through social media, any publicity about a
breach or a hack could cause regulatory scrutiny and severe reputational risk. Because Worldcoin’s system links each user’s
biometric “uniqueness” to a persistent digital identity and many have been given tokens, any compromise could also cause
a manipulation of governance votes across the network if the hack is large enough. These factors, many of which are outside Worldcoin’s
direct control, represent a material and continuing risk to its business, financial condition, and reputation, potentially having an
adverse impact on the value of the Company’s common stock.

Opposition
and accusations of “data colonialism” toward large-scale biometric systems could limit Worldcoin’s acceptance and trigger
regulatory backlash.

Worldcoin’s
global collection of biometric identifiers exposes it to heightened reputational risk and criticism from civil groups, privacy advocates,
and non-governmental organizations (“NGOs”) that view all organizations collecting biometric data from individuals as a form
of “data colonialism.” Particularly in the Global South, technology companies and investors in wealthier nations that collect
personal biometric data may be considered entities that are replicating historical patterns of exploitation by providing technology companies
and investors financial incentives to vulnerable communities in exchange for very valuable personal data that may be used beyond the
purpose of establishing