Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 159

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 159
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’s time in its efforts to comply with Section 404 of the Sarbanes-Oxley Act regarding internal controls over financial
reporting. Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together
with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls,
or difficulties encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing
by us conducted in connection with Section 404 of the Sarbanes-Oxley Act, or the subsequent testing by our independent registered public
accounting firm when required, may reveal deficiencies in our internal controls over financial reporting that are deemed to be material
weaknesses or that may require prospective or retrospective changes to our consolidated financial statements or identify other areas
for further attention or improvement. If we are unable to assert that our internal controls over financial reporting are effective, we
could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common stock
to decline, and we may be subject to investigation or sanctions by the SEC.

Ferguson Containers has material weaknesses in its controls over financial reporting, which could negatively impact
investor confidence in the accuracy and completeness of our financial reports, and cause the price of our common stock to decline.

For
Ferguson Containers’ fiscal years ended December 31, 2024 and 2023, respectively, Ferguson Containers had the following material
weakness in internal controls over financial reporting:

    ●
    Primarily
    due to the small size of Ferguson Containers, it does not maintain sufficient segregation of duties to ensure the processing, review
    and authorization of all transactions including non-routine transactions.

    ●
    Ferguson
    Containers’ processes lacked timely and complete reviews and analysis of information used to prepare its financial statements
    and disclosures in accordance with accounting principles generally accepted in the United States of America.

17

The
material weaknesses of Ferguson Containers’ internal control over financial reporting could negatively impact investor confidence
in the accuracy and completeness of our financial reports, which could cause the price of our common stock to decline.

An
active, liquid trading market for our common stock may not develop, which may limit your ability to sell your shares.

Although
our common stock is listed on the Nasdaq under the trading symbol “OCTO,” an active trading market for our common stock may
never develop or be sustained. A public trading market having the desirable characteristics of