Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 227

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 227
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 whether there is appreciation in the value of digital assets following
our purchases, which is highly speculative. Future fluctuations in digital asset trading prices may result in our converting digital
assets into cash with a value substantially below what we paid for such digital assets. There is no guarantee that digital assets such
as WLD will continue to represent any measure of value. Any decreases in the value of WLD could have a material adverse effect on our
financial condition and results of operations. See also “—Ownership of WLD is believed to be highly concentrated.”

The
concentration of our WLD holdings enhances the risks inherent in our Worldcoin-focused strategy.

The
intended concentration of our WLD holdings limits the risk mitigation that we could achieve if we were to purchase a more diversified
portfolio of treasury assets, and the absence of diversification enhances the risks inherent in our Worldcoin-focused strategy. Any future
significant declines in the price of WLD could have a pronounced impact on our financial condition than if we used our cash to purchase
a more diverse portfolio of assets. See also “—Ownership of WLD is believed to be highly concentrated” and “—We
intend to purchase WLD, the price of which has been, and will likely continue to be, highly volatile. Our operating results and share
price may significantly fluctuate, including due to the highly volatile nature of the price of such digital assets and erratic market
movements.”

41

In
connection with our WLD treasury strategy, we expect to interact with various smart contracts deployed on the Worldcoin network, which
may expose us to risks and technical vulnerabilities.

In
connection with our WLD treasury strategy, including decentralized finance activities, we expect to interact with various smart contracts
deployed on the Ethereum network in order to optimize our strategy and generate income. Smart contracts are self-executing code that
operate without human intervention once deployed. Although smart contracts are integral to the functionality of decentralized finance
applications, they are subject to many known risks such as technical vulnerabilities, coding errors, security flaws, and exploits. Any
vulnerability in a smart contract we interact with could result in the loss or theft of WLD or other digital assets, which could have
a materially adverse impact on our business. In addition, certain smart contracts are upgradable or subject to certain governance controls
which could result in unforeseen code errors, asset or account freezing, or the loss of digital assets. A vulnerability in a smart contract
could create an unintended and unforeseeable