Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 91

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 Investment Company Act. This classification would subject us
to additional periodic reporting, disclosure requirements, and regulatory compliance obligations, significantly increasing our operational
costs. Compliance with the requirements of the Investment Company Act applicable to registered investment companies may make it difficult
for us to continue our current operations, and this would materially and adversely affect our business, financial condition and results
of operations. In addition, if WLD or another digital asset we hold were determined to constitute a security for purposes of the federal
securities laws, we would likely take steps to reduce the percentage of WLD or such other digital assets that constitute investment assets
under the Investment Company Act. These steps may include, among others, selling WLD that we might otherwise hold for the long term and
deploying our cash in non-investment assets, and we may be forced to sell our WLD or other digital assets at unattractive prices, or
cease our operations.

50

Although
we do not currently engage in investing, reinvesting, or trading securities, and we do not hold ourselves out as an investment company,
we could inadvertently be deemed one under the Investment Company Act. If we are unable to rely on an exclusion, we would be required
to register with the SEC, which could impose additional financial and regulatory burdens.

Further,
state regulators may conclude that the digital assets we hold are securities under state laws, requiring us to comply with state-specific
securities regulations. States like California have stricter definitions of “investment contracts” than the SEC, increasing
the risk of additional regulatory scrutiny.

The
classification of digital assets that we hold as a commodity could subject us to additional CFTC regulation, resulting in significant
compliance costs or the cessation of certain operations.

Under
current interpretations, WLD are classified as a commodity under the Commodity Exchange Act and are subject to regulation by the CFTC.
If our activities require CFTC registration, we may be required to comply with extensive regulatory obligations, which could result in
significant costs and operational disruptions. Additionally, current and future legislative or regulatory developments, including new
CFTC interpretations, could further impact how WLD and WLD derivatives are classified and traded.

The
lack of legal recourse and insurance for digital assets increases the risk of total loss in the event of theft or destruction.

Digital
assets that we own are not, and digital assets that we acquire in the future will not, be insured against theft, loss or destruction.
If an event occurs where we lose our