Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 980

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 12
Chunk 980
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to continue as a going concern for one year from the issuance of these consolidated financial statements.

    F-7

The
Company’s consolidated financial statements have been presented on a going concern basis, which contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business.

The
Company is subject to a number of risks similar to those of other similar stage companies, including dependence on key individuals; successful
development, marketing and branding of services; the uncertainty of product development and generation of revenues; dependence on outside
sources of financing; risks associated with research and development; dependence on third-party suppliers and collaborators; protection
of intellectual property; and competition with larger, better-capitalized companies. Ultimately, the attainment of profitable operations
is dependent on future events, including obtaining adequate financing to fund the Company’s operations and generating a level of
revenues adequate to support the Company’s cost structure.

The
Company will need to raise debt or equity financing in the future in order to continue its operations and achieve its growth targets.
However, there can be no assurance that such financing will be available in sufficient amounts and on acceptable terms, when and if needed,
or at all. The precise amount and timing of the funding needs cannot be determined accurately at this time, and will depend on a number
of factors, including the development of the Company’s data center campus, approvals for construction permits, construction times,
delivery of critical equipment, market demand for the Company’s wholesale colocation data center services, the timing of customer
commitments for data center space, the management of working capital, and payment terms and conditions for purchase of the Company’s
services. The Company believes its cash balances and cash flow from operations will not be sufficient to fund its operations and growth
for the next twelve months from the issuance date of these financial statements. If the Company is unable to raise additional funding
from investors or through other avenues, it may not be able to continue as a going concern. The accompanying consolidated financial
statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Segment Reporting

The Company adopted FASB issued ASU 2023-07, “Segment
Reporting (ASC Topic 280) for the annual reporting period ended December 31, 2024. The most significant provision was for the Company
to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), who is
the CEO. All expense categories on the Consolidated