Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 12

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 12
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” company. On December 20,
2018, we changed our corporate name from RealSource Residential, Inc. to CalEthos, Inc.

7

In
early 2021, we determined there was a sizable opportunity to develop and manufacture high-performance computer systems for the cryptocurrency
mining industry. In August 2021, in connection with a $3.5 million capital raise, our board of directors determined that we were no longer
a shell company, as defined in Rule 12b-2 of the Exchange Act. During the development of our computer chip and system in Korea, we had
also developed a plan to build a large-scale, clean-energy powered, containerized, immersion-cooled data center operation in Southern
California to support the use of the systems we were developing for our company and for others. However, following the decline of the
bitcoin market in early 2022, we decided to abandon our chip and system development efforts and we determined that we could develop a
profitable business by offering wholesale data center colocation services to a larger customer base of hyperscale and enterprise IT companies.

    Item
    1A. 
    Risk
    Factors.

We
are a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this
item.

    Item
    1B. 
    Unresolved
    Staff Comments.

None.

    ITEM
    1C.
    Cybersecurity

Risk
Management and Strategy

While
we are in our early stages of our business plan, we regularly assess risks from cybersecurity threats, monitor our information systems
for potential vulnerabilities and test those systems pursuant to our cybersecurity processes and practices, which are integrated
into our overall risk management system. As we progress with the development of our business plans, we plan to use various security tools
designed to help us identify, investigate, resolve and recover from security incidents in a timely manner.

To
date, cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and we believe
are not reasonably likely to affect our company, including our business strategy, results of operations or financial condition.

Governance

One
of the key functions of our board of directors is informed oversight of our risk management process, including risks from cybersecurity
threats. Our board of directors is responsible for monitoring and assessing strategic risk exposure, and our executive officers are responsible
for the day-to-day management of the material risks