Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 45

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 45
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 extinguishment of debt 
     -  
     (6,468,000) 
     (6,468,000) 
     100.0 
  
    Total other expenses 
    $(21,000) 
    $(6,722,000) 
    $(6,701,000) 
     99.7%

14

Revenues

For
the three months ended March 31, 2025 and 2024, we had no revenues.

Operating
Expenses

Professional
fees

Our
professional fees decreased to $96,000 for the three months ended March 31, 2025 from $143,000 for the three months ended March 31,
2024. The decrease of approximately $47,000 was attributable to a decrease in our consulting fees of approximately $63,000, a
decrease in our legal fees of $16,000 and an increase in our audit fees of approximately $32,000.

Equity-based
compensation

Our
equity-based compensation for the three months ended March 31, 2025 decreased to $42,000 from $121,000 for the three months ended March
31, 2024.

Payroll
and related expenses

Payroll
and related expenses increased to $81,000 for the three months ended March 31, 2025 from $19,000 for the three months ended March 31,
2024. For the year ended December 31, 2023, we had one employee. Our first employee, our Chief Operating Officer, was hired in June 2023,
and our second employee, our Vice President of Data Center Development, was hired in February 2024.

Financing
costs

Our
financing cost for the three months ended March 31, 2025 increased to $22,000 from $6,000 for the three months ended March 31, 2024.
The increase in due to the interest expense and amortization of debt issuance costs associated with our convertible debentures
issued during the year ended December 31, 2024

Financing
costs – related party 

For the three months ended March
31, 2025, the Company did not have financing activities with a related party.

Liquidity
and Capital Resources

Our
working capital as of March 31, 2025 and December 31, 2024 was as follows.

    2025  
    202