Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 11

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 11
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 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date.
Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs
are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from
sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that
market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

    Level
    1 -
    Observable
    inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
  
    Level
    2 -
    Other
    inputs that are directly or indirectly observable in the marketplace.
  
    Level
    3 -
    Unobservable
    inputs which are supported by little or no market activity.

The
fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when
measuring fair value.

As
of and for the six months ended June 30, 2025 and 2024, the Company had no assets or liabilities that require fair value measurement.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
Cash and cash equivalents are recorded at cost, which approximates their fair value. The Company maintains its cash and cash equivalents
in banks insured by the Federal Deposit Insurance Corporation (“FDIC”) in accounts that at times may be in excess of the
federally insured limit of $250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions.
As of June 30, 2025 and December 31, 2024, the Company had approximately nil and $34,000, respectively, in excess of the federal insurance
limit.

Prepaid
Expenses

Prepaid
expenses are assets held by the Company that are expected to be realized and consumed within twelve months after the reporting period.

Data
Center Campus Costs

Data
center development cost is stated at cost,