Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 47

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 47
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,000 for the three months ended March 31, 2025 from
approximately $1,000,000 for the three months ended March 31, 2024. The decrease was due to our incurring less debt for
the three months ended March 31, 2025.

Liquidity
and Material Cash Requirements

Even
though we experienced negative cash flows from operations of approximately $145,000 for the three months ended March 31, 2025, as a
result of our issuance of convertible debentures in the aggregate principal amounts of $215,000, we had cash and cash equivalents of
approximately $78,000 as of March 31, 2025. As of March 31, 2025, we had approximately $1,635,000 of convertible debentures with
maturity dates on December 31, 2026.

It
is anticipated that we will incur expenses in the implementation of our business plan described above, and such expenses will require
substantial financing to complete the development of the property for a data center operation and to achieve our goals. We currently have
only limited capital with which to pay these anticipated expenses. To fund our business plan going forward, we intend to raise funds from
investors by issuing common stock, preferred stock and/or debt securities. We are currently in discussions with several potential funding
sources. However, there can be no assurance we will be able to successfully raise additional funds when required, if at all.

The
failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate
our development plans, any commercialization efforts or other operations. We may not be able to secure financing on favorable terms, or
at all, to meet our future capital needs. In addition, even if we are able to obtain sufficient funding to commence our business operations,
we may need to pursue additional financing in the future to make expenditures and/or investments to support the growth of our business
and may require additional capital to pursue our business objectives and respond to new competitive pressures, pay extraordinary expenses
or fund our growth, including through acquisitions. Additional funds, however, may not be available when we need them on terms that are
acceptable to us, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it,
our ability to commence our proposed business operations, to continue to grow and support our business and to respond to