Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 40

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 40
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 2025 that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations
on the Effectiveness of Internal Controls

Readers
are cautioned that our management does not expect that our disclosure controls and procedures or our internal control over financial
reporting will necessarily prevent all fraud and material error. An internal control system, no matter how well conceived and operated,
can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations
in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any,
within our control have been detected. The design of any system of controls also is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any control design will succeed in achieving its stated goals under all
potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance
with the policies or procedures may deteriorate.

22

PART
II - OTHER INFORMATION

Item
1. Legal Proceedings

We
know of no material active or pending legal proceeding against our company, nor are we involved as a plaintiff in any material proceeding
or pending litigation.

Item
1A. Risk Factors

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

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

Sales
of Unregistered Securities

There
have been no sales of unregistered securities within the reporting period covered by this report that would be required to be disclosed
pursuant to Item 701 of Regulation S-K[, with the exception of the following:]

In
July 2025, in connection with a loan made to us by an accredited investor in the amount of $500,000 and an agreement to extend the
maturity date of an existing loan, we issued to the lender a five-year warrant to purchase 2,000,000 shares
of common stock for a purchase price of $0.50 per share. Such warrant was issued by us in reliance upon the exemption from registration
available under Section 4(2) of the Securities Act and Regulation D promulgated thereunder.

Repurchases
of Shares or of Company Equity Securities

None.

Item
3. Default Upon Senior Securities

None.

Item
4