Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 70

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 70
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 the period, which is offset by a decrease in our cashflows from investing activities,
as the Company did not capitalize cost associated with the data center during the three months ended June 30, 2025.

Cash
Flows from Investing

Our
cash used in investing activities decreased to approximately $464,000 for the six months ended June 30, 2025 from approximately $728,000
for the six months ended June 30, 2024. The primary use of cash was for expenditures for the development of our data center campus.
For the three months ended June 30, 2025, the Company did not capitalize cost associated with the data center.

Cash
Flows from Financing

Our
cash provided by financing activities decreased to approximately $465,000 for the six months ended June 30, 2025 from approximately
$1,092,000 for the six months ended June 30, 2024. The decrease was due to our incurring less debt for the six months ended June 30,
2025.

Liquidity
and Material Cash Requirements

Even
though we experienced negative cash flows from operations of approximately $227,000 for the six months ended June 30, 2025, as a result
of our issuance of convertible debentures in the aggregate principal amounts of $215,000 and the issuance of a note payable to a related
party, we had cash and cash equivalents of approximately $60,000 as of June 30, 2025. As of June 30, 2025, we had approximately $1,554,000
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