Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 365

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 2
Chunk 365
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000, for 100% ownership of AIQ. As of July 2022, AIQ was placed into a dormant state of operations.

Basis
of Presentation

The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the
“SEC”).

Principles
of Consolidation

The
consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary from the formation date. All material
intercompany transactions and balances have been eliminated in consolidation.

Going
Concern and Liquidity

The
Company incurred a net loss of approximately $12,590,000 for the year ended December 31, 2024, had an accumulated deficit of approximately
$31,870,000 as of December 31, 2024 and had no recurring revenue from operations. The Company has financed its activities principally
through debt and equity financing and shareholder contributions. Management expects to incur additional losses and cash outflows in the
foreseeable future in connection with its operating activities. These conditions raise substantial doubt about the Company’s ability
to continue as a going concern for one year from the issuance of these consolidated financial statements.

    F-7

The
Company’s consolidated financial statements have been presented on a going concern basis, which contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business.

The
Company is subject to a number of risks similar to those of other similar stage companies, including dependence on key individuals; successful
development, marketing and branding of services; the uncertainty of product development and generation of revenues; dependence on outside
sources of financing; risks associated with research and development; dependence on third-party suppliers and collaborators; protection
of intellectual property; and competition with larger, better-capitalized companies. Ultimately, the attainment of profitable operations
is dependent on future events, including obtaining adequate financing to fund the Company’s operations and generating a level of
revenues adequate to support the Company’s cost structure.

The
Company will need to raise debt or equity financing in the future in order to continue its operations and achieve its growth targets.
However, there can be no assurance that such financing will be available in sufficient amounts and on acceptable terms, when and if needed,
or at all. The precise amount and timing of the funding needs cannot be determined accurately at this time, and will depend on a number
of factors,