Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 328

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 2
Chunk 328
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and Capital Resources

Our
working capital as of December 31, 2024 and 2023 was as follows.

    2024  
    2023 
  
    Current assets 
    $296,000  
    $318,000 
  
    Current liabilities 
     (514,000) 
     (1,022,000)
  
    Working capital deficit 
    $(218,000) 
    $(704,000)

Our
working capital deficit decreased from a $704,000 deficit as of December 31, 2023 to a deficit of $218,000 as of December 31, 2024 for
a decrease of $486,000. The decrease in our working capital deficit was due to a $22,000 decrease in our cash and cash equivalents, which
was offset by a decrease of $167,000 in our accounts payable and accrued expenses and a decrease of $341,000 in convertible promissory
notes, net.

Cash
Flows

    For the years ended December 31, 

    2024  
    2023 
  
    Net cash used in operating activities 
    $(859,000) 
    $(35,000)
  
    Net cash used in investing activities 
     (1,467,000) 
     (1,730,000)
  
    Net cash provided by financing activities 
     2,305,000  
     - 
  
    Effect of exchange rate changes 
     (1,000) 
     6,000 
  
    Change in cash and cash equivalents during the period 
     (22,000) 
     (1,759,000)
  
    Cash and cash equivalents, beginning of period 
     308,000  
     2,067,000 
  
    Cash and cash equivalents, end of period 
    $286,000  
    $308,000 

Cash
Flows from Operations

Cash
used in operating activities increased to approximately $859,000 for the year ended December 31, 2024 from approximately $35,000 for
the year ended December 31, 2023, which was predominantly related to the increase in our expenditures for filing fees, legal fees, transfer
agent fees and consulting fees paid during the period.

13

Cash
Flows from Investing

Our
cash used in investing activities increased to approximately $1,467,000 for the year