Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 36

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 36
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000 for the nine months ended September 30, 2025, as
a result of our issuance of convertible debentures in the aggregate principal amounts of $215,000 and the issuance of notes payable
to a related party in the aggregate principal amount of $750,000, we had cash and cash equivalents of approximately $274,000 as of
September 30, 2025. As of September 30, 2025, we had outstanding approximately $1,635,000 principal amount of convertible debentures
with a maturity date on December 31, 2026 and $750,000 principal amount of promissory notes with a maturity date of January
31, 2026.

As
discussed above, we have outstanding indebtedness in the aggregate amount of $2,304,000 maturing prior to December 31, 2026. In
addition, 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 our outstanding indebtedness and these anticipated expenses. To
pay our outstanding indebtedness and 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