Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 938

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 11
Chunk 938
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 on the results of operations or financial position.

In November 2023, the FASB issued
ASU 2023-07, “Segment Reporting (ASC Topic 280): Improvements to Reportable Segment Disclosures.” The amendments require the
disclosure of significant segment expenses as well as expanded interim disclosures, along with other changes to segment disclosure requirements.
The standard will be effective for fiscal years beginning after December 15, 2023, and interim periods beginning on or after December
15, 2024. We have implemented the provisions of the ASU 2023-07.

On December 14, 2023, the FASB
issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires
entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount
of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The
new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is
currently evaluating the impact of adopting the standard.

In November 2024, the FASB issued
ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”. The
amendments require the disclosure of specified information about certain costs and expenses including purchases of inventory, employee
compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization recognized as part of oil and
gas producing activities. It also requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions
that are not separately disaggregated quantitatively as well as the total amount of selling expenses and, in annual reporting periods,
an entity’s definition of selling expenses. The standard will be effective for fiscal years beginning after December 15, 2026, and
interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact that the adoption of the provisions
of the ASU will have on our consolidated financial statements. We are currently evaluating the impact that the adoption of the provisions
of the ASU will have on our consolidated financial statements.

Note
2 – Data Center Costs

DATA CENTER COSTS