Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 37

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 37
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 continue to grow and support our business and to respond to business challenges
could be significantly limited.

20

Going
Concern

The
unaudited financial statements included in this Report have been prepared on a going concern basis, which implies that our company will
continue to realize its assets and discharge its liabilities and commitments in the normal course of business. We are presently in the
development stage and, apart from our cash balances, have only limited assets. Our company has not generated revenues in the last two
fiscal years, has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future.
The continuation of our company as a going concern is dependent upon: (i) continued financial support from our shareholders; (ii) the
ability of our company to continue raising necessary debt or equity financing to achieve its operating objectives; and (iii) our ability
to acquire assets and establish a business or merge or otherwise acquire business opportunities.

Our
independent auditors included an explanatory paragraph in their report on our financial statements for the year ended December 31, 2024
regarding concerns about our ability to continue as a going concern. In addition, our financial statements contain further note disclosures
in this regard. The implementation of our business plan is dependent upon our ability to continue raising sufficient new capital from
equity or debt markets in order to fund our on-going operating losses and real estate acquisition activities. The issuance of additional
equity securities could result in a significant dilution in the equity interests of our current stockholders.

Application
of Critical Accounting Policies

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying disclosures of our company. Although these estimates are based on management’s
knowledge of current events and actions that our company may undertake in the future, actual results may differ from such estimates.

Principles
of Consolidation

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

Foreign
Currency Translation

The
financial statements of our former foreign subsidiary, for which the functional currency is the local currency, was translated into U.S.
dollars using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate
during the year for revenue, expenses, gains and losses. Translation adjustments were recorded as other comprehensive income (loss