Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 28

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 28
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 and timing of the funding needs cannot be determined accurately at this time, and will depend on a number
of factors, including the development of the Company’s data center campus, approvals for construction permits, construction times,
delivery of critical equipment, market demand for the Company’s wholesale colocation data center services, the timing of customer
commitments for data center space, the management of working capital, and payment terms and conditions for purchase of the Company’s
services. The Company believes its cash balances and cash flow from operations will not be sufficient to fund its operations and growth
for the next twelve months from the issuance date of these financial statements. If the Company is unable to raise additional funding
from investors or through other avenues, it may not be able to continue as a going concern. The accompanying consolidated financial statements
do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Segment Reporting

The
Company’s chief operating decision
maker (“CODM”) is the Company’s Chief Executive Officer. The Company operates as
one operating segment and uses net income or loss
as measures of profit
or loss on a consolidated
basis in making decisions regarding
the allocation of capital resources and performance
assessment. Additionally, the
Company’s CODM regularly reviews the Company’s expenses
on a consolidated basis. The
financial metrics used by
the CODM help make key operating
decisions, such as determination
of the use of capital resources for data center development and general and administrative expenses.

Since
the Company operates as one reportable segment,
all financial information required by “Segment
Reporting” can be found in the accompanying unaudited condensed
consolidated financial statements. The CODM does not review
segment assets at a level other
than that presented in the Company’s unaudited condensed
consolidated balance sheets. There are no
intra-entity sales or transfers, and no significant
expense categories regularly
provided to the CODM beyond those
disclosed in the Unaudited Condensed Consolidated Statements of
Operations.

Use of Estimates

The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenue and expenses during the reporting periods.

Foreign Currency
Translation

The
financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U