Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 36

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 36
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 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 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