Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 34

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 34
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ensation

Our
equity-based compensation for the three months ended September 30, 2025 increased to $93,000 from $88,000 for the three months ended
September 30, 2024.

Payroll
and related expenses

Payroll
and related expenses increased to $153,000 for the three months ended September 30, 2025 from $82,000 for the three months ended
September 30, 2024. The increase of $71,000 related to our abandonment of our data center campus project in Imperial County,
California in July 2025. Therefore, during the three months ended September 30, 2025, we did not capitalize payroll and
related expenses.

Financing
costs

Our
financing cost for the three months ended September 30, 2025 decreased to $55,000 from $817,000 for the three months ended September
30, 2024.

Financing
costs – related party 

Our
financing cost – related party for the three months ended September 30, 2025 increased to $246,000 from $nil for the three months
ended September 30, 2024. The increase was due to interest
expense and amortization of debt issuance costs associated with our notes payable to the related party issued during the three months
ended September 30, 2025.

Liquidity
and Capital Resources

Our
working capital as of September 30, 2025 and December 31, 2024 was as follows.

    2025  
    2024 
  
    Current assets 
    $287,000  
    $296,000 
  
    Current liabilities 
     (1,163,000) 
     (515,000)
  
    Working capital deficit 
    $(876,000) 
    $(219,000)

Our
working capital deficit increased from a $219,000 deficit as of December 31, 2024 to a deficit of $876,000 as of September 30, 2025
for an increase of $657,000. The increase in working capital deficit was due to a $12,000 decrease in cash and cash equivalents, a
$3,000 increase in prepaid and other current assets, a $188,000 increase in accounts payable and accrued expenses, and a $460,000
increase in notes payable – related party.

Cash
Flows

    For the nine months ended