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

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 25
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Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation
of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion
on this evaluation. Based on this evaluation, our management concluded our internal control over financial reporting was not effective
as at December 31, 2024 due to the following material weaknesses which are indicative of many small companies with small staff: (i) inadequate
segregation of duties and effective risk assessment; (ii) insufficient written policies and procedures for accounting and financial reporting
with respect to the requirements and application of both US GAAP and SEC guidelines; (iii) inadequate security and restricted access
to computer systems including insufficient disaster recovery plans; and

(iv)
no written whistle-blower policy.

We
plan to take steps to enhance and improve the design of our internal controls over financial reporting when our company has sufficient
staff to allocate responsibilities. During the period covered by this Report, we have not been able to remediate the material weaknesses
identified above. To remediate such weaknesses, we plan to implement the following changes once our financial resources will support
the required staffing level: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk
management; (ii) adopt sufficient written policies and procedures for accounting and financial reporting and a whistle-blower policy;
and (iii) implement sufficient security and restricted access measures regarding our computer systems and implement a disaster recovery
plan. The remediation efforts set out in (i) and (iii) are largely dependent upon our company securing additional financing to cover
the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely effected
in a material manner.

This
Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial
reporting. Our internal control over financial reporting was not subject to attestation by our independent registered public accounting
firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in
this Report.

Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues,
if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can
be faulty and that breakdowns can occur because of simple error or mistake.

Changes
In Internal Control Over Financial Reporting.

There
were no changes in