Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 26

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 26
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Notes to the Unaudited
Condensed Consolidated Financial Statements

For the Three Months Ended
March 31, 2025 and 2024

Note
1 – Organization and Accounting Policies

ORGANIZATION AND ACCOUNTING POLICIES 

CalEthos,
Inc. (the “Company” or “we”) was incorporated on March 20, 2002 under the laws of the State of Nevada.

As
of July 2022, the Company’s board of directors resolved to focus exclusively on developing a clean-energy-powered data center
campus (“Data Center Campus”). As such, the Company is implementing its plan to build aa large-scale, data center campus
vertically integrated with onsite geothermal power production In addition, the Company may acquire assets and all or part of other
companies operating in the clean energy or data center infrastructure industries or invest in or joint venture with other
more-established companies already in the industry that would add value to the Company’s business strategy.

Korean entity

On
November 5, 2021, AIQ System Inc. (“AIQ”) was incorporated in Seoul, Republic of Korea. AIQ is authorized to issue 3 million
shares of common stock. At the date of incorporation, 10,000 shares were issued to the Company for 100,000,000 Korean Won, or approximately
$89,000, for 100% ownership of AIQ. As of July 2022, AIQ was placed into a dormant state of operations. As of March 31, 2025, AIQ has
been dissolved.

Basis of Presentation

The accompanying
condensed consolidated financial statements and notes thereto are unaudited. The unaudited condensed financial statements have been prepared
in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules
and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included
in the Company’s annual financial statements have been condensed or omitted. The December 31, 2024 condensed consolidated balance
sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These interim unaudited
condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair
presentation of the financial position, results of operations and cash flows for the three-month periods ended March 31, 2025 and 2024.
The results for the three months