Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 371

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 2
Chunk 371
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 is determined as of the date of the grant (measurement date) and is recognized over
the vesting periods.

Earnings
Per Share

The
Company uses ASC 260, “Earnings Per Share” for calculating the basic and diluted earnings (loss) per share. The Company
computes basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted
earnings (loss) per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential
common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock
options and warrants and stock awards. For periods with a net loss, basic and diluted loss per share is the same, in that any potential
common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share.

Securities
that could potentially dilute loss per share in the future were not included in the computation of diluted loss per share for the years
ended December 31, 2024 and 2023 because their inclusion would be anti-dilutive. Common stock equivalents amounted to 11,326,178 and
nil for the years ended December 31, 2024 and 2023, respectively.

Recent
Accounting Pronouncements

The
Company’s management reviewed all recently issued accounting standard updates (“ASU’s”) not yet adopted by the
Company and does not believe the future adoptions of any such ASU’s may be expected to cause a material impact on the Company’s
consolidated financial condition or the results of its operations.

In October 2023, the FASB issued
ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The
amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the
amendments represent clarifications to, or technical corrections of the current requirements. Each amendment in the ASU will only become
effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. We are
currently evaluating the impact that the adoption of the provisions of the ASU will have on our consolidated financial statements. The
amendments in this ASU are not expected to have a material impact on the results of operations or financial position.

In