Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 164

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1A
Chunk 164
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4.0) 
     (9.5)
  
    Provision for income taxes 
     0% 
     0%

The
tax effects of temporary differences that give rise to significant portions of the deferred tax assets at December 31, are presented
below:

 SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS

    2024  
    2023 
  
    Deferred tax assets 

    Net operating loss carryforwards 
    $2,089,000  
    $1,786,000 
  
    Stock based compensation 
     439,000  
     328,000 
  
    Intangible assets 
     1,000  
     1,000 
  
    Impairment loss 
     37,000  
     38,000 

    Total deferred tax assets 
     2,566,000  
     2,153,000 

    Deferred tax liability 

     -  
     - 
  
    Total deferred tax liability 
     -  
     - 

    Net deferred tax assets 
     2,566,000  
     2,153,000 
  
    Valuation allowance 
     (2,566,000) 
     (2,153,000)
  
    Net deferred tax 
    $—  
    $— 

Deferred
tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary
differences and other tax attributes, such as net operating loss carryforwards. In assessing if the deferred tax assets will be realized,
the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate
realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible
temporary differences reverse.

    F-22

For
financial reporting purposes, the Company has incurred a loss in each period since its inception. Based on all available evidence, including
the Company’s history of losses, management believes it is more likely than not that the net deferred tax assets will not be fully
realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets on December 31, 2024,
and 2023. During the years ended December 31, 2024, and 2023, the valuation allowance increased (de