Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 24

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 24
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, these officers concluded that as of the
end of the period covered by this Annual Report on Form 10-K, these disclosure controls and procedures were not effective.

The
conclusion that our disclosure controls and procedures were not effective was due to the presence of material weaknesses in internal
control over financial reporting as identified below under the heading “Management’s Report on Internal Control Over Financial
Reporting.” Management anticipates that such disclosure controls and procedures will not be effective until the material weaknesses
are remediated.

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 breakdown can occur because of simple error or mistake.

Management’s
Report on Internal Control Over Financial Reporting

Our
management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f)
and 15d-15(f) of the Exchange Act) for our company. Our internal control over financial reporting is designed to provide reasonable assurance,
not absolute assurance, regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles in the United States of America. Internal control over financial reporting
includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States of America,
and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that
could have a material effect on the financial statements.

14

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions and that the degree of compliance with the policies or procedures may deteriorate.

Our
management, including our principal executive officer and principal financial officer, conducted an evaluation of the design and operation
of our internal control over financial reporting as of December 31, 2024 based on the criteria set forth in Internal Control - Integrated