Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 5

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 5
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,000 of convertible debentures with
maturity dates on December 31, 2026.

It
is anticipated that we will incur expenses in the implementation of our business plan described above, and such expenses will require
substantial financing to complete the development of the property for a data center operation and to achieve our goals. We currently have
only limited capital with which to pay these anticipated expenses. To fund our business plan going forward, we intend to raise funds from
investors by issuing common stock, preferred stock and/or debt securities. We are currently in discussions with several potential funding
sources. However, there can be no assurance we will be able to successfully raise additional funds when required, if at all.

The
failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate
our development plans, any commercialization efforts or other operations. We may not be able to secure financing on favorable terms, or
at all, to meet our future capital needs. In addition, even if we are able to obtain sufficient funding to commence our business operations,
we may need to pursue additional financing in the future to make expenditures and/or investments to support the growth of our business
and may require additional capital to pursue our business objectives and respond to new competitive pressures, pay extraordinary expenses
or fund our growth, including through acquisitions. Additional funds, however, may not be available when we need them on terms that are
acceptable to us, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it,
our ability to commence our proposed business operations, to continue to grow and support our business and to respond to business challenges
could be significantly limited.

16

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required under Regulation
S-K for smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls
and Procedures

As of the end of the period covered
by this Report, our Chief Executive Officer and Chief Financial Officer (our “Certifying Officers”), conducted evaluations
of our disclosure controls and procedures. As defined under Sections 13a - 15(e) and 15d - 15(e) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), the term “disclosure controls and procedures” means controls and other procedures
of an issuer that are designed to ensure that information required to be disclosed by the