Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 290

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1C
Chunk 290
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3-07, “Segment
Reporting (ASC Topic 280) for the annual reporting period ended December 31, 2024. The most significant provision was for the Company
to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), who is
the CEO. All expense categories on the Consolidated Statements of Operations are significant and there are no other significant segment
expenses that would require disclosure. The Company’s CODM, reviews financial information presented on a consolidated basis for
the purpose of making operating decisions, allocating resources, assessing financial performance and making strategic decisions related
to headcount and capital expenditures. The CODM regularly reviews net loss as reported on the Company’s consolidated statements
of operations. The CODM uses net loss as the measure of profit or loss to allocate resources and assess performance.

Since the Company operates as one reportable segment,
all financial information required by “Segment Reporting” can be found in the accompanying consolidated financial statements.
The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets. There
are no intra-entity sales or transfers, and no significant expense categories regularly provided to the CODM beyond those disclosed in
the Consolidated Statements of Operations.

Use
of Estimates

The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenue and expenses during the reporting periods.

Foreign
Currency Translation

The
financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars
using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate during
the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders’
equity (deficit). Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations.

Fair
Value Measurement

Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date.
Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by