Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 10

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 10
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 for data center space, the management of working capital, and payment terms and conditions for purchase of the Company’s
services. The Company believes its cash balances and cash flow from operations will not be sufficient to fund its operations and growth
for the next twelve months from the issuance date of these financial statements. If the Company is unable to raise additional funding
from investors or through other avenues, it may not be able to continue as a going concern. The accompanying consolidated financial statements
do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Segment
Reporting

The
Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The Company operates
as one operating segment and uses net income or loss as measures of profit or loss on a consolidated basis in making decisions regarding
the allocation of capital resources and performance assessment. Additionally, the Company’s CODM regularly reviews the Company’s
expenses on a consolidated basis. The financial metrics used by the CODM help make key operating decisions, such as determination of
the use of capital resources for data center development and general and administrative expenses.

Since
the Company operates as one reportable segment, all financial information required by “Segment Reporting” can be found in
the accompanying unaudited condensed consolidated financial statements. The CODM does not review segment assets at a level other than
that presented in the Company’s unaudited condensed 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 Unaudited Condensed 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.

    6

Fair
Value Measurement

Fair
value is defined