Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 32

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 32
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, which was offset in part by an increase in our audit fees of approximately $14,000, and an increase in transfer agent costs
and geologist costs of approximately $40,000.

Equity-based
compensation

Our
equity-based compensation for the nine months ended September 30, 2025 decreased to $(10,000) from $318,000 for the nine months
ended September 30, 2024. During the nine months ended September 30, 2025, we recorded a
recapture of approximately $236,000 of equity-based compensation related to the non-performance of the performance-based awards.
That recapture exceeded by $10,000 the equity- based compensation expense of $226,000 for the time-based equity
awards during the nine months ended September 30, 2025.

Payroll
and related expenses

Payroll
and related expenses increased to $421,000 for the nine months ended September 30, 2025 from $175,000 for the nine months ended
September 30, 2024. The increase of $246,000 related to our abandonment of our data center campus project in Imperial County,
California in July 2025. Therefore, during the second and third quarters of 2025, we did not capitalize payroll and related
expenses.

Financing
costs

Our
financing cost for the nine months ended September 30, 2025 decreased to $132,000 from $823,000 for the nine months ended September
30, 2024. The decrease was due to a decrease in the 2025 interest expense and amortization of debt issuance costs associated with
our convertible debentures issued during the year ended December 31, 2024

Financing
costs – related party 

Our
financing cost – related party for the nine months ended September 30, 2025 decreased to $321,000 from $869,000 for the nine months
ended September 30, 2024. The decrease of $548,000 was due to a decrease in interest and loan discount expense for notes payable to the
related party.

Results
of Operations for the three months ended September 30, 2025 and 2024

The
table summarizes the results of operations for the three months ended September 30,

    2025  
    2024  
    Dollar  
    Percentage 
  
    Revenues 
    $-  
    $-