Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 27

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 27
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 ended March 31, 2025 are not necessarily indicative of the results to be expected for the full year ending
December 31, 2025 or for any future period.

These unaudited
condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements
and the notes thereto for the year ended December 31, 2024, included in the Company’s annual report on Form 10-K filed with the
SEC on April 2, 2025.

Principles
of Consolidation

The
unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary from the formation
date. All material intercompany transactions and balances have been eliminated in consolidation.

Going
Concern and Liquidity

The
Company incurred a net loss of approximately $241,000 for the three months ended March 31, 2025, had an accumulated deficit of approximately
$32,111,000 as of March 31, 2025 and had no recurring revenue from operations. The Company has financed its activities principally through
debt and equity financing and shareholder contributions. Management expects to incur additional losses and cash outflows in the foreseeable
future in connection with its operating activities. These conditions raise substantial doubt about the Company’s ability to continue
as a going concern for one year from the issuance of these consolidated financial statements.

The
Company’s unaudited condensed consolidated financial statements have been presented on a going concern basis, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business.

    5

The
Company is subject to a number of risks similar to those of other similar stage companies, including dependence on key individuals; successful
development, marketing and branding of services; the uncertainty of product development and generation of revenues; dependence on outside
sources of financing; risks associated with research and development; dependence on third-party suppliers and collaborators; protection
of intellectual property; and competition with larger, better-capitalized companies. Ultimately, the attainment of profitable operations
is dependent on future events, including obtaining adequate financing to fund the Company’s operations and generating a level of
revenues adequate to support the Company’s cost structure.

The
Company will need to raise debt or equity financing in the future in order to continue its operations and achieve its growth targets.
However, there can be no assurance that such financing will be available in sufficient amounts and on acceptable terms, when and if needed,
or at all. The precise amount