Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 69

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 69
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 months ended June 30, 2025 decreased to $75,000 from $616,000 for the three
months ended June 30, 2024. The decrease was due to
interest expense and amortization of debt issuance costs associated with our notes payable to the related party.

Liquidity
and Capital Resources

Our
working capital as of June 30, 2025 and December 31, 2024 was as follows.

    2025  
    2024 
  
    Current assets 
    $78,000  
    $296,000 
  
    Current liabilities 
     (856,000) 
     (515,000)
  
    Working capital deficit 
    $(778,000) 
    $(219,000)

Our
working capital deficit increased from a $219,000 deficit as of December 31, 2024 to a deficit of $778,000 as of June 30, 2025 for an
increase of $559,000. The increase in working capital deficit was due to a $226,000 decrease in cash and cash equivalents, a $155,000 increase in accounts payable and accrued expenses, and a $197,000 increase in notes payable – related party.

Cash
Flows

    For the six months ended June 30, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(227,000) 
    $(374,000)
  
    Net cash used in investing activities 
     (464,000) 
     (728,000)
  
    Net cash provided by financing activities 
     465,000  
     1,092,000 
  
    Change in cash and cash equivalents during the period 
     (226,000) 
     (10,000)
  
    Cash and cash equivalents, beginning of period 
     286,000  
     308,000 
  
    Cash and cash equivalents, end of period 
    $60,000  
    $298,000 

19

Cash
Flows from Operations

Cash
used in operating activities decreased to approximately $227,000 for the six months ended June 30, 2025 from approximately $374,000
for the six months ended June 30, 2024, which was predominantly related to the decrease in our expenditures for filing fees, legal
fees, transfer agent fees and consulting fees paid during