Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 82

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 82
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The decrease of approximately $32,000 was attributable to a decrease in our consulting fees of approximately $8,000, a decrease in our
legal fees of $34,000, a decrease in our accounting fees of $3,000, a decrease in our audit fees of $4,000, a decrease in our filing
fees of $9,000 and an increase in transfer agent costs and geologies for approximately $26,000.

Equity-based
compensation

Our
equity-based compensation for the three months ended June 30, 2025 decreased to $(145,000) from $109,000 for the three months ended June
30, 2024. During the three months ended June 30, 2025, the Company recorded a recapture of approximately
$236,000 of equity-based compensation related to the non-performance of the performance-based awards. Therefore, the three months ended
June 30, 2025 equity- based compensation was $91,000. 

Payroll
and related expenses

Payroll
and related expenses increased to $187,000 for the three months ended June 30, 2025 from $74,000 for the three months ended June 30,
2024. For the year ended December 31, 2023, we had one employee. Our first employee, our Chief Operating Officer, was hired in June 2023,
and our second employee, our Vice President of Data Center Development, was hired in February 2024.

Financing
costs

Our financing cost for the three months ended June 30, 2025 increased to
$55,000 from $nil for the three months ended June 30, 2024. The increase was due to an increase 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 three 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