Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 3

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 3
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 a decrease in our consulting fees of approximately $63,000, a
decrease in our legal fees of $16,000 and an increase in our audit fees of approximately $32,000.

Equity-based
compensation

Our
equity-based compensation for the three months ended March 31, 2025 decreased to $42,000 from $121,000 for the three months ended March
31, 2024.

Payroll
and related expenses

Payroll
and related expenses increased to $81,000 for the three months ended March 31, 2025 from $19,000 for the three months ended March 31,
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 March 31, 2025 increased to $22,000 from $6,000 for the three months ended March 31, 2024.
The increase in due to the 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 

For the three months ended March
31, 2025, the Company did not have financing activities with a related party.

Liquidity
and Capital Resources

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

    2025  
    2024 
  
    Current assets 
    $88,000  
    $296,000 
  
    Current liabilities 
     (609,000) 
     (515,000)
  
    Working capital deficit 
    $(521,000) 
    $(219,000)

Our
working capital deficit increased from a $219,000 deficit as of December 31, 2024 to a deficit of $521,000 as of March 31, 2025 for an
increase of $302,000. The increase in our working capital deficit was due to a $208,000 decrease in our cash and cash equivalents and
to a $94,000 increase in our accounts payable and accrued expenses.

Cash Flows

    For the three months ended March 31,