Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 48

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 48
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 business challenges
could be significantly limited.

16

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required under Regulation
S-K for smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls
and Procedures

As of the end of the period covered
by this Report, our Chief Executive Officer and Chief Financial Officer (our “Certifying Officers”), conducted evaluations
of our disclosure controls and procedures. As defined under Sections 13a - 15(e) and 15d - 15(e) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), the term “disclosure controls and procedures” means controls and other procedures
of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission (“SEC”). Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act
is accumulated and communicated to the issuer’s management, including the Certifying Officers, to allow timely decisions regarding
required disclosures.

Based on their evaluation, the
Certifying Officers concluded that, as of March 31, 2025, our disclosure controls and procedures were not effective.

The material weakness related
to internal control over financial reporting that was identified at March 31, 2025 was that we did not have sufficient personnel staffing
in our accounting and financial reporting department. As a result, we were not able to achieve adequate segregation of duties and were
not able to provide for adequate review of the financial statements.

This control deficiency could
result in a reasonable possibility that material misstatements of the financial statements will not be prevented or detected on a timely
basis. However, our management believes that the material weakness identified does not result in the restatement of any previously reported
financial statements or any other related financial disclosure, and management does not believe that the material weakness had any effect
on the accuracy of our financial statements included as part of this Quarterly Report.

We will continue to monitor and
evaluate the effectiveness of our disclosure controls and procedures and our internal controls over financial reporting on an ongoing
basis and are committed to taking action and implementing additional enhancements or improvements, as necessary and as funds allow.

Changes in internal control over financial