Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 73

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 73
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periods.

Recent
Accounting Pronouncements

Our
management reviewed all recently-issued accounting standard updates (“ASU’s”) not yet adopted by our company and does
not believe the future adoptions of any such ASU’s may be expected to cause a material impact on our consolidated financial condition
or the results of our operations.

Off-Balance
Sheet Arrangements

We
have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial
condition, changes in financial position, revenues and expenses, results of operations, liquidity, capital expenditures or capital resources
that are material to stockholders.

21

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 Quarterly 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 June 30, 2025, our disclosure controls and procedures were not effective.

The
material weakness related to internal control over financial reporting that was identified at June 30, 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