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CalEthos, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing no revenue generated, consistent with the same period in the previous year.
Operating expenses for the nine months ended September 30, 2024, were $1,179,000, up from $343,000 in the same period of 2023. The increase was primarily due to higher professional fees, equity-based compensation, and payroll expenses.
The company reported a net loss of $9,329,000 for the nine months ended September 30, 2024, compared to a net loss of $514,000 for the same period in 2023. The increase in net loss was primarily due to financing costs and a loss on extinguishment of debt.
Cash used in operating activities was $492,000 for the nine months ended September 30, 2024, compared to $40,000 in the same period of 2023. The increase was attributed to higher expenditures for legal and consulting fees.
Cash used in investing activities was $1,085,000 for the nine months ended September 30, 2024, primarily for the development of the company's Data Center Campus.
Cash provided by financing activities was $1,426,000 for the nine months ended September 30, 2024, due to the issuance of a promissory note and convertible debentures.
CalEthos had a working capital deficit of $741,000 as of September 30, 2024, compared to a deficit of $704,000 as of December 31, 2023.
The company disclosed a material weakness in its internal controls over financial reporting due to insufficient staffing in its accounting and financial reporting department.
CalEthos is in the early stages of developing a clean-energy-powered data center and is seeking additional financing to support its operations and growth objectives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CalEthos Inc quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.