Wed, May 15, 5:09 PM (72 days ago)
CalEthos, Inc. filed its Q1 2024 10-Q, revealing a significant net loss of $7.014 million due to increased operating expenses and a substantial loss on debt extinguishment. Key financial metrics include: 1. **Current Assets**: Increased to $819,000 from $318,000 (Dec 2023). 2. **Current Liabilities**: Slightly increased to $1.082 million from $1.022 million. 3. **Working Capital**: Improved deficit from $704,000 to $263,000. 4. **Cash Flow**: Operating cash outflows rose to $212,000; investing activities used $286,000; financing activities provided $1 million. ### Performance Metrics: - **Revenue**: None for the periods ended March 31, 2024, and 2023. - **Operating Expenses**: Increased to $292,000 from $97,000. - **Net Loss**: Increased dramatically from $199,000 to $7.014 million, mainly due to a $6.468 million loss on debt extinguishment. ### Trends & Uncertainties: - **Cash Position**: Ended Q1 2024 with $809,000, up from $308,000. - **Financing**: Issued a $1 million promissory note. - **Future Operations**: Dependent on securing additional financing for data center development and operational activities. ### Risks: - **Going Concern**: Doubts raised due to continued losses and dependence on external financing. - **Market Conditions**: Dependent on successful capital raises and favorable market conditions. The company is in the early stages of developing clean-energy-powered data centers, with significant upcoming capital requirements and operational milestones.