Wed, Aug 14, 5:19 PM (153 days ago)
CalEthos, Inc. reported significant financial challenges for the quarter ending June 30, 2024, reflecting a net loss of approximately $937,000, up from $217,000 in the same quarter of 2023. Year-to-date losses totaled about $7.95 million, driven by increased operating expenses, particularly in professional fees and equity-based compensation, which surged from $24,000 to $230,000. The company reported no revenue during this period, maintaining a working capital deficit of $531,000, an improvement from $704,000 as of December 31, 2023. Cash flows from operations were negative at $374,000, with substantial cash used for data center development totaling $728,000. Financing activities provided $1.09 million, primarily from a promissory note and convertible debenture issuances. The company’s cash reserves decreased to $298,000. Looking ahead, CalEthos is focused on developing a clean-energy-powered data center and is negotiating with potential customers for leasing agreements. However, uncertainties regarding future financing and operational execution persist, raising concerns about the company's ability to continue as a going concern without additional capital.