CalEthos Reports No Revenue and Increased Losses in Latest Financial Filing

CalEthos, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue for both the three and six months ended June 30, 2025, maintaining a trend from the previous year. The net loss for the six-month period was approximately $5.1 million, a decrease from a loss of $7.9 million in the same period of 2024. The loss per share for the first half of 2025 was $(0.20), compared to $(0.32) in 2024. The company’s total operating expenses decreased by 42.3% to $355,000 for the six months ended June 30, 2025, down from $617,000 in 2024, primarily due to reduced professional fees and equity-based compensation.

The financial position of CalEthos has deteriorated, with total current assets dropping to $78,000 from $296,000 at the end of 2024. Current liabilities increased significantly to $856,000, resulting in a working capital deficit of $778,000, compared to a deficit of $219,000 at the end of the previous fiscal year. The company’s accumulated deficit has grown to approximately $36.96 million as of June 30, 2025, up from $31.87 million at the end of 2024. The filing indicates that the company has financed its operations primarily through debt and equity financing, but it faces substantial doubt about its ability to continue as a going concern.

Strategically, CalEthos has shifted its focus towards developing a clean-energy-powered data center campus. In May 2025, the company established a wholly-owned subsidiary, TerraVolt Infrastructure Inc., aimed at providing Infrastructure-as-a-Service (IaaS) solutions for data centers. However, the company faced delays in the approval of the Lithium Valley Specific Plan, which is critical for its planned data center development. The anticipated approval has been postponed by 12 to 24 months due to the need for additional environmental studies and community concerns. Consequently, CalEthos did not renew its purchase option on a 315-acre parcel of land intended for the data center.

Operationally, the company has seen changes in its employee count, with payroll and related expenses rising to $268,000 for the six months ended June 30, 2025, compared to $93,000 in the prior year. This increase reflects the hiring of key personnel as part of its strategic shift. The company’s cash flow from operations showed a slight improvement, with cash used in operating activities decreasing to $227,000 from $374,000 in the previous year. However, cash and cash equivalents fell to $60,000 by the end of the reporting period, down from $286,000 at the start of the year.

Looking ahead, CalEthos plans to raise additional funds through equity and debt financing to support its operations and development plans. The company acknowledges the uncertainty surrounding its ability to secure necessary financing and the potential impact on its business objectives. Management remains committed to executing its strategy for the data center campus but recognizes that achieving its goals will depend on obtaining adequate funding and regulatory approvals.