OTC:GEDC
CalEthos, Inc.
A high-risk OTC-traded entity characterized by zero revenue, massive accumulated non-cash adjustments, and severe operating cash flow deficits.
Key Metrics
Investment Thesis
Bull Case
Investors might consider this stock for a deep-value turnaround play, betting that the $36.2M paid-in capital can fund a pivot to revenue generation and resolve the current liquidity gap before interest costs become fatal.
Bear Case
The stock is highly dangerous given zero revenue, a negative net profit trend accelerating from -$4.6M to -$12.6M, and a working capital deficit that suggests an inability to meet short-term obligations without external financing.
About CalEthos, Inc.
CalEthos, Inc. (GEDC) is a specialized entity operating within a niche sector with significant non-cash adjustments, serving markets that likely involve complex asset management or restructuring activities. The company demonstrates a distinct lack of traditional revenue generation, relying heavily on equity capital and experiencing substantial net losses driven by interest expenses and other non-operating items.
Analysis
Management Discussion
Recent financial performance is critically weak, highlighted by a net loss of $12.6M in 2024 following losses in 2023 and 2022, with zero revenue and operating expenses consuming the entire cost base. The company burned through cash reserves despite significant non-cash adjustments totaling $11.9M, resulting in a net change in cash of -$22k.
Industry Overview
This entity appears to operate in a specialized financial or asset-management niche where traditional revenue metrics are absent, likely focusing on holding long-term assets while managing significant interest burdens and equity dilution risks typical of distressed OTC companies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $0 | $0 | $0 |
| Operating Expenses | $-3.9M | $3.5M | $1.4M |
| Operating Income | $3.9M | $-3.5M | $-1.4M |
| G&A | $52.0K | $38.0K | $49.0K |
| Stock-Based Comp | $-4.8M | $24.0K | — |
| Other OpEx | $-4.0M | $3.4M | $1.4M |
| Non-Operating Income | $-1.7M | $-1.2M | $-11.2M |
| Interest Expense | — | $196.0K | $284.0K |
| Pre-Tax Income | $2.2M | $-4.6M | $-12.6M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $2.2M | $-4.6M | $-12.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $2.2M | $-4.6M | $-12.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $2.2M | $-4.6M | $-12.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $2.1M | $318.0K | $296.0K |
| Cash & Equivalents | $2.1M | $308.0K | $286.0K |
| Prepaid Expenses | $4.0K | $10.0K | $10.0K |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $0 | $2.3M | $5.8M |
| Total Assets | $2.1M | $2.6M | $6.1M |
| Current Liabilities | $5.2M | $1.0M | $515.0K |
| Accounts Payable | $186.0K | $218.0K | — |
| Other Current Liab | $5.0M | $474.0K | — |
| Long-Term Liabilities | $0 | $0 | $1.3M |
| Total Liabilities | $5.2M | $1.0M | $1.8M |
| Shareholders' Equity | $-3.1M | $1.6M | $4.3M |
| Paid-In Capital | $11.5M | $20.8M | $36.2M |
| Retained Earnings | $-14.7M | $-19.3M | $-31.9M |
| AOCI | $5.0K | $9.0K | $9.0K |
| Total L&E | $2.1M | $2.6M | $6.1M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $2.2M | $-4.6M | $-12.6M |
| Non-Cash Adjustments | $-3.1M | $4.0M | $11.9M |
| Working Capital Changes | $104.0K | $612.0K | $-131.0K |
| Cash from Operations | $-820.0K | $-35.0K | $-859.0K |
| Cash from Investing | $-105.0K | $-1.7M | $-1.5M |
| Cash from Financing | $-50.0K | $0 | $2.3M |
| FX Effect | $-5.0K | $6.0K | $-1.0K |
| Net Change in Cash | $-980.0K | $-1.8M | $-22.0K |
| Beginning Cash | $3.0M | $2.1M | $308.0K |
| Ending Cash | $2.1M | $308.0K | $286.0K |
Frequently Asked Questions
How does CalEthos, Inc. make money?
The company exhibits no traditional revenue-generating segments, with all financial activity stemming from financing inflows, investing outflows, and significant non-operating losses that suggest a balance sheet-focused or transitional operational model.
What are the main risks for GEDC?
Critical risks include severe negative operating cash flow of -$859k, a massive retained earnings deficit of -$31.9M indicating solvency concerns, high interest expense of $284k eroding equity, and total current liabilities exceeding current assets by over $200k.
What is GEDC's competitive advantage?
Primary advantages include a substantial paid-in capital base of $36.2M providing liquidity buffer, potential for strategic restructuring via long-term assets of $5.8M, and a clean tax profile with zero income tax expense.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.