Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 985

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 12
Chunk 985
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 accrued in the Company’s consolidated financial statements. If the assessment
indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated,
then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be
disclosed.

Loss
contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

Stock-Based
Compensation

The
Company accounts for its stock-based compensation under ASC 718, “Compensation – Stock Compensation” using the
fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized
over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions
in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities
in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by
the issuance of those equity instruments.

The
Company uses the fair value method for equity instruments granted to non-employees and use the BSM model for measuring the fair value
of options. The stock-based fair value compensation is determined as of the date of the grant (measurement date) and is recognized over
the vesting periods.

Earnings
Per Share

The
Company uses ASC 260, “Earnings Per Share” for calculating the basic and diluted earnings (loss) per share. The Company
computes basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted
earnings (loss) per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential
common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock
options and warrants and stock awards. For periods with a net loss, basic and diluted loss per share is the same, in that any potential
common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share.

Securities
that could potentially dilute loss per share in the future were not included in the computation of diluted loss per share for the years
ended December 31, 2024 and 2023 because their inclusion would be anti-dilutive. Common stock equivalents amounted to