Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 745

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 7
Chunk 745
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 that are directly or indirectly observable in the marketplace.
  
    Level
    3 -
    Unobservable
    inputs which are supported by little or no market activity.

    F-8

The
fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when
measuring fair value.

As
of and for the years ended December 31, 2024 and 2023, the Company had no assets or liabilities that require fair value measurement.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
Cash and cash equivalents are recorded at cost, which approximates their fair value. The Company maintains its cash and cash equivalents
in banks insured by the Federal Deposit Insurance Corporation (“FDIC”) in accounts that at times may be in excess of the
federally insured limit of $250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions.
As of December 31, 2024 and 2023, the Company had approximately $34,000 and $22,000, respectively, in excess of the federal insurance
limit.

Prepaid
Expenses

Prepaid
expenses are assets held by the Company that are expected to be realized and consumed within twelve months after the reporting period.

Data
Center Campus Costs

Data
center cost is stated at cost, which includes the cost incurred to complete phase I of the Company’s data center development plan.
Phase I costs include the option payment for the land and the cost of consulting firms to provide power and connectivity assessments,
feasibility studies, engineering plans, and project benchmarking. Data center cost also includes internal cost such as payroll-related
cost and debt interest cost.

In
accordance with ASC 360-10-35, the Company reviews the carrying amounts of data center cost when events or changes in circumstances indicate
the assets may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The
recoverable amount is the higher of fair value, less costs of disposal and value in use. In assessing value in use, the estimated future