Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 891

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 10
Chunk 891
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 the Board of Directors approved the issuance of stock options to two consultants, an executive advisor and data center
development advisor, for the purchase of 350,000 and 350,000, for each consultant (collectively “2023 Consultant Options”)
for an exercise price of $0.54, which was the fair market value of the Company’s common stock on the date of issuance.

The
350,000 options for data center development consultant vest, as follows:

    (1)
    43,750
    shares on each of December 6, 2024, 2025 2026 and 2027 for a total of 175,000 shares, upon vesting the options have life of seven
    years.

    (2)
    the
    remaining 175,000 shares based on the Company completing the following milestones (upon vesting the options have a life of seven
    year):

    a.
    35,000
    upon completion of the initial site development plan and Data Center design and 100% Construction Documents.

    b.
    17,500
    upon the Award of a GMP contract to a construction manager/company

    c.
    17,500
    shares upon the Company receiving permits necessary to start construction of the data center site and facilities (including but not
    limited to power substation, water delivery, pumping, storage and onsite distribution systems, fiber conduit lines and communications
    systems, and on-site roads, water, power and communications grid, buildings, perimeter walls and security systems).

    d.
    35,000
    upon the completion of all Network Ready meet me rooms in the first data center

    e.
    70,000
    shares upon the completion of construction of a customer-ready data center facility and receipt of a conditional occupancy permit
    for a Data Center facility.

The
Company’s management has accounted for the data center development consultant options in accordance with ASC 718 – Stock
Compensation (“ASC 718”). ASC 718 requires the Company to estimate the service period over which the compensation cost
will be recognized.  Management has estimated that the first development phase (a) will be
completed by June 30, 2026, the second development phase (b) by December 31, 2025, the third development phase (c) by March 31,
2026, and the fourth and fifth development phases (d) and (e) by June 30, 202