Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 450

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 450
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 interim periods beginning on or after December
15, 2024. We have implemented the provisions of the ASU 2023-07.

On December 14, 2023, the FASB
issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires
entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount
of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The
new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is
currently evaluating the impact of adopting the standard.

In November 2024, the FASB issued
ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”. The
amendments require the disclosure of specified information about certain costs and expenses including purchases of inventory, employee
compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization recognized as part of oil and
gas producing activities. It also requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions
that are not separately disaggregated quantitatively as well as the total amount of selling expenses and, in annual reporting periods,
an entity’s definition of selling expenses. The standard will be effective for fiscal years beginning after December 15, 2026, and
interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact that the adoption of the provisions
of the ASU will have on our consolidated financial statements. We are currently evaluating the impact that the adoption of the provisions
of the ASU will have on our consolidated financial statements.

Note
2 – Data Center Costs

DATA CENTER COSTS 

On
July 22, 2024, the Company entered into an option agreement (“Option”) to acquire for a purchase price of $5,000,000 a 315-acre
parcel of land (“New Property”) in Imperial County, California to be used for the development of the Company’s Data
Center Campus. With the execution of the Option, the Company paid a non-refundable deposit of $50,000. The Option has an