Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 675

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 6
Chunk 675
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 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 initial term
of one year and may be extended for an additional six-month period by the payment of $75,000 on or before July 21, 2025.

    F-11

On
March 30, 2023, the Company signed an option agreement (“Initial Option”) to acquire 80 acres of commercially-zoned land
(“Initial Property”) in Imperial County, California for $3,360,000 (“Purchase Price”). The Initial Property was
optioned to be the land used for the Company’s Data Center Campus. The Company paid a non-refundable deposit of $84,000 on the
signing of the Initial Option. On July 24, 2024 (“Termination Date”), the Company terminated (“Termination”)
the Initial Option