Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 754

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 7
Chunk 754
---
 note payable – related party 
    $2,317,000 

    F-13

On
the Exchange Date the 600,000  Extension Warrants had a fair value of $755,000
calculated using the Black Scholes fair value option-pricing model with key input variables provided by management: volatility of 166%,
the fair value of common stock $1.75,
estimated life range 2.5
years, risk-free rate of 4.25%
and dividend rate of nil.

Interest
expense on the Promissory Note amounted to $103,000
and $9,000
for the years ended December 31, 2024
and 2023, respectively, of which approximately $60,000
and nil,
respectively, were capitalized as data center development cost.

Note
4 – Convertible Debentures

CONVERTIBLE DEBENTURES 

Convertible
debentures transactions for the years ended December 31, are summarized as follows:

SCHEDULE
OF CONVERTIBLE DEBENTURES 

    Principal 
    2024 
     
    2023

    Balance, beginning of period 
    $341,000 
     
    $
    4,613,000

    Additions 
     1,410,000 

    -

    Conversions 
     (341,000)

    (4,272,000
    )
  
    Balance, end of period 
     1,410,000 

    341,000

    Debt issuance cost 

    Balance, beginning of period 
     - 

    -

    Additions 
     106,000 

    -

    Amortization 
     (9,000)

    -

    Balance, end of period 
     97,000 

    -

    Net book value 
    $1,313,000 
     
    $
    341,000

In
June 2024, the Company initiated a private place offering for its convertible promissory notes (the “Debentures”). As of
December 31, 2024, the net proceeds were approximately $1,304,000, due to approximately $106,000 paid as debt issuance cost in connection
with the issuance of the Debentures. The Debentures bears interest at 10.0% per annum with a default interest rate of 15.0% per annum.
The principal amount