Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 8

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 8
---
 
  
    Equity-based compensation expensed 
    $226,000  
    $- 
  
    Recapture of equity-based compensation expensed 
    $(236,000) 
    $- 
  
    Common stock issued for forgiveness of principal and interest 
    $-  
    $6,928,000 

See
the accompanying notes to these unaudited condensed consolidated financial statements.

4

CalEthos,
Inc.

Notes
to the Unaudited Condensed Consolidated Financial Statements

For
the Nine Months Ended September 30, 2025 and 2024

Note
1 – Organization and Accounting Policies

 ORGANIZATION AND ACCOUNTING POLICIES

CalEthos, Inc. (the “Company”
or “we”) was incorporated on March 20, 2002 under the laws of the State of Nevada.

In
July 2022, the Company’s board of directors resolved to restructure the business of the Company to focus exclusively on the development
of a large-scale data center campus, initially in Imperial County, California. In addition, the Company would consider the acquisition
of assets or all or part of other companies operating in the clean energy or data center infrastructure industries or opportunities to
invest in, or joint venture with, other more-established companies already in the industry that would add value to the Company’s
business strategy.

After
optioning parcels of land in Imperial County and working with the Imperial County planning department and other local regulatory agencies
in seeking zoning changes and other required regulatory approvals required for the Company’s proposed data center campus, it became
evident by May 2025 that the Company’s timelines for the receipt of such approvals would not be met. Key factors driving the delay
included the need for additional environmental studies, unresolved community concerns, and delays in receiving several outstanding government approvals. As
a result, the Company elected not to renew its purchase option on a 315-acres parcel of land in Imperial County when it expired in July
2025 and to shift its development efforts to other locations in which the regulatory environment for data center development and the purchase
of available power may be more favorable and the timelines in which the Company may receive all required regulatory approvals may be shorter.

In May
2025, the Company formed TerraVolt Infrastructure Inc. (“TerraVolt”), a wholly-owned subsidiary established to meet the
demand for sustainable, baseload, powered land and infrastructure solutions for large-scale data centers development and end
users. T