Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 383

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 2
Chunk 383
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 the Company’s common stock on the date of issuance. The Director
Options vested on December 31, 2023 and expire on December 29, 2030.

The
Director Options grant date fair value of approximately $860,000 was calculated using the Black Scholes fair value option-pricing model
with key input variables provided by management as of the date of issuance: volatility of 224.03%, the fair value of common stock $0.54,
estimated life of 3.5 years, risk-free rate of 4.12% and dividend rate of $0. The Director Options grant date fair value of $860,000
was included in the equity-based compensation in the Statement of Operations for the year ended December 31, 2023.

In
December 2023, the Board of Directors approved the issuance of stock options to the Company’s CEO and COO for the purchase of 1,000,000
and 1,000,000, respectively (“2023 Executive 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 2023 Executive Options vest, as follows:

The
both the CEO and COO 1,000,000 options vest and become exercisable as follows:

    (1)
    166,667
    shares on each of December 6, 2024, 2025 and 2026 for a total of 500,000 shares, upon vesting the options have a life of seven years.

    (2)
    the
    remaining 500,000 shares based on the Company completing the following milestones (upon vesting the options have a life of seven
    year):

    a.
    100,000
shares upon completion of the initial site development plan and Data Center design, and submission of a complete set of plans to Imperial
County Planning and Development Department for approvals and permits.

    b.
    100,000
                                                         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 on- site distribution systems, fiber conduit lines and
                                                         communications systems, and on-site roads, water, power and communications grid, warehousing, offices, administration, support and
                                                         security buildings, perimeter walls and security systems).

    c.
    100,000
                                                         shares) upon the completion