Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 684

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 6
Chunk 684
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5
to 5.3
years, risk-free rate of range 4.3%
and dividend rate of nil.
For the years ended December 31, 2024 and 2023, the Company recorded compensation expenses of approximately $124,000
and nil, respectively, which was capitalized as data center cost.

On April 1, 2024 for the Chief Strategy
and Development officer, the Company awarded a non-qualified stock option to purchase 1,000,000
shares of the Company’s common stock at a purchase price of $2.62,
which was the fair market value of the Company’s common stock on the date of issuance.

The
1,000,000 options vests as follows:

    ●
    168,750
    shares on the date of issuance;
  
    ●
    168,750
    shares on each the 1st, 2nd and 3rd anniversary dates of the issuance date;
  
    ●
    Phase
    (a) 32,500 shares upon the Award of a GMP contract to a construction manager/company;
  
    ●
    Phase
(b) 65,000
shares upon completion of the initial site development
plan and data center design and 100% construction documents;
  
    ●
    Phase
    (c) 32,500 shares upon the Company receiving permits necessary to start construction of the data center site and facilities;
  
    ●
    Phase
    (d) 65,000 shares upon the completion of an all-network ready meeting rooms in the first data center; and
  
    ●
    Phase
                                            (e) 130,000 shares upon the completion of construction of a customer-ready data center facility
                                            and receipt of a conditional
    occupancy
    permit for a data center facility.

The
Company’s management has accounted for the options in accordance with ASC 718, which requires the Company to estimate the service
period over which the compensation cost will be recognized. Management has estimated that the first development phase (a) will be completed
by June 30,  2026, the second development phase (b) by December 31, 2025, the third development phase (c) by March  31, 2026, and the fourth
and fifth development phases (d) and (e) by June 30, 2029. The estimated service period will be adjusted for actual and expected
completion date changes. Any