Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 29

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 29
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 resolved to restructure
our business to focus exclusively on the development of a large-scale data center campus, initially in Imperial County, California. In
implementing our plan, we determined that we 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 our business strategy.

Over the last two and a half years, we have worked
with the County of Imperial, California to integrate data centers as an “approved use” into its 51,000-acre Lithium Valley
Specific Plan. In July 2024, we contracted to purchase a 315-acre site in the center of Lithium Valley, which offered nearby grid connectivity
and proximity to geothermal power plants, fiber connectivity, transportation, gas, water and other resources. In parallel to working with
the County, we worked with geothermal power companies to develop a portfolio of power that could be delivered to our site and used for
powering a clean-energy data center development. However, by May 2025, it became evident that our timelines for the receipt of the required
regulatory approvals would not be met. Key factors driving the delay included the need for additional environmental studies, unresolved
community concerns, and several outstanding government approvals. As a result, we elected not to renew our purchase option on a 315-acres
parcel of land in Imperial County when it expired in July 2025 and to shift our 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 we may receive
all required regulatory approvals may be shorter.

In May 2025, we 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. TerraVolt’s proposed solution is an
Infrastructure-as-a-Service (IaaS) Platform that will integrate a portfolio of grid and behind-the-meter power with
construction-ready data center building sites that include utilities and fiber connectivity. TerraVolt plans to provide this turnkey
solution to hyperscalers, colocation providers, and data center developers seeking to deploy new capacity faster than with
traditional power generation and transmission. We are currently focused on the identification of properties in states in which
onsite power production utilizing