Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 21

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 21
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,516,667  
    $0.67  
     8.3  
    $0.64  
    $0.00 

For
the three and nine months ended September 30, 2025, the total equity-based compensation expense was approximately $93,000 and $(10,000),
respectively. During the three months ended September 30, 2025, the Company recorded a recapture of approximately $236,000 of equity-based
compensation related to the non-performance of the performance-based awards. Therefore, the three and nine months ended September 30,
2025 equity-based compensation was $92,000 and $226,000, respectively, for the time-based equity awards. 

The
Company had 6,716,500 outstanding stock options as of September 30, 2025, of which 4,291,500 outstanding options had a time-based vesting
requirement, and the remaining 2,425,000 outstanding options had a performance-based vesting requirement, as follows:

 SCHEDULE OF STOCK OPTIONS OUTSTANDING FOR TIME-BASED AND PERFORMANCE-BASED ACTIVITIES

    Time-based  
    Performance-based 
  
    CEO 
     500,000  
     500,000 
  
    COO 
     1,750,000  
     1,750,000 
  
    VP - Senior Counsel 
     175,000  
     175,000 
  
    Terminated employees 
     212,500  
     - 
  
    Non-employees -Vested on issuance 
     1,654,000  
     - 
  
    Total 
     4,291,500  
     2,425,000 

    11

In
May 2025, as described in Note 1 – Organization and Accounting Policies, the Company’s management shifted the core focus
of the Company’s operations. As a result of this strategic shift, the original performance-based milestone included in the employee
stock option agreements were determined to be no longer achievable. The original milestones, which were tied to specific legacy business
objectives, were rendered obsolete by the revised operational direction of the Company. The stock option agreements provided for the
milestones to be modified with the mutual consent of the Company and the employees. In accordance with the terms of the stock option
agreements, these milestones were modified by agreement of the Company and the