Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 231

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1B
Chunk 231
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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 of construction of a complete data center facility and receipt of an occupancy permit for such facility,
                                                         either for a Data Center facility to be built as a “build to suit” building for a hyperscale company or as a wholesale
                                                         colocation building for enterprise IT customers.

    d.
    200,000
shares) upon the signing of a build-to-suit contract or one or more contracts being signed for 50% or more of a constructed and operational
wholesale colocation facility’s capacity.

The
Company’s management has accounted for the 2023 Executive Options in accordance with ASC 718 – Stock Compensation (“ASC
718”). ASC 718 requires the Company to estimate the service period over which the compensation cost will be recognized. Management
has estimated that the first development phase (