Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 940

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 11
Chunk 940
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 31, are summarized as follows:

SCHEDULE
OF NOTES PAYABLE 

    2024 
     
    2023

    Principal 

    Balance, beginning of the period 
    $11,000 
     
    $
    61,000

    Additions – related party 
     1,000,000 

    -

    Settlement – related party 
     (1,000,000)

    (50,000
    )
  
    Balance, end of the period 
     11,000 

    11,000

    Discount 

    Balance, beginning of the period 
     - 

    -

    Additions – related party 
     2,355,000 

    -

    Amortization – related party 
     2,355,000 

    -

    Balance, end of the period 
     - 

    -

    Net carrying amount 
    $11,000 
     
    $
    11,000

In
February 2024, the Company issued a promissory note (“Promissory Note”) in the principal amount of $1,000,000 that bears
interest at the rate of 10% per annum and originally matured on May 31, 2024 (“Maturity Date”). It also issued a five-year
warrant to purchase up to 200,000 shares of common stock with an initial exercise price of $0.50 per share (“Finance Warrant”).

In
accordance with ASC 470 - Debt, the Company has allocated $1,000,000 of cash proceeds on a relative fair value to the Promissory
Note and the Finance Warrant. The Finance Warrant was valued using the Black Scholes option pricing model for a total fair value of approximately
$1,389,000 based on a 2.5-year term, volatility of 159%, a risk-free equivalent yield of 4.1%, and a stock price of $7.21. The Finance
Warrant was ascribed a relative fair value of approximately $581,000.

    F-12

On
the Maturity Date, the holder of the Promissory Note agreed to extend the Maturity Date to August 31, 2024 (“Extension Maturity”).
As consideration for the Extension, the Company issued to the holder a warrant to purchase 300,000 shares of the Company’s common
stock with an initial exercise