Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 3

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 3
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 to provide
them with clean-energy-powered solutions that address their current and future needs. We expect that our clean energy, geothermal-powered
building platform design will allow us to offer power resiliency, and the opportunity for expansion as the needs of our customers grow.

2

Plan
of Operations

As
of the date of filing of this Report, we are in the process of completing our vertically-integrated, geothermal-powered data center
campus land-use plan and zone change with Imperial County Planning and Development. We expect that land use and conditional zone
change approvals will be completed by the end of 2025 or during the first quarter of 2026. In parallel, we are completing our plans,
timelines and budgets for all required county and state environmental studies and reports, which we expect to have completed and
filed for data center campus construction, onsite switchyard and electrical distribution system, and fiber, gas, water and sewer
lines that connect to the property by the end of 2025. In addition, we are planning to have the required approvals to start the
initial construction of the data center campus and all external utility lines by the end of the second quarter
2026. We are also planning that we can complete and submit all design, planning and environmental reports and studies for
the state environmental agencies for our planned onsite geothermal production systems by mid-2026.

We are also in
the process of completing a master services agreement with a geothermal technology and development company that will provide
advanced closed-loop geothermal production technology, sub-surface planning and drilling, above-ground turbine and generator
electricity production components and the electrical distribution system design and components. We expect to complete this agreement
before the end of June 2025 and have the designs completed for subsurface and surface components before the end of 2025.

Closed-loop
geothermal systems (also known as “advanced geothermal systems” or “AGS”) are a type of engineered geothermal
energy system containing subsurface working fluid that is heated in a hot rock reservoir without direct contact with rock pores and fractures.
Instead, the subsurface working fluid stays inside a closed loop of deeply buried pipes that conduct Earth’s heat. Closed-loop
geothermal systems are one of the prominent categories of next-generation geothermal systems in development today.

The
advantages of closed-loop geothermal technologies include:

    ●
    No
    need for a geofluid (water, geothermal brine, etc.)

    ●