Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 16

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 16
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 Campus project.

As
of the Termination Date, the Company had approximately $4,158,000 of cost (“DCC Cost”) for the Data Center Campus project.
In accordance with ASC 790 and 360, the Company is required to determine the amount of DCC Cost (“Option Cost”) associated
with the Initial Property. The Option Cost is required to be exposed on the date the Company abandoned the Initial Option. The Company
has determined the date of abandonment was the Termination Date. As of the Termination Date, the Company had approximately $344,000 of
Option Cost. The remaining DCC Cost are related to the development activities to the overall Data Center Campus, as such are not cost
associated with the Initial Property.

As
disclosed in Note 1 – Organization and Accounting Policies, given
the recent development of the Plan and the prolonged uncertainty, the Company elected not to renew its purchase option on the New Property when it expired in July 2025. Consequently, previously capitalized data center development costs will be expensed, and
the Company will cease capitalizing additional data center development expenses until the Company can secure parcels with appropriate
zoning for data center use and greater certainty around the execution of its development plans, as disclosed in Note 1. As of the termination
of the data center development, the Company had approximately $4,581,000 of capitalized development cost, which has been recorded as
abandoned project costs.

    9

Note
3 – Notes Payable – Related Parties

 NOTES PAYABLE - RELATED PARTIES

Notes
payable – related parties transactions are summarized for the periods as follows:

 SCHEDULE OF NOTES PAYABLE

    Six months ended 
June 30, 2025  
    Year Ended
                                                                               December 31, 2024 
  
    Principal 

    Balance, beginning of the period 
    $11,000  
    $11,000 
  
    Additions 
     250,000  
     1,000,000 
  
    Settlement 
     -  
     (1,000,000)
  
    Balance, end of the period 
     261,000  
     11,000 
  
    Discount 

    Balance, beginning of the period 
     -  
     - 
  
    Additions 
     134,000  
     2,355,000 
  
    Amortization 
     (70,000