Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 451

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 451
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 initial term
of one year and may be extended for an additional six-month period by the payment of $75,000 on or before July 21, 2025.

    F-11

On
March 30, 2023, the Company signed an option agreement (“Initial Option”) to acquire 80 acres of commercially-zoned land
(“Initial Property”) in Imperial County, California for $3,360,000 (“Purchase Price”). The Initial Property was
optioned to be the land used for the Company’s Data Center Campus. The Company paid a non-refundable deposit of $84,000 on the
signing of the Initial Option. On July 24, 2024 (“Termination Date”), the Company terminated (“Termination”)
the Initial Option as the Company believes the New Property is better suited for the Company’s Data Center 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
of December 31, 2024, the Company has incurred DCC Cost of approximately $5,849,000, which includes approximately $284,000 of capitalized
interest related to the interest calculated for the funds, from the Notes payable and Convertible promissory notes, used for the DCC
development expenditures.

Note
3 – Notes Payable

NOTES PAYABLE 

Notes
payable transactions for the year ended December 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