Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 995

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 12
Chunk 995
---

    shares on each of the following dates July 16, 2025, July 17, 2026, July 16, 2027 and July 16,2028;

    ●
    Phase
    (a) 17,500 shares upon the award of a GMP contract to a construction manager/company;

    ●
    Phase
    (b) 35,000 shares upon completion of the initial site development plan and data center design and 100% construction documents;

    ●
    Phase
    (c) 17,500 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, buildings, perimeter walls and security systems); 

    ●
    Phase
    (d) 35,000 upon the completion of all Network Ready meet me rooms in the first data center; and 

    ●
    Phase
    (e) 70,000 shares upon the completion of construction of a customer-ready data center facility and receipt of a conditional occupancy
    permit for a Data Center facility. 

    F-16

The
Company’s management has accounted for the 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 (a) will be completed by June 30, 2026, the second development phase (b) by December 31, 2025, the third
development phase (c) by March 31, 2026, and the fourth and fifth development phases (d) and (e) by June 30, 2029. The estimated service
period will be adjusted for actual and expected completion date changes. Any such change will be recognized prospectively, and the remaining
deferred compensation will be recognized over the remaining service period.

The
option grant date fair value of $1,727,000
was calculated using the Black Scholes fair value option-pricing model with key input variables provided by management, as of the
date of issuance: volatility range 217.4%
to 233.0%,
the fair value of common stock $5.00,
estimated life range 4.5