Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 17

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 17
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 complete environmental, health and safety and cyber security procedures and to develop a set of data center operating procedures to
meet hyperscale customer pre-qualification requirements. During this phase, we also developed requests for proposals (RFPs) and contract
packages for contracting an engineering/design firm and general contractor. In addition, we ramped up our operating staff to support
the infrastructure and building design processes and the development of building plans and the permit packages. We also undertook and
completed utility studies, transmission planning, site layouts and substation designs.

We are currently 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.

Based
upon the current interest we have received from potential tenants, we expect that we will have agreements signed to lease all or a substantial part of the development
by the end of 2025 or early 2026.

It
is anticipated that we will incur significant expenses in the implementation of our business plan as described herein, and that we will
require substantial financing to complete the development and construction of the planned vertically-integrated, geothermal-powered data
center campus. A