Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
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Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
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The following discussion should be read in conjunction
with our financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the financial statements
and related notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2024.

This discussion contains certain forward-looking
statements that involve risks and uncertainties. Our actual results and the timing of certain events could differ materially from those
discussed in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth herein and
elsewhere in this Quarterly Report and in our other filings with the Securities and Exchange Commission. See “Cautionary Note Regarding
Forward Looking Statements.”

Plan of Operations

We
are in the early stages of implementing our plan for the development of a large-scale geothermal-powered data center campus on which
we will lease powered building lots and buildings to large enterprise information technology (IT) customers that are creating or addressing
the growing demand for AI, Cloud and High-Performance Computing (HPC) digital services. In planning for our initial geothermal-powered
data center building lots and buildings, we are in discussions with several large companies that could lease all or part of the data
center campus, with the intention of cultivating long-term strategic relationships with them once they become our customers and providing
them with solutions for their data center facilities and IT infrastructure requirements. We initially intend to provide geothermal-powered
building lots with flexibility for customers to scale for future growth. As currently contemplated, our offerings will provide clean
energy power, flexibility, reliability and security delivered through a tailored, customer-service-focused platform that will be designed
to foster long-term relationships.

As
of the filing of this Report, we have completed Phase I and entered into Phase II of our data center development plans. In the initial
phase of our project, we originally signed an option agreement in March 2023 to acquire 80 acres of commercially-zoned land in Imperial
County, California. We believed this site would provide us an opportunity to acquire commercially-zoned land on which we could combine
nearby direct clean geothermal/solar energy with a 24/7 data center operation. However, in July 2024, we identified and entered into
an option agreement to acquire a larger, 315-acre parcel of land that we believe provides us with significant advantages over our prior
data center development site, which include:

    ●
    Larger,
    strategically located, industrial-zoned property