Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 387

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 2
Chunk 387
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.03%,
the fair value of common stock $0.50,
estimated life of 3.5
years, risk-free rate of 4.127%
and dividend rate of $0.
For the years ended December 31, 2024 and 2023, the Company recorded compensation expenses of approximately $94,000 and $8,000,
which was capitalized as data center cost.

June
2023 – Stock Options

As
part of the Employment Agreement, as defined in Note 6 – Commitments and Contingencies, the executive was granted an incentive
stock option (“Incentive Option”) and a non-qualified stock option (“Non-Qual Option”) (collectively “Stock
Options”) to purchase 600,000 and 1,900,000, respectively, shares of the Company’s common stock for $0.50 per share. The
Stock Options are exercisable for a period of seven years from the date of grant, which was June 19, 2023 (“Grant Date”).

The
Incentive Option shall vest and become exercisable as follows: (i) options to purchase up to 200,000
shares of Common Stock shall vest and become exercisable on
the first anniversary of the Grant Date; (ii) options to purchase up to 200,000
shares of Common Stock shall vest and become exercisable on
the second anniversary of the Grant Date; and (iii) options to purchase up to 200,000
shares of Common Stock shall vest and become exercisable on
the third anniversary of the Grant Date; provided that the Optionee is an employee in good standing with the Company on such applicable
vesting date. The Incentive Option Grant Date fair value of $300,000
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 of 339%,
the fair value of common stock $0.50,
estimated life of 5
years, risk-free rate of 3.99%
and dividend rate of $0.

The
Non-Qual Option shall vest and become exercisable as follows:

    (1)
    216,666
    shares on each of the first two anniversaries of the Grant Date and 216,668 shares on the third anniversary of the Grant Date, provided
    that the Optionee is an employee or Board member in good standing with the Company on such applicable vest