Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 35

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 35
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,000 
  
    Balance, end of the period 
     -  
     - 
  
    Net carrying amount 
    $11,000  
    $11,000 

Interest
expense for the notes payable amounted to nil and $9,000 for the three months ended March 31, 2025 and 2024, respectively, of which approximately
nil and $5,000, respectively, were capitalized as data center development cost.

Note
4 – Convertible Debentures

CONVERTIBLE DEBENTURES

Convertible
debentures transactions are summarized for the periods ended as follows:

SCHEDULE
OF CONVERTIBLE DEBENTURES

    Principal 
    Three months ended 
March 31, 2025  
    Year Ended
 December 31, 2024 
  
    Balance, beginning of period 
    $1,410,000  
    $341,000 
  
    Additions 
     225,000  
     1,410,000 
  
    Conversions 
     -  
     (341,000)
  
    Balance, end of period 
     1,635,000  
     1,410,000 

    Debt issuance cost 

    Balance, beginning of period 
     97,000  
     - 
  
    Additions 
     10,000  
     106,000 
  
    Amortization 
     (12,000) 
     (9,000)
  
    Balance, end of period 
     95,000  
     97,000 

    Net book value 
    $1,540,000  
    $1,313,000 

In
June 2024, the Company initiated a private placement offering for its convertible debentures  (the “Debentures”). The Debentures
bears interest at 10.0% per annum with a default interest rate of 15.0% per annum. The principal amount and all accrued interest are payable
on December 31, 2026. The holder of the Debentures has the option to convert the unpaid principal and interest into shares of the Company’s
common stock at the conversion rate of $2.00 per share, subject to adjustment for stock splits, stock dividends and the like and for issuances
by the Company of common stock at a price per share that is less than the