Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 27

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 27
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5, both of the consultants were terminated. As of the termination date, one the options had vested as
to 43,750 shares of common stock and the option for the remaining 306,250 shares of common stock was cancelled. The other option was cancelled
in its entirety. The associated compensation expense capitalized in the prior year of approximately $87,000 was recaptured and classified
as abandoned project costs.

    15

In
June 2023, the Board of Directors approved the issuance of stock options to the Company’s COO for the purchase of 1,000,000 shares
of common stock with an exercise price of $0.54, per share, which was the fair market value of the Company’s common stock on the
date of issuance. In June 2023, as part of an employment agreement an executive was granted an incentive stock option and a non-qualified
stock option 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. For the nine months ended September
30, 2025, the Company recognized compensation expense of approximately $49,000 related to time-based equity awards, and upon the determination
that the related project would not be completed recorded a reversal of approximately $101,000 for performance-based awards, both of which
were recorded as equity-based compensation. During the same period, the Company recorded a reversal of approximately $303,000 of performance-based
compensation expense that had been capitalized in prior periods as data center campus costs. The $303,000 was recorded to abandoned project
costs, upon the determination that the related project would not be completed.

Warrants

The
following table summarized warrants outstanding as of September 30, 2025:

 SCHEDULE OF WARRANTS ACTIVITY

    Number of
                                                                                Shares  
    Weighted
                                                                                Average
                                                                                Strike
                                                                                Price/Share  
    Weighted
                                                                                Average
                                                                                Remaining
                                                                                Contractual
                                                                                Term
                                                                                (Years)  
    Weighted
                                                                                Average
                                                                                Grant Date
                                                                                Fair
                                                                                Value/Share  
    Intrinsic
                                                                               Value 
  
    Balance, December 31, 2024 
     8,004,678  
     0.95  
     4.