Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 1

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 1
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 with acreage for on-site switchyard, substation and additional data center buildings

    ●
    Better
    options for connectivity to high-voltage transmission lines

    ●
    Closer
    proximity to existing and planned geothermal power plants

    ●
    Shorter
    fiber routing distances to internet backbone and communications networks

    ●
    Directly
    on the main north/south transportation corridor (Hwy. 111) and gateway entrance (Sinclair Rd.) to the planned 51,000-acre Lithium
    Valley development area

    ●
    Lower
    flood risk - outside of the 100- and 500- year flood zones in a FEMA X (Unshaded) area

In
late July 2024, we terminated our option agreement to acquire the 80-acre parcel in Imperial County, California as we believe the recently-optioned
property is better suited for our immediate needs.

We
believe 100% clean-energy-powered data centers are an important element in the ability of the U.S. to meet its carbon neutral climate
goals and for hyperscale and enterprise IT companies to meet their shareholder and customer commitments to have an ESG-compliant, clean
digital footprint before 2030. As a result, we believe the availability of nearby clean energy and our ability to produce geothermal
power on our site will provide us a significant competitive advantage in the marketplace.

In
Phase I of our development plan, which we completed in December 2023, we contracted with leading data center advisory firms to complete
site, power and connectivity assessments, feasibility studies, engineering plans and project benchmarking. Phase I of our plan included
engaging:

    ●
    HDR
    Engineering, Inc., a global professional services firm specializing in architecture, engineering, environmental and construction
    services (“HDR Engineering”), to complete a site assessment, project feasibility study, and the initial shovel-ready
    site development plan for our Imperial County site.

    ●
    ZGlobal,
    Inc., a power engineering and energy solutions firm (“ZGlobal”), to assess all available power and transmission routes
    in the immediate area of the site and to develop a plan to access power from close by geothermal and solar producers via Behind-The-Meter,
    Off-Take and Power Purchase Agreements directly and through agreements with the local grid operator.

Results
of Operations for the three months ended March 31, 2025 and 2024

The
following table summarizes our