Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 402

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 402
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 switchyard and electrical distribution system, and fiber, gas, water and
sewer lines that connect to the property by the end of 2025. In addition, we are planning to have the required approvals to start the
initial construction of the data center campus and all external utility lines by the end of the second quarter 2026. We are also planning
that we can complete and submit all design, planning and environmental reports and studies for the state environmental agencies for our
planned onsite geothermal production systems by mid-2026.

We are also in the process of completing a master services agreement with
a geothermal technology and development company that will provide advanced closed-loop geothermal production technology, sub-surface planning
and drilling, above-ground turbine and generator electricity production components and the electrical distribution system design and components.
We expect to complete this agreement before the end of June 2025 and have the designs completed for subsurface and surface components
before the end of 2025.

Based
upon the current interest we have received from potential tenants, we expect that we will have agreements signed to lease all or a substantial part of the development
by the end of 2025 or early 2026.

It
is anticipated that we will incur significant expenses in the implementation of our business plan as described herein, and that we will
require substantial financing to complete the development and construction of the planned vertically-integrated, geothermal-powered data
center campus. A failure to obtain this necessary capital when required on acceptable terms, or at all, could force us to delay, limit,
reduce or terminate our development plans, any commercialization efforts and any other operations. We may not be able to secure financing
on favorable terms, or at all, to meet our future capital needs. In addition, even if we are able to obtain sufficient funding to commence
our business operations, we may need to pursue additional financing in the future to make expenditures and/or investments to support
the growth of our business. In addition, we may require additional capital to pursue our business objectives and respond to new competitive
pressures, pay extraordinary expenses or fund our growth, including through acquisitions. Additional funding, however, may not be available
when required on terms that are acceptable to us, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory
to us when it is required, our ability to commence and grow our proposed business operations, to support our business and to respond
to business challenges could be significantly limited.

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