Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 17

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 17
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 Cost”) for the Data Center Campus project. In accordance with ASC 790 and 360, the Company was required to
determine the amount of DCC Cost (“Option Cost”) associated with the Initial Property. The Option Cost was required to
be exposed on the date the Company abandoned the Initial Option. The Company has determined the date of abandonment was the
Termination Date. As of the Termination Date, the Company had approximately $344,000
of Option Cost. The remaining DCC Cost was related to the development activities to the overall Data Center Campus and, as such,
were not cost associated with the Initial Property.

As
disclosed in Note 1 – Organization and Accounting Policies, given
the recent development of the Plan and the prolonged uncertainty, the Company elected not to renew its purchase option on the New Property
when it expired in July 2025. Consequently, previously capitalized data center development costs were expensed, and the Company will
cease capitalizing additional data center development expenses until the Company can secure parcels with appropriate zoning for data
center use and greater certainty around the execution of its development plans, as disclosed in Note 1. As of the termination of the
data center development, the Company had approximately $4,581,000 of capitalized development cost, which has been recorded as abandoned
project costs.

    9

Note
3 – Notes Payable – Related Party

NOTES
PAYABLE - RELATED PARTIES 

Notes
payable – related party transactions are summarized for the periods as follows:

 SCHEDULE OF NOTES PAYABLE 

    Nine months
                                                                               ended
                                                                               September 30,
                                                                               2025  
    Year Ended
                                                                               December 31,
                                                                               2024 
  
    Principal 

    Balance, beginning of the period 
    $11,000  
    $11,000 
  
    Additions 
     750,000  
     1,000,000 
  
    Settlement 
     -  
     (1,000,000)
  
    Balance, end of the period 
     761,000  
     11,000 
  
    Discount 

    Balance, beginning of the period 
     -  
     - 
  
    Additions 
     590,000  
     2,355,000 
  
    Amortization 
     (300,000) 
     (2,355,000)
  
    Balance, end of