Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 147

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1A
Chunk 147
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 a $2,317,000
loss on extinguishment, which was the difference between the fair value of The Extension Warrants compared to the aggregate fair
value of the Exchange Warrants and Exchange
Shares. The loss on  extinguishment of note payable – related party was
calculated as follows:

SCHEDULE
OF LOSS ON EXTINGUISHMENT OF NOTE PAYABLE RELATED PARTY

    Loan - principal balance 
    $1,000,000 

    Value The Extension Warrants - cancelled 
     755,000 
  
    Total Consideration 
     1,755,000 

    Share received 
     500,000 
  
    Stock price 
     1.75 
  
    Common stock value 
     875,000 
  
    Value of Exchange Warrant 
     3,197,000 
  
    Value received 
     4,072,000 
  
    Loss on extinguishment of note payable – related party 
    $2,317,000 

    F-13

On
the Exchange Date the 600,000  Extension Warrants had a fair value of $755,000
calculated using the Black Scholes fair value option-pricing model with key input variables provided by management: volatility of 166%,
the fair value of common stock $1.75,
estimated life range 2.5
years, risk-free rate of 4.25%
and dividend rate of nil.

Interest
expense on the Promissory Note amounted to $103,000
and $9,000
for the years ended December 31, 2024
and 2023, respectively, of which approximately $60,000
and nil,
respectively, were capitalized as data center development cost.

Note
4 – Convertible Debentures

CONVERTIBLE DEBENTURES 

Convertible
debentures transactions for the years ended December 31, are summarized as follows:

SCHEDULE
OF CONVERTIBLE DEBENTURES 

    Principal 
    2024 
     
    2023

    Balance, beginning of period 
    $341,000 
     
    $
    4,613,000

    Additions 
     1,410,000 

    -

    Conversions 
     (341,000)

    (4,272,000
    )
  
    Balance, end of period 
     1,410,000 

    341,000