Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 50

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
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 computation of diluted loss per share for the six
months ended June 30, 2025 and 2024 because their inclusion would be anti-dilutive. Common stock equivalents amounted to 11,438,678 and
6,145,801 for the six months ended June 30, 2025 and 2024, respectively.

Recent
Accounting Pronouncements

The
Company’s management reviewed all recently issued accounting standard updates (“ASU’s”) not yet adopted by the
Company and does not believe the future adoption of any such ASU’s may be expected to cause a material impact on the Company’s
consolidated financial condition or the results of its operations.

Note
2 – Data Center Development Costs

 DATA CENTER COSTS

On
July 22, 2024, the Company entered into an option agreement (“Option”) to acquire for a purchase price of $5,000,000 a 315-acre
parcel of land (“New Property”) in Imperial County, California to be used for the development of the Company’s Data
Center Campus. With the execution of the Option, the Company paid a non-refundable deposit of $50,000. The Option has an initial term
of one year and may be extended for an additional six-month period by the payment of $75,000 on or before July 21, 2025.

On
March 30, 2023, the Company signed an option agreement (“Initial Option”) to acquire 80 acres of commercially-zoned land
(“Initial Property”) in Imperial County, California for $3,360,000 (“Purchase Price”). The Initial Property was
optioned to be the land used for the Company’s Data Center Campus. The Company paid a non-refundable deposit of $84,000 on the
signing of the Initial Option. On July 24, 2024 (“Termination Date”), the Company terminated (“Termination”)
the Initial Option as the Company believes the New Property is better suited for the Company’s Data Center Campus project.

As
of the Termination Date, the Company had approximately $4,158,000 of cost (“DCC Cost”) for the Data Center Campus project.
In accordance with ASC 790 and 360, the Company is required to determine the amount of DCC Cost (“Option Cost”) associated
with the Initial Property. The Option Cost is required to be exposed on the date the Company abandoned the Initial Option. The Company
has determined the date of abandonment was