Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 39

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 39
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 issuance. In January 2025, the Company terminated
the employment agreement. As of the termination date, the employee vested the options as to 1675,000 shares of common stock,
the options to purchase the remaining 831,250
shares of common stock was cancelled and the associated compensation expense capitalized in the prior year of approximately
$986,000
was recaptured.

December 2023 Stock Options

In December 2023, the
Board of Directors approved the issuance of stock options to the Company’s CEO and COO for the purchase of 1,000,000
and 1,000,000
shares of common stock, respectively (“2023 Executive Options”) for an exercise price of $0.54, per share,
which was the fair market value of the Company’s common stock on the date of issuance. For the three months ended March 31,
2025 and 2024, the Company recorded compensation expenses of approximately $67,000
and $215,000,
respectively, of which approximately $25,000
and $78,000
was expensed as compensation expense and approximately $44,000
and $138,000
was capitalized as data center cost.

In December 2023, the
Board of Directors approved the issuance of stock options to two consultants, an executive advisor and a data center development
advisor, for the purchase of 350,000 and 350,000,
respectively, shares of common stock (collectively “2023 Consultant Options”) for an exercise price of $0.54,
per share, which was the fair market value of the Company’s common stock on the date of issuance. In January 2025, both of the
consultants were terminated. As of the termination date, one the options vested as to 43,750 shares
of common stock and option for the remaining 306,250 shares
of common stock were cancelled. The other option was cancelled in its entirety. The associated compensation expense capitalized in the prior year
of approximately $87,000 was
recaptured.

    12

June 2023 – Stock Options

As part of the Employment Agreement an
executive was granted an incentive stock option and a non-qualified stock option to purchase 600,000
and 1,900,000,
respectively, shares of the Company’s common stock for $0.50
per share. The stock options are exercisable for a period of seven
years from the date of grant