Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 1034

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 13
Chunk 1034
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 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 the Termination Date. As of the Termination Date, the Company had approximately $344,000 of
Option Cost. The remaining DCC Cost are related to the development activities to the overall Data Center Campus, as such are not cost
associated with the Initial Property.

As
of December 31, 2024, the Company has incurred DCC Cost of approximately $5,849,000, which includes approximately $284,000 of capitalized
interest related to the interest calculated for the funds, from the Notes payable and Convertible promissory notes, used for the DCC
development expenditures.

Note
3 – Notes Payable

NOTES PAYABLE 

Notes
payable transactions for the year ended December 31, are summarized as follows:

SCHEDULE
OF NOTES PAYABLE 

    2024 
     
    2023

    Principal 

    Balance, beginning of the period 
    $11,000 
     
    $
    61,000

    Additions – related party 
     1,000,000 

    -

    Settlement – related party 
     (1,000,000)

    (50,000
    )
  
    Balance, end of the period 
     11,000 

    11,000

    Discount 

    Balance, beginning of the period 
     - 

    -

    Additions – related party 
     2,355,000 

    -

    Amortization – related party 
     2,355,000 

    -

    Balance, end of the period 
     - 

    -

    Net carrying amount 
    $11,000 
     
    $
    11,000

In
February 2024, the Company issued a promissory note (“Promissory Note”) in the principal amount of $1,000,000 that bears
interest at the rate of 10% per annum and originally matured on May 31, 2024 (“Maturity Date”). It also issued a five-year
warrant to purchase up to 200,