Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 423

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 423
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(b)), alternative minimum tax, or state, local, or international tax consequences.

22

With
respect to nonqualified stock options, we are generally entitled to deduct, and the participant recognizes taxable income in an amount
equal to the difference between the option exercise price and the fair market value of the shares at the time of exercise. With respect
to incentive stock options, we are generally not entitled to a deduction nor does the participant recognize income at the time of exercise,
although the participant may be subject to the U.S. federal alternative minimum tax. Upon a disposition of shares acquired by exercise
of an incentive stock option before the end of the applicable incentive stock option holding periods, the participant generally must
recognize ordinary income equal to the lesser of (i) the fair market value of the shares at the date of exercise minus the exercise price
or (ii) the amount realized upon the disposition of the incentive stock option shares minus the exercise price. Otherwise, a participant’s
disposition of shares acquired upon the exercise of an option (including an incentive stock option for which the incentive stock option
holding periods are met) generally will result in only capital gain or loss.

With
respect to restricted shares, we are generally entitled to deduct and the participant recognizes taxable income in an amount equal to
the excess of the fair market value over the price paid (if any) only at the time the restrictions lapse (unless the recipient elects
to accelerate recognition as of the date of grant).

If
an award is accelerated under the Equity Plan in connection with a “change in control” (as this term is used under the Code),
we may not be permitted to deduct the portion of the compensation attributable to the acceleration (“parachute payments”)
if it exceeds certain threshold limits under the Code (and certain related excise taxes may be triggered).

We
have the authority and the right to deduct or withhold, or require a participant to remit to us, an amount sufficient to satisfy any
income, payroll, and other taxes (including, without limitation, pursuant to the Federal Insurance Contributions Act and the Federal
Unemployment Tax Act) to the extent required by law to be withheld with respect to any taxable event concerning a participant arising
as a result of an award under the Equity Plan.

Incentive
Plan Awards

No
equity awards or grants were made to our named executive officers during the fiscal year ended December 31, 2024.

Outstanding
Equity Awards at Fiscal Year-End

The
following