Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 60

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 60
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per share, which was the fair market value of the Company’s common stock on the date of 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 and classified as abandoned project costs.

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
shares of common stock with 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 six months ended June 30, 2025, the Company recognized compensation
expense of approximately
$53,000 related to time-based equity awards, and upon the determination that the
related project would not be completed recorded a reversal of approximately $135,000 for performance-based awards, both of which were recorded as equity-based
compensation. During the same period, the Company recorded a reversal of approximately $225,000 of performance-based compensation expense
that had been capitalized in prior periods as data center campus costs. The $225,000 was recorded to abandoned project costs, upon the
determination that the related project would not be completed.

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”) with 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 had vested as to 43,750
shares of common stock and option for the remaining 306,250
shares of common stock was cancelled. The other option was cancelled in its entirety. The associated compensation expense
capitalized in the prior year of approximately $87,000
was recaptured and classified as abandoned project costs.

    15

In
June 2023, the Board of Directors approved the issuance