Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 312

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1C
Chunk 312
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 shares upon the completion of construction of a complete data center facility and receipt of an occupancy permit for such facility,
    either for a Data Center facility to be built as a “build to suit” building for a hyperscale company or as a wholesale
    colocation building for enterprise IT customers.

    d.
    500,000
    shares upon signing a build-to-suit contract or one or more contracts being signed for 50% or more of a constructed and operational
    wholesale colocation facility’s capacity.

    F-20

The
Company’s management has accounted for the Non-Qual Option in accordance with ASC 718 – Stock Compensation (“ASC 718”).
ASC 718 requires the Company to estimate the service period over which the compensation cost will be recognized. Management has estimated that the first development phase (a) will be completed
by December 31, 2025, the second development phase (b) by June 30, 2029, the third development phase (c) by April 1, 2025 and the fourth
development phase (d) by June 30, 2027. The estimated service period will
be adjusted for actual and expected completion date changes. Any such change will be recognized prospectively, and the remaining deferred
compensation will be recognized over the remaining service period.

The
Non-Qual Option Grant Date fair value of $875,000
was calculated using the Black Scholes fair value option-pricing
model with key input variables provided by management, as of the date of issuance: volatility range of 137%
to 338%,
the fair value of common stock $0.50,
estimated life range of 3.9
years to 5.0
years, risk-free rate range of 3.99%
to 5.24%
and dividend rate of $0.

For the years ended December 31, 2024 and 2023, the Company recorded compensation
expenses of approximately $465,000 and $98,000, respectively, of which approximately $116,000 and $25,000 was expensed as compensation
expense and approximately $349,000 and $73,000 was capitalized as data center cost.

SCHEDULE
OF STOCK OPTION ACTIVITIES 

    Number of Shares  
    Weighted Average Strike Price/Share  
    Weighted Average Remaining Contractual Term (Years)  
    Weighted Average Grant Date Fair Value/Share  
     Intrinsic Value