Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 16

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 16
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 awards. For periods with a net loss, basic and diluted loss per share is the same, in that any potential
common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share.

Securities
that could potentially dilute loss per share in the future were not included in the computation of diluted loss per share for the nine
months ended September 30, 2025 and 2024 because their inclusion would be anti-dilutive. Common stock equivalents amounted to 18,388,678
and 6,675,801 as of September 30, 2025 and 2024, respectively.

Recent
Accounting Pronouncements

The
Company’s management reviewed all recently issued accounting standard updates (“ASU’s”) not yet adopted by the
Company and does not believe the future adoption of any such ASU’s may be expected to cause a material impact on the Company’s
consolidated financial condition or the results of its operations.

Note
2 – Data Center Development Costs

 DATA
CENTER DEVELOPMENT COSTS

On
July 22, 2024, the Company entered into an option agreement (“Option”) to acquire for a purchase price of $5,000,000 a 315-acre
parcel of land (“New Property”) in Imperial County, California to be used for the development of the Company’s Data
Center Campus. With the execution of the Option, the Company paid a non-refundable deposit of $50,000. The Option had an initial term
of one year and could have been extended for an additional six-month period by the payment of $75,000 on or before July 21, 2025.

On
March 30, 2023, the Company signed an option agreement (“Initial Option”) to acquire 80
acres of commercially-zoned land (“Initial Property”) in Imperial County, California for $3,360,000
(“Purchase Price”). The Initial Property was optioned to be the land used for the Company’s Data Center Campus.
The Company paid a non-refundable deposit of $84,000
on the signing of the Initial Option. On July 24, 2024 (“Termination Date”), the Company terminated
(“Termination”) the Initial Option as the Company believed the New Property was better suited for the Company’s
Data Center Campus project.

As
of the Termination Date, the Company had approximately $4,158,000
of cost (“DCC