Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 33

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 33
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 periods.

Earnings
Per Share

The
Company uses ASC 260, “Earnings Per Share” for calculating the basic and diluted earnings (loss) per share. The Company
computes basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted
earnings (loss) per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential
common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock
options and warrants and stock 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 three
months ended March 31, 2025 and 2024 because their inclusion would be anti-dilutive. Common stock equivalents amounted to 11,326,178 and
nil for the three months ended March 31, 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 Costs

DATA CENTER 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 has an initial term
of one year and may be 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