Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 63

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 63
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000,000 shares of common stock for a purchase price of $0.50 per share. In connection with such loan, the
Company also entered into an amendment to the outstanding promissory note in the principal amount of $250,000 to extend the maturity
date of such note from August 31, 2025 to January 31, 2026.

16

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The
following discussion should be read in conjunction with our financial statements and related notes thereto included elsewhere in this
Quarterly Report on Form 10-Q and the financial statements and related notes thereto in our Annual Report on Form 10-K for the year ended
December 31, 2023.

This
discussion contains certain forward-looking statements that involve risks and uncertainties. Our actual results and the timing of certain
events could differ materially from those discussed in these forward-looking statements as a result of certain factors, including, but
not limited to, those set forth herein and elsewhere in this Quarterly Report and in our other filings with the Securities and Exchange
Commission. See “Cautionary Note Regarding Forward Looking Statements.”

Plan
of Operations

Over
the last two and a half years, we have worked with the County of Imperial, California to integrate data centers as an
“approved use” into their 51,000-acre Lithium Valley Specific Plan. In July 2024, we contracted to purchase a 315-acre
site in the center of Lithium Valley, which offered nearby grid connectivity, and proximity to geothermal power plants, fiber
connectivity, transportation, gas, water, and other resources. In parallel to working with the county, we worked with the local geothermal
power companies to develop a portfolio of power that could be delivered to our site and used for powering a clean-energy data center
development.

The Imperial County Lithium Valley Specific Plan was to be approved by
the first quarter of 2025. However, in May 2025, it became evident to us that the Lithium Valley Specific Plan was not going to be approved
in the time frame that we had planned for the start of our development. We now estimates it could be delayed twelve to twenty-four months
because of environmental studies that still need to be completed, community issues that need to be resolved, and local and state government
approvals that will need to be granted. The approval of the Lithium Valley Specific Plan would have changed the zoning