Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 235

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1B
Chunk 235
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, respectively, shares of the Company’s common stock for $0.50 per share. The
Stock Options are exercisable for a period of seven years from the date of grant, which was June 19, 2023 (“Grant Date”).

The
Incentive Option shall vest and become exercisable as follows: (i) options to purchase up to 200,000
shares of Common Stock shall vest and become exercisable on
the first anniversary of the Grant Date; (ii) options to purchase up to 200,000
shares of Common Stock shall vest and become exercisable on
the second anniversary of the Grant Date; and (iii) options to purchase up to 200,000
shares of Common Stock shall vest and become exercisable on
the third anniversary of the Grant Date; provided that the Optionee is an employee in good standing with the Company on such applicable
vesting date. The Incentive Option Grant Date fair value of $300,000
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 of 339%,
the fair value of common stock $0.50,
estimated life of 5
years, risk-free rate of 3.99%
and dividend rate of $0.

The
Non-Qual Option shall vest and become exercisable as follows:

    (1)
    216,666
    shares on each of the first two anniversaries of the Grant Date and 216,668 shares on the third anniversary of the Grant Date, provided
    that the Optionee is an employee or Board member in good standing with the Company on such applicable vesting date.

    (2)
    the
    remaining 1,250,000 shares based on the Company completing the following milestones:

    a.
    250,000
    shares upon completion of the initial site development plan and Data Center design, and submission of a complete set of plans to
    Imperial County Planning and Development Department for approvals and permits.

    b.
    250,000
    shares upon the Company receiving permits necessary to start construction of the data center site and facilities (including but not
    limited to power substation, water delivery, pumping, storage and on-site distribution systems, fiber conduit lines and communications
    systems, and on-site roads, water, power and communications grid, warehousing, offices, administration, support and security buildings,
    perimeter walls