Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 1043

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 13
Chunk 1043
---

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 166.28%
to 243.04%,
the fair value of common stock $2.62,
estimated life range 2.38
to 5.0
years, risk-free rate of range 4.34%
to 4.72%
and dividend rate of nil.
For the years ended December 31, 2024 and 2023, the Company recorded compensation expenses of approximately $1,317,000
and nil, respectively, which was capitalized as data center cost.

    F-17

December
2023 Stock Options

In
December 2023, the Board of Directors approved the issuance of stock options to the directors for the purchase of 500,000, 750,000 and
404,000 of the Company’s common stock, for a total of 1,654,000 shares, to the three directors (“Directors Options”)
for an exercise price of $0.54, which was the fair market value of the Company’s common stock on the date of issuance. The Director
Options vested on December 31, 2023 and expire on December 29, 2030.

The
Director Options grant date fair value of approximately $860,000 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 224.03%, the fair value of common stock $0.54,
estimated life of 3.5 years, risk-free rate of 4.12% and dividend rate of $0. The Director Options grant date fair value of $860,000
was included in the equity-based compensation in the Statement of Operations for the year ended December 31, 2023.

In
December 2023, the Board of Directors approved the issuance of stock options to the Company’s CEO and COO for the purchase of 1,000,000
and 1,000,000, respectively (“2023 Executive Options”) for an exercise price of $0.54, which was the fair market value of
the Company’s common stock on the date of issuance. The 2023 Executive Options vest, as follows:

The
both the CEO and COO 1,000,000 options vest and become exercisable as follows:

    (1)
    166,667