Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 531

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 531
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 value of The Extension Warrants compared to the aggregate fair
value of the Exchange Warrants and Exchange
Shares. The loss on  extinguishment of note payable – related party was
calculated as follows:

SCHEDULE
OF LOSS ON EXTINGUISHMENT OF NOTE PAYABLE RELATED PARTY

    Loan - principal balance 
    $1,000,000 

    Value The Extension Warrants - cancelled 
     755,000 
  
    Total Consideration 
     1,755,000 

    Share received 
     500,000 
  
    Stock price 
     1.75 
  
    Common stock value 
     875,000 
  
    Value of Exchange Warrant 
     3,197,000 
  
    Value received 
     4,072,000 
  
    Loss on extinguishment of note payable – related party 
    $2,317,000 

    F-13

On
the Exchange Date the 600,000  Extension Warrants had a fair value of $755,000
calculated using the Black Scholes fair value option-pricing model with key input variables provided by management: volatility of 166%,
the fair value of common stock $1.75,
estimated life range 2.5
years, risk-free rate of 4.25%
and dividend rate of nil.

Interest
expense on the Promissory Note amounted to $103,000
and $9,000
for the years ended December 31, 2024
and 2023, respectively, of which approximately $60,000
and nil,
respectively, were capitalized as data center development cost.

Note
4 – Convertible Debentures

CONVERTIBLE DEBENTURES 

Convertible
debentures transactions for the years ended December 31, are summarized as follows:

SCHEDULE
OF CONVERTIBLE DEBENTURES 

    Principal 
    2024 
     
    2023

    Balance, beginning of period 
    $341,000 
     
    $
    4,613,000

    Additions 
     1,410,000 

    -

    Conversions 
     (341,000)

    (4,272,000
    )
  
    Balance, end of period 
     1,410,000 

    341,000

    Debt issuance cost 

    Balance, beginning of period 
     -