Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 34

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 34
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 Initial Property was optioned to be
the land used for the Company’s Data Center Campus. The Company paid a non-refundable deposit of $84,000 on the signing of the Initial
Option. On July 24, 2024 (“Termination Date”), the Company terminated (“Termination”) the Initial Option as the
Company believes the New Property is better suited for the Company’s Data Center Campus project.

As
of the Termination Date, the Company had approximately $4,158,000 of cost (“DCC Cost”) for the Data Center Campus project.
In accordance with ASC 790 and 360, the Company is required to determine the amount of DCC Cost (“Option Cost”) associated
with the Initial Property. The Option Cost is required to be exposed on the date the Company abandoned the Initial Option. The Company
has determined the date of abandonment was the Termination Date. As of the Termination Date, the Company had approximately $344,000 of
Option Cost. The remaining DCC Cost are related to the development activities to the overall Data Center Campus, as such are not cost
associated with the Initial Property.

As
of March 31, 2025, the Company has incurred DCC Cost of approximately $5,531,000, which includes approximately $310,000 of capitalized
interest related to the interest calculated for the funds, from the Notes payable and Convertible promissory notes, used for the DCC development
expenditures.

    9

Note
3 – Notes Payable

NOTES PAYABLE

Notes
payable transactions are summarized for the periods ended as follows:

SCHEDULE
OF NOTES PAYABLE

    March 31,
                                                                               2025  
    December 31, 2024 
  
    Principal 

    Balance, beginning of the period 
    $11,000  
    $11,000 
  
    Additions – related party 
     -  
     1,000,000 
  
    Settlement – related party 
     -  
     (1,000,000)
  
    Balance, end of the period 
     -  
     11,000 
  
    Discount 

    Balance, beginning of the period 
     -  
     - 
  
    Additions – related party 
     -  
     2,355,000 
  
    Amortization – related party 
     -  
     2,355