Company: GEDC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023834
Chunk: 7

Company: CalEthos, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 7
---
,000 
  
    Accrued expenses – project development cost 
    $(165,000) 
    $3,000 
  
    Equity-based compensation capitalized 
    $-  
    $1,339,000 
  
    Common stock issued for forgiveness of principal and interest 
    $-  
    $6,928,000 

See
the accompanying notes to these unaudited condensed consolidated financial statements.

4

CalEthos,
Inc.

Notes
to the Unaudited Condensed Consolidated Financial Statements

For
the Six Months Ended June 30, 2025 and 2024

Note
1 – Organization and Accounting Policies

 ORGANIZATION AND ACCOUNTING POLICIES

CalEthos,
Inc. (the “Company” or “we”) was incorporated on March 20, 2002 under the laws of the State of Nevada.

As
of July 2022, the Company’s board of directors resolved to focus exclusively on developing a clean-energy-powered data center
campus (“Data Center Campus”). As such, the Company is implementing its plan to build a large-scale, data center campus
vertically integrated with a portfolio of onsite and offsite power. In addition, the Company may acquire assets and all or
part of other companies operating in the clean energy or data center infrastructure industries or invest in or joint venture with
other more-established companies already in the industry that would add value to the Company’s business strategy. The Company
was focusing its Data Center Campus activities in the Lithium Valley Specific Plan (the “Plan”) in Imperial County, California. 

In
2025, the Lithium Valley specific Plan (“Plan”), which was to approve the zone changes for 51,000 acres of agriculture
zoned land, encountered significant delays. While based on initial communications with the Imperial County planning department, the Company had
anticipated the Plan’s approval by Q1 2025, it became evident by May 2025 that this timeline would not be met. Key factors
driving the delay included the need for additional environmental studies, unresolved community concerns, and several outstanding
government approvals. As a result, management estimates indicate that approval of the Plan may be postponed by twelve to twenty-four
months.

Given
the current developments and the prolonged uncertainty regarding the Plan, the Company elected not to renew its purchase option on the
315-acres parcel of land when it expired in July 2025.

In
May 2025, the Company formed Terra