Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 79

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 79
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5, the third development phase (c) by March 31, 2026, and the fourth and fifth development
phases (d) and (e) by June 30, 2029. The estimated service period will be adjusted for actual and expected completion date changes.
Any such change will be recognized prospectively, and the remaining deferred compensation will be recognized over the remaining service
period.

The
data center development consultant options grant date fair value of $182,000
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 $0.50,
estimated life of 3.5
years, risk-free rate of 4.127%
and dividend rate of $0.
For the years ended December 31, 2024 and 2023, the Company recorded compensation expenses of approximately $94,000 and $8,000,
which was capitalized as data center cost.

June
2023 – Stock Options

As
part of the Employment Agreement, as defined in Note 6 – Commitments and Contingencies, the executive was granted an incentive
stock option (“Incentive Option”) and a non-qualified stock option (“Non-Qual Option”) (collectively “Stock
Options”) to purchase 600,000 and 1,900,000, 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