Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 15

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 15
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 in this Report.

9

Our
audited financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted
accounting principles.

We
are in the early stages of implementing our plan for the development of a large-scale geothermal-powered data center campus
on which we will lease powered building lots and buildings to large enterprise information technology (IT) customers that are creating
or addressing the growing demand for AI, Cloud and High-Performance Computing (HPC) digital services. In planning for our initial geothermal-powered
data center building lots and building, we are in discussions with several large companies that could lease all or part of the data center
campus, with the intention of cultivating long-term strategic relationships with them once they become our customers and providing them
with solutions for their data center facilities and IT infrastructure requirements. We initially intend to provide geothermal-powered
building lots with flexibility for customers to scale for future growth. As currently contemplated, our offerings will provide clean
energy power, flexibility, reliability and security delivered through a tailored, customer-service-focused platform that will be designed
to foster long-term relationships.

As
of the filing of this Report, we have completed Phase I and entered into Phase II of our data center development plans. In the initial
phase of our project, we originally signed an option agreement in March 2023 to acquire 80 acres of commercially-zoned land in Imperial
County, California. We believed this site would provide us an opportunity to acquire commercially-zoned land on which we could combine
nearby direct clean geothermal/solar energy with a 24/7 data center operation. However, in July 2024, we identified and entered into
an option agreement to acquire a larger, 315-acre parcel of land that we believe provides us with significant advantages over our prior
data center development site, which include:

    ●
    Larger,
    strategically located, industrial-zoned property with acreage for on-site switchyard, substation and additional data center buildings

    ●
    Better
    options for connectivity to high-voltage transmission lines

    ●
    Closer
    proximity to existing and planned geothermal power plants

    ●
    Shorter
    fiber routing distances to internet backbone and communications networks

    ●
    Directly
    on the main north/south transportation corridor (Hwy. 111) and gateway entrance (Sinclair Rd.) to the planned 51,000-acre Lithium
    Valley development area