Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 761

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 7
Chunk 761
---
 of 500,000 shares, upon vesting the options have a life of seven years.

    (2)
    the
    remaining 500,000 shares based on the Company completing the following milestones (upon vesting the options have a life of seven
    year):

    a.
    100,000
shares upon completion of the initial site development plan and Data Center design, and submission of a complete set of plans to Imperial
County Planning and Development Department for approvals and permits.

    b.
    100,000
                                                         shares upon the Company receiving permits necessary to start construction of the data center site and facilities (including but not
                                                         limited to power substation, water delivery, pumping, storage and on- site distribution systems, fiber conduit lines and
                                                         communications systems, and on-site roads, water, power and communications grid, warehousing, offices, administration, support and
                                                         security buildings, perimeter walls and security systems).

    c.
    100,000
                                                         shares) upon the completion of construction of a complete data center facility and receipt of an occupancy permit for such facility,
                                                         either for a Data Center facility to be built as a “build to suit” building for a hyperscale company or as a wholesale
                                                         colocation building for enterprise IT customers.

    d.
    200,000
shares) upon the signing of a build-to-suit contract or one or more contracts being signed for 50% or more of a constructed and operational
wholesale colocation facility’s capacity.

The
Company’s management has accounted for the 2023 Executive Options in accordance with ASC 718 – Stock Compensation (“ASC
718”). ASC 718 requires the Company to estimate the service period over which the compensation cost will be recognized. Management
has estimated that the first development phase (a) will be completed by December 31, 2025, the second development phase (b) by June 30, 2029, the third development phase (c) by April 1, 2025 and the fourth development phase (d) by June 30, 2027. 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
2023 Executive Options grant date fair value of $1,060,000
was calculated using the Black Scholes fair value option-pricing model with key input variables provided by management, as