Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 954

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 11
Chunk 954
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 in good standing with the Company on such applicable vesting date.

    (2)
    the
    remaining 1,250,000 shares based on the Company completing the following milestones:

    a.
    250,000
    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.
    250,000
    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.
    250,000
    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.
    500,000
    shares upon signing 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.

    F-20

The
Company’s management has accounted for the Non-Qual Option 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
Non-Qual Option Grant Date fair value of $875,000
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 range of 137%
to 338%