Company: GEDC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023306
Chunk: 26

Company: CalEthos, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 26
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 of the termination date, none of the stock options were
vested. As a result, the stock option to purchase the 350,000 shares of the Company’s common stock was forfeited and the associated
compensation expense of approximately $366,000 was recaptured and classified as abandoned project costs.

In
April 2024, the Company awarded its Chief Strategy and Development officer a non-qualified stock option to purchase 1,000,000 shares
of the Company’s common stock at a purchase price of $2.62 per share, which was the fair market value of the Company’s common
stock on the date of issuance. In January 2025, the Company terminated the employment agreement. As of the termination date, the employee
vested the options as to 168,750 shares of common stock, the options to purchase the remaining 831,250 shares of common stock was cancelled
and the associated compensation expense capitalized in the prior year of approximately $986,000 was recaptured and classified as abandoned
project costs.

In
December 2023, the Board of Directors approved the issuance of stock options to the Company’s CEO and COO for the purchase of 1,000,000
shares of common stock with an exercise price of $0.54, per share, which was the fair market value of the Company’s common stock
on the date of issuance. For the nine months ended September 30, 2025, the Company recognized compensation expense of approximately $71,000
related to time-based equity awards, and upon the determination that the related project would not be completed recorded a reversal of
approximately $135,000 for performance-based awards, both of which were recorded as equity-based compensation. During the same period,
the Company recorded a reversal of approximately $225,000 of performance-based compensation expense that had been capitalized in prior
periods as data center campus costs. The $225,000 was recorded to abandoned project costs, upon the determination that the related project
would not be completed.

In
December 2023, the Board of Directors approved the issuance of stock options to two consultants, an executive advisor and a data center
development advisor, for the purchase of 350,000 and 350,000, respectively, shares of common stock (collectively “2023 Consultant
Options”) with an exercise price of $0.54, per share, which was the fair market value of the Company’s common stock on the
date of issuance. In January 202