Company: GEDC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010244
Chunk: 42

Company: CalEthos, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 42
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 that bears interest at the rate of 10%
per annum and matures on August
31, 2025. In connection with such loan, the Company issued to the lender a five5-year
warrant to purchase 500,000 shares of common stock for a purchase price of $0.49 per share. In connection with such loan, the Company
also entered into an amendment to the warrant to purchase 2,258,877 shares of common stock previously issued to Nanosha, LLC, a company
controlled by Mr. Fontenot, pursuant to which the Company reduced the exercise price of the warrant from $2.00 per share to $0.49 per
share.

13

Item 2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations

The following discussion should be read in conjunction
with our financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the financial statements
and related notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2024.

This discussion contains certain forward-looking
statements that involve risks and uncertainties. Our actual results and the timing of certain events could differ materially from those
discussed in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth herein and
elsewhere in this Quarterly Report and in our other filings with the Securities and Exchange Commission. See “Cautionary Note Regarding
Forward Looking Statements.”

Plan of Operations

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 buildings, 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