Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 481

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 481
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183,000) 
    $(1,165,000) 
    $10,018,000  
     859.9%

Revenues

For
the years ended December 31, 2024 and 2023, we had no revenues.

Operating
Expenses

Professional
fees

Our
professional fees increased to $386,000 for the year ended December 31, 2024 from $344,000 for the year ended December 31, 2023. The
increase of approximately $42,000 was attributable to a decrease in our consulting fees of approximately $63,000, which was offset by
an increase in our other professional fess of approximately $105,000.

Equity-based
compensation

Our
equity-based compensation for the year ended December 31, 2024 was approximately $369,000 as compared to $3,032,000 for the year ended
December 31, 2023. During the fourth quarter of 2023, we issued warrants and stock options to our directors and officers with a fair
value of $2,916,000, which was recognized as an expense upon issuance. Also for the years ended December 31, 2024 and 2023, the Company capitalized equity based compensation of approximately
$2,380,000 and $336,000 as data center cost.

Development
cost – abandonment

On
July 24, 2024, we terminated our option agreement to acquire 80 acres of commercially-zoned land in Imperial County, California. At such
date, we had approximately $344,000 development cost related to that property, which we determined were not usable for our data center campus project.

12

Payroll
and related expenses

Payroll
and related expenses increased to $259,000 for the year ended December 31, 2024, compared to $51,000 for the year ended December 31,
2023. For the year ended December 31, 2023, we had one employee. Our first employee, our Chief Operating Officer, was hired in June 2023,
and our second employee, our Vice President of Data Center Development, was hired in February 2024. For the year ended December 31, 2024,
our total payroll-related cost for our employees was approximately $1,148,000, of which approximately $889,000 was capitalized as data
center development cost.

Financing
costs

Our
financing