Company: GEDC
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001641172-25-002190
Chunk: 523

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 523
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 provide power and connectivity assessments,
feasibility studies, engineering plans, and project benchmarking. Data center cost also includes internal cost such as payroll-related
cost and debt interest cost.

In
accordance with ASC 360-10-35, the Company reviews the carrying amounts of data center cost when events or changes in circumstances indicate
the assets may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The
recoverable amount is the higher of fair value, less costs of disposal and value in use. In assessing value in use, the estimated future
cash flows to be derived from continuing use of the asset or cash-generating unit are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Fair value less
costs of disposal is the amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between
knowledgeable, willing parties, less the cost of disposal. When a binding sale agreement is not available, fair value less costs of disposal
is estimated using a discounted cash flow approach with inputs and assumptions consistent with those of a market participant. If the
recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the cash-generating
unit is reduced to its recoverable amount. An impairment loss is recognized immediately in net income.

    F-9

As
of December 31, 2024, there have been no circumstances to indicate the asset may not be recoverable.

Related
Parties

The
Company follows Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”)
section 850-10 for the identification of related parties and disclosure of related-party transactions.

Pursuant
to ASC section 850-10-20, the related parties include (a.) affiliates of the Company (“Affiliate” means, with respect to
any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or
is under common control with such Person, as such terms are used in and construed under Rule 405 under