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

Company: CalEthos, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 10
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 our principal advantages will be our location, which provides us with access
to an abundance of reasonably-priced onsite baseload geothermal energy to power a 24/7 data center operation, low-latency internet connectivity
to major market hubs, and our proximity to the Southern California market and the multitudes of companies utilizing high-performance
computing that want close-by data center space.

As
a developer of data center infrastructure, we also compete for the services of key third-party service providers, including engineers
and contractors with expertise in the development of onsite power production and data centers. The competition for the services of specialized
contractors and other third-party providers required for the development of onsite power production data centers is intense, increasing
the cost of engaging such providers and the risk of delays in completing our development projects.

6

Finally,
we face competition from real estate developers in our sector and in other industries for the acquisition of additional properties suitable
for power production and data center developments. Such competition may reduce the number of properties available for acquisition or
development, increase the price of these properties and reduce the demand for data center space in the markets we seek to serve.

Intellectual
Property

Currently,
our intellectual property consists of the feasibility, assessment, industry benchmarking and shovel-ready site development plans that
have been completed for us by industry leading consulting firms over the last two plus years. Our intellectual property portfolio will
grow as we complete the development of our onsite geothermal power production systems that will be vertically integrated with our ready-to-build-on,
clean-energy powered data center campus. We intend to rely on a combination of patent, copyright, trademark and trade secret laws in
the United States and other jurisdictions, as well as contractual protections, to protect our proprietary technology, methods and offerings.
However, as of the date of this Report, we do not have any patents or registered trademarks.

We
cannot provide any assurance that our proprietary rights with respect to our onsite geothermal power production systems vertically-integrated
with our ready-to-build-on, clean-energy powered data center campus, and the services we will offer will be viable or have value in the
future since the validity, enforceability and type of protection of proprietary rights in these industries are uncertain and continuingly
evolving.

Despite
our efforts to protect our proprietary rights, unauthorized parties may attempt to copy aspects of our design, systems and services or
to obtain and use information that we regard as proprietary. Policing unauthorized use of our designs and services is difficult, and
while we