Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 155

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 3
Chunk 155
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 ongoing basis:

●Continue the process that was
started during 2024 of adding to the Company’s internal resources to enhance its capabilities in the areas of technical accounting,
financial reporting, and internal controls, that may include hiring a full-time person dedicated to internal controls.

●Utilize external third-party
audit and SOX 404 implementation firms to enable the Company to improve the Company’s controls related to its material weaknesses.

●Continue to evaluate existing
processes and implement new processes and controls where necessary in connection with remediating the Company’s material weaknesses,
such that these controls are designed, implemented, and operating effectively.

The Company recognizes that
the material weaknesses in its internal control over financial reporting will not be considered remediated until the remediated controls
operate for a sufficient period of time and can be tested and concluded by management to be designed and operating effectively. Because
the Company’s remediation efforts are ongoing, it cannot provide any assurance that these remediation efforts will be successful
or that its internal control over financial reporting will be effective as a result of these efforts.

The Company continues to evaluate
and work to improve its internal control over financial reporting related to the identified material weaknesses, and management may determine
to take additional measures to address control deficiencies or determine to modify the remediation plan described above. In addition,
the Company will report the progress and status of the above remediation efforts to the Audit Committee on a periodic basis.

Changes in Internal Control over Financial
Reporting

During the most recently completed
fiscal quarter, there have been no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
and 15d-15(f)) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

38

PART II - Other Information

Item 1. Legal Proceedings.

PPP Loan

On April 21, 2020, the Company
obtained a loan in the principal aggregate amount of $2.2 million (the “PPP Loan”) pursuant to the Paycheck Protection Program
under the CARES Act, which was forgiven in full, by the SBA, on September 3, 2021.

On February 5, 2024, the Company
received a letter, dated January 25, 2024, from the SBA, on behalf of Key Bank, in which the SBA indicated that, notwithstanding its prior
notification of forgiveness, in full, of repayment of the PPP Loan,