Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 2

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 2
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 with the Ivy Common
Stock as the “Ivy Shares”), outstanding immediately prior to the Effective Date was converted into the right to receive approximately
1.7273744 shares of Gryphon common stock. Each warrant to purchase common stock of Ivy that was issued and outstanding at the Effective
Date remained issued and outstanding and were assumed by the Company and is exercisable for shares of common stock pursuant to its existing
terms and conditions as adjusted to reflect the ratio of exchange of Ivy Shares for shares of common stock. In connection with the Merger,
on February 8, 2024, Akerna filed a Certificate of Amendment to its Amended and Restated Articles of Incorporation (the “Reverse
Stock Split Amendment”). Because the Reverse Stock Split Amendment did not reduce the number of authorized shares of common stock,
the effect of the Reverse Stock Split was to increase the number of shares of common stock available for issuance relative to the number
of shares issued and outstanding. The Reverse Stock Split did not modify any voting rights or other terms of the common stock. Eighty
thousand and eight hundred and sixty-four (80,864) fractional shares were issued in connection with the Reverse Stock Split. Immediately
after giving effect to the Merger and the Reverse Stock Split, the Company had 38,038,533 shares of common stock outstanding. On February
9, 2024, the common stock began trading on the Nasdaq under the symbol “GRYP.” All share and per-share data presented in these
unaudited condensed consolidated financial statements have been adjusted for the exchange ratio.

5

As contemplated by the Merger
Agreement, Akerna’s operations were sold concurrently with the closure of the merger, so the Company’s operations after the
Merger are those of lvy.

Ivy is treated as the accounting
acquirer in the Merger as its stockholders, board of directors, and management control the Company after the Merger, even though Akerna
was the legal acquirer. The Merger was treated as a reverse recapitalization of lvy effected by a share exchange for a financial account
and reporting purposes since all of Akerna’s operations were disposed of as part of the consummation of the Merger. Therefore, Ivy
recorded no goodwill or other intangible assets as a result of the merger. The Merger was treated as if Ivy issued 2,921,362 shares of
common stock for the $(2,256,000) net book value of Akerna.