Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 156

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 3
Chunk 156
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 it was reviewing its prior determination of forgiveness for potential
reversal. Specifically, the SBA indicated that based on its preliminary findings, the SBA is considering a full denial of the previously
received forgiven amount based on the purported ineligibility of the Company to have received the PPP Loan under the SBA loan programs
because the Company, operating as Akerna at the time of the PPP Loan, provided software support to the cannabis industry. The Company
responded to the SBA on February 6, 2024, providing reasons as to why it believes it was eligible for the PPP Loan, but has not received
any further correspondence from the SBA, since that date, and the SBA has not made any financial demands. The Company plans to continue
to cooperate with any further inquiry from the SBA.

In January 2024, the Company
received a civil investigative demand from the DOJ seeking information and documents about the PPP Loan. The Company is cooperating with
the inquiry. At this time, there has been no formal demand for return of the PPP Loan proceeds, and no formal claim or lawsuit has been
initiated against the Company.

Former CEO Litigation

As previously disclosed, on
September 17, 2024, Robby Chang was terminated as Chief Executive Officer and President of Gryphon for cause, with immediate effect, by
the Gryphon Board. Mr. Chang remains a member of the Gryphon Board.

On October 21, 2024, the Company
received notice that both it and Ivy Crypto, Inc., a wholly owned direct subsidiary of the Company, have been named as defendants in a
complaint filed by Mr. Chang in the Ontario Superior Court of Justice in Canada, alleging wrongful termination. The Company intends to
defend this matter vigorously.

On October 22, 2024, the Gryphon
Board created a special committee to oversee the Company’s handling of the claim made by Mr. Chang, which is currently comprised
of Steve Gutterman, Jimmy Vaiopoulos and Jessica Billingsley. The Company and Ivy Crypto, Inc. have served their Statement of Defense,
and the parties agreed to proceed with a mediation of the dispute that was held on May 5, 2025. The mediation was unsuccessful, and the
litigation remains unresolved. The potential outcome cannot be determined at this time.

Item 1A. Risk Factors.

Except for the additional
risk factors set forth below, there have been no material changes to our Risk Factors