Company: ABTC
Filing Date: 2025-07-22
Form Type: S-4/A
Source: 0001213900-25-066299
Chunk: 186

Company: American Bitcoin Corp.
Filing Date: 2025-07-22
Form: S-4/A
Chunk 186
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’25 financial statements provided by Gryphon’s management, Gryphon’s Bitcoin mined declined year over year from 142 in Q1’24 to 17 in Q1’25. This contributed to Gryphon’s revenue for the same periods decreasing by 79.2%. Over the same period, costs to mine increased by 252.2% (from $34,070 to $120,117), making the quarter gross margin negative ( -31.8%). •Based on discussions with Gryphon’s management, at the current run -rate, there does not appear to be enough liquidity on balance sheet to sustain operations to fiscal 2025 year end, unless Gryphon is able to secure other sources of capital. •Based on discussions with Gryphon’s management, Gryphon’s HPC opportunity is still in early stages and has not meaningfully progressed. •Gryphon is under threat of soon being delisted by Nasdaq unless they are able to meet the necessary listing conditions, which they have not been successful at to date. In light of the above considerations, Marshall & Stevens utilized the adjusted net book value method where a “floor value” scenario for Gryphon’s operating equipment was quantified. 84

The net book value was adjusted by valuing the operating equipment at fair market value (as determined by Marshall & Stevens), on an uninstalled basis, primarily using the sales comparable approach and with a limited application of the cost approach. The results of the adjusted book value showed that Gryphon would be insolvent after subtracting net debt and other liabilities.

| (in $ Actuals)                           |     | Book Value(1) 
     3/31/2025 |   |     |        |   |     | Adjustments(2) |   |     | Adjusted Book Value 
 3/31/2025           |            |   |     |        |   |
| Assets                                   |     |               |   |     |        |   |     |                |   |     |                     |            |   |     |        |   |
| Cash & Equivalents                       |     |       318,000 |   |     |    3.5 | % |     |              — |   |     |                     |    318,000 |   |     |    3.4 | % |
| Restricted Cash                          |     |     1,263,000 |   |     |   14.1 | % |     |              — |