Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 16

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 16
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 at the grant date based on the value of the award and is recognized over the service period, which
is usually the vesting period. This guidance establishes standards for the accounting of transactions in which an entity exchanges its
equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or
services that are based on the fair value of the entity’s equity instruments, or the issuance of those equity instruments may settle
that.

We use the fair value method
for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock-based
fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement
date) and is recognized over the vesting periods.

Common stock awards

The Company has granted common stock awards to
non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services
provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards
is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as
services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees
are recorded in accordance with ASC 718 on the statement of operations in the same manner and charged to the same account as if such settlements
had been made in cash.

Warrants

In connection with certain
financing, consulting, and collaboration arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding
warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards.
The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants issued
in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of
the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period or at the date of
issuance if there is not a service period.

Income Taxes

The Company accounts for
income taxes under the asset and liability method, in which deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities