Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 582

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 582
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 the extent that ABTC has generated mining revenue during the measurement period. For each contract, ABTC measures noncash consideration at the Bitcoin spot price at the beginning of the day (midnight UTC time) on the date of contract inception, as determined by ABTC’s principal market, which is Coinbase Prime. ABTC recognizes this noncash consideration, which it receives each day miners operate, on the same day that control of the contracted service transfers to the mining pool operator, which is the same day as the contract inception. Cost of revenues (exclusive of depreciation and amortization) ABTC’s cost of revenue consists primarily of direct costs of generating revenue, including electric power costs, hosting costs, repairs and maintenance, occupancy, materials and supply costs, and labor. Stock-based compensation Employees of Parent provide services to ABTC, and those employees participate in Parent’s share -basedincentive plan. ABTC does not have its own share -basedincentive plan. As such, the awards to employees are reflected in parent net investment within the Combined Statements of Equity (Deficit) at the time they are expensed. The Combined Statements of Operations and Comprehensive Income (Loss) include the allocation of Parent employee stock -basedcompensation expense based off a percentage of revenue within general and administrative expense. Income taxes ABTC complies with the accounting and reporting requirements of ASC Topic 740, Income Taxes(“ASC 740”), which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded if it is more -likely-than-notthat some portion, or all, of a deferred tax asset will not be realized. In evaluating whether a valuation allowance is needed, ABTC considers all relevant evidence, including past performance, recent cumulative losses, projections of future taxable income, and the viability of tax planning strategies. If ABTC subsequently determines that there is sufficient evidence to indicate a deferred tax asset will be realized, the associated valuation allowance is reversed. F-110 American Bitcoin Corp.
Notes to the Audited Combined Financial Statements Note 2. Significant accounting policies and recent accounting pronouncements (cont.) ABTC recognizes positions taken or expected to be taken in a tax return in the Combined Financial Statements when it is more -likely-than-notthat the position