Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 42

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 42
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-   $-   $-  

Anchorage warrant

In October 2024, the Company issued, to Anchorage,
a warrant to purchase 2,000,000 shares of the Company’s common stock at $1.50 per share (“Anchorage Warrant”). Concerning
the ABTC Merger Agreement, the Company agreed to amend the Anchorage Warrant by lowering the strike price from $1.50 to $0.55. The Anchorage
Warrant was accounted for as an equity instrument when issued with the Anchorage Note Payable debt restructuring; therefore, the modification
will be accounted for pursuant to ASC 718-20-35-3 for awards classified as equity. The Anchorage Warrant’s fair value immediately
before the modification was calculated to be approximately $696,000 and the modified Anchorage Warrant’s fair value was calculated to
be approximately $824,000, for a $128,000 increase in the fair value. Since the Anchorage Warrant was originally accounted for as an equity
instrument the $128,000 increase in fair value was expensed and classified as ABTC merger expense. In June 2025, Anchorage elected to
cashless exercise both the Penny Warrants and the Anchorage Warrants. The Company issued a total of 4,384,470 shares of the Company’s
common stock for $0 cash.

25

NOTE 10 - FAIR VALUE OF FINANCIAL
INSTRUMENTS

The carrying amounts of certain financial instruments,
including cash and cash equivalents and accounts payable and accrued expenses, approximate their respective fair values due to the short-term
nature of such instruments.

Assets and Liabilities Measured at Fair Value
on a Recurring Basis

The Company evaluates its
financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to
classify them for each reporting period. This determination requires significant judgments to be made. The Company had the following financial
assets and liabilities as of the dates presented below:

    Balance as of June 30, 2025

    Quoted Prices in Active Markets for Identical Assets (Level 1)

    Significant Other Observable Inputs (Level 2)

    Significant Unobservable Inputs (Level 3)

    Assets:

    Marketable securities
     
    $
    72,000

    $
    72,000

    $
              -

    $
              -

    Digital assets