Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 6

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 6
---
 Form 10-K filed with the SEC on March 31, 2025.

Principles of Consolidation

The unaudited condensed consolidated
financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and
balances have been eliminated in consolidation.

Going Concern

The accompanying unaudited
condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United
States of America (“GAAP”), which contemplate the continuation of the Company as a going concern and the realization of assets
and satisfaction of liabilities in the ordinary course of business. The carrying amounts of assets and liabilities presented in the financial
statements do not necessarily purport to represent realizable or settlement values.

Since the Company began revenue generation in
September 2021, management has financed the Company’s operations through equity and debt financing and the sale of the digital assets
earned through mining operations. On June 30, 2025, the Company had cash and cash equivalents totaling $678,000 and digital assets totaling
$917,000.

The Company may incur additional
losses from operations and negative cash outflows from operations in the foreseeable future. In the event the Company continues to incur
losses, it may need to raise debt or equity financing to finance its operations until operations are cashflow positive. However, there
can be no assurance that such financing will be available in sufficient amounts and on acceptable terms, when and if needed, or at all.
The precise amount and timing of the funding needs cannot be determined accurately at this time and will depend on several factors, including
the market price for the underlying commodity mined by the Company and its ability to procure the required mining equipment and operate
profitably. The Company’s financial statements have been presented on a going concern basis, which contemplates the realization
of assets and the satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustment
that might result from the outcome of this uncertainty. The Company’s future results are subject to substantial risks and uncertainties.

7

Segment Reporting

The Company’s chief
operating decision maker (“CODM”) group is composed of the Chief Executive Officer and Chief Financial Officer. The Company
operates as one operating segment and uses net income or loss as measures of profit or loss on a consolidated basis in making decisions
regarding resource allocation and performance assessment. Additionally, the Company’s CODM regularly reviews the Company’s
expenses on a consolidated basis. The financial metrics used by the