Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 444

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 444
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 inputs and assumptions consistent with those of a market participant. If the recoverable amount of an asset or cash -generatingunit is estimated to be less than its carrying amount, the carrying amount of the cash -generatingunit is reduced to its recoverable amount. An impairment loss is recognized immediately in net income. At the point in time a miner becomes inoperable and not repairable, the Company records an expense amounting to the carrying value, which is the cost basis less accumulated depreciation at the time of write off. Leases The Company accounts for its leases under ASC 842, Leases(“ASC 842”). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right -of-useasset and a lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right -of-useasset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right -of-useasset result in straight -linerent expense over the lease term. In calculating the right -of-useasset and the lease liability, the Company elects to combine lease and non -leasecomponents as permitted under ASC 842. The Company excludes short -termleases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight -linebasis over the lease term. F-11 Gryphon Digital Mining, Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
For the Three Months Ended March 31, 2025 NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Derivatives The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and would then be revalued at each reporting date, with changes in the fair value reported in the statements of operations. If there are stock -basedderivative financial instruments, the Company will use a probability -weightedaverage series Binomial lattice option pricing models to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is