Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 28

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 28
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 are exercisable immediately, have a ten-year term and an exercise price of $0.01 per share (the
“Prefunded Warrants”), at a fair market value of $0.612 per share (the quoted market price of the Company’s common
stock on the Restructuring Date), or an aggregate value of approximately $2,160,000.

●Warrants to purchase 2,000,000
shares of common stock at an exercise price of$1.50 per share (the $1.50 warrants) which will expire in five-years from the date of the
transaction for a total fair value of approximately $888,000 based on the Black Scholes fair value option-pricing model with key input
variables provided by management, as of the date of issuance: volatility of ll5.0%, the fair value of common stock $0.612 estimated life
of 5.0 years, risk-free rate of 4.07% to 4.72% and dividend rate of nil.

●A $5,000,000 note payable (the
“Note Payable”) pursuant to the New Loan Agreement.

●A director specified by Lender
was added to the board of directors.

18

The terms of the Note Payable include the following:

●The outstanding principal and
interest are denominated in dollars (as opposed to the original Bitcoin Loan that was denominated in bitcoin).

●One-time payment of in the
amount of $5,000,000 on October 25, 2027

●Annual interest rate of 4.25%
payable monthly.

●The Lender has been given a
first priority lien on all the Company and its subsidiaries’ assets.

●The Lender may convert half
of the outstanding principal at a price of $1.10 per share of common stock and the remaining half at a price of $1.50 per share of common
stock (for purposes of classifying the Restructured Loan, it was concluded that the conversion option did not meet the requirements to
be bifurcated and classified as a derivative, nor was there a large premium paid that would be classified as an addition to paid-in capital
so the conversion option is included in the value of the host instrument).

●The Note Payable cannot be
converted or exercised if the Lender and its affiliates would beneficially own more than 19.99% of the number of shares of common stock
as of the date of the agreement after giving effect