Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 124

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 124
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 reporting will be effective as a result of these efforts.

The Company continues to evaluate
and work to improve its internal control over financial reporting related to the identified material weaknesses, and management may determine
to take additional measures to address control deficiencies or determine to modify the remediation plan described above. In addition,
the Company will report the progress and status of the above remediation efforts to the Audit Committee on a periodic basis.

Changes in Internal Control over Financial
Reporting

During the most recently completed
fiscal quarter, there have been no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
and 15d-15(f)) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

38

PART II - Other Information

Item 1. Legal Proceedings.

PPP Loan

On April 21, 2020, the Company
obtained a loan in the principal aggregate amount of $2.2 million (the “PPP Loan”) pursuant to the Paycheck Protection Program
under the CARES Act, which was forgiven in full, by the SBA, on September 3, 2021.

On February 5, 2024, the Company
received a letter, dated January 25, 2024, from the SBA, on behalf of Key Bank, in which the SBA indicated that, notwithstanding its prior
notification of forgiveness, in full, of repayment of the PPP Loan, it was reviewing its prior determination of forgiveness for potential
reversal. Specifically, the SBA indicated that based on its preliminary findings, the SBA is considering a full denial of the previously
received forgiven amount based on the purported ineligibility of the Company to have received the PPP Loan under the SBA loan programs
because the Company, operating as Akerna at the time of the PPP Loan, provided software support to the cannabis industry. The Company
responded to the SBA on February 6, 2024, providing reasons as to why it believes it was eligible for the PPP Loan, but has not received
any further correspondence from the SBA, since that date, and the SBA has not made any financial demands. The Company plans to continue
to cooperate with any further inquiry from the SBA.

In January 2024, the Company
received a civil investigative demand from the DOJ seeking information and documents about the PPP Loan. The Company is cooperating with
the inquiry. At this time,