Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 108

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 108
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 other expense 
    $(3,839,000) 
    $(8,327,000) 
    $(4,488,000) 
     (53.9)%

Unrealized loss on
marketable securities

For
the six months ended June 30, 2025, unrealized loss on marketable securities was $43,000, as compared to $272,000 for the six months ended
June 30, 2024. The loss for the six months ended June 30, 2025 related to a decrease in the fair market value of the underlying securities
held.

Gain on extinguishment
of accounts payable 

On March 7, 2025, the Company
and Sphere 3D entered into a settlement and release agreement on mutually acceptable terms. The Settlement Agreement fully resolved all
pending litigation between the Company and Sphere 3D, and each party fully released the other party from any known or unknown and unsuspected
claims. As such the Company was relieved of a $449,000 payable to Sphere 3D, which was expensed as of the settlement date.

Change in fair value
of BTC Note

During
the year ended December 31, 2024, the Company had a note payable denominated in Bitcoin, which was accounted for under the fair value
method of accounting. For the six months ended June 30, 2024, the Company recognized a $6,895,000 increase in the fair value of notes
payable. The note payable was settled in October 2024; therefore, the Company did not incur a fair value change for the six months ended
June 30, 2025.

30

Merger and acquisition costs

For
the six months ended June 30, 2025 merger and acquisition cost increased to $3,164,000 compared to $394,000 for June 30, 2024. During
the six months ended June 30, 2025, the Company terminated the Giga Purchase Agreement and the Erikson Purchase Agreement. For the Giga
Purchase Agreement, the Company had approximately $350,000 of cash deposits. For the Erikson Purchase Agreement, the Company had $447,000
of cash deposits and $161,000 of professional fees. The cash deposits and related professional fees were expensed as of each of the acquisition
termination dates.

As
of the Captus Assignment Agreement, the Company had approximately $1,953,000 of cash deposits