Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 64

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 64
---
 provisions. The representations, warranties and covenants contained in the Loan Agreement were made only for the purposes
of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements, and may be subject to limitations
agreed upon by the contracting parties.

Pursuant
to the New Anchorage Agreements, Gryphon also issued Anchorage warrants to purchase 2,000,000 shares of Common Stock, which warrants are
exercisable immediately, will expire five years from the date of issuance and have an exercise price of $1.50 per share. The $1.50 Warrants
were issued in a private placement pursuant to Section 4(a)(2) of the Securities Act.

The
Restructured Loan and the Anchorage Warrants cannot be converted or exercised, respectively, if Anchorage (together with its affiliates)
would beneficially own in excess of 19.99% of the number of shares of Common Stock outstanding as of the date of the New Anchorage Agreements
after giving effect to such conversion or exercise without the approval of Gryphon’s stockholders. Gryphon has agreed to seek such
approval at its next annual meeting of stockholders.

On
May 10, 2025, Gryphon entered into a warrant amendment with Anchorage to amend the $1.50 Warrants. Pursuant to the Amendment, Gryphon
reduced the exercise price of the $1.50 Warrants from $1.50 to $0.55 per share and, subject to the closing of the Mergers, will remove
Section 15 of the $1.50 Warrants, which provides most favored nation rights.

All
of the Anchorage Warrants have been exercised and none remain outstanding.

Off-Balance Sheet Arrangements

The Company has no off-balance
sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

35

Critical Accounting Estimates

The preparation of these consolidated
financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs
and expenses, and related disclosures. To the extent that there are material differences between these estimates and actual results, our
financial condition or results of operations would be affected. We evaluate our estimates and assumptions on an ongoing basis. Our estimates
are based on historical experience and various other assumptions