Company: ABTC
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-069998
Chunk: 463

Company: American Bitcoin Corp.
Filing Date: 2025-07-31
Form: 424B3
Chunk 463
---
 to the Unaudited Condensed Consolidated Financial Statements
For the Three Months Ended March 31, 2025 NOTE 8 — COMMITMENTS AND CONTINGENCIES (cont.) Employment Agreements CEO Agreements On September 30, 2024, the grant date, the Company’s board of directors approved the issuance of the RSUs, pursuant to the CEO Agreement. The Company relied on guidance set by FASB Accounting Standards Update No. 2021 -07(issued and updated on October 2021) related to Compensation — Stock Compensation (“Topic 718”) to determine the impact on the Company. The grant date fair value for the 1,114,454 Time -basedRSUs was estimated to be approximately $735,000 based on the Company’s closing price of $0.66 as of the grant date. The Company will recognize expense on a straight -linebasis over the service period starting October 1, 2024. The remaining 557,228 Market -basedRSUs were considered to have a market -basedvesting as the milestones are based on the Company’s remediation of certain stock exchange listing qualifications, which are based on the market price and market capitalization of the Company’s common stock. As further required by Topic 718, a market -basedaward’s fair value is required to be expensed over the derived service period whether the milestone is met or not. The Company hired a third -partyvaluation firm to calculate the fair value of the Market -basedAwards. The fair value of approximately $312,000 was determined by the use of a Monte -Carlosimulation model (i) over the period from September 30, 2024 through August 31, 2025 (the estimated date to achieve the remediation of the Nasdaq deficiencies over the period set forth in the CEO Agreement), (ii) a risk -freerate of 4.0%, (iii) volatility of 152.0%, (iv) a starting price of $0.68, (v) a price hurdle $1.00 and (vi) a time hurdle of 10 days, for a derived fair value of $0.56 per share and a derived service period of approximately 0.33 years. The CEO Agreement also provides Mr. Gutterman with the opportunity to earn an incentive bonus (the “Incentive Bonus”), with will become payable, if ever, in tranches following the Company’s attainment of certain stock price and market capitalization goals. The specific