Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 466

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 466
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 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-based award’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-party valuation firm to calculate the fair value of the Market-based Awards. The fair value of approximately $ was determined by the use of a Monte-Carlo simulation 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-free rate of %, (iii) volatility of %, (iv) a starting price of $, (v) a price hurdle $ and (vi) a time hurdle of , for a derived fair value of $ per share and a derived service period of approximately 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 goals are as follows:

|           |     | Company     
 Stock Price 
 Goal        |                            |     | Company        
 Market         
 Capitalization 
 Goal           |             |     | Amount of           
 lncentive Bonus     
 Payable for         
 Achievement of      
 Tranche Goals       |
|:----------|:----|:------------|:---------------------------|:----|:---------------|:------------|:----|:--------------------|
| Tranche 1 |     | $           | 2.50 based on 30-day VWAP  |     | $              | 150 Million |     | 100% of Base Salary |
| Tranche 2 |     | $           | 2.50 based on 30-day VWAP  |     | $              | 250 Million |     | 200% of Base Salary |
| Tranche 3 |     | $           | 5.00 based on 30-day VWAP  |     | $              | 500 Million |     | 300% of Base Salary |
| Tranche 4 |     | $           | 10.00 based on 30-day VWAP |     | $              | 1 Billion   |     | 500% of Base