Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 30

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 30
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 fair value for the 1,114,454 Time-based RSUs 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-line basis over the service period starting October 1, 2024. The remaining 557,228 Market-based RSUs were considered to
have a market-based vesting 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-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
$312,000 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 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 $312,000 value of Market-based
awards was expensed during the fourth quarter of 2024.

19

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