Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 115

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 115
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 the note payable denominated in Bitcoin. As to the Bitcoin
denominated note payable was settled in October 2024 and accounted for as a troubled debt restructuring, the new note payable principal
balance was increased for aggregate interest expense accrued under the prior note, and as such the monthly interest payment reduces the
note payable balance; therefore, the Company did not recognize interest expense for the three months ended June 30, 2025.

Liquidity and Capital Resources

As
of June 30, 2025 and December 31, 2024, the Company had cash and cash equivalents of $678,000 and $735,000, respectively, and an accumulated
deficit of approximately $79,272,000 and $67,735,000, respectively. The Company financed its operations primarily through proceeds from
the sales of its equity securities through private placements, its at-the-market program as described below, borrowings pursuant to the
Sphere 3D Note and the BTC Note and cash flow from its digital currency mining operations.

The
Company believes that its current levels of cash will not be sufficient to meet its anticipated cash needs for its operations for at least
the next 12 months. The Company will require additional capital resources to fund its operations and pay its obligations as they come
due over the next twelve months. The Company may also need to implement a strategy to expand its business or other investments or acquisitions.
The Company may sell additional equity or debt securities or enter into a credit facility to satisfy its capital requirements. The sale
of additional equity securities could result in dilution to its shareholders. The incurrence of indebtedness would result in increased
debt service obligations and could require the Company to agree to operating and financial covenants that would restrict its operations.
Financing may not be available in amounts or on terms acceptable to the Company if at all. Any failure by the Company to raise additional
funds on terms favorable to it, or at all, could limit its ability to expand its business operations and could harm its overall business
prospects.

On
June 10, 2024, the Company filed a prospectus supplement for the offering, issuance and sale of up to a maximum aggregate offering price
of $70.0 million of common stock that may be issued and sold under an at-the-market issuance sales agreement with Ladenburg Thalmann &
Co. Inc., Kingswood Investments, a division of Kingswood Capital Partners, LLC, PI Financial (US ) Corp. and AT