Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 516

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 516
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 option is included in the value of the host instrument).

•The Note Payable cannot be converted or exercised if the Lender and its affiliates would beneficially own more than % of the number of shares of common stock as of the date of the agreement after giving effect to such conversion or exercise without the approval of the Company’s stockholders, for which the Company is required to seek such approval at its next annual meeting of stockholders.

The Company has evaluated the accounting for the Exchange using the guidance as outlined in ASC 470-60 Troubled Debt Restructuring by Debtors (“ASC 470”). ASC 470 defines a troubled debt restructuring when a creditor, due to a debtor’s financial difficulties, grants the debtor a concession that it would not otherwise consider. As of the Exchange Date, the Company’s most recent financial statements, as of September 30, 2024, were issued with a going concern exception, and the Company was not earning a sufficient number of Bitcoins to satisfy the monthly interest payments, therefore adding to the principal balance the interest deficiency. Both of these factors would qualify, under ASC 470, that the Company was in financial difficulties, at the Exchange date. The second qualification refers to the lender granting a concession. ASC 470 defines a concession as being a reduction in the effective interest rate of the new loan. The Company determined that the Amended BTC Note’s effective interest was higher than the effective interest rate of the Note Payable.

The Company has determined that the Exchange is accounted for as a troubled debt restructuring with the Note Payable in the amount of $ and a resulting gain of approximately $, calculated as follows:

| Book value – Amended BTC Note      |     | $ | 20,236,000 |   |
| Fair value of Shares Exchanged     |     |   | (5,072,000 | ) |
| Fair value of $1.5 Warrants        |     |   |   (888,000 | ) |
| Fair value – Prefunded Warrants    |     |   | (2,160,000 | ) |
| Remaining value – Amended BTC Note |     |   | 12,116,000 |   |
| Note Payable – Principal           |     |   |  5,000,000 |   |
| Difference                         |     | $ | (7,116,000 | ) |

F-59

Gryphon Digital Mining, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31,