Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 106

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 106
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 expenses decreased to $1,046,000 for the six months ended June 30, 2025, from $3,354,000 for the six months ended
June 30, 2024. Given the pending merger with ABTC, management has suspended the use of third-party consultants for investor and public
relations services.

Salaries
and wages increased to $1,264,000 for the six months ended June 30, 2025, from $454,000 for the six months ended June 30, 2024. The increase
of $810,000 is due (i) $419,000 for 2025 bonus accruals for our executive officers, (ii) $216,000 increase in compensation related to
our CEO and VP of Energy, both hired during Q4 of 2024, (iii) $70,000 increase in employee benefits, and (iv) $105,000 increase in compensation
for our directors.

Other
expenses increased to $364,000 for the six months ended June 30, 2025, from $105,000 for the six months ended June 30, 2024. The increase
of $259,000 was due to an increase of $290,000 for repair work on our miner fleet, offset by a general decrease in other expenses of approximately
$30,000.

29

Stock-based compensation
expense

Stock-based
compensation expense increased to $811,000 for the six months ended June 30, 2025, from $348,000 for the six months ended June 30, 2024.
The increase is due to the issuance of restricted stock units to our CEO, VP of Energy and members of the Board of Directors during the
fourth quarter of 2024.

Depreciation expense

Depreciation
decreased to $1,586,000 for the six months ended June 30, 2025, from $6,539,000 for the six months ended June 30, 2024. The decrease is
due to the average remaining useful life of the mining fleet as of June 30, 2025 was 23 months, while the average remaining
useful life of the mining fleet as of June 30, 2024 was 52 months.

Unrealized gain on
digital assets

For
the six months ended June 30, 2025, the Company incurred an unrealized gain on digital assets of $74