Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 494

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 494
---
ases(“ASC 842”). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right -of-useasset and a lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right -of-useasset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right -of-useasset result in straight -linerent expense over the lease term. In calculating the right -of-useasset and the lease liability, the Company elects to combine lease and non -leasecomponents as permitted under ASC 842. The Company excludes short -termleases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight -linebasis over the lease term. Derivatives The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and would then be revalued at each reporting date, F-45 Gryphon Digital Mining, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2024 and 2023 NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) with changes in the fair value reported in the statements of operations. If there are stock -basedderivative financial instruments, the Company will use a probability -weightedaverage series Binomial lattice option pricing models to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities will be classified in the balance sheet as current or non -currentbased on whether or not net -cashsettlement of the derivative instrument could be required within 12 months of the balance sheet date. Derivative liability will be measured initially and subsequently at fair value. Revenue Recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be