Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 68

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 68
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 and reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission (“SEC”). Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act
is accumulated and communicated to the issuer’s management, including the Certifying Officers, to allow timely decisions regarding
required disclosures.

37

Based on their evaluation,
the Certifying Officers concluded that, as of June 30, 2025, our disclosure controls and procedures were not effective.

The material weakness related
to internal control over financial reporting that was identified at June 30, 2025 was that we did not have sufficient personnel staffing
in our accounting and financial reporting department. As a result, we were not able to achieve adequate segregation of duties and were
not able to provide for adequate review of the financial statements.

This control deficiency could
result in a reasonable possibility that material misstatements of the financial statements will not be prevented or detected on a timely
basis. However, our management believes that the material weakness identified does not result in the restatement of any previously reported
financial statements or any other related financial disclosure, and management does not believe that the material weakness had any effect
on the accuracy of our financial statements included as part of this Report.

We will continue to monitor
and evaluate the effectiveness of our disclosure controls and procedures and our internal controls over financial reporting on an ongoing
basis and are committed to taking action and implementing additional enhancements or improvements, as necessary and as funds allow. Management
has commenced the following actions and will continue to assess additional opportunities for remediation on an ongoing basis:

●Continue the process that was
started during 2024 of adding to the Company’s internal resources to enhance its capabilities in the areas of technical accounting,
financial reporting, and internal controls, that may include hiring a full-time person dedicated to internal controls.

●Utilize external third-party
audit and SOX 404 implementation firms to enable the Company to improve the Company’s controls related to its material weaknesses.

●Continue to evaluate existing
processes and implement new processes and controls where necessary in connection with remediating the Company’s material weaknesses,
such that these controls are designed, implemented, and operating effectively.

The Company recognizes that
the material weaknesses in its internal control over financial reporting will not be considered remediated until the remediated controls
operate for a sufficient period of time and can be tested and concluded by management