Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 25

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 25
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 model and the assumptions used in calculating the fair value
of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s
judgment. These assumptions are the expected stock volatility, the risk-free interest rate, the expected life of the option, and the dividend
yield on the underlying stock. Expected volatility is calculated based on the historical volatility of the Company’s common stock
over the expected term of the option. Risk-free interest rates are calculated based on risk–free rates for the appropriate term.
The Company has elected to account for forfeitures of awards as they occur.

Treasury stock 

The Company accounts for treasury stocks using
the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stocks account on the consolidated
balance sheets.

The Company treats shares withheld for tax purposes
on behalf of employees in connection with the vesting of restricted share grants as ordinary share repurchases because they reduce the
number of shares that would have been issued upon vesting.

Reclassification

Certain items in the financial statements of the
comparative period have been reclassified to conform to the financial statements for the current period. The reclassification has no impact
on the total assets and total liabilities as of March 31, 2025 or on the statements of operations for the three months ended March 31,
2025.

Recent accounting pronouncements   

The Company continually assesses any new accounting
pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s
financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements
and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect
the change.

In November 2023, the FASB issued ASU No. 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment
disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the
Company’s chief operating decision–making group (the “CODM”). The new standard is effective for the Company for
its annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025, with early adoption permitted. The Company
adopted ASU 2023-07 on January 1, 2024, which did