Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 17

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 17
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 Capitalized software
costs are amortized over the software’s useful life when the software is placed in service. The estimated useful lives by asset
category are:

    Estimated 
Useful 
Life
  
    Digital asset miners
     
    3 years
  
    Cloud service equipment
     
    5 years
  
    Colocation service equipment
     
    10 to 15 years
  
    Building
     
    30 years
  
    Leasehold improvements
     
    15 years
  
    Purchased software
     
    14 months
  
    Vehicle
     
    5 years
  
    Other property and equipment
     
    20% to 30%

Effective January 1, 2025, we changed our estimate
of the useful lives for our cloud service equipment from three to five years. The change was made to better reflect the expected usage
patterns and economic benefits of the assets.

Impairment of long-lived assets

Management reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated
by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying
amount of the assets exceeds the fair value of the assets.

Goodwill

Goodwill represents the excess of the purchase
price over the fair value of the net assets acquired in a business combination. Goodwill is not subject to amortization, and instead,
assessed for impairment annually at the end of each fiscal year, or more frequently when events or changes in circumstances indicate that
it is more likely than not that the fair value of a reporting unit is less than its carrying amount in accordance with ASC 350 -
Intangibles -Goodwill and Other.

The impairment assessment involves an option to
first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely
than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or
after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting
unit is less than its carrying amount, a quantitative assessment for potential impairment is performed.

The quantitative goodwill impairment test is performed