Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 647

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 647
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 Company received receipt tokens Liquid Staked ETH (“LsETH”)
to represent the staked ETH. LsETH uses a floating conversion rate, or protocol conversion rate, between the receipt token and staked
tokens, reflecting the value of accrued network rewards, penalties, and fees associated with the staked tokens.

For the years ended December 31, 2024 and 2023,
the Company generated revenues of $4,503 and $144,011, respectively, from the liquid staking.

F-21

Contract costs

The Company
capitalizes commission expenses directly related to obtaining customer contracts, which would not have been incurred if the contract had
not been obtained. As of December 31, 2024, capitalized costs to obtain a contract totaled $2.0 million, and the outstanding commission
expense payable was $1.6 million. As of December 31, 2023, capitalized costs to obtain a contract totaled $2.8 million, and the outstanding
commission expense payable was $1.9 million. 

The Company
capitalizes lease expense that are directly related to fulfilling its cloud services which commenced operations in January 2024. The lease
expense is directly related to fulfill customer contracts and is expected to be recovered. As of December 31, 2024 and
2023, capitalized costs to fulfill a contract totaled $nil and $100 thousand, respectively.

Contract Liabilities

The Company’s
contract liabilities consist of deferred revenue and customer deposits. The following table presents changes in the total contract liabilities::

    For the Years Ended December 31, 

    2024  
    2023 
  
    Beginning balance 
    $13,073,449  
    $- 
  
    Revenue earned (a) 
     (14,371,827) 
     - 
  
    Prepayment received 
     32,070,330  
     13,073,449 
  
    Ending balance 
    $30,771,952  
    $13,073,449 

  (a) Revenue earned includes deferred revenue of $0.6 million from the acquisition of Enovum. Please refer to Note 4. Acquisitions for further information. 

Remaining performance obligation

The following
table presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation
as of December 31, 2024:

    2025  
    2026