Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1526

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 4
Chunk 1526
---
 of amounts
due for maintenance costs related to our digital asset mining, cloud services, and colocation services. Compared with December 31, 2023,
the balance of accounts payable increased by $1.1 million, largely due to the unpaid bills for our digital asset mining, cloud services,
and colocation services in the year ended December 31, 2024.

Deferred revenue

Deferred revenue pertains to prepayments received
from a customer for high performance computing services.

As of December 31, 2024, the Company’s current
and non-current portion of deferred revenue was $30.7 million and $0.1 million, respectively, compared to $13.1 million and $nil, respectively,
as of December 31, 2023. The increase in the total deferred revenue of $17.7 million reflects a $32.1 million of prepayments from our
cloud and colocation services customers, partially offset by the recognition of $14.4 million
in revenue related to the successful fulfillment of performance obligations from our cloud and colocation services in 2024.

Long-term income tax payable

Compared with December 31, 2023, the balance as
of December 31, 2024 did not change as no incremental penalty was accrued on the existing unrecognized tax benefits for the year ended
December 31, 2024. Refer to Note 15. Income Taxes, for more information.

Non-GAAP Financial Measures 

In addition to consolidated U.S. GAAP financial
measures, we consistently evaluate our use of and calculation of the non-GAAP financial measures, such as “Adjusted EBITDA”.

EBITDA is computed as net income before interest,
taxes, depreciation, and amortization. Adjusted EBITDA is a financial measure defined as our EBITDA adjusted to eliminate the effects
of certain non-cash and / or non-recurring items that do not reflect our ongoing strategic business operations, which management believes
results in a performance measurement that represents a key indicator of the Company’s core business operations. The adjustments
currently include fair value adjustments such as investment securities value changes and non-cash share-based compensation expenses, in
addition to other income and expense items. 

We believe Adjusted EBITDA can be an important
financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including
our return on capital and operating efficiencies, from period-to-period by making such adjustments