Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 33

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 33
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exchangeable shares. The acquisition-date fair value of the exchangeable shares was determined based on the opening market price of the
Company’s ordinary shares as of the acquisition date.

The following table summarizes the preliminary
allocation of the purchase price based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date:

    Accounts receivable 
    $616,153 
  
    Other current assets 
     2,008,566 
  
    Property and equipment, net 
     14,201,790 
  
    Operating lease right-of-use assets 
     4,752,501 
  
    Intangible asset 
     13,486,184 
  
    Deferred tax asset 
     91,368 
  
    Other non-current assets 
     2,493 
  
    Accounts payable 
     (1,866,804)
  
    Other payables and accrued liabilities 
     (1,100,095)
  
    Current portion of deferred revenue 
     (465,360)
  
    Current portion of operating lease liability 
     (248,301)
  
    Non-current portion of deferred revenue 
     (123,652)
  
    Non-current portion of operating lease liability 
     (3,273,709)
  
    Deferred tax liability 
     (4,090,683)
  
    Total identifiable assets and liabilities 
     23,990,451 
  
    Goodwill 
     19,843,862 
  
    Total Purchase Consideration 
    $43,834,313 

The acquisition-date fair value of the acquired
accounts receivable was $616,153, which equals the gross contractual amount. The Company does not expect a material amount of uncollectible
contractual cash flows.

The Company recognized customer relationships
as an intangible asset of $13,486,184 to be amortized over 19 years.

Of the total Goodwill recognized, $37,000 is attributable
to the assembled workforce at Enovum and the rest is attributable to synergies expected to be achieved from the combined operations of
the Company and Enovum. The goodwill recognized is not deductible for tax purposes. We assigned the goodwill to our colocation reportable
segment.

Through March 31, 2025, the Company recognized
$2,080,253 of acquisition-related costs in the income statement line item “General and Administrative Expense”.

The following unaudited pro forma financial information
represents the consolidated results of operations