Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1376

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 1376
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    5 years
  
    Other property and equipment 
    20% to 30%

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
by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit
exceeds its carrying amount, goodwill is not impaired. An impairment loss is recognized for any excess of the carrying amount of the reporting
unit over its fair value up to the amount of goodwill allocated to the reporting unit.

Finite-lived
intangible Assets 

Intangible
assets are recorded at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets acquired through
business combinations are measured at fair value at the acquisition date.

Intangible
assets with finite lives are comprised of customer relationships and are amortized on straight-line basis over their estimated useful
lives. The Company assesses the appropriateness of finite-lived classification at least annually. Additionally, the carrying value and
remaining useful lives of finite