Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 2281

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7A
Chunk 2281
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    $(6,922,519)
  
    Basis difference in fixed assets 
     (11,402,585) 
     (102,606)
  
    Basis difference in digital assets 
     (8,288,760) 
     - 
  
    Basis difference in intangible 
     (3,403,248) 
     - 
  
    Gross deferred tax liabilities 
     (25,667,270) 
     (7,025,125)
  
    Total net deferred tax liabilities 
    $(6,320,669) 
    $(112,251)

As of December 31, 2024, we had U.S. federal,
state and foreign net operating loss (“NOL”) carry-forwards of $62.0 million, $70.9 million and $21.9 million, respectively.
The U.S. federal NOL carry-forwards does not expire and the state NOL will expire at various dates beginning in 2041.

The valuation allowance was $2.9 million and $9.4
million as of December 31, 2024 and 2023, respectively. The change was primarily due to the utilization of the capital loss carryforward
and larger basis difference in fixed assets and digital assets in the year ended December 31, 2024 . The valuation allowance is based
on our assessment that it is more likely than not that certain deferred tax assets will not be realized in the foreseeable future on a
jurisdictional basis. As of December 31, 2024, the Company applied a full valuation allowance on the deferred tax assets in the United
States, Hong Kong and Singapore.

As of December 31, 2024, the unremitted earnings
of our foreign subsidiaries outside of the United States are considered indefinitely reinvested and the Company has not provided for state
income or withholding taxes on the undistributed earnings of foreign subsidiaries. The Company will continue to monitor its business operation
and re-evaluate its indefinitely reinvestment assertion on an annual basis.

The reconciliation of the U.S. federal statutory
income tax rate to our effective income tax rate was as follows:

    For the Years Ended
 December 31, 

    2024  
    2023  
    2022 
  
    US Federal income tax rate 
     21.0% 
     21.0% 
     21.0%
  
    Effect of foreign operations taxed at various