Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 82

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 82
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 Tabar and Huang will continue
to hold the same position with the Company as well as WhiteFiber. Messrs. Tabar and Huang have committed to provide the requisite time
and effort to fulfil their responsibilities as a full-time officer of WhiteFiber, supervising a full staff and are expected to provide
certain services, representing not more than approximately 30% of their working time, in respect of the Company’s operations. The
services to be provided will include financial reporting, tax, legal, human resources, information technology, insurance and other general
and administrative functions. All services are to be provided at cost, except if otherwise agreed to. For the three months ended September
30, 2025, the fees payable, by WhiteFiber to Bit Digital are $314,460 for August 2025 and September 2025, exclusive of recharged share-based
compensation of $1,483,584.

40

19.
COMMITMENTS AND CONTINGENCIES 

Legal
Proceedings

The
Company from time to time may become involved in legal proceedings in the ordinary course of our business. The Company may also pursue
litigation to assert its legal rights and assets, and such litigation may be costly and divert the efforts and attention of its management
and technical personnel which could adversely affect its business. Due to the uncertainty of litigation and depending on the amount and
the timing, an unfavorable resolution of some or all of such matters may materially affect our business, results of operations, financial
position, or cash flows.

Although
we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss
may have been incurred, U.S. GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement
that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range
of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly,
unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with
any individual legal proceeding cannot be estimated.

Bit
Digital USA, Inc. v. Blockfusion USA, Inc., C.A. No. N24C-05-306 PRW (CCLD)

On
June 3, 2024, the Company filed suit in the Superior Court of the