Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 149

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 5
Chunk 149
---
 We recognize
tax positions when they are more likely than not to be sustained. Recognized tax positions are measured at the largest amount of benefit
greater than 50% likely of being realized. Each period, we evaluate tax positions and adjust related tax assets and liabilities in light
of changing facts and circumstances.

Non-GAAP Financial Measures

To supplement our consolidated
financial statements which are presented in accordance with U. S. GAAP, we use adjusted EBITDA as an additional non-GAAP financial
measure. We define adjusted EBITDA as (i) GAAP net profit/loss, plus (ii) adjustments to add back interest expense/(income), income tax
expense/(benefit), depreciation and amortization; and (iii) adjustments for non-recurring items, if any. We present this non-GAAP financial
measure because our management uses it to evaluate our performance. We also believe that this non-GAAP financial measure provides
useful information to investors and others in understanding and evaluating the consolidated financial results in the same manner as our
management and in comparing financial results across accounting periods and to those of our peer companies.

This non-GAAP financial
measure adjusts for the impact of items that we do not consider indicative of the operational performance of our business and should not
be considered in isolation or construed as an alternative to net profit/loss or any other measure of performance or as an indicator of
our future performance. Investors are encouraged to compare this historical non-GAAP financial measure with the most directly comparable
U. S. GAAP measures. Adjusted EBITDA presented here may not be comparable to similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage
investors and others to review our financial information in its entirety and not rely on a single financial measure.

The following table sets forth
a reconciliation of our adjusted EBITDA to net profit/loss for the periods indicated.

                                                                    Year ended December 31,                              
                                                                                       2024      2023              2022  
                                                                                   US$ ’000      US$ ’000      US$ ’000  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net profit                                                                         53,963      10,495           2,442  
  Add: Interest expenses/(income), net                                                4,704      4,480            2,174  
  Add: Income tax expense