Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 166

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 166
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 internal systems depend on the ability of such
software to store, retrieve, process and manage immense amounts of data. The software on which we rely has contained, and may now or
in the future contain, undetected errors or bugs. Some errors may only be discovered after the code has been released for external or
internal use. Any errors, bugs or defects discovered in the software on which we rely could result in harm to our reputation, or liability
for damages, any of which could adversely affect our business, results of operations and financial conditions.

83

We
do not have any patents protecting our intellectual property and may not be able to prevent others from unauthorized use of our intellectual
property, which could harm our business and competitive position.

We
regard trademarks, domain names, know-how, proprietary technologies and similar intellectual property as critical to our success, and
we rely on a combination of intellectual property laws and contractual arrangements, including confidentiality and non-compete agreements
with our directors, officers and executive employees, to protect our proprietary rights. However, we do not have any non-compete agreements
with our non-executive employees, nor do we have any patents protecting our intellectual property. Thus, we cannot assure you that
any of our intellectual property rights would not be challenged, invalidated, circumvented or misappropriated, or such intellectual property
will be sufficient to provide us with competitive advantages. In addition, because of the rapid pace of technological change in our industry,
parts of our business rely on technologies developed or licensed by third parties, and we may not be able to obtain or continue to obtain
licenses and technologies from these third parties on reasonable terms, or at all.

Preventing
any unauthorized use of our intellectual property is difficult and costly and the steps we take may be inadequate to prevent the misappropriation
of our intellectual property. In the event that we resort to litigation to enforce our intellectual property rights, such litigation
could result in substantial costs and a diversion of our managerial and financial resources. We can provide no assurance that we will
prevail in such litigation. In addition, our trade secrets may be leaked or otherwise become available to, or be independently discovered
by, our competitors. To the extent that our employees or consultants use intellectual property owned by others in their work for us,
disputes may arise as to the rights in related know-how and inventions. Any failure in protecting or enforcing our intellectual
property rights could have a material adverse effect on our business