Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 161

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 161
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 payable decreased by $1.6 million in the three months ended March 31, 2025, largely due to a higher volume of
payments made.

Deferred revenue

Deferred revenue pertains to prepayments received
from customers for HPC business.

49

As of March 31, 2025, the Company’s current and non-current portion
of deferred revenue was $21.2 million and $0.1 million, respectively, compared to $30.8 million and $0.1 million, respectively, as of
December 31, 2024. The decrease in deferred revenue of $9.5 million reflects the recognition of $11.1 million in revenue related to the
successful fulfillment of performance obligations from our high performance computing services, partially offset by $1.6 million prepayments
from customers for HPC services to be rendered in the future.

Long-term income tax payable

Compared with December 31, 2024, the balance as
of March 31, 2025 did not change as no incremental penalty was accrued on the existing unrecognized tax benefits for the three months
ended March 31, 2024. Refer to Note 15, Income Taxes, for more information.

Non-GAAP Financial Measures 

In addition to consolidated U.S. GAAP financial
measures, we consistently evaluate our use of and calculation of the non-GAAP financial measures, such as “Adjusted EBITDA”.

EBITDA is computed as net income before interest,
taxes, depreciation, and amortization. Adjusted EBITDA is a financial measure defined as our EBITDA adjusted to eliminate the effects
of certain non-cash and / or non-recurring items that do not reflect our ongoing strategic business operations, which management believes
results in a performance measurement that represents a key indicator of the Company’s core business operations. The adjustments
currently include fair value adjustments such as investment securities value changes and non-cash share-based compensation expenses, in
addition to other income and expense items. 

We believe Adjusted EBITDA can be an important
financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including
our return on capital and operating efficiencies, from period-to-period by making such adjustments.

Adjusted EBITDA is provided in addition to and
should not be considered to be a substitute for, or superior to net income, the comparable measures under U.S. GAAP. Further, Adjusted
EB