Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 400

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 4
Chunk 400
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 adverse impacts on our business, results of operations,
and financial condition.

We
rely upon licenses of third-party intellectual property rights and may be unable to protect our software code.

We
actively use specific hardware and software for our cloud services and colocation data center operations. In certain cases, source code
and other software assets may be subject to an open source license, as much technology development underway in this sector is open source.
For these works, the Company intends to adhere to the terms of any license agreements that may be in place.

We
do not currently own, and do not have any current plans to seek, any patents in connection with our existing and planned operations.
We rely upon trade secrets, trademarks, service marks, trade names, copyrights and other intellectual property rights and expect to license
the use of intellectual property rights owned and controlled by others. In addition, we have developed and may further develop certain
software applications for purposes of our operations. Our open source licenses may not afford us the protection we need to protect our
intellectual property.

Our
internal systems rely on software that is highly technical, and, if it contains undetected errors, our business could be adversely affected.

Our
internal systems rely on software that is highly technical and complex. In addition, our 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.