Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 836

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1B
Chunk 836
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 and liabilities
assumed at the acquisition date:

    Accounts receivable 
    $616,153 
  
    Other current assets 
     2,008,566 
  
    Property and equipment, net 
     14,201,790 
  
    Operating lease right-of-use assets 
     4,752,501 
  
    Intangible asset 
     13,486,184 
  
    Deferred tax asset 
     91,368 
  
    Other non-current assets 
     2,493 
  
    Accounts payable 
     (1,866,804)
  
    Other payables and accrued liabilities 
     (1,100,095)
  
    Current portion of deferred revenue 
     (465,360)
  
    Current portion of operating lease liability 
     (248,301)
  
    Non-current portion of deferred revenue 
     (123,652)
  
    Non-current portion of operating lease liability 
     (3,273,709)
  
    Deferred tax liability 
     (4,090,683)
  
    Total identifiable assets and liabilities 
     23,990,451 
  
    Goodwill 
     19,843,862 
  
    Total Purchase Consideration 
    $43,834,313 

The acquisition-date
fair value of the acquired accounts receivable was $616,153, which equals the gross contractual amount. The Company does not expect a
material amount of uncollectible contractual cash flows.

The Company
recognized customer relationships as an intangible asset of $13,486,184 to be amortized over 19 years.

Of the total
Goodwill recognized, $37,000 is attributable to the assembled workforce at Enovum and the rest is attributable to synergies expected to
be achieved from the combined operations of the Company and Enovum. The goodwill recognized is not deductible for tax purposes. We assigned
the goodwill to our colocation reportable segment.

The results
of Enovum have been included in the Company’s Consolidated Statements of Operations since the acquisition date. The amounts of revenue
and net income of Enovum included in the Company’s consolidated income statement from the acquisition date to December 31, 2024
are $1,361,241 and $15,025, respectively.

Through
December 31, 2024, the Company recognized $1,980,769 of acquisition-related costs were recognized as expense in the income statement line
item “General