Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 38

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 38
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 its disclosures.

In
May 2025, FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting
Acquirer in the Acquisition of a Variable Interest Entity, which amends the guidance for identifying the accounting acquirer in transactions
involving the acquisition of a variable interest entity that meets the definition of a business. The new standard is effective for the
Company for its annual periods beginning January 1, 2027, with early adoption permitted. The Company is currently evaluating the impact
of adopting the standard.

On
                                            September 18, 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other
                                            – Internal-Use Software (Topic ASC 350-40) which amends certain aspects of the
                                            accounting for and disclosure of software costs under ASC 350-40. The ASU makes targeted
                                            improvements to ASC 350-40 but does not fully align the framework for accounting for internally
                                            developed software costs that are subject to ASC 350-40 with the framework applied to software
                                            to be sold or marketed externally that is subject to ASC 985-20. The ASU also does not amend
                                            the guidance on costs of software licenses that are within the scope of ASC 985-20. The amendments
                                            supersede the guidance on Web site development costs in ASC 350-50 and relocate that guidance,
                                            along with the recognition requirements for development costs specific to Web sites, to ASC
                                            350-40. The new guidance will be effective for all entities for annual periods beginning
                                            after December 15, 2027. Early adoption is permitted as of the beginning of an annual reporting
                                            period. The guidance can be applied on a fully prospective basis, a modified basis for in-process
                                            projects, or a full retrospective basis. The Company has adopted this ASU as of July 1, 2025
                                            and prospectively applied the updated ASU.

3. Revenue
from Contracts with Customers

The
Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”).

To
determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract
with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable