Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 341

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 341
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082) 
     (66,051,642)
  
    Addition of deposits for property, plant, and equipment 
     64,042,703  
     67,684,132 
  
    Adjustment (a) 
     (1,081,285) 
     - 
  
    Ending balance 
    $39,059,707  
    $4,227,371 

  (a) The adjustment represents a reimbursement from the customer for equipment purchased under an existing service agreement, resulting from the customer’s request to upgrade to a newer generation of GPUs for future deployment.  

F-12

Property, plant, and equipment, net

Property, plant, and equipment are recorded at
cost and depreciated using the straight-line method over the estimated useful lives of the assets or declining-balance method. Direct
costs related to developing or obtaining software for internal use are capitalized as property, plant, and equipment. Capitalized software
costs are amortized over the software’s useful life when the software is placed in service. The estimated useful lives by asset
category are:

    Estimated 
Useful 
Life
  
    Digital asset miners 
    3 years
  
    Cloud service equipment 
    3 - 5 years
  
    Colocation service equipment 
    10 to 15 years
  
    Building 
    30 years
  
    Leasehold improvements 
    15 years
  
    Purchased software 
    14 months
  
    Vehicle 
    5 years
  
    Other property and equipment 
    20% to 30%

Impairment
of long-lived assets

Management
reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted
future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized
is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

Goodwill

Goodwill represents the excess of the purchase
price over the fair value of the net assets acquired in a business combination. Goodwill is not subject to amortization, and instead,
assessed for impairment annually at the end of each fiscal year, or more frequently when events or changes in circumstances indicate that
it is more likely than not that the fair value of a