Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 38

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 38
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    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 

20

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.

 Through June 30, 2025, the Company recognized
$2.0 million of acquisition-related costs in the income statement line item “General and Administrative Expense”.

The following unaudited pro forma financial information
represents the consolidated results of operations as if the acquisition had occurred on January 1, 2024:

    For the  Three Months  Ended  June 30, 2024  
    For the  Six Months  Ended  June 30,  2024 
  
    Revenue 
    $30,280,259  
    $61,422,697 
  
    Net income 
    $(11,867,832) 
    $37,785,718 

These pro forma results are presented for information
purposes only and do not necessarily reflect the actual results that would have been achieved had the acquisition occurred on the date
assumed, nor are they indicative of future consolidated results of operations.

These amounts have been calculated after applying
the Company’s accounting policies and adjusting the results of En