Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 136

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 136
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. The decrease in deferred revenue of
$23.0 million reflects the recognition of $26.3 million in revenue related to the successful fulfilment of performance obligations
from our HPC services, partially offset by $3.3 million prepayments from customers for HPC services to be rendered in the future.

Long-term
income tax payable

Compared
with December 31, 2024, the balance as of September 30, 2025 did not change as no incremental penalty was accrued on the existing unrecognized
tax benefits for the three months ended September 30, 2024. Refer to Note 15. Income Taxes, for more information.

Non-GAAP
Financial Measures 

In
addition to consolidated U.S. GAAP financial measures, we consistently evaluate our use of and calculation of the non-GAAP financial
measures, such as “Adjusted EBITDA”.

69

EBITDA
is computed as net income before interest, taxes, depreciation, and amortization. Adjusted EBITDA is a financial measure defined as our
EBITDA adjusted to eliminate the effects of certain non-cash and / or non-recurring items that do not reflect our ongoing strategic business
operations, which management believes results in a performance measurement that represents a key indicator of the Company’s core
business operations. The adjustments currently include fair value adjustments such as investment securities value changes and non-cash
share-based compensation expenses, in addition to other income and expense items. 

We
believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to
evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making
such adjustments.

Adjusted
EBITDA is provided in addition to and should not be considered to be a substitute for, or superior to net income, the comparable measures
under U.S. GAAP. Further, Adjusted EBITDA should not be considered as an alternative to revenue growth, net income, diluted earnings
per share or any other performance measure derived in accordance with U.S. GAAP, or as an alternative to cash flow from operating activities
as a measure of our liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider such measures either
in isolation or as substitutes for analyzing our results as reported under U.S. GAAP.

Reconciliations
of Adjusted EBITDA to the