Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1209

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 2
Chunk 1209
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    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 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:

    Pro forma 
consolidated
 income 
statement
 for the year
 ended 
December 31, 
2024 
  
    Revenue 
    $111,611,207 
  
    Net income 
     26,521,971 

F-23

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 Enovum to reflect the additional
depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment, right-of-use
asset and intangible assets had been applied on January 1, 2024, together with the consequential tax effects.

Enovum commenced
its operations in October 2023. Therefore, is it impracticable to estimate