Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1007

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 1007
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 reporting unit is less than its carrying amount in accordance with ASC 350 -
Intangibles -Goodwill and Other.

The impairment assessment involves an option to
first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely
than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or
after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting
unit is less than its carrying amount, a quantitative assessment for potential impairment is performed.

The quantitative goodwill impairment test is performed
by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit
exceeds its carrying amount, goodwill is not impaired. An impairment loss is recognized for any excess of the carrying amount of the reporting
unit over its fair value up to the amount of goodwill allocated to the reporting unit.

Finite-lived
intangible Assets 

Intangible
assets are recorded at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets acquired through
business combinations are measured at fair value at the acquisition date.

Intangible
assets with finite lives are comprised of customer relationships and are amortized on straight-line basis over their estimated useful
lives. The Company assesses the appropriateness of finite-lived classification at least annually. Additionally, the carrying value and
remaining useful lives of finite-lived assets are reviewed annually to identify any circumstances that may indicate potential impairment
or the need for a revision to the amortization period. A finite-lived intangible asset is considered to be impaired if its carrying value
exceeds the estimated future undiscounted cash flows expected to be generated from it. We apply judgment in selecting the assumptions
used in the estimated future undiscounted cash flow analysis. Impairment is measured by the amount that the carrying value exceeds fair
value. The useful lives of customer relationships is 19 years.

F-13

Business
combinations

The Company accounts for business combinations
under the acquisition method of accounting in accordance with ASC 805 - Business Combinations, by recognizing the identifiable
tangible and intangible assets acquired and liabilities assumed, measured at the acquisition date fair value. The determination of fair
value involves assumptions, estimates, and judgments. The initial allocation of the purchase price is considered preliminary and therefore
subject to change until the end of the measurement period (up to