Company: BTBT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044155
Chunk: 12

Company: Bit Digital, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 12
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 SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and principles of
consolidation

The interim unaudited condensed consolidated financial
statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“US GAAP”).

The unaudited condensed consolidated financial
information as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 has been prepared without audit, pursuant to the
rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included
in annual financial statements prepared in accordance with US GAAP, have been omitted pursuant to those rules and regulations. The unaudited
interim financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the
Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on March 14, 2025.

In the opinion of the management, the accompanying
unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation
of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information
presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting
policies as used in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2024. The
results of operations for the three months ended March 31, 2025, and 2024 are not necessarily indicative of the results for the full years.

Use of estimates

In preparing the consolidated financial statements
in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant
estimates required to be made by management include, but are not limited to, the valuation of digital assets and other current assets,
useful lives of property, plant, and equipment, impairment of long-lived assets, intangible assets and goodwill, valuation of assets and
liabilities acquired in business combinations, provision necessary for contingent liabilities and realization of deferred tax assets.
Actual results could differ from those estimates.

We review the useful lives of equipment on an