Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 35

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 35
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 which discrete financial information is available that is regularly reviewed by the
Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance.
Our CODM is composed of the Chief Executive Officer and Chief Financial Officer, who use segment gross profit (loss) to assess the performance
of the business of our reportable operating segments. Asset information is not used by the CODM to evaluate performance or allocate resources.

Income
taxes

We
account for current and deferred income taxes in accordance with the authoritative guidance, which requires income tax impact to be recognized
in the period in which the law is enacted. Current income tax expense represents taxes paid or payable for the current period. Deferred
tax assets and liabilities are recognized using enacted tax rates for the future tax impact of temporary differences between the financial
statement and tax bases of recorded assets and liabilities. A valuation allowance is recorded to reduce deferred tax assets when it is
more likely than not that a tax benefit will not be realized based on historical and projected future taxable income over the periods
in which the temporary differences are expected to be recovered or settled on each jurisdiction.

In
accordance with the authoritative guidance on accounting for uncertainty in income taxes, we recognize liabilities for uncertain tax
positions based on the two-step process. The first step is to evaluate the tax position for recognition by determining if the weight
of available evidence indicates that it is more likely than not that the position will be sustained in audit, including resolution of
related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than
50% likely of being realized upon ultimate settlement.

16

Earnings
(loss) per share

Basic
earnings (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number
of ordinary shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other
contracts to issue ordinary shares were exercised or converted into ordinary shares or resulted in the issuance of ordinary share participating
in the earnings of the entity.

Commitments
and contingencies 

In
the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business,
which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred
and the amount of the assessment can be reasonably estimated.

If
the assessment of a contingency