Company: BTBT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110383
Chunk: 44

Company: Bit Digital, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 44
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For
the three months ended September 30, 2025 and September 30, 2024, the Company generated revenues of $218,703 and $nil, respectively,
from the liquid staking. For the nine months ended September 30, 2025 and September 30, 2024, the Company generated revenues of $218,703
and $4,503, respectively, from the liquid staking.

Contract
costs

The
Company capitalizes commission expenses directly related to obtaining customer contracts, which would not have been incurred if the contract
had not been obtained. As of September 30, 2025, capitalized costs to obtain a contract totaled $1.2 million, and the outstanding commission
expense payable was $1.6 million. As of December 31, 2024, capitalized costs to obtain a contract totaled $2.0 million, and the outstanding
commission expense payable was $1.6 million.

Contract
Assets

Contract
assets primarily consist of revenue allocated to complimentary services provided to customers as part of contractual arrangements. As
of September 30, 2025 and December 31, 2024, contract assets were $1.1 million and $nil, respectively.

21

Contract
Liabilities

The
Company’s contract liabilities consist of deferred revenue and customer deposits. As of September 30, 2025 and December 31, 2024,
contract liabilities were $7.8 million and $30.8 million, respectively.

During
the three months ended September 30, 2025 and 2024, $3.8 million and $nil, respectively, and during the nine months ended September 30,
2025 and 2024, $26.3 million and $13.1 million, respectively, of the beginning balance of contract liabilities was recognized as revenue.

During
the three months ended September 30, 2025 and 2024, $2.1 million and $nil, respectively, and during the nine months ended September 30,
2025 and 2024, $6.1 million and $nil, respectively, were recognized as revenue as a result of satisfying performance obligations in previous
periods.

Remaining
performance obligation

The
following table presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance
obligation as of September 30, 2025:

    2025  
    2026  
    202