Company: BTBT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076608
Chunk: 36

Company: Bit Digital, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 36
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 the six months ended June 30,
2025.

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 June 30, 2025,
capitalized costs to obtain a contract totaled $1.5 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 June 30, 2025 and December 31, 2024, contract
assets were $1.3 million and $0, respectively.

19

Contract Liabilities

The Company’s contract liabilities consist
of deferred revenue and customer deposits. The following table presents changes in the total contract liabilities:

    For the Six Months Ended 
June
    30, 

    2025  
    2024 
  
    Beginning balance 
    $30,771,952  
    $13,073,449 
  
    Revenue earned 
     (22,509,221) 
     (13,073,449)
  
    Prepayment received 
     3,405,982  
     - 
  
    Ending balance 
    $11,668,713  
    $- 

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 June 30, 2025:

    2025  
    2026  
    2027  
    2028  
    2029  
    Total 
  
    Colocation Services 
    $3,103,554  
    $3,489,886  
    $710,751  
    $82,674  
    $-  
    $7,386,865 
  
    Other Revenue 
     716,336  
     1,071,272  
     696,558  
     454,618  
    $3,527,025  
     6,465,809 
  
    Total contract liabilities 
    $3,819,890  
    $4,561,158  
    $