Company: SLNH
Filing Date: 2025-01-15
Form Type: S-1/A
Source: 0001493152-25-002391
Chunk: 278

Company: Soluna Holdings, Inc
Filing Date: 2025-01-15
Form: S-1/A
Chunk 278
---
----|:------------------|-------:|:----|:-------------|-------:|:----|:------|-------:|
| Strategic pipeline contract |     | $                 | 46,885 |     | $            | 20,317 |     | $     | 26,568 |
| Assembled workforce         |     |                   |    500 |     |              |    216 |     |       |    284 |
| Patents                     |     |                   |    165 |     |              |     10 |     |       |    155 |
| Total                       |     | $                 | 47,550 |     | $            | 20,543 |     | $     | 27,007 |

Amortization expense for the three and nine months ended September 30, 2024 and 2023 was approximately $ 2.4million and $ 7.1million, respectively.

The strategic pipeline contract relates to supply of a critical input to our digital mining and hosting business. The Company has analyzed this strategic pipeline contract similar to a permit for future benefit. The strategic pipeline contract relates to potential renewable energy datacenters that fit in the alignment of the Company structure to expand operations of the Company’s new focus in their business.

The Company expects to record amortization expense of intangible assets over the next five years and thereafter as follows:

Schedule of Amortization Expense of Intangible Assets

| (Dollars in thousands)       
 Year                         |     | 2024 |        |
|:-----------------------------|:----|:-----|-------:|
| 2024 (remainder of the year) |     | $    |  2,372 |
| 2025                         |     |      |  9,490 |
| 2026                         |     |      |  7,910 |
| 2027                         |     |      |     12 |
| 2028                         |     |      |     12 |
| Thereafter                   |     |      |    190 |
| Total                        |     | $    | 19,986 |

6.Income Taxes

During the three and nine months ended September 30, 2024, the Company’s effective income tax rate was 8.3% and 7.6%, and for the three and nine months ended September 30, 2023, the Company’s effective tax rate was ( 4.5)% and 1.6