Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 148

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 148
---
 changes in assets
and liabilities of approximately $700 thousand mainly related to increase in customers deposits and accounts payable related to timing
and billing amounts of invoices, offset with payment made to HPE in January.

Net
cash used in operations was approximately $3.5 million during the six months ended June 30, 2024. The Company had a net loss for the
six months ended June 30, 2024 of approximately $11.7 million. Non-cash items included approximately $3.1 million of depreciation expense
and $4.7 million of amortization expenses, $2.0 million of stock compensation expenses, $8.7 million of loss on debt extinguishment and
revaluation, $244 thousand in provision for credit losses, and $130 thousand of impairment of fixed assets. These non-cash items were
offset with a deferred tax benefit of $1.2 million. The change in asset and liabilities of $9.7 million is mainly due to an increase
in prepaid expenses by $10.8 million due to a prepayment of an arrangement with HPE of $10.3 million, an increase in accounts receivable
of $486 thousand attributable for demand service revenue and data hosting customer receivables increasing, offset with an increase in
accrued expenses and accounts payable of $2.1 million in relation to bonus accruals, NYDIG interest, and Project Dorothy 2 and Kati related
bills. The other changes in assets and liabilities were not material.

Investing
Activities

Net
cash used in investing activities during the six months ended June 30, 2025 was approximately $8.3 million consisting mainly of capital
expenditures of $12.4 million offset with a decrease in deposits on equipment of $4.1 million. Net cash used in investing activities
during the six months ended June 30, 2024 was approximately $2.2 million consisting mainly of capital expenditures of $278 thousand and
increase in deposits on equipment of $2.1 million.

Financing
Activities

    (Dollars in thousands) 
    Six months ended June 30, 

    2025  
    2024 

    Proceeds from debt issuance 
    $5,269  
    $13,220 
  
    Payments on debt and deferred financing costs 
     (3,275) 
     (1,910)
  
    Contributions from non-controlling interest