Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 146

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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 dilution,
for the three months ended March 31, 2025, were options to purchase 2,645 shares of the Company’s common stock, 206,880 nonvested
restricted stock units, 2,407,134 outstanding warrants not exercised which excludes penny warrants that can be potentially exercised,
and 1,000,000 shares to be issued in connection with the June SPA modification (in which were effectively issued on April 29, 2025). These
potentially dilutive items were excluded because the calculation of incremental shares resulted in an anti-dilutive effect.

Not included in the computation of earnings per share,
assuming dilution, for the three months ended March 31, 2024, were options to purchase 51,873 shares of the Company’s common stock,
5,732 nonvested restricted stock units, and 2,038,099 outstanding warrants not exercised which excludes penny warrants that can be potentially
exercised. These potentially dilutive items were excluded because the calculation of incremental shares resulted in an anti-dilutive effect.

10. Commitments and Contingencies

Commitments:

Leases

The Company determines whether an arrangement is a
lease at inception. The Company and its subsidiaries have operating leases for certain manufacturing, laboratory, office facilities and
certain equipment. The leases have remaining lease terms of approximately 3 years to less than ten years. Our lease agreements do not
contain any material residual value guarantees or material restrictive covenants. As of March 31, 2025 and December 31, 2024, the Company
has no assets recorded under finance leases.

Lease expense for these leases is recognized on a
straight-line basis over the lease term. For the three months ended March 31, total lease costs are comprised of the following:

Summary of Lease Expense Recognized
on Straight-line Basis Over Lease Term 

    Three Months Ended March 31, 
  
    (Dollars in thousands) 
    2025  
    2024 
  
    Operating lease cost 
    $18  
    $61 
  
    Short-term lease cost 
     —  
     — 
  
    Total net lease cost 
    $18  
    $61 

Short-term leases are leases having a term of twelve
months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability
for such leases. There were no short term