Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 76

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 76
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 due to significant increase for in-service capital assets for the year ended December
31, 2023 which created an offset of approximately $1.1 million in deferred income tax expense.

Net
income attributable to non-controlling interest: Net income attributable to non-controlling interest for the year ended December
31, 2024 was approximately $5.0 million compared to a net income of approximately $1.5 million for the year ended December 31, 2023.
This amount relates to Spring Lane’s 85% noncontrolling interest of the net profit in Soluna DVSL ComputeCo, LLC (“DVSL”)
and Navitas 49% noncontrolling interest of the net profit in Soluna DV ComputeCo, LLC (“DVCC”) for the year ended December
31, 2024. The change in non-controlling interest relates to continued profitability at Dorothy 1A and Dorothy 1B, creating a total net
profit in noncontrolling interest of approximately $6.9 million attributable to non-controlling interest for the year ended December
31, 2024, which started to grow in the third quarter of fiscal year 2023. The total net income was offset by noncontrolling interest
loss of approximately $1.9 million associated with Dorothy 2, which site is in development stage and would expect losses, where Spring
Lane had noncontrolling interest of 58% - 85% for the year ended December 31, 2024. The $1.5 million net income attributable to non-controlling
interest for the year ended December 31, 2023 related only to Dorothy 1A and Dorothy 1B. For the first six months of fiscal 2023, DVSL
was generating a non-controlling interest net loss, but with the energization at Dorothy 1A in effect beginning in the second quarter
of 2023, the DVSL entity began to generate net profits, while DVCC was generating a net loss for the first four months of operations,
but with energization beginning in the third quarter of fiscal 2023, the DVCC entity began to generate a net profit in non-controlling
interest

Non-GAAP
Measures

To
supplement our consolidated financial statements included in this Annual Report presented under U.S. generally accepted accounting principles
(“GAAP”), we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose
additional information to facilitate the