Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 197

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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 on contract, provision for credit losses, convertible note inducement expense and impairment on fixed assets.
Management believes that EBITDA and Adjusted EBITDA results in a performance measurement that represents a key indicator of our
business operations of cryptocurrency mining, hosting customers engaged in cryptocurrency mining, demand service revenue, and high-performance
computing services.

We believe EBITDA and Adjusted EBITDA can be important
financial measures because they allow management, investors, and the Board to evaluate and compare our operating results, including our
return on capital and operating efficiencies, from period-to-period by making such adjustments. Non-GAAP financial measures are subject
to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. For example,
we expect that stock-based compensation costs, which is excluded from the non-GAAP financial measures, will continue to be a significant
recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, and directors.
Similarly, we expect that depreciation and amortization of fixed assets will continue to be a recurring expense over the term of the useful
life of the assets.

EBITDA and Adjusted EBITDA are provided in addition
to and should not be considered to be substitutes for, or superior to net income, the comparable measure calculated in accordance with
GAAP. Further, EBITDA and Adjusted EBITDA should not be considered as alternatives to revenue growth, net income, or any other performance
measure calculated in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. EBITDA
and Adjusted EBITDA have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes
for analyzing our results as reported under GAAP.

Reconciliations of EBITDA and Adjusted EBITDA to net
loss, the most comparable GAAP financial metric, for historical periods are presented in the table below:

    (Dollars in thousands) 
    Three months ended March 31, 

    2025  
    2024 

    Net loss from continuing operations 
    $(7,354) 
    $(2,544)
  
    Interest expense 
     838  
     424 
  
    Income tax benefit 
     (425) 
     (548)
  
    Depreciation and amortization 
     3,879