Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 47

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 47
---
, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest
and Similar Awards (“ASU 2024-01”), to clarify the scope application of profits interest and similar awards by
adding illustrative guidance in ASC 718, Compensation—Stock Compensation (“ASC 718”). ASU 2024-01 clarifies
how to determine whether profits interest and similar awards should be accounted for as a share-based payment arrangement (ASC 718)
or as a cash bonus or profit-sharing arrangement (ASC 710, Compensation—General, or other guidance) and applies
to all reporting entities that account for profits interest awards as compensation to employees or non-employees. In addition to
adding the illustrative guidance, ASU 2024-01 modified the language in paragraph 718-10-15-3 to improve its clarity and operability
without changing the guidance. ASU 2024-01 is effective for fiscal years beginning after December 15, 2024, and interim periods
within those annual periods. Early adoption is permitted. The amendments should be applied either retrospectively to all prior
periods presented in the financial statements, or prospectively to profits interests and similar awards granted or modified on or
after the adoption date. The Company notes that this ASU did not have an impact on the condensed consolidated financial statements
for the three and six months ended June 30, 2025. If any new awards are issued in the future, the Company will evaluate the scope
application of this ASU.

Accounting
Updates Not Yet Effective

Improvements
to Comprehensive Income- Expense Disaggregation

In
December 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40) (“ASU 2024-03”). ASU 2024-03 requires, in the notes to the financial statements, disclosures of specified
information about certain costs and expenses specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods
beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The
Company is evaluating the impact the updated guidance will have on its disclosures.

    30

Debt
with Conversion and Other Options

In
December 2024, the Financial