Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3105

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 3105
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must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained
on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial
statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon
ultimate resolution. The impact of the Company’s reassessment of its tax positions for these standards did not have a material
impact on its results of operations, financial condition, or liquidity.

The
Company is currently subject to audit in various jurisdictions, and these jurisdictions may assess additional income tax liabilities
against us. Developments in an audit, litigation, or in applicable laws, regulations, administrative practices, principles, and interpretations
could have a material effect on the Company’s operating results or cash flows in the period or periods in which such developments
occur, as well as for prior and in subsequent periods.

Tax
laws, regulations, and administrative practices in various jurisdictions may be subject to significant change, with or without notice,
due to economic, political, and other conditions, and significant judgment is required in evaluating and estimating the Company’s
provision and accruals for these taxes. There are many transactions that occur during the ordinary course of business for which the ultimate
tax determination is uncertain. The Company’s effective tax rates could be affected by numerous factors, such as intercompany transactions,
earnings being lower than anticipated in jurisdictions where the Company has lower statutory rates and higher than anticipated in jurisdictions
where the Company has higher statutory rates, the applicability of special tax regimes, losses incurred in jurisdictions for which the
Company is not able to realize the related tax benefit, changes in foreign currency exchange rates, entry into new businesses and geographies,
changes to its existing businesses and operations, acquisitions and investments and how they are financed, changes in the Company’s
stock price, changes in its deferred tax assets and liabilities and their valuation, and changes in the relevant tax, accounting, and
other laws, regulations, administrative practices, principles, and interpretations.

     F-9 

Equity
Investments without Readily Determinable Fair Values

The
Company owns approximately 1.79% of Harmattan Energy Limited (“HEL”)’s outstanding stock, calculated on a fully-diluted
basis, as of December 31, 2024 and 2023. Our equity investment in HEL is accounted for under the measurement alternative.