Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 94

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 94
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 recognized in the period that includes the enactment date.

Significant
management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation
allowance recorded against our net deferred tax assets. We considered all available evidence, both positive and negative, such as historical
levels of income and future forecasts of taxable income amongst other items in determining our valuation allowance. In addition, our
assessment requires us to schedule future taxable income in accordance with accounting standards that address income taxes to assess
the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment.

We
account for taxes in accordance with the asset and liability method of accounting for income taxes. Under this method, we 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 our reassessment of our tax positions for these standards did not have a material impact on its results of operations,
financial condition, or liquidity.

We
are also 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 our 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 our 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. Our effective tax rates could be affected by numerous factors, such as intercompany transactions, earnings being lower
than anticipated in jurisdictions where we have lower statutory rates and higher than anticipated in jurisdictions where we have higher
statutory rates, the applicability of special tax regimes, losses incurred in jurisdictions for which we are not able to realize the
related tax benefit, changes in foreign currency exchange rates, entry into new businesses and geographies, changes to our existing businesses
and operations,