Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 98

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 98
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, offset
with payment made to HPE in January and payment of sales and use tax.

Net cash provided by operations was approximately
$3.9 million during the three months ended March 31, 2024. The Company had a net loss for the three months ended March 31, 2024 of approximately
$2.5 million. Non-cash items included approximately $1.6 million of depreciation expense, and $2.4 million of amortization expenses, $661
thousand of stock compensation expenses, $3.1 million of loss on debt extinguishment and revaluation, and $130 thousand of impairment
of fixed assets. These non-cash items were offset with a deferred tax benefit of $548 thousand. The change in asset and liabilities of
$942 thousand related to increase in accounts receivable of $1.5 million attributable for demand service revenue and data hosting customer
receivables significantly increasing, offset with increases in accrued expenses and accounts payable of $929 thousand. The other changes
in assets and liabilities were not material.

Investing Activities

Net cash
used in investing activities during the three months ended March 31, 2025 was approximately $3.6 million consisting mainly of
capital expenditures of $3.8 million offset with a decrease in deposits on equipment of $213 thousand. Net cash used in investing
activities during the three months ended March 31, 2024 was approximately $827 thousand consisting mainly of capital expenditures of
$524 thousand and increase in deposits on equipment of $343 thousand.

Financing Activities

    (Dollars in thousands) 
    Three months ended March 31, 

    2025  
    2024 

    Proceeds from debt issuance 
    $5,000  
    $- 
  
    Payments on debt 
     (1,978) 
     (616)
  
    Contributions from non-controlling interest 
     4,310  
     - 
  
    Distributions to non-controlling interest 
     (1,525) 
     (1,680)
  
    Proceeds from warrant exercises 
     -  
     300 
  
    Net proceeds from SEPA 
     2,005  
     - 
  
    Net cash provided by (used in) financing activities 
    $7,812  
    $(1,996)

Net cash
provided by financing activities was approximately $7.8 million consisting mainly