Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 411

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 411
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    30-40
    years

    Purchased
    pre-fabricated buildings
     
    15-20
    years

     F-8 

Significant
additions or improvements extending assets’ useful lives are capitalized; normal maintenance and repair costs are expensed as incurred.
The costs of fully depreciated assets remaining in use are included in the respective asset and accumulated depreciation accounts. When
items are sold or retired, related gains or losses are included in net (loss) income.

Intangible
assets

Intangible
assets include the Strategic Pipeline Contract with an estimated useful life of 5 years, assembled workforce of individuals included
as part of the asset acquisition that occurred in October 2021 with an estimated useful life of 5 years and patents with an estimated
useful life of 15-25 years. The Company amortizes the intangible assets over their estimated useful lives on a straight-line basis. The
Company does not recognize internally developed patents as intangible assets, however legal costs associated with defending such patents
are capitalized as long-lived assets.

Income
Taxes

The
Company is subject to income taxes in the U.S. (federal and state). As part of the process of preparing the Consolidated Financial Statements,
the Company calculates income taxes for each of the jurisdictions in which the Company operates. This involves estimating actual current
taxes due together with assessing temporary differences resulting from differing treatment for tax and accounting purposes that are recorded
as deferred tax assets and liabilities, loss carryforwards and tax credit carryforwards, for which income tax benefits are expected to
be realized in future years. A valuation allowance has been established to reduce deferred tax assets, if it is more likely than not
that all, or some portion, of such deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is
recognized in the period that includes the enactment date.

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