Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1901

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1901
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. We
had a net loss of approximately $27.7 million, which was offset by non-cash items of approximately $22.5 million. The non-cash items
consisted primarily of approximately $13.4 million of amortization and depreciation expenses for the intangible assets acquired in 2021
and the fixed assets still in service and capital additions in 2023. There was also approximately $4.3 million in stock-based compensation
expenses, $3.9 million on loss on debt extinguishment and revaluation, and additional $1.2 million in relation to fixed asset impairments,
loss on sale of fixed assets, and amortization of operating lease assets. The non-cash items were offset with a $1.1 million deferred
income tax benefit. The change in assets and liabilities of approximately $2.4 million related to increases in accrued expenses of $3.9
million in which related to interest for the NYDIG loan, sales and real estate tax accruals, and bonus accrual, as well as increase in
customer deposits of $2.8 million with data hosting customers for the facility sites, offset with an increase in accounts receivable
related to performing further hosting services and demand response services as of December 31, 2023.

Investing
Activities

Net
cash used in investing activities during the year ended December 31, 2024 was approximately $13.2 million consisting mainly of capital
expenditures of $9.2 million and increase in deposits on equipment of $4.1 million, primarily related to the development build of Project
Dorothy 2. Net cash used in investing activities during the year ended December 31, 2023 was approximately $10.3 million consisting mainly
of capital expenditures of $12.7 million, primarily related to the completion of the build of Project Dorothy 1A and 1B, less cash proceeds
from sale of equipment of $2.3 million, primarily from the sale of miners located at Project Sophie in connection with the decision to
convert to a hosting facility.

55

Financing
Activities

    (Dollars in thousands) 
    Years Ended  December 31, 

    2024  
    2023 

    Proceeds from debt issuance 
    $14,470  
    $3,100 
  
    Payments on debt 
     (4,949) 
     (1,407)
  
    Contributions from