Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 725

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 725
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 obtain the additional financing on a timely basis, if and when it is needed, it will
be forced to delay or scale down some or all of its development activities or perhaps even cease the operation of its business.

Operating
Activities

Net
cash used in operations was approximately $5.1 million during the year ended December 31, 2024. We had a net loss for the year ended
December 31, 2024 of approximately $58.3 million. Results included cost of revenue in connection with the HPE Agreement for $5.7
million. Non-cash items included approximately $6.2 million of depreciation expense and $9.5 million of amortization expenses,
approximately $28.6 million on loss on contract, $5.3 million of stock compensation expenses, $7.3 million of loss on debt
extinguishment and revaluation, $2.1 million in debt issuance costs, $760 thousand in provision for credit losses, and $351 thousand
amortized deferred financing costs. These non-cash items were offset with a deferred tax benefit of $2.5 million. The change in
assets and liabilities is mainly due to an increase in prepaid expenses and other long term assets by $8.1 million due to a
prepayment of an arrangement with HPE of $10.3 million that was being amortized over the life of the agreement and a decrease in
customer deposits of $1.4 million due to timing of deposits applied in December 2024, offset by an increase in accrued expenses and
accounts payable of approximately $5.5 million in relation to NYDIG interest, and related bills associated with Project Dorothy 2
and Project Kati. The other changes in assets and liabilities were not material.

Net
cash used in operating activities from continuing operations was approximately $3.0 million for the year ended December 31, 2023. 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