Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1304

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1304
---
 Hosting Revenue, exclusive of depreciation: Cost of data hosting revenue includes utility charges, site overhead expenses,
and other charges.

Cost
of data hosting revenue increase was due to Project Dorothy 1A which began operations and hosting services in May 2023 with full year
hosting expense in 2024. Also, we transitioned to data hosting at Project Sophie in April 2023, which created an increase in costs.

Cost
of High-Performance Computing Services: Cost of high-performance computing services include operating expenses related to high
performance computing services.

49

General
and Administrative Expenses, exclusive of depreciation and amortization: General and administrative expenses, exclusive of depreciation
and amortization include cash and non-cash compensation, benefits, and related costs in support of our general corporate operations, including
general management, finance and accounting, human resources, marketing, information technology, corporate development, and legal services.

    ●
    We
    had an increase of approximately $600 thousand in wages, bonus and employee related expenses for the year ended December 31, 2024
    compared to the year ended December 31 2023, due to an increase in resources and salaries.

    ●
    Stock
    based compensation expense was $5.2 million in 2024, of which $4.0 million was related to a modification for the cancellation of
    stock options granted and replaced with new awards of restricted stock in April 2024, which created incremental compensation costs.
    Stock based compensation increased by approximately $1.4 million due to an acceleration of grants and awards that occurred in May
    of 2023, compared to the current year. We issued grants in April, June, September, and December of 2024, in which some of the grants
    provided for immediate vesting, therefore further increasing the expense compared to prior comparable periods.

    ●
    Other
    increases include legal fees, professional services, and a provision for credit loss, offset by a reduction in investor relations.

Depreciation
and Amortization associated with general and administrative expenses: Depreciation and amortization expense was comparable for
the year ended December 31, 2024 and the year ended December 31, 2023 in which the balances totaled approximately $9.6 million and $9.5
million, respectively. The balances mainly related to amortization expense related to the strategic pipeline contract that was acquired
in October 2021.

Loss
on contract: Due to Cloud