Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 91

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 $1.3 million as of February 28, 2024 (date of Fourth Amendment) and
March 31, 2024 due to several factors including assumptions on conversions and payouts, annual volatility and stock price conditions on
the dates of valuations. In addition, there was a revaluation of the warrant liability as of March 31, 2024, in which created a gain on
revaluation of approximately $1.5 million.

Other expense (income), net: Other expense,
net increased by approximately $338 thousand for the 3 months ended March 31, 2025 compared to March 31, 2024. For the three months ended
March 31, 2025, the Company incurred approximately $118 thousand in fair value adjustments in relation to timing of the SEPA draws to
when the shares were issued, and a $205 thousand financing expense in relation to consent fees for the SEPA draws. The Company had nominal
other income for the three months ended March 31, 2024 of $23 thousand.

Net income attributable to non-controlling interest:
Net income attributable to non-controlling interest for the three months ended March 31, 2025 was significantly lower than the three months
ended March 31, 2024, due mainly due the variances in gross profit related to D1A and D1B, noted above mainly to the halving event in
April 2024, which created about approximately $2.2 million variance between periods in non-controlling interest. In addition, in the third
quarter of 2024, D2 began site development creating an additional cost of approximately $311 thousand in non-controlling interest, in
which there is no comparable costs for the three months ended March 31, 2024.

Non-GAAP
Measures

To supplement our consolidated
condensed financial statements included in this quarterly report presented under U.S. generally accepted accounting principles (“GAAP”),
we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information
to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash
items. We utilize these measures in the business planning process to understand expected operating
performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered
together with our GAAP financial results, provide management and investors with an additional understanding of our business operating
results