Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1810

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1810
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struments that subject the Company to concentrations of credit risk principally consist of cash equivalents and trade accounts receivable.
The Company’s trade accounts receivable are from data hosting revenue with the Company’s customers throughout the year. The
Company does not require collateral and has not historically experienced significant credit losses related to receivables from individual
customers or groups of customers in any particular industry or geographic area. The Company requires that hosting customers make a prepayment
of the next month’s estimated expenses or make a security deposit to the Company.

     F-17 

The
Company has cash deposits in excess of federally insured limits but does not believe them to be at risk.

Other
Comprehensive Income

The
Company had no other comprehensive income items for the years ended December 31, 2024 and 2023.

Leases

The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and operating lease liability on our consolidated balance sheets. The Company did not have any finance leases as of December 31,
2024 or December 31, 2023.

Operating
lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over
the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental
borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating
lease ROU assets also include any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s
lease terms may include options to extend or terminate its leases when it is reasonably certain that the Company will exercise those
options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The
Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases,
the Company accounts for lease components together with non-lease components (e.g., common-area maintenance).

Accounting
Updates Effective for fiscal year 2024

Improvements
to Reportable Segment Disclosures

In
November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2023-07, Segment Reporting
(Topic 280): Improvement to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information
on an annual and interim basis,