Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 115

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 with United States of America’s Generally Accepted Accounting Principles
(“U.S. GAAP”). The results of operations for the interim periods presented are not necessarily indicative of results for the
full year.

Certain information and footnote disclosures normally
included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited
condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements
and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (“the Annual Report”).

The information presented in the accompanying condensed
consolidated balance sheet as of December 31, 2024 has been derived from the Company’s audited consolidated financial statements.
All other information has been derived from the Company’s unaudited condensed consolidated financial statements for the three months
ended March 31, 2025 and March 31, 2024.

Principles of Consolidation

The condensed consolidated financial statements include
the accounts of the Company, including the Company’s variable interest entities disclosed in Note 14. All intercompany balances
and transactions are eliminated in consolidation.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and highly
liquid short-term investments with original maturities of less than three months.

Restricted Cash

Restricted cash relates to cash that is legally restricted
as to withdrawal and usage or is being held for a specific purpose and thus not available to the Company for immediate or general business
use. As of March 31, 2025, the Company had restricted cash of approximately $5.3 million, of which $2.2 million was classified as current
and $3.1 million was classified as non-current. As of December 31, 2024, the Company had restricted cash of approximately $2.6 million,
of which $1.1 million was classified as current and $1.5 million was classified as non-current. Currently, the balance in restricted cash
relates to a restricted deposits held with customers that were for less than 12 months, or held for debt covenant purposes. The Company
has a long-term restricted cash balance in relation to a collateralized deposit.

    10

Deposits and Credits on equipment

As of March 31, 2025 and December 31, 2024, the Company
had approximately $4.9 million and $5.1 million, respectively,