Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2654

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 2654
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 $17,620 

  6. Income Taxes

Income
tax expense (benefit) for each of the years ended December 31 consists of the following:

 Schedule of Income Tax Expense

    (Dollars in thousands) 
    2024  
    2023 

    Federal 
    $—  
    $— 
  
    State 
     35  
     40 
  
    Deferred 
     (2,522) 
     (1,107)
  
    Total 
    $(2,487) 
    $(1,067)

Deferred
income tax expense (benefit) from operations for each of the years ended December 31 consists of the following:

 Schedule of Deferred Income Tax Expense

    (Dollars in thousands) 
    2024  
    2023 

    Deferred tax expense (benefit) 
    $4,006  
    $2,566 
  
    Net operating loss carry forward 
     (8,192) 
     (9,813)
  
    Valuation allowance 
     1,664  
     6,140 
  
    Deferred
    tax benefit (expense)  
    $(2,522) 
    $(1,107)

The
Company’s effective income tax rate from operations differed from the Federal statutory rate for each of the years ended December
31 as follows:

 Schedule of Effective Income Tax Rate

    2024  
    2023 
  
    Federal statutory tax rate 
     21% 
     21%
  
    Change in valuation allowance 
     (3) 
     (15)
  
    State taxes, net of federal benefit 
     —  
     — 
  
    Cancellation of debt 
     (9) 
     —  
  
    Expiration of stock option 
     —  
     (1)
  
    Loss on extinguishment of debt 
     (2) 
     (1)
  
    Other deferred Adjustments 
     (3) 
     (1)
  
    Tax rate 
     4% 
     3%

Deferred
Tax (Liabilities) Assets:

Deferred
tax (liabilities) assets are determined based on the temporary differences between the financial statement and tax bases of assets and
liabilities as measured by the enacted tax rates. Temporary differences, net operating loss carryforwards and tax credit carry