Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2815

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 2815
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 31:

 Schedule of Deferred Tax Asset Valuation Allowance

    (Dollars in thousands) 
    2024  
    2023 

    Valuation allowance, beginning of year 
    $36,791  
    $30,651 
  
    Net operating (loss) income 
     8,200  
     9,813 
  
    Property, plant and equipment 
     (7,171) 
     (4,316)
  
    Stock options 
     673  
     566 
  
    Research and development credit 
     —  
     53 
  
    Accrued expenses 
     (37) 
     24 
  
    Valuation allowance, end of year 
    $38,456  
    $36,791 

Net
operating losses:

As
of December 31, 2024, the Company has unused Federal net operating loss carryforwards of approximately $162.0 million after reducing
the total by $3.4 million which expired in 2024. Of what is remaining, $48.1 million will begin to expire in 2025 and the remainder being
carried forward indefinitely.

The
Company’s and/or its subsidiaries’ ability to utilize their net operating loss carryforwards may be significantly limited
by Section 382 of the IRC of 1986, as amended, if the Company or any of its subsidiaries undergoes an “ownership change”
as a result of changes in the ownership of the Company’s or its subsidiaries’ outstanding stock pursuant to the exercise
of the warrants or otherwise.

Unrecognized
tax benefits:

The
Company has unrecognized tax benefits of $0 and $0 thousand as of December 31, 2024 and 2023, respectively.

Additionally,
the Company does not have uncertain tax positions that it expects will increase or decrease within twelve months of this reporting date.
The Company recognizes interest and penalties related to uncertain tax positions as a component of tax expense. The Company did not recognize
any interest or penalties in 2024 or 2023.

The
Company files income tax returns, including returns for its subsidiaries, with federal and state jurisdictions. The Company is no longer
subject to IRS or state examinations for any periods prior to 2020, although carryforward attributes that were generated prior to 2022
may still be adjusted upon examination by the IRS if they either have been or will be used in a future period.