Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 255

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 255
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 and the nine months ended September 30, 2025.

In
connection with the termination of the HPE Agreement on March 24, 2025, we recognized a loss of approximately $28.6 million for the year
ended December 31, 2024. This loss represented the remaining contractual obligations under the agreement.

General
and Administrative Expenses, exclusive of depreciation and amortization: General and administrative expenses, exclusive of depreciation
and amortization include cash and non-cash compensation, benefits, and related costs in support of our general corporate operations,
including general management, finance and accounting, human resources, marketing, information technology, corporate development, and
legal services.

    ●
    Stock-based
    compensation expense was approximately $5.7 million for the nine months ended September 30, 2025, compared to $3.3 million for the
    nine months ended September 30, 2024, representing an increase of approximately $2.4 million. The increase primarily reflects equity
    awards granted to directors and officers between April, June, and December of 2024, additional equity awards granted to directors
    and officers in June and September 2025, employee grants issued in June 2025 and December 2024, as well as a reduction in the estimated
    forfeiture rate from 10% to 5%. These increases were partially offset by the cessation of vesting for certain prior-year grants and
    by the impact of awards with portions that immediately vested during 2024.

    ●
    Salaries
    and benefits expense increased approximately $1.1 million for the nine months ended September 30, 2025, primarily due to approved
    performance-based bonuses settled in October 2025, as well as cost-of-living and merit-based salary adjustments for management and
    employees.

    ●
    Professional
    and legal fees increased approximately $1.6 million for the nine months ended September 30, 2025, primarily due to legal expenses
    related to SEC regulatory and compliance matters and Project Kati legal costs that were not incurred in the comparable prior-year
    period. The increase also reflects the engagement of external consultants to assist with complex accounting matters.

58

    ●
    Investor
    relations expense increased approximately $254 thousand for the nine months ended September 30, 2025, compared to the same period
    in 2024, primarily due to an increase in the number and scope of investor outreach and