Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2615

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 2615
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 expected volatility inputs and the fair value estimates for the
warrants are sensitive to the expected volatility inputs.

How
We Addressed the Matter in Our Audit

The
primary procedures we performed to address this critical audit matter included gaining an understanding of certain internal controls
over the Company’s process to measure the fair value of the warrants. This included controls related to the evaluation of observable
market information used in the determination of the expected volatility inputs. We also involved our firm’s valuation professionals
with specialized skills and knowledge, who assisted in:

●evaluating
                                            the expected volatility inputs by comparing them against our separately derived shadow calculation
                                            of volatility; and

●developing
                                            a shadow calculation of value of the warrants using our separately derived volatility and
                                            comparing it to the value calculated by the Company.

/s/
UHY LLP

We
have served as the Company’s auditor since 2021.

Albany,
New York

March
31, 2025

 F-2 

Soluna
Holdings, Inc. and Subsidiaries

Consolidated
Balance Sheets

As
of December 31, 2024 and December 31, 2023 

    (Dollars in thousands, except per share) 
    December 31, 2024  
    December 31, 2023 
  
    Assets 

    Current Assets: 

    Cash 
    $7,843  
    $6,368 
  
    Restricted cash 
     1,150  
     2,999 
  
    Accounts receivable, net (allowance for expected credit losses $244 and $0 as of December 31, 2024 and December 31, 2023) 
     2,693  
     2,948 
  
    Notes receivable 
     13  
     446 
  
    Prepaid expenses and other current assets 
     1,768  
     1,416 
  
    Equipment held for sale 
     28  
     107 
  
    Total Current Assets 
     13,495  
     14,284 
  
    Restricted cash, noncurrent 
     1,460  
     1,000 
  
    Other assets 
     2,724  
     2,954 
  
    Deposits and credits on equipment 
     5,145  
     1,028 
  
    Property, plant