Company: SLNH
Filing Date: 2025-02-03
Form Type: S-1/A
Source: 0001493152-25-004555
Chunk: 80

Company: Soluna Holdings, Inc
Filing Date: 2025-02-03
Form: S-1/A
Chunk 80
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2024 was approximately $2.9 million and related to an agreement with HPE effective July 1, 2024 to acquire access to datacenter and cloud services for AI and HPC processes. As of September 30, 2024, no revenue has been generated for these services. There were no such costs associated for the three months ended September 30, 2023.

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Cost of revenue- depreciation:Depreciation costs associated with cryptocurrency and data hosting revenue was approximately $1.5 million for the three months ended September 30, 2024 compared to approximately $1.2 million for the three months ended September 30, 2023. The increase related to the capital additions to fixed assets between the second quarter of fiscal year 2023 through the third quarter of 2024. It was noted that Project Marie was discontinued in February of 2023, Project Sophie had sold a majority of its miners in the second quarter of 2023, and the significant additions of capital expenditures at Project Dorothy, causing an increase in depreciation costs period over period. As the Company has begun to invest more in capital expenditures, we expect to see depreciation costs to significantly increase over the next several quarters.

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.

| ● | General                                                                                                                                  
 and administrative expenses, exclusive of depreciation and amortization increased approximately $2.5 million or 93% for the three        
 months ended September 30, 2024 compared to the three months ended September 30, 2023. General and administrative expenses, exclusive    
 of depreciation and amortization were approximately $5.2 million, including approximately $1.2 million of stock compensation expense     
 for the three months ended September 30, 2024, compared to approximately $2.7 million, including $590 thousand of stock compensation     
 for the three months ended September 30, 2023. The increase in general and administrative expenses, exclusive of depreciation and        
 amortization was mainly due to employee related expenses, legal fees, professional fees, related credit loss provision expense, and      
 stock compensation expenses.                                                                                                             |
| ● | The                                                                                                                                      
 Company had an increase of approximately $838 thousand in employee related expense for the three months