Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 305

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 305
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 rate from 10% to 5%. These increases were partially offset by the cessation of vesting for certain prior-year
    grants during the 2025 quarter, and the impact of awards with portions that immediately vested during the 2024 period.

    ●
    Salaries
    and benefits expense increased approximately $1.4 million for the three months ended September 30, 2025, primarily due to approved
    performance-based bonuses that were accrued during the quarter and settled in October 2025.

    ●
    Professional
                                            and legal fees increased approximately $434 thousand for the three months ended September
                                            30, 2025, primarily due to legal expenses related to SEC regulatory and compliance matters,
                                            as well as legal costs associated with Project Kati that were not incurred in the comparable
                                            prior-year period.

    ●
    Investor
    relations expense increased approximately $523 thousand for the three 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 marketing campaigns conducted during the quarter.

    ●
    Provision
    for credit losses decreased approximately $347 thousand for the three months ended September 30, 2025, as no credit losses were recognized
    during the current quarter, compared to the three months ended September 30, 2024, which included specific loss provisions recorded
    on outstanding receivables.

    ●
    All
    other fluctuations within general and administrative expenses for the period were not material to the overall results of operations.

Depreciation
and Amortization associated with general and administrative expenses: Depreciation and amortization expense was comparable for
the three months ended September 30, 2025, and 2024, totaling approximately $2.4 million in each period. The expense primarily relates
to amortization of the strategic pipeline contract acquired in October 2021.

54

Interest
expense: Interest expense for the three months ended September 30, 2025 was approximately $1.2 million compared to the $821 thousand
for the three months ended September 30, 2024. See table below noting the difference mainly relates to the new loans entered into in
fiscal year 2024 and 2025 (June  SPA, Galaxy Loan, Generate loan, and equipment loan), which includes amortization
of deferred financing costs.

    (Dollars in thousands) 
    Three