Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 202

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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 to decrease in other long term assets of $1.6 million in relation to receipt of Briscoe deposit
in January 2025. The other changes in assets and liabilities of approximately $500 thousand mainly related to decrease in accounts
receivable due to timing and amounts billed related to March services, an increase in accounts payable related to timing and billing
amounts of invoices, including increases in legal fees, an increase in interest payable in relation to NYDIG loan and Galaxy loan, offset
with payment made to HPE in January and payment of sales and use tax.

Net cash provided by operations was approximately
$3.9 million during the three months ended March 31, 2024. The Company had a net loss for the three months ended March 31, 2024 of approximately
$2.5 million. Non-cash items included approximately $1.6 million of depreciation expense, and $2.4 million of amortization expenses, $661
thousand of stock compensation expenses, $3.1 million of loss on debt extinguishment and revaluation, and $130 thousand of impairment
of fixed assets. These non-cash items were offset with a deferred tax benefit of $548 thousand. The change in asset and liabilities of
$942 thousand related to increase in accounts receivable of $1.5 million attributable for demand service revenue and data hosting customer
receivables significantly increasing, offset with increases in accrued expenses and accounts payable of $929 thousand. The other changes
in assets and liabilities were not material.

Investing Activities

Net cash
used in investing activities during the three months ended March 31, 2025 was approximately $3.6 million consisting mainly of
capital expenditures of $3.8 million offset with a decrease in deposits on equipment of $213 thousand. Net cash used in investing
activities during the three months ended March 31, 2024 was approximately $827 thousand consisting mainly of capital expenditures of
$524 thousand and increase in deposits on equipment of $343 thousand.

Financing Activities

    (Dollars in thousands) 
    Three months ended March 31, 

    2025  
    2024 

    Proceeds from debt issuance 
    $5,000  
    $- 
  
    Payments on debt 
     (1,978) 
     (616)
  
    Contributions from non-controlling interest 
     4,310  
     - 
  
    Distributions to non