Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 86

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 86
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Cost of revenue- depreciation:Depreciation costs associated with cryptocurrency and data hosting revenue was approximately $4.5 million for the nine months ended September 30, 2024 compared to approximately $2.4 million for the nine 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 and energization 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 $3.4 million or 30% for the nine      
 months ended September 30, 2024 compared to the nine months ended September 30, 2023. General and administrative expenses, exclusive  
 of depreciation and amortization were approximately $14.6 million, including approximately $3.3 million of stock compensation expense 
 for the nine months ended September 30, 2024, compared to approximately $11.2 million, including $3.1 million of stock compensation   
 for the nine months ended September 30, 2023. This increase was mainly related to employee related expenses, professional fees and    
 services, investor relations, expected credit loss provision expense, legal fees, and stock compensation expenses.                    |

| 52 |

| ● | The                                                                                                                                      
 Company had an increase of approximately $1.9 million in wage related expense for the nine months ended September 30, 2024 compared      
 to nine months ended September 30, 2023 due to an increase in resources and salaries of approximately $710 thousand and in anticipation  
 of hitting performance-based targets of approximately $1.1 million.                                                                      |
| ● | Professional                                                                                                                             
 fees associated to audit and tax increased by approximately $256 thousand for the nine months ended September