Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 830

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 830
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Company had no other comprehensive income items for the years ended December 31, 2024 and 2023.

Leases

The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and operating lease liability on our consolidated balance sheets. The Company did not have any finance leases as of December 31,
2024 or December 31, 2023.

Operating
lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over
the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental
borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating
lease ROU assets also include any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s
lease terms may include options to extend or terminate its leases when it is reasonably certain that the Company will exercise those
options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The
Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases,
the Company accounts for lease components together with non-lease components (e.g., common-area maintenance).

Accounting
Updates Effective for fiscal year 2024

Improvements
to Reportable Segment Disclosures

In
November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2023-07, Segment Reporting
(Topic 280): Improvement to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information
on an annual and interim basis, primarily through enhanced disclosures of significant segment expenses. ASU 2023-07 is effective for
fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and requires
retrospective application to all periods presented upon adoption. Early adoption is permitted. The Company adopted ASU 2023-07 for the
year ended December 31, 2024. As a result of the adoption, the Company expanded its disclosures in Note 16 Segment Information,
to present significant expenses that are included within cost of revenue, by reportable segment, which are presented to the CODM.

Accounting
Updates Not Yet Effective