Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 126

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 126
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7 million of stock compensation expenses. These non-cash items were offset with a deferred tax benefit of
$1.7 million and gain on extinguishment of debt of approximately $10.7 million. The change in asset and liabilities of $8.4 million
mainly relates to increase in accrued expense of $5.2 million in relation to increase in construction fees for Project Kati and
Dorothy 2, legal fees, financing costs, and bonus accrual. In addition, there was a $2.0 million increase in accounts payable due to
timing and billing of invoices, and a $2.1 million increase in customer deposits due to new contract agreements being entered into.
The other changes in assets and liabilities of approximately $885 thousand mainly related to increase in accounts receivable and
other current assets related to timing and billing amounts of invoices, in addition with payment made to HPE in January, offset
decrease in other long-term assets of $1.6 million in relation to receipt of Briscoe deposit in January 2025.

Net
cash used by operations was approximately $3.4 million during the nine months ended September 30, 2024. The Company had a net loss for
the nine months ended September 30, 2024 of approximately $19.8 million. Non-cash items included approximately $4.6 million of depreciation
expense and $7.1 million of amortization expenses, $3.3 million of stock compensation expenses, $7.1 million of loss on debt extinguishment
and revaluation, $611 thousand in provision for credit losses, and $179 thousand amortized deferred financing costs. These non-cash items
were offset with a deferred tax benefit of $1.8 million. The change in asset and liabilities is mainly due to an increase in prepaid
expenses and other long-term assets by $9.2 million due to a prepayment of an arrangement with HPE of $10.3 million that is being amortized
over the life of the agreement, an increase in accrued expenses and accounts payable of $4.2 million in relation to bonus accruals, NYDIG
interest, and Project Dorothy 2 and Kati related bills. The other changes in assets and liabilities were not material.

63

Investing
Activities

Net
cash used in investing activities during the nine months ended September 30, 2025 was approximately $18.1 million consisting mainly
of capital expenditures of $17.0 million