Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 9

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 9
---
    June
    30, 2025  
    December
    31, 2024 

    Salaries,
    wages, and related expenses 
    $118  
    $552 
  
    Liability
    to shareholders for previous acquisition 
     363  
     363 
  
    Legal,
    audit, tax, and professional fees 
     1,290  
     537 
  
    Sales
    tax accrual 
     -  
     575 
  
    Real
    estate taxes accrual 
     301  
     182 
  
    Hosting
    and utility fees 
     1,211  
     1,036 
  
    Construction
    fees 
     2,238  
     2,211 
  
    Membership
    distribution accrual 
     329  
     1,179 
  
    Other 
     84  
     150 
  
    Total 
    $5,934  
    $6,785 

Contract
liability 

    On
    March 24, 2025, CloudCo notified HPE of its termination of the HPE Agreement and, on March 26, 2025, HPE sent notice of its termination
    of the HPE Agreement. The HPE Agreement provided the Company access to datacenter and cloud services for AI and supercomputing applications
    utilizing NVIDIA H100 GPUs. In accordance with the terms of the HPE Agreement, CloudCo is required to pay all of the unpaid fees
    that were payable over the entire term of the HPE Agreement. As of December 31, 2024, the Company reduced its prepaid assets and
    other long-term assets by approximately $8.6 million, increased termination liability by approximately $20.0 million and recorded
    a loss on contract of approximately $28.6 million to account for the termination of the contract and CloudCo’s contractual
    payments. The liability has been reduced to approximately $19.3 million as of June 30, 2025. See Note 1 for details.

7.
Income Taxes

During
the three and six months ended June 30, 2025, the Company’s effective income tax rate was 7.2%
and 6.4%,
respectively, and for the three and six months ended June 30, 2024, the Company’s effective tax rate was 6.