Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 82

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 from Project Sophie and Marie. The Data Center Hosting segment generated
revenue from hosting services provided to third-party Bitcoin mining customers at the Company’s data centers, which were previously
at Project Marie and are currently from Project Sophie and Project Dorothy. The High-Performance Computing Services segment may generate
revenue from either the sale or lease of HPC assets (such as Project Ada which leased GPUs), or from HPC/AI data centers to be leased
to third-party HPC/AI customers. This segment began generating revenue in December 2024, as Project Ada worked to build its customer
base. With the termination of the HPE Agreement, revenue was minimal for the nine months ended September 30, 2025 and a majority of the
costs associated with the termination of approximately $28.6 million were included in the December 31, 2024 financial statements.

    40

The
Company includes demand response revenue as a reconciling item of revenue and is not included within the three reportable segments. The
Company utilizes its data centers to deliver demand response services to grid operators or utilities. Under these arrangements with a
grid operator, the Company agrees to be available to ramp down a registered data center’s power consumption to a specific target
level. In exchange, the grid pays the company a fee for this dispatch right, provided the Company can perform within certain parameters.
The Company can be providing any type of service at the data centers whether it be Cryptocurrency Mining, Data Center Hosting, or AI
to generate demand response service revenue.

The
following table details revenue, cost of revenues, and other operating costs for the Company’s reportable segments for three months
ended September 30, 2025 and 2024, and reconciles to net income (loss) on the consolidated statements of operations:

Schedule
of Segment Reporting Information 

For
the three months ended September 30, 2025

    Cryptocurrency Mining  
    Data
                                            Center Hosting  
    High-
                                            Performance Computing
                                            Services  
    Total 
  
    Segment Revenue: Revenue from external
    customers 
    $2,769  
    $5,257  
    $       -  
    $8,026 
  
    Reconciliation of revenue 

    Demand response service
    revenue (a) 

     389 
  
    Total consolidated revenue 

     8,415 
  
    Less: Segment cost of revenue 

    Utility costs