Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 117

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 117
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    ●
    Salaries
    and benefits expense increased approximately $1.1 million for the nine months ended September 30, 2025, primarily due to approved
    performance-based bonuses settled in October 2025, as well as cost-of-living and merit-based salary adjustments for management and
    employees.

    ●
    Professional
    and legal fees increased approximately $1.6 million for the nine months ended September 30, 2025, primarily due to legal expenses
    related to SEC regulatory and compliance matters and Project Kati legal costs that were not incurred in the comparable prior-year
    period. The increase also reflects the engagement of external consultants to assist with complex accounting matters.

58

    ●
    Investor
    relations expense increased approximately $254 thousand for the nine months ended September 30, 2025, compared to the same period
    in 2024, primarily due to an increase in the number and scope of investor outreach and marketing campaigns conducted during the period.

    ●
    Provision
    for credit losses decreased approximately $610 thousand for the nine months ended September 30, 2025, as no credit losses were recognized
    during the current period, compared to the nine months ended September 30, 2024, which included specific loss provisions recorded
    on outstanding receivables.

    ●
    All
    other fluctuations within general and administrative expenses for the period were not material to the overall results of operations.

Depreciation
and Amortization associated with general and administrative expenses: Depreciation and amortization expense was comparable for
the nine months ended September 30, 2025, and 2024, totaling approximately $7.2 million in each period. The expense primarily relates
to the amortization of the strategic pipeline contract acquired in October 2021.

Interest
expense: Interest expense for the nine months ended September 30, 2025, was approximately $3.2 million, compared to approximately
$1.7 million for the nine months ended September 30, 2024. This increase is primarily attributable to the new debt facilities entered
into during fiscal years 2024 and 2025, including the June and July Share Purchase Agreements, the Galaxy Loan, the Generate Loan, and
the equipment loan. The expense for the current period also includes the amortization of deferred financing costs associated with these
new facilities, partially offset by the full payoff of the Navitas loan. Further details