Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 912

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 912
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 costs in support of our general corporate operations, including
general management, finance and accounting, human resources, marketing, information technology, corporate development, and legal services.

    ●
    We
    had an increase of approximately $600 thousand in wages, bonus and employee related expenses for the year ended December 31, 2024
    compared to the year ended December 31 2023, due to an increase in resources and salaries.

    ●
    Stock
    based compensation expense was $5.2 million in 2024, of which $4.0 million was related to a modification for the cancellation of
    stock options granted and replaced with new awards of restricted stock in April 2024, which created incremental compensation costs.
    Stock based compensation increased by approximately $1.4 million due to an acceleration of grants and awards that occurred in May
    of 2023, compared to the current year. We issued grants in April, June, September, and December of 2024, in which some of the grants
    provided for immediate vesting, therefore further increasing the expense compared to prior comparable periods.

    ●
    Other
    increases include legal fees, professional services, and a provision for credit loss, offset by a reduction in investor relations.

Depreciation
and Amortization associated with general and administrative expenses: Depreciation and amortization expense was comparable for
the year ended December 31, 2024 and the year ended December 31, 2023 in which the balances totaled approximately $9.6 million and $9.5
million, respectively. The balances mainly related to amortization expense related to the strategic pipeline contract that was acquired
in October 2021.

Loss
on contract: Due to CloudCo’s termination of the HPE Agreement on March 24, 2025, and HPE’s subsequent termination of the HPE Agreement on March 26,
2025, and the acceleration of the remaining unpaid amounts of the contract in accordance with Section 8(h)(ii) of the HPE Agreement, a Type 1
Subsequent Event, we have recognized a liability for the remainder of the HPE Agreement on the consolidated balance sheet of our
subsidiary CloudCo, and corresponding loss on contract on our consolidated income statement, in line with the terms
and conditions of the HPE Agreement and relevant accounting standards. We have also recognized a loss on the termination of the HPE
Agreement for $28.6 million representing