Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1121

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1121
---
 was approximately $5.1 million during the year ended December 31, 2024. We had a net loss for the year ended
December 31, 2024 of approximately $58.3 million. Results included cost of revenue in connection with the HPE Agreement for $5.7
million. Non-cash items included approximately $6.2 million of depreciation expense and $9.5 million of amortization expenses,
approximately $28.6 million on loss on contract, $5.3 million of stock compensation expenses, $7.3 million of loss on debt
extinguishment and revaluation, $2.1 million in debt issuance costs, $760 thousand in provision for credit losses, and $351 thousand
amortized deferred financing costs. These non-cash items were offset with a deferred tax benefit of $2.5 million. The change in
assets and liabilities is mainly due to an increase in prepaid expenses and other long term assets by $8.1 million due to a
prepayment of an arrangement with HPE of $10.3 million that was being amortized over the life of the agreement and a decrease in
customer deposits of $1.4 million due to timing of deposits applied in December 2024, offset by an increase in accrued expenses and
accounts payable of approximately $5.5 million in relation to NYDIG interest, and related bills associated with Project Dorothy 2
and Project Kati. The other changes in assets and liabilities were not material.

Net
cash used in operating activities from continuing operations was approximately $3.0 million for the year ended December 31, 2023. We
had a net loss of approximately $27.7 million, which was offset by non-cash items of approximately $22.5 million. The non-cash items
consisted primarily of approximately $13.4 million of amortization and depreciation expenses for the intangible assets acquired in 2021
and the fixed assets still in service and capital additions in 2023. There was also approximately $4.3 million in stock-based compensation
expenses, $3.9 million on loss on debt extinguishment and revaluation, and additional $1.2 million in relation to fixed asset impairments,
loss on sale of fixed assets, and amortization of operating lease assets. The non-cash items were offset with a $1.1 million deferred
income tax benefit. The change in assets and liabilities of approximately $2.4 million related to