Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 719

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 719
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 not prepared under any comprehensive
set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors
that the non-GAAP financial measures as used by us in this Annual Report have limits in their usefulness to investors and may be calculated
differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors
should be aware that when evaluating these non-GAAP financial measures, these measures should not
be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, from time
to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future
cease to exclude items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine
to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations
provided below and not rely on any single financial measure to evaluate our business.

EBITDA
and Adjusted EBITDA

In
addition to financial measures calculated in accordance with GAAP, we also use “EBITDA” and “Adjusted
EBITDA.” “EBITDA” is defined as earnings before interest, taxes, and depreciation and amortization. “Adjusted
EBITDA” is defined as EBITDA adjusted for stock-based compensation costs, loss on sale of fixed assets, loss on debt
extinguishment and revaluation, placement agent release expense, loss on contract, provision for credit losses, convertible
note inducement expense and impairment on fixed assets. Management believes that EBITDA
and Adjusted EBITDA results in a performance measurement that represents a key indicator of our business operations of
cryptocurrency mining, hosting customers engaged in cryptocurrency mining, demand service revenue, and high-performance computing
services.

We
believe EBITDA and Adjusted EBITDA can be important financial measures because they allow management, investors, and the Board to evaluate
and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making such adjustments.
Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements
prepared in accordance with GAAP. For example, we expect that stock-based compensation costs, which is excluded from the non-GAAP financial
me