Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2867

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 2867
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 the
year ended December 31, 2024. Operating segments are aggregated into a reportable segment if the operating segments have similar
quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: (i)
nature of products and services; (ii) nature of production processes; (iii) type or class of customer for their products and
services; (iv) methods used to distribute the products or provide services; and (v) if applicable, the nature of the regulatory
environment. The Company’s reportable segments are identified based on the types of service performed. The Company has three
reportable segments: Cryptocurrency Mining, Data Center Hosting, and High-Performance Computing. In the third quarter of 2024, the
Company initiated Soluna Cloud Services, a new business line to provide high performance computing services to support generative AI
workstreams, but decided to exit active provision of these services during the first quarter of 2025 and will focus in the future
on provision of colocation services at our datacenters to host customers in the AI generative space.

     F-43 

The
guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (“CODM”) to
decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM is
composed of several members of its senior leadership team directed by the CEO and CFO who use revenue and cost of revenues which
formulate gross profit (loss), as well as total general and administrative expenses of the reporting segments to assess the
performance of the business of our reportable operating segments and allocate resources. Operating
profit (loss) is used to evaluate actual results against expectations, which are based on comparable prior results, current budget,
and current forecast. Non-cash items of depreciation and amortization are included within both costs of sales and general and
administrative expenses, however only depreciation through the Company’s site levels are evaluated for segment
performance.

In
the adoption of ASU 2023-07, the most significant provision was for the Company to disclose
significant segment expenses (ie: costs of revenue) that are regularly provided to the CODM. Utility costs, wages and benefit
related costs, facility and equipment costs, and depreciation costs at the site level were determined to be significant segment
expenses. The CODM only reviews general and administrative expenses by site level as a whole, and not by significant
expenses. No operating segments