Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1421

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1421
---
 terms may include options to extend or terminate its leases when it is reasonably certain that the Company will exercise those
options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The
Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases,
the Company accounts for lease components together with non-lease components (e.g., common-area maintenance).

Accounting
Updates Effective for fiscal year 2024

Improvements
to Reportable Segment Disclosures

In
November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2023-07, Segment Reporting
(Topic 280): Improvement to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information
on an annual and interim basis, primarily through enhanced disclosures of significant segment expenses. ASU 2023-07 is effective for
fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and requires
retrospective application to all periods presented upon adoption. Early adoption is permitted. The Company adopted ASU 2023-07 for the
year ended December 31, 2024. As a result of the adoption, the Company expanded its disclosures in Note 16 Segment Information,
to present significant expenses that are included within cost of revenue, by reportable segment, which are presented to the CODM.

Accounting
Updates Not Yet Effective

Improvements
to Income Tax Disclosures

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which
requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid,
among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted.
The Company is currently evaluating the impact that ASU 2023-09 will have on the Consolidated Financial Statements and disclosures.

Stock
Compensation

In
March 2024, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest
and Similar Awards (“ASU 2024-01”), to clarify the scope application of