Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 14

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 other information has been derived from the Company’s unaudited condensed consolidated
financial statements for the three and nine months ended September 30, 2025 and September 30, 2024.

Principles
of Consolidation

The
condensed consolidated financial statements include the accounts of the Company and its subsidiaries, including the Company’s variable
interest entities disclosed in Note 14. All intercompany balances and transactions are eliminated in consolidation.

Cash
and Cash Equivalents

Cash
and cash equivalents consist of cash and highly liquid short-term investments with original maturities of less than three months.

    10

Restricted
Cash

Restricted
cash relates to cash that is legally restricted as to withdrawal and usage or is being held for a specific purpose and thus not available
to the Company for immediate or general business use. As of September 30, 2025, the Company had restricted cash of approximately $9.1
million, of which $3.6 million was classified as current and $5.5 million was classified as non-current. As of December 31, 2024, the
Company had restricted cash of approximately $2.6 million, of which $1.1 million was classified as current and $1.5 million was classified
as non-current. Currently, the balance in restricted cash relates to restricted deposits held with customers that were for less than
12 months, or for debt covenant purposes. The Company has a long-term restricted cash balance in relation to a collateralized deposit.

Deposits
and Credits on equipment

As
of September 30, 2025 and December 31, 2024, the Company had approximately $813
thousand and $5.1
million, respectively, in deposits and credits on equipment that had not yet been received by the Company. Once the Company receives
such equipment in a subsequent period, the Company will reclassify such balance into Property, Plant and Equipment, net. Included in
the December 31, 2024 balance was a credit on equipment of $975
thousand, of which approximately $195
thousand had been used as of September 30, 2025, and the remaining $780
thousand to be used on future purchases for Project Dorothy 2 and Project Kati until September 1, 2025 (“expiration
date”). The Company did not execute an order by the expiration date, and no further extension was granted, and as  such
the credit was forfeited.