Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 714

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 714
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 and awards that occurred in May
    of 2023, compared to the current year. We issued grants in April, June, September, and December of 2024, in which some of the grants
    provided for immediate vesting, therefore further increasing the expense compared to prior comparable periods.

    ●
    Other
    increases include legal fees, professional services, and a provision for credit loss, offset by a reduction in investor relations.

Depreciation
and Amortization associated with general and administrative expenses: Depreciation and amortization expense was comparable for
the year ended December 31, 2024 and the year ended December 31, 2023 in which the balances totaled approximately $9.6 million and $9.5
million, respectively. The balances mainly related to amortization expense related to the strategic pipeline contract that was acquired
in October 2021.

Loss
on contract: Due to CloudCo’s termination of the HPE Agreement on March 24, 2025, and HPE’s subsequent termination of the HPE Agreement on March 26,
2025, and the acceleration of the remaining unpaid amounts of the contract in accordance with Section 8(h)(ii) of the HPE Agreement, a Type 1
Subsequent Event, we have recognized a liability for the remainder of the HPE Agreement on the consolidated balance sheet of our
subsidiary CloudCo, and corresponding loss on contract on our consolidated income statement, in line with the terms
and conditions of the HPE Agreement and relevant accounting standards. We have also recognized a loss on the termination of the HPE
Agreement for $28.6 million representing the remaining obligations, and a contract liability in the same amount. In addition, the
outstanding balance of the prepaid deposit of $8.6 million was offset to the liability, leaving a net liability balance of $20.0
million as of December 31, 2024.

Interest
expense: Interest expense for the year ended December 31, 2024 was approximately $2.5 million related to approximately $1.5 million
to the NYDIG loan, $900 thousand to compounded interest and deferred financing amortization expense of equipment financing loan and June
and July 2024 secured note financing, and $138 thousand to the Navitas loan. Interest expense for the year ended December 31, 2023 was
$2.7 million and related to default and continuing interest expense of the NYDIG loan of