Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 92

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 92
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 regarding factors and trends affecting our business and provide a reasonable basis for comparing
our ongoing results of operations.

These non-GAAP financial
measures are provided as supplemental measures to our performance measures calculated in accordance
with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further,
these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are 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 quarterly 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.

46

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