Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1266

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1266
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Stock-based
compensation expense for the years ended December 31, 2024, and 2023 was generated from stock options, restricted stock units and
restricted stock awards. Stock options are awards that allow holders to purchase shares of the Company’s common stock at a
fixed price. Certain options granted may be fully or partially exercisable immediately, may vest on other than a four-year schedule
or vest upon attainment of specific performance criteria. Option exercise prices are generally equivalent to the closing market
value price of the Company’s common stock on the date of grant. Unexercised options generally terminate ten years after the
date of grant. Restricted stock units and restricted stock awards generally vest one to three years after the date of grant,
although certain awards may vest immediately or vest upon attainment of specific performance criteria.

Share-based
compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, therefore,
awards are reduced for estimated forfeitures. The accounting standard requires forfeitures to be estimated at the time of grant and revised,
if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company will recognize the compensation expense
on a straight-line basis over the service period for the entire awards. As of December 31, 2024 and December 31, 2023, the awards from
the Plans are presented within the stockholders’ equity section of the Company’s balance sheet.

Total
share-based compensation expense, related to the Company’s share-based awards, recognized for the years ended December 31, was
included within the representative group comprised as follows:

Schedule of Share Based Compensation Expense  

    2024  
    2023 
  
    (Dollars in thousands) 

    Cost of cryptocurrency mining revenue, exclusive of depreciation 
    $48  
    $300 
  
    Cost of data hosting revenue, exclusive of depreciation 
     112  
     24 
  
    General and administrative expenses, exclusive of depreciation and amortization 
     5,151  
     3,988 
  
    Share-based compensation expense 
    $5,311  
    $4,312 

     F-34 

Total
unrecognized compensation costs related to non-vested stock options as of December 31, 2024 and December 31, 2023 is approximately $54
thousand and $266 thousand, respectively, and is expected to be recognized over a weighted-average remaining vest