Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2627

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 2627
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 the Company’s variable and
voting interest entities disclosed in Note 15. All intercompany balances and transactions are eliminated in consolidation.

Reclassification

Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on
the reported results of operations or net assets.

Use
of Estimates

The
Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated
Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.

Property,
Plant, and Equipment

Property,
plant and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows:

 Schedule
of Property Plant and Equipment Estimated Useful Lives

    Leasehold
    improvements
     
    Lesser
    of the life of the lease or the useful life of the improvement

    Computers
    and related software
     
    3
    to 5 years

    Cryptocurrency
    miners
     
    3
    years

    Machinery
    and equipment
     
    5
    to 15 years

    Office
    furniture, equipment and fixtures
     
    2
    to 10 years

    Buildings
     
    30-40
    years

    Purchased
    pre-fabricated buildings
     
    15-20
    years

     F-8 

Significant
additions or improvements extending assets’ useful lives are capitalized; normal maintenance and repair costs are expensed as incurred.
The costs of fully depreciated assets remaining in use are included in the respective asset and accumulated depreciation accounts. When
items are sold or retired, related gains or losses are included in net (loss) income.

Intangible
assets

Intangible
assets include the Strategic Pipeline Contract with an estimated useful life of 5 years, assembled workforce of individuals included
as part of the asset acquisition that occurred in October 2021 with an estimated useful life of 5 years and patents with an estimated
useful life of 15-25 years. The Company amortizes the intangible assets over their estimated useful lives on a straight-line basis. The
Company does not recognize internally developed patents as intangible assets, however legal costs associated with defending