Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 259

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 259
---
; therefore, the credit was forfeited.

Other
financing expense: We incurred approximately $5.1 million in financing expenses for the nine months ended September 30, 2025,
primarily related to consent fees associated with the SEPA, draws under the ATM Agreement, and transaction costs incurred in connection
with the July 2025 Financing.

Net
(loss) income attributable to non-controlling interest: We incurred a net loss attributable to non-controlling interest for the
nine months ended September 30, 2025 compared to a net income attributable to non-controlling interest for the nine months ended September
30, 2024. The decrease related mainly due the variances in gross profit related to D1A and D1B noted above mainly due to the halving
event in April 2024 and the increase in profit sharing fees for data hosting for the nine months ended September 30, 2025, which created
an approximate $3.5 million variance between periods in non-controlling interest. In addition, we incurred a loss of approximately $1.7
million associated with the satisfaction of equipment loan through membership interest at Project Kati, in addition Project Kati costs
of approximately $608 thousand, in which no revenue had been generated yet for the nine months ended September 30, 2025, and no comparable
costs were noted for the nine months ended September 30, 2024. The change at Project Dorothy 2 was a gain of approximately $204 thousand,
due to in the second quarter of 2025, D2 began site energization in which costs exceeded the revenue by approximately $1.2 million, however,
D2 for the nine months ended September 30, 2024 had a loss on non-controlling interest due to the satisfaction of equipment loan at Project
Dorothy 2, creating a loss of approximately $1.4 million.

Non-GAAP
Measures

To
supplement our consolidated condensed financial statements included in this quarterly report presented under U.S. generally accepted
accounting principles (“GAAP”), we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial
measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results
absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating
performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures,