Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 55

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information
within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective
for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment is required to be disclosed on an annual
basis, in which the Company will include on its annual report for the year ended December 31, 2025.

Stock Compensation

In March 2024, the FASB issued ASU 2024-01, Compensation—Stock
Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”), to clarify the scope
application of profits interest and similar awards by adding illustrative guidance in ASC 718, Compensation—Stock Compensation
(“ASC 718”). ASU 2024-01 clarifies how to determine whether profits interest and similar awards should be accounted for
as a share-based payment arrangement (ASC 718) or as a cash bonus or profit-sharing arrangement (ASC 710, Compensation—General,
or other guidance) and applies to all reporting entities that account for profits interest awards as compensation to employees
or non-employees. In addition to adding the illustrative guidance, ASU 2024-01 modified the language in paragraph 718-10-15-3 to improve
its clarity and operability without changing the guidance. ASU 2024-01 is effective for fiscal years beginning after December 15, 2024,
and interim periods within those annual periods. Early adoption is permitted. The amendments should be applied either retrospectively
to all prior periods presented in the financial statements, or prospectively to profits interests and similar awards granted or modified
on or after the adoption date. The Company notes that this ASU did not have an impact on the condensed financial statements for the three
months ended March 31, 2025. If any new awards are issued in the future, the Company will evaluate the scope application of this ASU.

Accounting Updates Not Yet Effective

Improvements to Comprehensive
Income- Expense Disaggregation

In December 2024, the FASB
issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)
(“ASU 2024-03”). ASU 2024