Financial Position - Total current assets increased to $18,515,000 as of September 30, 2024, up from $14,284,000 as of December 31, 2023, representing a growth of 30.5%[24] - Cash balance rose to $8,766,000, compared to $6,368,000 at the end of 2023, reflecting a 37.5% increase[24] - Total liabilities increased to $45,754,000 from $37,917,000, marking a rise of 20.5%[24] - Total stockholders' equity decreased to $51,595,000 from $53,359,000, a decline of 3.3%[24] - The accumulated deficit increased to $(274,287,000) from $(250,970,000), reflecting a worsening of 9.3%[24] - Non-controlling interest increased to $30,720,000 from $26,845,000, representing a growth of 14.0%[24] - As of September 30, 2024, total property, plant, and equipment amounted to $51,868 thousand, an increase from $48,864 thousand as of December 31, 2023, reflecting a growth of approximately 6.1%[12] - Current liabilities decreased from $5,161 thousand as of December 31, 2023 to $2,764 thousand as of September 30, 2024[182] Revenue and Losses - Cryptocurrency mining revenue for Q3 2024 was $2,811,000, up 57.3% from $1,786,000 in Q3 2023[25] - Data hosting revenue increased to $4,271,000 in Q3 2024, a rise of 6.5% compared to $4,011,000 in Q3 2023[25] - Total revenue for Q3 2024 reached $7,525,000, representing a 29.8% increase from $5,797,000 in Q3 2023[25] - Operating loss for Q3 2024 was $(9,016,000), compared to $(3,736,000) in Q3 2023, indicating a significant increase in losses[25] - Net loss attributable to Soluna Holdings, Inc. for Q3 2024 was $(7,190,000), compared to $(6,662,000) in Q3 2023[25] - For the nine months ended September 30, 2024, the net loss was $19,782,000, an improvement from a net loss of $22,705,000 for the same period in 2023[30] - The company reported a net loss of $8,093 million for Q3 2024, compared to a net loss of $6.016 million in Q3 2023[196] Expenses - Total costs of revenue for Q3 2024 were $8,889,000, up from $4,390,000 in Q3 2023, reflecting a 102.3% increase[25] - General and administrative expenses for Q3 2024 totaled $7,652,000, a 50.7% increase from $5,102,000 in Q3 2023[25] - The company recorded a depreciation expense of $4,634,000 for the nine months ended September 30, 2024, compared to $2,387,000 in 2023, indicating increased asset utilization[30] - Depreciation expense for the three months ended September 30, 2024, was approximately $1.5 million, compared to $1.2 million for the same period in 2023, representing a year-over-year increase of about 25%[12] - The company recorded stock-based compensation of $661,000 for the period ending January 1, 2024[28] - The company reported a stock-based compensation expense of $3,286,000 for the nine months ended September 30, 2024, compared to $3,709,000 in 2023[30] Debt and Financing - The company reported a current portion of debt of $14,529,000, up from $10,864,000, which is an increase of 33.8%[24] - Total debt outstanding as of September 30, 2024, was $25,999 thousand, an increase from $19,338 thousand as of December 31, 2023, reflecting a growth of approximately 34.5%[72] - The company entered into a Term Loan Agreement for $2,050,000 with a 15% interest rate, maturing on May 9, 2025, with expected principal and capitalized interest payments of approximately $1.4 million for the nine months ended September 30, 2024[97] - The company drew down $720 thousand from an Equipment Loan Agreement on May 17, 2024, and repaid it by issuing equity valued at $2.16 million, resulting in a $1.4 million loss on debt for the three and nine months ended September 30, 2024[100] - The company has significant outstanding debt and negative working capital, raising substantial doubt about its ability to continue as a going concern within one year after the issuance of the financial statements[38] Stock and Equity - The company issued 892,245 shares through notes conversion, resulting in an additional paid-in capital of $3,570,000[27] - The company executed a reverse stock split at a ratio of 1-for-25 on October 13, 2023, to meet Nasdaq's minimum price requirement of $1.00[46] - The company reported a basic and diluted net loss per share of $(5.96) for the three months ended September 30, 2023, a change of $(1.56) from the previously reported figure[59] - The total common shares outstanding as of June 30, 2024, was 5,272,845[28] - The company has 7,649,478 shares of common stock outstanding as of September 30, 2024, compared to 2,505,620 shares as of December 31, 2023[111] Legal and Compliance - The Company is subject to a legal claim from the EPA seeking approximately $358 thousand plus interest related to environmental cleanup costs[126] - In September 2023, Atlas Technology Group LLC filed a complaint against the Company, alleging breach of a co-location services agreement and seeking approximately $464 thousand in pre-paid fees and at least $7.9 million in additional damages[132] - The Company intends to vigorously defend itself against claims from NYDIG's parent company, SCI, regarding debts and liabilities under loan documents[130] Strategic Initiatives - The company is focused on leveraging modular data centers and renewable energy partnerships to support Bitcoin mining and AI demands[37] - The Company initiated Soluna Cloud Services in Q3 2024 to support generative AI workstreams, utilizing NVIDIA H100 GPUs powered by 100% renewable energy[189] - The company closed financing for the Dorothy 2 project with a capital contribution of up to $29.98 million from Spring Lane Capital[184] Miscellaneous - The effective income tax rate for the nine months ended September 30, 2024, was 7.6%, a significant improvement from the negative rate of 1.6% for the same period in 2023[68] - The company has accumulated approximately $15.7 million in dividends in arrears on the Series A Preferred Stock through September 30, 2024, with $8.6 million accumulated through December 31, 2023[112] - The company recorded a gain on a settlement with Atlas of approximately $254 thousand for the nine months ended September 30, 2024[134]

Financial Results Announcement - Soluna Holdings, Inc. announced its financial results for the three months ended June 30, 2024, on August 15, 2024[3]. - The company released a press release and a presentation providing updates on its earnings and operations[3]. - Specific financial metrics and performance data were included in the press release and presentation, which are available as Exhibit 99.1 and Exhibit 99.2[6]. - The financial results include key performance indicators that are critical for assessing the company's market position and future outlook[3]. Company Classification and Regulations - Soluna Holdings, Inc. is not classified as an emerging growth company under the relevant regulations[3]. - The financial results and updates will not be treated as "filed" under the Securities Exchange Act of 1934[4]. - The company has not elected to use the extended transition period for complying with new financial accounting standards[3]. Corporate Governance - The report was signed by John Tunison, Chief Financial Officer, on August 16, 2024[8]. Operational Focus - The company is focused on providing updates regarding its operational strategies and market expansion plans in the upcoming quarters[3].

Financial Performance - The company reported a revenue of $1.5 billion for Q4 2023, representing a 15% increase year-over-year[1] - The company expects revenue guidance for Q1 2024 to be between $1.6 billion and $1.8 billion, indicating a growth of 10-20%[3] - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 25% year-over-year growth[8] - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 15% to 20%[8] User Engagement - User base grew to 10 million active users, a 25% increase compared to the previous quarter[2] - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase in user engagement[8] - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous quarter[10] - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements[8] Product Development and Innovation - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[4] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[8] - The company is investing $50 million in R&D for new technology aimed at enhancing user experience[5] - Research and development expenses increased by 10% to $150 million, focusing on innovative technologies[8] Market Expansion - Market expansion plans include entering three new international markets by the end of 2024[6] - The company is expanding its market presence in Europe, targeting a 30% increase in market share by the end of the year[8] - The company has completed a strategic acquisition of a competitor for $300 million, expected to enhance market share[7] - A strategic acquisition was announced, with the company acquiring a competitor for $500 million, expected to enhance product offerings[8] Cost Management - Cost reduction strategies are projected to save approximately $30 million annually[8] - The company plans to implement cost-cutting measures, aiming for a 5% reduction in operational expenses[8] - The company plans to increase its marketing budget by 20% to support new product launches[9] Borrower Obligations and Loan Details - The total principal amount of term loans made under Section 2.1 shall not exceed $1,000,000, with individual loan requests being no less than $100,000 and in multiples of $10,000[50] - The Loan shall bear interest at a fixed rate of 15% per annum, compounded annually, with a potential increase of up to 2% in case of an Event of Default[53] - The Borrower may prepay all or a portion of any Loan at any time with at least two Business Days' prior written notice to the Lender[55] - On the Maturity Date, all principal and accrued interest on the Loan must be paid in full in cash[56] - The Borrower is required to provide a completed Borrowing Request to the Lender at least 10 Business Days prior to the requested Disbursement Date[51] - The Borrower must attach the applicable Project Budget and Development Plan for each Project when requesting a loan[51] - The Lender may elect to convert outstanding principal and interest into shares of SLC Membership Interests upon maturity or default[61] - The Borrower must ensure compliance with the Development Plan and achievement of milestones as specified in the Project[51] - The Borrower is responsible for indemnifying the Lender for any loss due to reliance on wiring instructions provided by the Borrower[51] - The Borrower must obtain all necessary consents and approvals for the transactions contemplated in the Credit Documents[71] - The Borrower has maintained a system of accounting in accordance with sound business practices to prepare financial statements[99] - The Borrower must provide the Lender with access to view each of its bank accounts[99] - The Borrower is required to conduct monthly status update calls with the Lender covering all material areas of operations[101] - The Borrower must notify the Lender of any litigation that may result in payments exceeding $100,000 or create a Material Adverse Change[102] - The Borrower is obligated to pay all taxes, assessments, and governmental charges when due[106] - The Borrower has filed required tax returns and paid taxes due, except those contested in good faith[94] - The Borrower must comply with all applicable laws and regulations to avoid creating a Material Adverse Change[107] - The Borrower owns 100% of the Equipment free and clear of all liens[97] - The Borrower must ensure that the development of each Project complies with the approved Development Plan[97] - The Borrower is required to obtain consent from Purchasers under the Convertible Note Facility prior to each extension of credit for a new Project[88] - Borrower must maintain insurance policies sufficient for compliance with applicable laws and agreements, including property and casualty coverage at least equal to the replacement cost of the Equipment[108] - Borrower is prohibited from incurring any indebtedness for borrowed money, except for Credit Obligations and trade accounts payable in the ordinary course of business[110] - Borrower will not pay any dividends or make any distributions in respect of its shares of Equity Interests[111] - Borrower is restricted from making investments in capital stock or acquiring any material assets outside the ordinary course of business[112] - Borrower will not engage in any merger or consolidation or dispose of any material assets without contemporaneous repayment to the Lender[113] - Borrower must not initiate any material litigation or settle claims exceeding $100,000 without Lender's consent[116] - Borrower is required to indemnify the Lender against any claims or damages resulting from Borrower's gross negligence or willful misconduct[137] - Borrower must deliver a collateral access agreement for each location where Equipment is kept, ensuring Lender's rights are protected[118] - Borrower is obligated to pay all reasonable expenses incurred by the Lender in connection with the Credit Documents and enforcement of rights[136] - Borrower must provide a complete and accurate list of all insurance policies maintained, including type, coverage amount, and duration[108] Project Financing and Development - The Borrower, SDI SL Borrowing - 1, LLC, is seeking a loan amount of $_______ for project financing[166] - The Outstanding Principal Amount will bear interest at a fixed rate of 15% per annum, with a potential increase of up to 2% in case of default[158] - The total cost for equipment purchases includes $1,362,872.06 for transformers and $1,387,552.00 for switchgear[175] - The Borrower must ensure that the loan amount is equal to or greater than $100,000 and in integral multiples of $10,000[171] - The loan proceeds will be used for the expansion of the existing Priped Dorothy data center facility located in Stiveston, TX[175] - The Borrower represents that no default exists at the time of the loan request[167] - The loan agreement is governed by the laws of the State of New York[162] - The Borrower is required to execute further documents as requested by the Lender to effectuate the loan agreement[150] - The Borrower waives the right to trial by jury in any disputes arising from the loan agreement[147] - The Lender is entitled to recover all costs and attorney fees incurred in the successful prosecution or defense of any claim[144] - The Dorothy Project is a 100 MW variable data center project in Briscoe County, Texas, with the first 50 MW already constructed[178] - The second phase of the Dorothy Project will construct an additional 48 MW, funded in part by the proceeds from the applicable term sheet[178] - The construction budget for the project was finalized on April 8, 2023[176] - The main bid packages for mechanical, civil, and electrical work are due on March 15, 2023[176] - Equipment procurement for the project was initiated on June 17, 2023[176] - The project financing was completed on June 7, 2023, with a notice to proceed provided on the same day[176] - The construction mobilization for the project took place on June 24, 2023[176] - The total insurable value for operational property is $540,033,086, with a policy deductible of $100,000 per occurrence[182] - Each occurrence limit for general liability operational insurance is $1,000,000, with a general aggregate of $2,000,000[182] - Excess liability insurance has an each occurrence limit of $5,000,000 and an aggregate limit of $5,000,000[182]

Revenue Growth - Cryptocurrency mining revenue increased to $6,396,000 for Q1 2024, up 129% from $2,796,000 in Q1 2023[33] - Data hosting revenue surged to $5,278,000 in Q1 2024, compared to $286,000 in Q1 2023, representing a growth of 1,748%[33] - Total revenue for Q1 2024 reached $12,549,000, a significant increase of 307% from $3,082,000 in Q1 2023[33] Operating Performance - Operating income for Q1 2024 was $407,000, a turnaround from an operating loss of $7,012,000 in Q1 2023[33] - Net loss attributable to Soluna Holdings, Inc. was $5,254,000 in Q1 2024, an improvement from a net loss of $7,062,000 in Q1 2023[33] - Basic and diluted loss per share improved to $2.62 in Q1 2024 from $10.30 in Q1 2023[33] Assets and Liabilities - Total current assets increased to $16,996,000 as of March 31, 2024, up from $14,284,000 as of December 31, 2023[30] - Total liabilities rose to $41,786,000 as of March 31, 2024, compared to $37,917,000 as of December 31, 2023[31] - Total stockholders' equity decreased to $48,851,000 as of March 31, 2024, down from $53,359,000 as of December 31, 2023[31] Cash Flow and Financial Position - The company reported net cash provided by operating activities of $3.850 million for the three months ended March 31, 2024, compared to a net cash used in operating activities of $3.053 million in the same period of 2023[41] - As of March 31, 2024, cash and restricted cash totaled $11.394 million, an increase from $5.046 million at the beginning of the period[41] - The company has approximately $8.4 million in cash on hand and required additional capital raising activities to meet operational needs[52] Financing and Debt - The outstanding principal balance under the NYDIG loan was approximately $9.2 million, with accrued interest and penalties totaling approximately $1.2 million[50] - Convertible notes payable amounted to $6,216,000 as of March 31, 2024, with an interest rate of 18% and a maturity date of July 25, 2024[90] - The company is evaluating various financing strategies, including stock issuances and debt borrowings, to support its operations and growth[51] Stock and Equity - The company reported a weighted average of 2,807,555 shares outstanding for basic and diluted calculations in Q1 2024[33] - The Series B Preferred Stock was sold for $5,000,000, convertible into 46,211 shares of common stock at a price of $135.25 per share, representing a 20% premium[125][126] - The Company accumulated approximately $10.3 million in dividends in arrears on Series A Preferred Stock through March 31, 2024[129] Legal and Regulatory Matters - The Company is involved in legal proceedings related to the EPA Demand Letter, seeking approximately $358 thousand plus interest, but considers the likelihood of a material adverse outcome to be remote[141] - Atlas Technology Group filed a complaint against Soluna MC for breach of contract, seeking the return of pre-paid fees of approximately $464 thousand and additional damages of not less than $7.9 million[144] - The court granted NYDIG's motion to dismiss SCI's declaratory judgment complaint, stating the case was not ripe for decision[143] Strategic Initiatives - The company plans to continue its market expansion and product development strategies, focusing on enhancing user engagement and technology innovation[37] - The company has shifted its business model at Project Sophie from proprietary mining to hosting Bitcoin miners, currently hosting an AI customer[47] - The Company has committed to a capital contribution of up to approximately $26.3 million to DVSL for Project Dorothy, with $8.1 million already contributed as of August 5, 2022[181] Impairments and Write-offs - The Company performed an impairment analysis and determined that approximately $2.4 million of equipment and leasehold improvements associated with Project Marie were impaired as of December 31, 2022[174] - The Company fully impaired its investment in HEL, writing it down from $750 thousand to $0 as of December 31, 2022[158] Accounting and Compliance - The Company is evaluating the impact of recent accounting updates, including ASU 2023-07, which requires enhanced disclosures of significant segment expenses effective after December 15, 2023[167] - ASU 2023-08 establishes accounting guidance for crypto assets, effective for fiscal years beginning after December 15, 2024, which may impact the Company's financial statements if crypto assets are held[168]

Financial Performance - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 25% year-over-year growth[30]. - The company anticipates a revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[30]. User Growth - User data showed a 15% increase in active users, totaling 5 million users by the end of the quarter[30]. Investment and Expansion - Investment in new technologies, particularly in AI and high-performance computing, is expected to exceed $200 million in the upcoming year[30]. - The company plans to expand its data center capacity by 30%, increasing from 100 megawatts (MW) to 130 MW to support growing demand[30]. - Future capital expenditures are projected to be around $300 million, focusing on infrastructure and technology upgrades[30]. Strategic Moves - A strategic acquisition of a smaller tech firm was completed for $50 million, aimed at enhancing the company's AI capabilities[30]. - The company is exploring new markets in Europe and Asia, with a target to increase international revenue contribution to 40% by 2025[30]. Operational Efficiency - The company reported a Power Usage Effectiveness (PUE) ratio of 1.2, indicating efficient energy use in its data centers[30]. Market Trends - The hashprice for Bitcoin mining has increased by 10% over the last quarter, positively impacting miner profitability[30].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Nevada 14-1462255 State or other jurisdiction (I.R.S. Employer of incorporation or organization Identification No.) 325 Washington Avenue Extension, Albany, New York 12205 (Address of principal executive offices) (Zip Code) For the quarterly period ended September 30, 2023 OR ☐ TRANSI ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____ Commission File Number: 001-40261 Soluna Holdings, Inc. (Exact name of registrant as specified in its charter) Nevada 14-1462255 State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____ Commission File Number: 001-40261 Soluna Holdings, Inc. (Exact name of registrant as specified in its charter) Nevada 14-1462255 State or other jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____ Commission File Number: 001-40261 Soluna Holdings, Inc. (Exact name of registrant as specified in its charter) Nevada 14-1462255 State or other jurisdiction (I. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____ Commission File Number: 001-40261 Soluna Holdings, Inc. (Exact name of registrant as specified in its charter) Nevada 14-1462255 State or other jurisdi ...