Revenue Performance - Revenue for Q3 2025 increased by 37% or $2.3 million from Q2 2025, driven by new customers at Dorothy [8] - Total revenue for the three months ended September 30, 2025, was $8,415,000, a 11.8% increase from $7,525,000 in the same period of 2024 [30] - For the three months ended September 30, 2025, total consolidated revenue was $8,415 million, a decrease from $8,415 million in the same period of 2024 [34] - For the nine months ended September 30, 2025, total revenue reached $20,510, with cryptocurrency mining revenue at $8,630 and data hosting revenue at $10,795 [40] Profitability and Loss - Gross profit for Q3 2025 rose to 28%, compared to 19% in Q2 2025, reflecting strong cost discipline and $400k in one-time electricity credits [9] - Adjusted EBITDA for Q3 2025 improved to a positive $0.1 million, compared to a loss of $1.4 million in Q1 2025 [12] - The net loss for Q3 2025 increased by $17.7 million, primarily due to fair value adjustments related to exercised warrants [12] - Net loss attributable to Soluna Holdings, Inc. for the three months ended September 30, 2025, was $23,956,000, compared to a loss of $7,190,000 in Q3 2024 [30] - For the three months ended September 30, 2025, the net loss was $25,787 thousand, compared to a net loss of $8,093 thousand for the same period in 2024, representing an increase of 218% [41] - The company reported a net loss before taxes of $42,618 million for the nine months ended September 30, 2025, compared to a loss of $21,525 million in 2024 [38] Cash and Liquidity - Cash reserves increased by $45 million to a record $60.5 million, strengthening the balance sheet for future investments [8] - Cash and restricted cash at the end of the period increased to $60,461,000 from $12,207,000 year-over-year, indicating improved liquidity [32] - The company generated net cash provided by financing activities of $71,615,000 for the nine months ended September 30, 2025, compared to $12,943,000 in the same period of 2024, highlighting strong financing activity [32] Capital and Financing - The company secured a $100 million credit facility from Generate Capital, with an initial draw of $12.6 million for refinancing and construction [4] - Capital raised in Q3 2025 totaled over $64 million, supporting growth and operational development [14] - The company reported a significant increase in additional paid-in capital, rising to $381,399,000 from $315,607,000, reflecting successful capital raising efforts [27] Operational Metrics - Soluna surpassed 4 EH/s of hash rate under management, with significant fleet upgrades across all sites [5] - Soluna's renewable-powered computing projects exceeded 1 GW, marking a major step toward a long-term roadmap of 2.8 GW [5] - Cryptocurrency mining revenue decreased to $2,769,000 in Q3 2025 from $2,811,000 in Q3 2024, while data hosting revenue increased to $5,257,000 from $4,271,000 [30] - Data Center Hosting Services revenue was $5,257 million for the three months ended September 30, 2025, compared to $4,271 million in 2024, reflecting an increase of 23.1% [34] Expenses - The company incurred interest expenses of $3,246,000 for the nine months ended September 30, 2025, compared to $1,694,000 for the same period in 2024, indicating higher borrowing costs [30] - The company incurred total general and administrative expenses of $1,669 million for the nine months ended September 30, 2025, compared to $1,669 million in 2024 [38] - Interest expense for the three months ended September 30, 2025, was $1,212 thousand, up from $821 thousand in the same period of 2024, indicating a 47.7% increase [41] - Depreciation and amortization expenses for the three months ended September 30, 2025, were $4,119 thousand, compared to $3,916 thousand for the same period in 2024, reflecting a 5.2% increase [41] Asset and Liability Management - Total assets as of September 30, 2025, were $152,035,000, up from $88,040,000 as of December 31, 2024, showing substantial growth in the asset base [27] - Total current liabilities increased to $56,190,000 as of September 30, 2025, compared to $47,873,000 at the end of 2024, indicating rising obligations [27] - The total cost of revenue for the three months ended September 30, 2025, was $6,086, leading to a gross profit margin of approximately 27.6% [39] - The total cost of revenue for the nine months ended September 30, 2025, was $15,818, with a notable increase in operational efficiency reflected in the gross profit [40]

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, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | Name of each exchange on which | | --- | --- | --- | | Title of each class | Trading symbol(s) | registered | | Common Stock, par value $0.001 per share | SLNH | The Nasdaq Stock Market LLC ...

Financial Performance - Q2 2025 revenue was $6.2 million, a net decline of $3.5 million year-over-year, primarily due to Bitcoin halving and Hashprice volatility[20] - Adjusted EBITDA improved by 25.5% ($0.4 million) in Q2 2025 compared to Q1 2025, maintaining a steady gross margin of 19%[4] - Net loss for Q2 2025 decreased by $1.4 million compared to Q2 2024, driven by revenue and gross profit improvements[11] - Total revenue for Q2 2025 was $6,158,000, a decrease of 36.5% compared to $9,675,000 in Q2 2024[36] - Cryptocurrency mining revenue decreased to $2,861,000 in Q2 2025 from $4,484,000 in Q2 2024, representing a decline of 36.3%[36] - Data hosting revenue also fell to $3,136,000 in Q2 2025 from $4,898,000 in Q2 2024, a decrease of 36%[36] - The net loss for the six months ended June 30, 2025, was $15,134,000, compared to a net loss of $11,689,000 for the same period in 2024, reflecting a 29.5% increase in losses[38] - Operating loss for Q2 2025 was $6,624,000, compared to an operating loss of $3,675,000 in Q2 2024, indicating a worsening of 80.3%[36] - For the three months ended June 30, 2025, total consolidated revenue was $6,158 million, a decrease of 34% from $9,675 million in the same period of 2024[40] - For the six months ended June 30, 2025, total consolidated revenue was $12,094 million, down from $22,224 million in the same period of 2024, representing a 46% decrease[44] Operational Highlights - Soluna secured $20 million in funding to launch Project Kati, a 35 MW phase of a 166 MW wind-powered data center, with construction expected to begin in Q3 2025[5] - The company has over 773 MW of data center capacity in operation, construction, or development, with a power pipeline increased to 2.8 GW of long-term capacity[6][8] - Project Dorothy 2 is on track, with all three building phases progressing as scheduled, and full energization anticipated in Q4 2025[7] - Increased deployments with key customers, including Blockware and Compass Mining, as Dorothy 1 space became available and Dorothy 2 came online[7] - Soluna anticipates revenue stabilization and growth as additional MW of Bitcoin Hosting capacity is commissioned over the next two years[20] Financial Position - The company reported robust cash reserves of $9.9 million at the end of Q2 2025, a $2.0 million increase since December 31, 2024[20] - Total assets increased to $91,952,000 as of June 30, 2025, up from $88,040,000 at the end of 2024, a growth of 3.3%[33] - Total liabilities rose to $62,633,000 as of June 30, 2025, compared to $60,678,000 at the end of 2024, an increase of 3.2%[33] - Cash and restricted cash at the end of Q2 2025 totaled $15,153,000, up from $12,509,000 at the end of Q2 2024, a rise of 20.5%[38] - Non-controlling interest increased to $48,778,000 as of June 30, 2025, from $39,841,000 at the end of 2024, a growth of 22.5%[33] Cost and Expense Management - The total segment cost of revenue for Q2 2025 was $5,352 million, up from $5,727 million in Q2 2024, reflecting a decrease of 7%[40] - General and administrative expenses for Q2 2025 totaled $244 million, compared to $310 million in Q2 2024, reflecting a reduction of 21%[42] - Utility costs for the six months ended June 30, 2025, were $3,551 million, compared to $5,419 million in the same period of 2024, a decrease of 35%[44] - The total cost of revenue for the six months ended June 30, 2025, was $9,733, compared to $11,180 for the same period in 2024, showing a reduction of approximately 13%[48] - The total cost of data hosting revenue, exclusive of depreciation, for the six months ended June 30, 2025, was $2,945, compared to $4,427 in the same period of 2024, reflecting a decrease of approximately 34%[48] Loss and Earnings Analysis - The company reported a basic and diluted loss per share of $0.69 for Q2 2025, compared to a loss of $2.97 per share in Q2 2024[36] - Segment operating income for Q2 2025 was $389 million, a significant decline from $3,345 million in Q2 2024[42] - The segment operating income for the first half of 2025 was $736 million, compared to $9,106 million in the first half of 2024, indicating a decline of 92%[46] - The net loss before taxes for Q2 2025 was $8,388 million, compared to a net loss of $9,794 million in Q2 2024, showing a slight improvement[42] - The company reported a gross (loss) profit of $(8) for the six months ended June 30, 2025, compared to a gross profit of $5,004 for the same period in 2024[48]

Financial Performance - Cryptocurrency mining revenue for Q2 2025 was $2.861 million, a decrease of 36.2% from $4.484 million in Q2 2024[32] - Total revenue for the first half of 2025 was $12.094 million, down 45.4% from $22.224 million in the same period of 2024[32] - Operating loss for Q2 2025 was $6.624 million, compared to a loss of $3.675 million in Q2 2024[32] - Net loss attributable to Soluna Holdings, Inc. for the first half of 2025 was $14.938 million, an improvement from a loss of $16.127 million in the same period of 2024[32] - The company reported a basic and diluted loss per share of $0.69 for Q2 2025, compared to $2.97 in Q2 2024[32] - The company reported a net loss of $40.01 million for the quarter, compared to a net loss of $38.51 million in the previous year[36] - The net loss for the six months ended June 30, 2025, was $15,134,000, compared to a net loss of $11,689,000 for the same period in 2024, representing a 29.5% increase in losses[39] - The company reported a net loss of $7,556 for the first quarter of 2025, compared to a net loss of $7,354 in the same period last year, indicating a slight increase in losses[37] - The company reported a net loss of $7,780 thousand for the three months ended June 30, 2025, compared to a net loss of $9,145 thousand for the same period in 2024[134] - The basic and diluted loss per share for the three months ended June 30, 2025, was $(0.69), while for the six months ended June 30, 2025, it was $(1.55)[134] Revenue Breakdown - The company experienced a decrease in data hosting revenue to $3.136 million in Q2 2025, down 36% from $4.898 million in Q2 2024[32] - For the three months ended June 30, 2025, the Cryptocurrency Mining segment generated $2.86 million in revenue, while the Data Center Hosting segment generated $3.14 million, totaling $5.997 million in segment revenue[199] - The total consolidated revenue for the same period was $6.158 million, including $161,000 from demand response services[199] - For the six months ended June 30, 2025, total consolidated revenue was $12,094 million, a decrease from $22,224 million in the same period of 2024, representing a decline of approximately 45%[203] - Demand response revenue for the six months ended June 30, 2025, was $668 million, compared to $1,168 million in 2024, showing a decline of about 43%[204] - Approximately 55% of the data center hosting revenue for the six months ended June 30, 2025, was generated from Project Dorothy 1A, down from 70% in 2024[209] Assets and Liabilities - Total current assets increased to $16.978 million as of June 30, 2025, up from $13.495 million at the end of 2024[30] - Total liabilities rose to $62.633 million as of June 30, 2025, compared to $60.678 million at the end of 2024[30] - Cash and restricted cash increased to $12.093 million as of June 30, 2025, from $9.993 million at the end of 2024[30] - The accumulated deficit as of June 30, 2024, was $(267,097,000), indicating ongoing challenges in achieving profitability[35] - The total stockholders' equity as of March 31, 2025, was $43,058, reflecting a decrease from the previous period[37] - The total assets of DVSL as of June 30, 2025, were $18.272 million, down from $19.441 million as of December 31, 2024[179] - The total liabilities of DVSL as of June 30, 2025, were $2.049 million, compared to $2.273 million as of December 31, 2024[179] Stock and Equity - The number of weighted average shares outstanding increased to 14,991,125 in Q2 2025 from 4,563,696 in Q2 2024[32] - The total number of common shares outstanding as of June 30, 2024, was 4,953,545[35] - The Company issued 1,188 billion shares, reflecting a significant increase in share issuance compared to prior periods[36] - The Company has reserved a total of 4,280,230 common shares for future issuance, including 2,347,135 outstanding warrants[132] - As of June 30, 2025, there were 19,055,122 shares of common stock outstanding, an increase from 10,607,020 shares as of December 31, 2024[126] Expenses and Costs - Interest expense amounted to $7.259 million, indicating a rise in financing costs[36] - Total stock-based compensation expenses were $2.027 million, consistent with the previous year[36] - The company recorded a total payment for consent fees of $5.938 million, which is a notable expense item for the quarter[36] - Utility costs for the six months ended June 30, 2025, were $3,551 million, slightly lower than $5,419 million in 2024, a decrease of approximately 35%[203] - Interest expense for the six months ended June 30, 2025, was $2,034 million, significantly higher than $873 million in 2024, indicating an increase of about 133%[205] Strategic Initiatives - The company has plans for market expansion and new product development, although specific figures were not disclosed in the call[36] - The company is focusing on enhancing its technology and product offerings to drive future growth[36] - The company is exploring strategic acquisitions to bolster its market position and enhance its product portfolio[36] - The Company is actively exploring strategic partnerships and potential acquisitions to enhance its market position and drive growth[38] - The Company initiated Soluna Cloud Services in Q3 2024 but exited this business line in Q1 2025, refocusing on colocation services for AI generative customers[193] Financing and Debt - The Company has outstanding commitments of $10.1 million related to capital expenditures for Project Dorothy 2 and Project Kati as of June 30, 2025[45] - The Standby Equity Purchase Agreement (SEPA) allows the company to raise up to $25 million, with approximately $2.0 million drawn as of June 30, 2025[48] - The Company recorded a loss on contract of approximately $28.6 million due to the termination of the HPE Agreement, with the liability reduced to approximately $19.3 million as of June 30, 2025[67] - The Company incurred approximately $354 thousand and $744 thousand in interest expense for the three and six months ended June 30, 2025, related to the June SPA[81] - The Galaxy Loan Agreement provides a term loan facility of $5.0 million with an interest rate of 15%, maturing on March 12, 2030, and incurred interest expenses of approximately $236 thousand and $277 thousand for the three and six months ended June 30, 2025, respectively[92] Employee Compensation - Stock-based compensation for the six months ended June 30, 2024, totaled $1,257,000, indicating ongoing investment in employee incentives[35] - The Company awarded 2,172,683 restricted stock awards under the 2021 Plan during the three and six months ended June 30, 2025, with a market price at grant of $0.64[161] - Unrecognized compensation cost related to unvested Awards was approximately $9.3 million as of June 30, 2025, expected to be recognized over a weighted-average period of 1.5 years[165] Legal and Regulatory - As of June 30, 2025, the Company has an outstanding principal of approximately $9.2 million and an outstanding interest and penalty balance of approximately $3.0 million related to legal proceedings[147] - The Company has not recorded a liability for a discretionary bonus program of approximately $2.1 million as it is not probable that the conditions for payout will be met[142] Acquisitions and Investments - The Company completed the acquisition of Soluna Callisto on October 29, 2021, acquiring substantially all assets of Harmattan Energy, Ltd. (HEL) related to cryptocurrency mining projects[151] - In connection with the Soluna Callisto acquisition, the Company paid HEL $725 thousand and issued Termination Shares[152] - The Company fully impaired its equity investment in HEL, valued at $0 as of June 30, 2025, and December 31, 2024[159]

Financial Performance - Q1 2025 revenue was reported at $5.9 million, a decline compared to the same period in 2024 due to several factors including BTC halving and market conditions[11] - Total revenue for Q1 2025 was $5.936 million, a decrease of 52.7% compared to $12.549 million in Q1 2024[29] - Cryptocurrency mining revenue decreased to $2.999 million, down 53.1% from $6.396 million in the same period last year[29] - Data hosting revenue also declined to $2.402 million, a 54.5% decrease from $5.278 million in Q1 2024[29] - The net loss attributable to Soluna Holdings, Inc. for Q1 2025 was $7.556 million, compared to a net loss of $5.254 million in Q1 2024[29] - Basic and diluted loss per share for Q1 2025 was $0.88, an improvement from a loss of $2.62 per share in Q1 2024[29] - The net loss from continuing operations for the three months ended March 31, 2025, was $7,354 million, an increase from a loss of $2,544 million in the same period of 2024[36] - Adjusted EBITDA declined to a loss of $1.6 million, down $6.8 million from Q1 2024, influenced by revenue and cost factors[15] - Adjusted EBITDA for the three months ended March 31, 2025, was $(1,648) million, down from $5,147 million in the previous year[36] Cash and Assets - Unrestricted cash increased to $9.2 million, reflecting a $1.4 million growth from December 31, 2024[11] - Total current assets increased to $15.758 million as of March 31, 2025, up from $13.495 million at the end of 2024[26] - Cash and restricted cash at the end of Q1 2025 totaled $14.448 million, an increase from $11.394 million at the end of Q1 2024[31] Liabilities and Expenses - Total liabilities rose to $63.056 million as of March 31, 2025, compared to $60.678 million at the end of 2024[26] - Operating expenses for Q1 2025 were $8.350 million, up from $6.397 million in Q1 2024, reflecting increased general and administrative costs[29] - The company reported a significant increase in stock-based compensation, totaling $1.847 million in Q1 2025 compared to $661,000 in Q1 2024[31] - Interest expense for the three months ended March 31, 2025, was $838 million, compared to $424 million in the previous year[36] Projects and Development - The company has 220MW of new projects in development, contributing to a total project pipeline of approximately 698MW across operations, construction, and development[10] - Project Dorothy 2 is expected to increase Bitcoin hosting capacity by 64%, reaching a total of 123MW, with an expected completion timeline of Q4 2025[7] - The termination of the HP Enterprises contract allows the company to refocus on crypto-mining and AI data center development[6] - The company anticipates revenue stabilization and growth as additional MW of Bitcoin hosting capacity is commissioned over the next two years[11] Patents and Technology - The second utility patent was awarded in April 2025, expanding the scope of Soluna's Modular Data Center technology[10] Historical Comparison - Total revenue for the three months ended March 31, 2024, was $12,549 million, a decrease from $11,674 million in the previous quarter[33] - Cryptocurrency mining revenue was $6,396 million, while data hosting revenue was $5,278 million for the same period[33] - Segment operating income for the three months ended March 31, 2024, was $5,703 million, compared to $3,229 million in the previous year[33] - Total cost of revenue for the three months ended March 31, 2024, was $5,615 million, compared to $4,763 million in the previous quarter[35] - The gross profit for the three months ended March 31, 2024, was $6,934 million, a decrease from $1,173 million in the previous quarter[35] - Demand response revenue for the three months ended March 31, 2024, was $875 million, while it was $507 million in the same period of 2025[35] - The total segment cost of revenue for the three months ended March 31, 2024, was $5,777 million, an increase from $5,615 million in the previous quarter[33]

Financial Performance - Cryptocurrency mining revenue decreased to $2,999,000 in Q1 2025 from $6,396,000 in Q1 2024, a decline of approximately 53%[33] - Total revenue for Q1 2025 was $5,936,000, down from $12,549,000 in Q1 2024, representing a decrease of about 53%[33] - Net loss attributable to Soluna Holdings, Inc. was $7,556,000 in Q1 2025 compared to a net loss of $5,254,000 in Q1 2024, indicating a worsening of approximately 44%[33] - Basic and diluted loss per share for Q1 2025 was $0.88, compared to $2.62 in Q1 2024[33] - For the three months ended March 31, 2025, the net loss was $7.354 million, compared to a net loss of $2.544 million for the same period in 2024, indicating a significant increase in losses[41] - The company reported a net loss of $10,873,000 for the quarter ending March 31, 2024, compared to a net loss of $5,254,000 for the previous quarter[36] Assets and Liabilities - Total current assets increased to $15,758,000 as of March 31, 2025, up from $13,495,000 as of December 31, 2024, reflecting a growth of about 17%[30] - Total assets rose to $90,049,000 as of March 31, 2025, compared to $88,040,000 as of December 31, 2024, an increase of approximately 2%[31] - Total liabilities increased to $63,056,000 as of March 31, 2025, up from $60,678,000 as of December 31, 2024, a rise of about 4%[31] - The total accumulated deficit increased to $314,304,000 by December 31, 2024, reflecting ongoing financial challenges[37] Cash Flow and Expenditures - The company’s cash position improved to $9,161,000 as of March 31, 2025, compared to $7,843,000 as of December 31, 2024, an increase of about 17%[30] - Operating cash flow for the three months ended March 31, 2025, was a net cash used of $177 thousand, a decrease from net cash provided of $3.850 million in the same period of 2024[41] - The company incurred $3.808 million in capital expenditures for property, plant, and equipment during the three months ended March 31, 2025, compared to $524 thousand in the same period of 2024[41] Debt and Financing - The company has significant outstanding debt and negative working capital as of March 31, 2025, raising concerns about its ability to continue as a going concern[47] - Total debt as of March 31, 2025, is $24,038,000, consisting of $13,848,000 in current debt and $10,190,000 in long-term debt[75] - The company executed a warrant exercise resulting in the issuance of 530,776 shares during the quarter ending September 30, 2024[37] - The company is exploring various financing strategies, including stock issuances and debt borrowings, to meet its financial obligations and support growth[48] Stock and Equity - The total number of common stock shares increased to 7,690,219 as of September 30, 2024, up from 2,882,231 shares as of March 31, 2024[37] - The Company issued 1,000,000 shares of common stock to the Investor on April 29, 2025, as part of the agreement[86] - As of March 31, 2025, the Company had approximately $9.2 million in cash on hand and has drawn approximately $2.0 million from a Standby Equity Purchase Agreement (SEPA) to fund operations and projects[49] Operational Changes - The company transitioned its focus at Project Sophie from proprietary Bitcoin mining to hosting customers' Bitcoin mining operations in Q2 2023[45] - The Company plans to focus on providing colocation services at data centers for AI generative customers after exiting active provision of HPC services[204] Segment Performance - The Cryptocurrency Mining segment generates revenue from Bitcoin mining activities, primarily from Project Dorothy[207] - The High-Performance Computing Services segment began generating revenue in December 2024, with minimal revenue reported for the three months ended March 31, 2025[207] - Demand response revenue contributed $507 million to total revenue in Q1 2025[209] - Segment operating income for Data Center Hosting was $543 million, while Cryptocurrency Mining reported an operating loss of $67 million[209] Future Outlook - The Company plans to continue evaluating different financing strategies to support operations in fiscal year 2025[50] - Future growth may be driven by the integration of new technologies and market expansion strategies[208]

Revenue and Growth - Revenue for FY 2024 reached $38.0 million, an increase of 80.5% compared to $21.1 million in FY 2023[7] - Total revenue for Q4 2024 was $8.3 million, a 9.9% increase from Q3 2024 revenue of $7.5 million[9] - Total revenue for the year ended December 31, 2024, was $38,021,000, representing a 80.5% increase from $21,066,000 in 2023[21] - Cryptocurrency mining revenue increased to $17,027,000 in 2024, up 60.5% from $10,602,000 in 2023[21] - Data hosting revenue rose to $18,838,000, a 84.5% increase compared to $10,196,000 in the previous year[21] Financial Performance - Adjusted EBITDA for 2024 was $0.9 million, a significant improvement of $4.4 million from a loss of $3.5 million in 2023[9] - Adjusted EBITDA for 2024 was $942,000, a recovery from a loss of $3,457,000 in 2023, showing improvement in operational performance[25] - The company reported a net loss of $58,300,000 for 2024, compared to a net loss of $27,703,000 in 2023, indicating a significant increase in losses[21] - Operating loss for 2024 was $47,523,000, compared to $20,241,000 in 2023, reflecting increased operational challenges[21] - The company reported a net loss of $38,518,000 for the three months ended December 31, 2024, with a consistent trend of increasing losses throughout the year[27] Cash and Assets - Unrestricted cash grew by 23.2% to $7.8 million at the end of 2024, compared to the end of 2023[9] - Cash and restricted cash at the end of 2024 was $10,453,000, slightly up from $10,367,000 at the end of 2023[23] - Total assets decreased to $88,040,000 in 2024 from $91,276,000 in 2023, showing a decline in overall asset base[19] Liabilities and Expenses - Total current liabilities surged to $47,873,000 in 2024, up from $28,175,000 in 2023, indicating a significant increase in short-term obligations[19] - Selling, General & Administrative expenses increased by $3.3 million in FY 2024 due to expanded hiring and compliance costs[14] - Stock-based compensation costs increased to $5,311,000 in 2024 from $4,312,000 in 2023, indicating higher expenses related to employee compensation[25] - Total interest expense for 2024 was $2,527,000, slightly down from $2,748,000 in 2023, reflecting a minor reduction in financing costs[25] Operational Developments - Demand Response Services generated $2.1 million in revenue in 2024, following its launch in December 2023[7] - Project Dorothy 2 is expected to increase Bitcoin hosting capacity by 64.0% to a total of 123 MW, with completion anticipated by Q4 2025[8] - The company terminated its HPE GPU-as-a-Service contract, resulting in a loss of $28.6 million, to refocus on Bitcoin and AI data centers[8] Non-Cash Items and Provisions - The company recognized a provision for credit losses of $760,000 in 2024, indicating a cautious approach to potential defaults[25] - The company incurred a loss on contract amounting to $28,593,000 in the fourth quarter of 2024, which was not present in the previous year[27] - Loss on debt extinguishment and revaluation for 2024 was $7,349,000, compared to $3,904,000 in 2023, highlighting increased financial restructuring costs[25] - The company reported a significant increase in non-cash items, including a loss on sale of fixed assets totaling $31,000 in 2024[27] Shareholder Impact - The weighted average shares outstanding increased significantly to 6,280,915 in 2024 from 1,313,718 in 2023, reflecting potential dilution[21]

Financial Performance - Revenue for the last quarter reached $150 million, a 15% increase compared to the previous quarter, driven by higher Bitcoin prices and increased mining efficiency [30]. - Future guidance estimates an annual revenue growth rate of 25% over the next three years, supported by market expansion and technological advancements [30]. Operational Efficiency - The company reported a significant increase in computational power, achieving a hashrate of 5 Exahash per second (EH/s), representing a 25% increase year-over-year [19]. - The Power Usage Effectiveness (PUE) ratio improved to 1.1, indicating a 10% increase in energy efficiency compared to the previous year [28]. - The Bitcoin mining operation's profitability improved by 30% due to reduced energy costs and optimized mining strategies [15]. Growth and Expansion - The company plans to expand its data center capacity by 30% over the next year, which is expected to enhance operational efficiency and support future growth [35]. - The company anticipates a 20% growth in hosted customer contracts, reflecting increased demand for data center colocation services [17]. - New product offerings in AI and high-performance computing are projected to contribute an additional $20 million in revenue by the end of the fiscal year [12]. - The company is exploring strategic acquisitions to enhance its capabilities in generative AI, which could potentially add $50 million in revenue over the next two years [20]. Additional Revenue Streams - The company is actively engaging in grid demand response services, which are expected to generate an additional $5 million in revenue annually [22].

Revenue Growth - Year-to-date revenue for 2024 reached $29.7 million, a $18.8 million increase or 172% compared to $10.9 million in 2023[2][8] - Third quarter revenue increased by 30% to $7.5 million, up from $5.8 million in the same quarter of 2023[8][13] Financial Performance - Adjusted EBITDA for year-to-date 2024 is $3.5 million, an increase of $8.0 million compared to a loss of $4.5 million in 2023[8] - Unrestricted cash increased by 38% from the end of 2023, reaching $8.8 million[8] Development and Expansion - The development pipeline has expanded to over 2.6 GW, with 1.2 GW currently in active Term Sheet negotiations[5][19] - Project Dorothy 2 has secured $30 million in funding for a 48 MW expansion, with groundbreaking held on August 28, 2024[8] - Project Rosa has signed term sheets for power and land for a new 187 MW data center, marking a significant step in expansion efforts[8][19] Strategic Focus - Soluna's digital infrastructure is strategically co-located with renewable energy sources to support high-performance computing applications[3][18] - The company is focused on transforming surplus renewable energy into scalable computing resources, positioning itself as a leader in renewable computing[4][18] Funding and Investment - Soluna Cloud secured $13.75 million in total funding, with an additional $1.25 million raised to enhance AI offerings[8][19]

Financial Performance - Cryptocurrency mining revenue for Q3 2024 was $2,811,000, a 57.3% increase from $1,786,000 in Q3 2023[33] - Total revenue for the nine months ended September 30, 2024, reached $29,749,000, compared to $10,948,000 for the same period in 2023, representing a 171.5% increase[33] - Operating loss for Q3 2024 was $9,016,000, compared to a loss of $3,736,000 in Q3 2023, indicating a worsening of 141.5%[33] - Net loss attributable to Soluna Holdings, Inc. for Q3 2024 was $7,190,000, compared to $6,662,000 in Q3 2023, reflecting a 7.9% increase in losses[33] - Net loss for the nine months ended September 30, 2024, was $19,782,000, an improvement from a net loss of $22,705,000 in the same period of 2023[43] - The company reported a basic and diluted loss per share of $1.29 for Q3 2024, compared to a loss of $5.96 per share in Q3 2023[33] Assets and Liabilities - Total current assets increased to $18,515,000 as of September 30, 2024, up from $14,284,000 at the end of 2023, a growth of 29.5%[30] - Total assets rose to $97,349,000 as of September 30, 2024, compared to $91,276,000 at the end of 2023, marking a 6.5% increase[31] - Total liabilities increased to $45,754,000 as of September 30, 2024, up from $37,917,000 at the end of 2023, a rise of 20.5%[31] - Cash and restricted cash totaled $10,747,000 as of September 30, 2024, compared to $9,367,000 at the end of 2023, an increase of 14.7%[30] - The total accumulated deficit as of December 31, 2023, was $250,970,000, reflecting the cumulative losses over the years[37] Equity and Stock - The company’s additional paid-in capital increased to $308,947,000 as of September 30, 2024, up from $291,276,000 at the end of 2023, a growth of 6.1%[30] - For the year ended December 31, 2023, the total equity increased to $53,359,000, up from $46,272,000 at the beginning of the year, reflecting a growth of approximately 15.5%[36] - The Company issued secured convertible notes totaling $16.3 million, convertible into 1,776,073 shares at a price of $9.18 per share[88] - The Company has 4,953,545 shares of Series A Preferred Stock and 62,500 shares of Series B Preferred Stock outstanding as of September 30, 2024[121] - The conversion price for Series B Preferred Stock was reduced to $5.00, subject to stockholder approval, from an initial price of $135.25 per share[122] Cash Flow and Financing Activities - Cash used in operating activities for the nine months ended September 30, 2024, was $3,412,000, an improvement from $4,404,000 in 2023[43] - The company reported a net cash provided by financing activities of $12,943,000 for the nine months ended September 30, 2024[43] - The company had approximately $8.8 million in cash on hand as of September 30, 2024, and is seeking additional capital raising activities, including a Standby Equity Purchase Agreement for up to $25 million[54] Operational Changes and Projects - Project Sophie has transitioned from proprietary Bitcoin mining to hosting customers' Bitcoin mining operations, with all 25 MW now performing data hosting services[47] - The company is committed to leveraging its modular data centers and renewable energy partnerships to support the growing demands of Bitcoin mining and AI[50] - The company divested specific mining assets at its Wenatchee, Washington facility in September 2022 and ceased management of operational contracts in August 2024[47] Legal and Regulatory Matters - The Company has been named in a legal proceeding regarding the Malta Rocket Fuel Area Superfund Site, with the EPA seeking approximately $358,000 plus interest for response costs[140] - NYDIG filed a complaint against the Company regarding a series of loans, with a potential judgment amount of approximately $10.3 million for principal, interest, and penalties[141] - In September 2023, Atlas Technology Group LLC filed a complaint against the company, alleging breach of a co-location services agreement, seeking approximately $464 thousand in pre-paid fees and at least $7.9 million in additional damages[145] Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2023, totaled $602,000, reflecting the company's ongoing investment in employee incentives[37] - Total stock-based compensation for the nine months ended September 30, 2024, was $3,286,000, slightly down from $3,709,000 in 2023[43] - The Company awarded 542,896 restricted stock awards under the 2021 Plan, valued at $3.96 per share[172] Segment Performance - ComputeCo has three reportable segments: Cryptocurrency Mining, Data Center Hosting, and High-Performance Computing Services, with the latter being a new business line initiated in Q3 2024[207] - The new High-Performance Computing services utilize NVIDIA H100 GPUs and are powered by 100% carbon-free renewable energy sources[207] Future Commitments and Contributions - The Company committed to a capital contribution of up to approximately $26.3 million to DVSL, with $8.1 million contributed prior to August 5, 2022[184] - The Company closed financing for the Dorothy 2 project with a capital contribution of up to $29.98 million from Spring Lane Capital[202]