Soluna (US:SLNH)2024-11-14 20:07Financial 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]