Soluna (US:SLNH)2025-08-14 20:17Financial 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, indicating a worsening financial performance[32]. - Net loss attributable to Soluna Holdings, Inc. for Q2 2025 was $7.382 million, compared to a net loss of $10.873 million in Q2 2024[32]. - The company reported a net loss of $40.01 million for the quarter, compared to a net income of $1.49 million in the previous year[36]. - For the six months ended June 30, 2025, the company reported a net loss of $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 year-over-year[39]. - The company reported a net loss before taxes of $8.39 million for the three months ended June 30, 2025, compared to a net loss of $9.79 million in the same period of 2024[202]. - The company reported a net loss before taxes of $16,167 million for the six months ended June 30, 2025, compared to a net loss of $12,886 million in 2024[205]. 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, reflecting improved liquidity[30]. - Total liabilities rose to $62.633 million as of June 30, 2025, compared to $60.678 million at the end of 2024, indicating increased financial obligations[30]. - The company’s total assets reached $91.952 million as of June 30, 2025, up from $88.040 million at the end of 2024, indicating growth in asset base[30]. - The total accumulated deficit as of June 30, 2024, was $267,097,000, highlighting ongoing financial challenges[35]. - Total debt outstanding was $23.276 million as of June 30, 2025, compared to $21.505 million as of December 31, 2024, with the current portion of debt at $13.255 million[72]. Equity and Shares - The company reported a basic and diluted loss per share of $0.69 for Q2 2025, compared to $2.97 for Q2 2024, showing a significant reduction in loss per share[32]. - Total shares outstanding as of June 30, 2024, reached 4,953,545, reflecting changes from various equity transactions[35]. - The company issued 1,892,300 Series A preferred shares, enhancing its capital structure[35]. - The company issued shares worth $1.188 billion during the quarter, reflecting a significant capital raise[36]. - The company has reserved a total of 4,280,230 common shares for future issuance, including 2,645 stock options and 2,347,135 outstanding warrants[132]. Expenses - General and administrative expenses for Q2 2025 were $7.800 million, slightly up from $7.785 million in Q2 2024, reflecting stable operational costs[32]. - General and administrative expenses for the six months ended June 30, 2025, were $10,845 million, compared to $9,060 million in 2024, indicating an increase of approximately 20%[205]. - Interest expense amounted to $7.259 million, indicating a slight increase from the previous period[36]. - Interest expense for the six months ended June 30, 2025, was $2,034 million, up from $873 million in 2024[205]. Cash Flow and Liquidity - Cash and restricted cash increased to $12.093 million as of June 30, 2025, compared to $9.003 million at the end of 2024, enhancing cash reserves[30]. - Cash and restricted cash at the end of the period totaled $15,153,000, up from $12,509,000 at the end of June 2024, marking a 21.5% increase[39]. - Net cash used in operating activities improved to $(1,273,000) from $(3,473,000) in the prior year, indicating a 63.3% reduction in cash outflow[39]. - As of June 30, 2025, the company had approximately $9.9 million in cash available for use, indicating a need for additional capital to meet operational needs[48]. 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 exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[36]. - The company plans to continue expanding its market presence and product offerings, although specific future projections were not detailed in the call[38]. Segment Performance - The Cryptocurrency Mining segment generated $2.86 million in revenue for the three months ended June 30, 2025, a decrease of 36.2% from $4.48 million in the same period of 2024[199]. - The Data Center Hosting segment reported revenue of $3.14 million for the three months ended June 30, 2025, down from $4.90 million in the prior year, reflecting a decline of 35.8%[200]. - Total consolidated revenue for the three months ended June 30, 2025, was $6.16 million, compared to $9.68 million for the same period in 2024, indicating a decrease of 36.1%[199]. - Segment operating income for the six months ended June 30, 2025, was $736 million, down from $9,106 million in 2024[205]. Investments and Financing - The company invested $12,365,000 in property, plant, and equipment during the first half of 2025, significantly higher than $278,000 in the same period of 2024[39]. - The company is evaluating different financing strategies, including stock issuances and partnerships, to support operations and growth[47]. - The company has drawn approximately $2,005,000 from the Standby Equity Purchase Agreement (SEPA) as of June 30, 2025, with a total commitment of up to $25 million[48]. Legal and Compliance - The Company incurred interest expenses of approximately $361 thousand and $719 thousand for the three and six months ended June 30, 2024, respectively, related to NYDIG financing[77]. - The Company is in compliance with all covenants related to the Galaxy Loan Agreement, which includes a minimum debt service coverage ratio and minimum current ratio[94]. Miscellaneous - The Company completed the acquisition of Soluna Callisto on October 29, 2021, acquiring substantially all assets of Harmattan Energy, Ltd. for $725 thousand[151]. - The Company fully impaired its equity investment in HEL, valued at $0 as of June 30, 2025, and December 31, 2024, representing approximately 1.79% ownership[159].