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]
SOLUNA HOLDINGS(SLNHP) - 2025 Q2 - Quarterly Report