Soluna (US:SLNH)2025-11-14 21:16Financial Performance - Total revenue for the nine months ended September 30, 2025, was $20,510,000, down 30.9% from $29,749,000 in the same period of 2024[31]. - Cryptocurrency mining revenue for Q3 2025 was $2,769,000, a slight decrease of 1.5% from $2,811,000 in Q3 2024[31]. - Data hosting revenue increased by 23% to $5,257,000 in Q3 2025 from $4,271,000 in Q3 2024[31]. - Operating loss for Q3 2025 was $(7,780,000), an improvement from $(9,016,000) in Q3 2024[31]. - Net loss attributable to Soluna Holdings, Inc. for Q3 2025 was $(23,956,000), compared to $(7,190,000) in Q3 2024[31]. - For the nine months ended September 30, 2025, the company reported a net loss of $25,787, reflecting a significant increase compared to previous periods[36]. - The Company reported a net loss of $25.8 million for the three months ended September 30, 2025, compared to a net loss of $8.1 million for the same period in 2024[169]. Assets and Liabilities - Total assets increased to $152.035 million as of September 30, 2025, up from $88.040 million on December 31, 2024, representing a growth of 72.8%[29]. - Current assets rose significantly to $66.405 million, compared to $13.495 million at the end of 2024, marking an increase of 392.5%[29]. - Total liabilities increased to $78.570 million from $60.678 million, indicating a rise of 29.5%[29]. - The total current liabilities rose to $56.190 million from $47.873 million, an increase of 17.5%[29]. - Total debt outstanding as of September 30, 2025, was $23.253 million, compared to $21.505 million as of December 31, 2024, reflecting an increase of approximately 8.1%[85]. - The company has substantial doubt about its ability to continue as a going concern within one year after the issuance of its financial statements as of September 30, 2025[53]. Equity and Shares - Stockholders' equity improved to $73.465 million, up from $27.362 million, showing an increase of 168.5%[29]. - The number of common shares issued increased to 64,092,531 as of September 30, 2025, from 10,647,761 shares at the end of 2024[29]. - The Company had 64,051,790 shares of common stock outstanding, an increase from 10,607,020 shares as of December 31, 2024[153]. - The Company issued 9,090,909 shares in July 2025, raising approximately $5,037 in equity financing[36]. - The Company sold 14,649,141 and 17,989,804 shares of common stock under the ATM Agreement for net proceeds of $20.8 million and $23.0 million during the three and nine months ended September 30, 2025[158]. Cash Flow and Financing Activities - The company raised approximately $71,615,000 in net cash from financing activities during the nine months ended September 30, 2025, compared to $12,943,000 in the same period of 2024[38]. - The company experienced a net cash used in operating activities of $3,479,000 for the nine months ended September 30, 2025, slightly higher than the $3,412,000 used in the same period of 2024[38]. - The company has drawn approximately $23,000,000 in net proceeds from its At the Market Offering Agreement (ATM Agreement) as of September 30, 2025, with over $60 million still available[48]. - The company entered into a Credit and Guaranty Agreement providing for senior secured term loan commitments of up to $35,500,000, with approximately $12,600,000 borrowed under this agreement as of September 12, 2025[51]. Expenses and Losses - General and administrative expenses increased to $10,109,000 in Q3 2025 from $7,652,000 in Q3 2024, reflecting a 32.5% rise[31]. - The company reported a fair value adjustment loss of $(22,047,000) in Q3 2025, compared to a gain of $328,000 in Q3 2024[31]. - The Company incurred approximately $298 thousand and $1.0 million in interest expense for the three and nine months ended September 30, 2025, respectively, related to the June SPA[97]. - The Company incurred a loss on debt extinguishment of approximately $5.8 million due to fair value adjustments associated with the Fourth Amendment Agreement[137]. Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2025, totaled $1,882, indicating ongoing investment in employee incentives[36]. - The Company awarded 2,751,078 restricted stock awards under the 2023 Plan, with a market price at grant of $0.47[193]. - As of September 30, 2025, unrecognized compensation cost related to unvested awards was approximately $8.2 million, expected to be recognized over a weighted-average period of approximately 1.5 years[201]. Strategic Initiatives - The strategic pipeline contract valued at $46.885 million is crucial for the company's digital mining and hosting business, aligning with its operational expansion goals[76]. - The Company plans to evaluate additional strategies for financing operations and capital expenditures in 2025[52]. - The Spring Lane Commitment allows for capital contributions up to an aggregate amount of $45 million to fund projects for developing green data centers co-located with renewable energy assets[208].