Financial 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, compared to $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, with stock-based compensation expenses totaling $1,882[37]. - For the nine months ended September 30, 2025, the company reported a net loss of $40,921,000, compared to a net loss of $19,782,000 for the same period in 2024, indicating an increase in losses of approximately 106%[38]. - 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 current assets increased to $66,405,000 as of September 30, 2025, compared to $13,495,000 on December 31, 2024, representing a growth of 392%[29]. - Total assets reached $152,035,000, up from $88,040,000, indicating a growth of 73%[29]. - Current liabilities increased to $56,190,000 from $47,873,000, reflecting a rise of 17%[29]. - Total liabilities rose to $78,570,000 from $60,678,000, reflecting an increase of 29%[29]. - Stockholders' equity improved to $73,465,000, compared to $27,362,000, showing a growth of 169%[29]. - The accumulated deficit increased to $(353,198,000) from $(314,304,000), indicating a worsening of 12%[29]. - The company reported accounts receivable of $4.4 million as of September 30, 2025, compared to $2.7 million as of December 31, 2024[71]. - The allowance for expected credit losses remained at $244 thousand for both September 30, 2025, and December 31, 2024[71]. - The Company incurred a provision on credit loss of approximately $244 thousand due to a borrower's financial difficulties[71]. - Total debt outstanding as of September 30, 2025, was $23.253 million, up from $21.505 million as of December 31, 2024, representing an increase of approximately 8.1%[85]. Shareholder Information - The company reported a total of 64,092,531 shares issued as of September 30, 2025, compared to 10,647,761 shares issued on December 31, 2024[29]. - Weighted average shares outstanding for basic and diluted shares increased to 26,983,023 in Q3 2025 from 6,388,335 in Q3 2024[31]. - The Company had approximately 7,174,725 common shares reserved for future issuance as of September 30, 2025, including 5,722,890 outstanding warrants[165]. - The Company issued 1,000,000 shares of common stock to the Investor, which can reduce the outstanding principal balance of the note[99]. - The Company issued secured convertible notes totaling $16.3 million, convertible into 1,776,073 shares at a price of $9.18 per share[131]. - As of September 30, 2025, the Company had 64,051,790 shares of common stock outstanding, an increase from 10,607,020 shares as of December 31, 2024[153]. Cash Flow and Financing Activities - The company raised approximately $71,615,000 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 has drawn approximately $23.0 million 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 $35.5 million, with approximately $12.6 million borrowed under this agreement as of September 12, 2025[51]. - 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 a loan commitment of up to $100 million, with $12.6 million drawn initially and an additional $22.9 million available upon approval[64]. Expenses and Losses - General and administrative expenses increased to $10,109,000 in Q3 2025, up from $7,652,000 in Q3 2024, reflecting a 32.5% increase[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 recorded a loss on the termination of the HPE Agreement amounting to approximately $28.6 million, which included a termination liability of about $20.0 million[79]. - The Company recorded a loss on debt extinguishment of approximately $1.4 million for the year ended December 31, 2024, due to the redemption of debt through equity[125]. - 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]. Strategic Initiatives - The company plans to expand its market presence through new product offerings and strategic partnerships in the upcoming quarters[35]. - The Company has transitioned its Project Sophie from proprietary Bitcoin mining to hosting customer operations, with all 25 MW now performing data hosting services[42]. - The strategic pipeline contract is valued at $46.885 million and is critical for the company's digital mining and hosting business, aligning with its focus on renewable energy datacenters[76]. - 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]. Stock Compensation and Awards - The Company awarded 2,751,078 restricted stock awards under the 2023 Plan, with a market price at grant of $0.47[193]. - The Company awarded a total of 2,172,683 restricted stock awards under the 2021 Plan, with a market price at grant of $0.64 for common stock[194]. - As of September 30, 2025, the unrecognized compensation cost related to unvested awards was approximately $8.2 million, expected to be recognized over a weighted-average period of 1.5 years[201]. - The Company modified the terms of certain unvested awards in April 2024, resulting in an incremental compensation cost of approximately $4.0 million[200]. - The Company has not granted any options under the 2021 Plan and the 2023 Plan for the three and nine months ended September 30, 2025 and September 30, 2024[198].
SOLUNA HOLDINGS(SLNHP) - 2025 Q3 - Quarterly Report