Workflow
Soluna (SLNH) - 2024 Q2 - Quarterly Report
SLNHSoluna (SLNH)2024-08-14 19:41

Financial Performance - Cryptocurrency mining revenue for Q2 2024 reached 4.484million,asignificantincreasefrom4.484 million, a significant increase from 0.915 million in Q2 2023, representing a growth of 388%[14] - Total revenue for the six months ended June 30, 2024, was 22.224million,comparedto22.224 million, compared to 5.150 million for the same period in 2023, marking a year-over-year increase of 331%[14] - Operating loss for Q2 2024 was (3.675)million,animprovementfrom(3.675) million, an improvement from (7.074) million in Q2 2023, indicating a reduction in losses by 48%[14] - Net loss attributable to Soluna Holdings, Inc. for Q2 2024 was (10.873)million,comparedto(10.873) million, compared to (8.775) million in Q2 2023, reflecting a 24% increase in net loss[14] - For the six months ended June 30, 2024, Soluna Holdings reported a net loss of 11.689million,animprovementfromanetlossof11.689 million, an improvement from a net loss of 16.689 million in the same period of 2023, representing a 30% reduction in losses[6] - The Company reported a net loss of 9,145,000forthethreemonthsendedJune30,2024,slightlyimprovedfromanetlossof9,145,000 for the three months ended June 30, 2024, slightly improved from a net loss of 9,257,000 in the same period of 2023[193] Assets and Liabilities - Total current assets increased to 27,480,000asofJune30,2024,comparedto27,480,000 as of June 30, 2024, compared to 14,284,000 as of December 31, 2023, representing an increase of 92.2%[12] - Total assets reached 98,675,000asofJune30,2024,comparedto98,675,000 as of June 30, 2024, compared to 91,276,000 as of December 31, 2023, marking an increase of 8.5%[12] - Total liabilities increased to 48,742,000asofJune30,2024,from48,742,000 as of June 30, 2024, from 37,917,000 as of December 31, 2023, an increase of 28.5%[12] - Current liabilities rose to 32,526,000asofJune30,2024,comparedto32,526,000 as of June 30, 2024, compared to 28,175,000 at the end of 2023, a growth of 15.5%[12] - The accumulated deficit increased to (267,097,000)asofJune30,2024,from(267,097,000) as of June 30, 2024, from (250,970,000) as of December 31, 2023[13] - Total stockholders' equity decreased to 49.933millionasofJune30,2024,downfrom49.933 million as of June 30, 2024, down from 53.359 million at the end of 2023[14] Cash Flow and Financing - Cash balance rose to 9,558,000asofJune30,2024,upfrom9,558,000 as of June 30, 2024, up from 6,368,000 at the end of 2023, a growth of 50.3%[12] - The company experienced a net cash used in operating activities of 3.473millionforthefirsthalfof2024,comparedto3.473 million for the first half of 2024, compared to 3.836 million in the same period of 2023, indicating a 9.5% improvement[6] - The company reported net cash provided by financing activities of 7.838millioninthefirsthalfof2024,asignificantdecreasefrom7.838 million in the first half of 2024, a significant decrease from 21.828 million in the same period of 2023, representing a 64% decline[6] - As of June 30, 2024, the Company had approximately 9.6millionincashonhandandrequiredadditionalcapitalraisingactivitiestomeetoperationalneeds[32]OperationalDevelopments−ThecompanyisfocusingonexpandingitsoperationsinBitcoinminingandhigh−performancecomputingsectors,leveragingadvancementsinAItechnology[4]−Futureoutlookincludespotentialmarketexpansionandstrategicpartnershipstoenhanceoperationalefficiencyandprofitability[4]−Thecompanyplanstoexpanditsmarketpresenceandinvestinnewproductdevelopmentintheupcomingquarters[20]−ThecompanyhastransitioneditsProjectSophieoperationsfromproprietaryminingtohostingBitcoinminers,withacurrentcapacityof25MW[25]ExpensesandCosts−Thecompanyreportedatotalcostofrevenueof9.6 million in cash on hand and required additional capital raising activities to meet operational needs[32] Operational Developments - The company is focusing on expanding its operations in Bitcoin mining and high-performance computing sectors, leveraging advancements in AI technology[4] - Future outlook includes potential market expansion and strategic partnerships to enhance operational efficiency and profitability[4] - The company plans to expand its market presence and invest in new product development in the upcoming quarters[20] - The company has transitioned its Project Sophie operations from proprietary mining to hosting Bitcoin miners, with a current capacity of 25 MW[25] Expenses and Costs - The company reported a total cost of revenue of 11.180 million for the six months ended June 30, 2024, compared to 5.605millionforthesameperiodin2023,anincreaseof995.605 million for the same period in 2023, an increase of 99%[14] - General and administrative expenses for Q2 2024 were 7.785 million, compared to 6.515millioninQ22023,anincreaseof196.515 million in Q2 2023, an increase of 19%[14] - The company reported depreciation expense of 3.091 million for the first half of 2024, compared to 1.179millioninthesameperiodof2023,indicatinga1621.179 million in the same period of 2023, indicating a 162% increase[6] Shareholder and Stock Information - The weighted average shares outstanding for basic and diluted shares increased to 4,563,696 in Q2 2024 from 1,126,091 in Q2 2023[14] - The Company has 4,953,545 shares of Series A Preferred Stock and 62,500 shares of Series B Preferred Stock outstanding as of June 30, 2024[111] - The Series B Preferred Stock was sold for a purchase price of 5,000,000, convertible into 46,211 shares of common stock at a price of 135.25pershare[112]−TheCompanyhad3,325stockoptions,5,692restrictedstockunits,and3,820,152outstandingwarrantsnotexercisedasofJune30,2024,whichwereexcludedfromthecomputationofdilutedearningspershareduetoanti−dilutioneffects[121]LegalandComplianceIssues−TheCompanyisinvolvedinlegalproceedingsrelatedtotheEPADemandLetterregardingtheMaltaRocketFuelAreaSuperfundSite,withpotentialcostsestimatedatapproximately135.25 per share[112] - The Company had 3,325 stock options, 5,692 restricted stock units, and 3,820,152 outstanding warrants not exercised as of June 30, 2024, which were excluded from the computation of diluted earnings per share due to anti-dilution effects[121] Legal and Compliance Issues - The Company is involved in legal proceedings related to the EPA Demand Letter regarding the Malta Rocket Fuel Area Superfund Site, with potential costs estimated at approximately 358 thousand[129] - NYDIG filed a Motion for Summary Judgment against the Company for approximately 10.3millionforprincipal,interest,andpenalties[168]−TheCompanyintendstovigorouslydefenditselfagainstclaimsfromNYDIG′sparentcompanyregardingdebtsandliabilities[131]StrategicPartnershipsandProjects−SolunaCloud,anewsubsidiaryformedinMarch2024,enteredintoa10.3 million for principal, interest, and penalties[168] - The Company intends to vigorously defend itself against claims from NYDIG's parent company regarding debts and liabilities[131] Strategic Partnerships and Projects - Soluna Cloud, a new subsidiary formed in March 2024, entered into a 34 million agreement with Hewlett Packard Enterprise for data center and cloud services, with an initial pre-payment of 10.3million[26]−TheCompanyexpectstocompletetheinitialphaseofProjectDorothyinthenearfuture,partiallyfundedbySpringLane[176]−TheCompanyclosedfinancingfortheDorothy2projectonJuly22,2024,withacapitalcontributionofupto10.3 million[26] - The Company expects to complete the initial phase of Project Dorothy in the near future, partially funded by Spring Lane[176] - The Company closed financing for the Dorothy 2 project on July 22, 2024, with a capital contribution of up to 29.98 million from the Investor and $4.6 million from the Developer[197]