Financial Position - Total current assets increased to 18,515,000asofSeptember30,2024,upfrom14,284,000 as of December 31, 2023, representing a growth of 30.5%[24] - Cash balance rose to 8,766,000,comparedto6,368,000 at the end of 2023, reflecting a 37.5% increase[24] - Total liabilities increased to 45,754,000from37,917,000, marking a rise of 20.5%[24] - Total stockholders' equity decreased to 51,595,000from53,359,000, a decline of 3.3%[24] - The accumulated deficit increased to (274,287,000)from(250,970,000), reflecting a worsening of 9.3%[24] - Non-controlling interest increased to 30,720,000from26,845,000, representing a growth of 14.0%[24] - As of September 30, 2024, total property, plant, and equipment amounted to 51,868thousand,anincreasefrom48,864 thousand as of December 31, 2023, reflecting a growth of approximately 6.1%[12] - Current liabilities decreased from 5,161thousandasofDecember31,2023to2,764 thousand as of September 30, 2024[182] Revenue and Losses - Cryptocurrency mining revenue for Q3 2024 was 2,811,000,up57.31,786,000 in Q3 2023[25] - Data hosting revenue increased to 4,271,000inQ32024,ariseof6.54,011,000 in Q3 2023[25] - Total revenue for Q3 2024 reached 7,525,000,representinga29.85,797,000 in Q3 2023[25] - Operating loss for Q3 2024 was (9,016,000),comparedto(3,736,000) in Q3 2023, indicating a significant increase in losses[25] - Net loss attributable to Soluna Holdings, Inc. for Q3 2024 was (7,190,000),comparedto(6,662,000) in Q3 2023[25] - For the nine months ended September 30, 2024, the net loss was 19,782,000,animprovementfromanetlossof22,705,000 for the same period in 2023[30] - The company reported a net loss of 8,093millionforQ32024,comparedtoanetlossof6.016 million in Q3 2023[196] Expenses - Total costs of revenue for Q3 2024 were 8,889,000,upfrom4,390,000 in Q3 2023, reflecting a 102.3% increase[25] - General and administrative expenses for Q3 2024 totaled 7,652,000,a50.75,102,000 in Q3 2023[25] - The company recorded a depreciation expense of 4,634,000fortheninemonthsendedSeptember30,2024,comparedto2,387,000 in 2023, indicating increased asset utilization[30] - Depreciation expense for the three months ended September 30, 2024, was approximately 1.5million,comparedto1.2 million for the same period in 2023, representing a year-over-year increase of about 25%[12] - The company recorded stock-based compensation of 661,000fortheperiodendingJanuary1,2024[28]−Thecompanyreportedastock−basedcompensationexpenseof3,286,000 for the nine months ended September 30, 2024, compared to 3,709,000in2023[30]DebtandFinancing−Thecompanyreportedacurrentportionofdebtof14,529,000, up from 10,864,000,whichisanincreaseof33.825,999 thousand, an increase from 19,338thousandasofDecember31,2023,reflectingagrowthofapproximately34.52,050,000 with a 15% interest rate, maturing on May 9, 2025, with expected principal and capitalized interest payments of approximately 1.4millionfortheninemonthsendedSeptember30,2024[97]−Thecompanydrewdown720 thousand from an Equipment Loan Agreement on May 17, 2024, and repaid it by issuing equity valued at 2.16million,resultingina1.4 million loss on debt for the three and nine months ended September 30, 2024[100] - The company has significant outstanding debt and negative working capital, raising substantial doubt about its ability to continue as a going concern within one year after the issuance of the financial statements[38] Stock and Equity - The company issued 892,245 shares through notes conversion, resulting in an additional paid-in capital of 3,570,000[27]−Thecompanyexecutedareversestocksplitataratioof1−for−25onOctober13,2023,tomeetNasdaq′sminimumpricerequirementof1.00[46] - The company reported a basic and diluted net loss per share of (5.96)forthethreemonthsendedSeptember30,2023,achangeof(1.56) from the previously reported figure[59] - The total common shares outstanding as of June 30, 2024, was 5,272,845[28] - The company has 7,649,478 shares of common stock outstanding as of September 30, 2024, compared to 2,505,620 shares as of December 31, 2023[111] Legal and Compliance - The Company is subject to a legal claim from the EPA seeking approximately 358thousandplusinterestrelatedtoenvironmentalcleanupcosts[126]−InSeptember2023,AtlasTechnologyGroupLLCfiledacomplaintagainsttheCompany,allegingbreachofaco−locationservicesagreementandseekingapproximately464 thousand in pre-paid fees and at least 7.9millioninadditionaldamages[132]−TheCompanyintendstovigorouslydefenditselfagainstclaimsfromNYDIG′sparentcompany,SCI,regardingdebtsandliabilitiesunderloandocuments[130]StrategicInitiatives−ThecompanyisfocusedonleveragingmodulardatacentersandrenewableenergypartnershipstosupportBitcoinminingandAIdemands[37]−TheCompanyinitiatedSolunaCloudServicesinQ32024tosupportgenerativeAIworkstreams,utilizingNVIDIAH100GPUspoweredby10029.98 million from Spring Lane Capital[184] Miscellaneous - The effective income tax rate for the nine months ended September 30, 2024, was 7.6%, a significant improvement from the negative rate of 1.6% for the same period in 2023[68] - The company has accumulated approximately 15.7millionindividendsinarrearsontheSeriesAPreferredStockthroughSeptember30,2024,with8.6 million accumulated through December 31, 2023[112] - The company recorded a gain on a settlement with Atlas of approximately $254 thousand for the nine months ended September 30, 2024[134]
Soluna (SLNH)2024-11-14 20:07