SOLUNA HOLDINGS(SLNHP) - 2024 Q1 - Quarterly Report

Revenue Growth - Cryptocurrency mining revenue increased to $6,396,000 for Q1 2024, up 129$2,796,000 in Q1 2023[33] - Data hosting revenue surged to $5,278,000 in Q1 2024, compared to$286,000 in Q1 2023, representing a growth of 1,748%[33] - Total revenue for Q1 2024 reached $12,549,000, a significant increase of 307$3,082,000 in Q1 2023[33] Operating Performance - Operating income for Q1 2024 was $407,000, a turnaround from an operating loss of$7,012,000 in Q1 2023[33] - Net loss attributable to Soluna Holdings, Inc. narrowed to $5,254,000 in Q1 2024 from$7,062,000 in Q1 2023[33] - Basic and diluted loss per share improved to $2.62 in Q1 2024, compared to$10.30 in Q1 2023[33] Financial Position - Total current assets increased to $16,996,000 as of March 31, 2024, up from$14,284,000 at the end of 2023[30] - Total liabilities rose to $41,786,000 as of March 31, 2024, compared to$37,917,000 at the end of 2023[31] - Total stockholders' equity decreased to $48,851,000 as of March 31, 2024, down from$53,359,000 at the end of 2023[31] Cash Flow and Liquidity - The company reported a cash balance of $8,438,000 as of March 31, 2024, an increase from$6,368,000 at the end of 2023[30] - Cash and restricted cash at the end of the period increased to $11,394,000 from$5,046,000, marking a 126.5% increase year-over-year[41] - The company reported net cash provided by operating activities of $3,850,000 for the three months ended March 31, 2024, compared to net cash used in operating activities of$3,053,000 in the same period of 2023[41] Stock and Equity - The company issued 87,144 shares in a securities purchase offering, raising $439,000 during Q1 2023[36] - The total amount of common stock increased to$286,799,000 by September 30, 2023, up from $280,010,000 at the end of Q2 2023, reflecting a 2.8$9.2 million and accrued interest and penalties of approximately $1.2 million related to the NYDIG loan[49] - The company entered into a$2.05 million Term Loan with an interest rate of 15%, with debt service payments beginning after the In-Service Date[120] - The NYDIG financing total outstanding debt was $9.2 million as of February 13, 2024, with a penalty fee of approximately$1.0 million applied to repossessed collateralized assets[118] Legal and Regulatory Matters - The company is involved in legal proceedings related to a complaint filed by NYDIG against a subsidiary, with ongoing litigation regarding loan agreements and collateral[141] - Atlas Technology Group filed a complaint against Soluna MC for breach of contract, seeking the return of pre-paid fees of approximately $464 thousand and additional damages of not less than$7.9 million[143] Strategic Initiatives - The company is exploring various financing strategies, including stock issuances and debt borrowings, to support its operations and growth[50] - The Company plans to concentrate its personnel and capital on the Dorothy Facility following the shutdown of the Marie facility[172] Project Performance - For the three months ended March 31, 2024, Project Marie reported total revenue of $3,000, a significant decrease from$1,045,000 for the same period in 2023, reflecting a decline in cryptocurrency mining and data hosting revenues[178] - The impairment analysis for Project Marie identified approximately $2.4 million of equipment and leasehold improvements as impaired as of December 31, 2022, due to the closure of operations[173] Management Changes - The company appointed John Tunison as Chief Financial Officer effective April 8, 2024, indicating a strategic move to strengthen its financial leadership[201]