Soluna Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Soluna Holdings, Inc. has filed its annual report for the fiscal year ended December 31, 2023.</b>

AI Summary

Soluna Holdings, Inc (SLNHP) filed a Annual Report (10-K) with the SEC on April 1, 2024. Soluna Holdings, Inc. filed its 2023 Form 10-K on April 1, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 325 Washington Avenue Extension, Albany, NY 12205. Soluna Holdings, Inc. was formerly known as MECHANICAL TECHNOLOGY INC. The company's IRS number is 141462255.

Why It Matters

For investors and stakeholders tracking Soluna Holdings, Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Soluna Holdings' financial performance and business operations for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and risk factors disclosed in this report are essential for stakeholders to understand the company's financial health, operational strategies, and potential challenges in the cryptocurrency and data hosting sectors.

Risk Assessment

Risk Level: medium — Soluna Holdings, Inc shows moderate risk based on this filing. The company operates in the volatile cryptocurrency and data hosting industries, which are subject to significant market fluctuations and regulatory changes, as indicated by the nature of its revenue streams (Cryptocurrency Mining Revenue, Data Hosting Revenue, Demand Response Services).

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Soluna Holdings' financial performance and strategic positioning in its operating sectors.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-01 — Filing Date (Filed as of date)
• 1992-07-03 — Date of Name Change (Former company name date)

Key Players & Entities

• Soluna Holdings, Inc. (company) — Filer name
• MECHANICAL TECHNOLOGY INC (company) — Former company name
• Albany (location) — City in business address
• NY (location) — State in business address
• 141462255 (organization) — IRS number
• 001-40261 (organization) — SEC file number

FAQ

Risk Factors

• Market Volatility [high — market]: The company operates in the cryptocurrency and data hosting markets, which are subject to significant price and demand fluctuations.
• Regulatory Uncertainty [medium — regulatory]: The evolving regulatory landscape for cryptocurrencies and data services presents potential risks to the company's operations and profitability.
• Operational Challenges [medium — operational]: Maintaining and scaling its mining and data hosting infrastructure involves significant operational complexities and potential risks.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.001 — h registered Common Stock, par value $0.001 per share SLNH The Nasdaq Stock Mar
• $5.00 — 30, 2023 (based on the closing price of $5.00 per share on the Nasdaq Stock Market LL
• $350 million — private venture fund with approximately $350 million of assets under management that focuses
• $35 million — lutions. On May 3, 2022 SLC committed a $35 million capital pool to finance Soluna data cen
• $150 million — – a private equity firm with less than $150 million of assets under management focused on s
• $5.2 million — perating cash position by approximately $5.2 million from $1.2 million as of December 31, 20
• $1.2 million — tion by approximately $5.2 million from $1.2 million as of December 31, 2022 to $6.4 million
• $6.4 million — $1.2 million as of December 31, 2022 to $6.4 million as of December 31, 2023. 3. Expand F

Filing Documents

• form10-k.htm (10-K) — 3363KB
• ex21.htm (EX-21) — 12KB
• ex23-1.htm (EX-23.1) — 4KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 18KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 8KB
• ex97-1.htm (EX-97.1) — 33KB
• ex97-1_001.jpg (GRAPHIC) — 7KB
• 0001493152-24-012303.txt (&nbsp;) — 15890KB
• slnh-20231231.xsd (EX-101.SCH) — 101KB
• slnh-20231231_cal.xml (EX-101.CAL) — 135KB
• slnh-20231231_def.xml (EX-101.DEF) — 607KB
• slnh-20231231_lab.xml (EX-101.LAB) — 819KB
• slnh-20231231_pre.xml (EX-101.PRE) — 728KB
• form10-k_htm.xml (XML) — 2592KB

Business

Business 6 Item 1A. Risk Factors 12 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 29 Item 3. Legal Proceedings 30 Item 4. Mine Safety Disclosures 30 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31 Item 6. Selected Financial Data 32 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49 Item 8. Financial 49 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 49 Item 9A. Controls and Procedures 49 Item 9B. Other Information 50 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 50 PART III Item 10. Directors, Executive Officers and Corporate Governance 51 Item 11. Executive Compensation 51 Item 12. Security 51 Item 13. Certain Relationships and Related Transactions, and Director Independence 51 Item 14. Principal Accounting Fees and Services 51 PART IV Item 15. Exhibits, Financial Statement Schedules 52 Item 16. Form 10-K Summary 57 2 Glossary of Abbreviations and Acronyms for Selected References The following list defines various abbreviations and acronyms used throughout this report, including the Business Section, the Management's Discussion and Analysis of Financial Condition and Results of Operations, the Consolidated Financial Statements, the Notes to Consolidated

Financial Statements and the Financial Statement Schedules

Financial Statements and the Financial Statement Schedules. This glossary covers essential terms related to Bitcoin mining, high-performance computing, Artificial Intelligence ("AI") and related fields, providing valuable context for readers of the Form10-K. A number of cross-references to additional information included throughout this Annual Report on Form 10-K are also utilized throughout this report, to assist readers seeking additional information related to a particular subject. 1. Artificial Intelligence ("AI") : The simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using rules to reach approximate or definite conclusions), and self-correction. AI applications include expert systems, natural language processing, speech recognition, and machine vision. 2. Bitcoin : A decentralized digital currency created in 2009 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a peer-to-peer network, allowing direct transactions without intermediaries. Transactions are verified by network nodes through cryptography and recorded on a publicly distributed ledger called a blockchain. 3. Bitcoin Halving : An event occurring approximately every four years where the reward for mining new Bitcoin blocks is halved. This reduces the number of new Bitcoins generated by miners, impacting their profitability and potentially affecting Bitcoin's value. It's part of Bitcoin's deflationary monetary policy, designed to control supply. 4. Bitcoin Mining : The process of adding new transactions to the Bitcoin blockchain. It involves solving complex cryptographic puzzles to discover a new block, rewarding miners with transaction fees and newly created Bitcoins. This process secures and verifies transactions on the network. 5. Curtailment ("Curtailed" or "Curtailments"): In energy management, the red

Business

Business Model Power Source Sophie Murray, KY 25 Operating Bitcoin Hosting Grid / Hydro Dorothy 1A Silverton, TX 25 Operating Bitcoin Hosting Wind Dorothy 1B Silverton, TX 25 Operating Bitcoin Mining Wind Dorothy 2 Silverton, TX 50 Shovel Ready Bitcoin Hosting Wind Kati Harlington, TX 166 Development Bitcoin Hosting Wind Capital Partners We finance our data center projects through a combination of the sale of public equity and project-level capital partners. As of December 31, 2023, the Company had two primary project-level partners: Spring Lane Capital ("SLC") – A private venture fund with approximately $350 million of assets under management that focuses on sustainability solutions. On May 3, 2022 SLC committed a $35 million capital pool to finance Soluna data centers including Project Dorothy 1A. Navitas West Texas Investments SPV, LLC ("Navitas"), organized by Navitas Global – a private equity firm with less than $150 million of assets under management focused on sustainable Bitcoin Mining. On May 9, 2023, we formed a strategic partnership with Navitas to mine Bitcoin at Project Dorothy 1B. 6 Distinctives We are a leading curtailment solutions provider. Our brand is now synonymous with curtailment solutions. We have relationships with the industry's leading renewable energy developers and have a growing pipeline of projects with access to low-cost power resources. We have a repeatable way to grow our supply of sustainable, low-cost power from renewable energy generators. Our unique behind-the-meter structure allows us to draw power from the power plant or grid, and provide demand response services. This approach allows us to offer a lower cost of power for Bitcoin mining and, in the future AI and other HPC. We are an infrastructure company. We build, own or jointly own, and operate our data centers and related power infrastructure. Our proprietary design is modular, scalable, and desig

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View this 10-K filing on SEC EDGAR