Soluna Holdings Reports Q3 Results
Performance Includes 176% Increase in Revenue and Operating Profit Milestone
ALBANY, N.Y.–(BUSINESS WIRE)–Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for Bitcoin mining and other intensive computing applications, reported financial results for the third quarter ended September 30, 2023.
John Belizaire, CEO of Soluna Holdings, said, “We are delighted to announce the successful completion of Project Dorothy 1B, marking a significant milestone for Project Dorothy. The project is now fully operational, and we are witnessing the tangible impact of its earnings potential.”
Belizaire went further on to say, “Our dedicated team has demonstrated exceptional execution across our four strategic focus areas, as outlined in our shareholder letter: the energizing of Project Dorothy, Cash Flow and Expense Management, Expanding our Flagship, and Growing our Pipeline. The business transition initiated in Q2 is yielding positive results, evident in our latest financials. Despite the challenges posed by the summer heat in Texas and Kentucky, our team’s focused and meticulous efforts have propelled us to our first quarter of gross profit and substantial business growth from earlier lows.”
Belizaire concluded by saying, “With Project Dorothy 2 on the immediate horizon, Project Kati setting up its robust earnings power and the vast potential of AI at our doorstep, we have a solid foundation for future growth.”
Finance and Operational Highlights:
Substantial cash balance – The unrestricted cash balance as of September 30, 2023, was $5.6 million compared to $1.1 million as of December 31, 2022. This is driven by new project-level investments, operational execution, and expense management measures implemented in the first half of the year.
EBITDA Milestone – The Company achieved a positive Adjusted EBITDA for the first time since second quarter 2022.
Revenue Ramp – Revenue in the third quarter increased by 176% to $5.8 million compared to $2.1 million in the second quarter of 2023. The revenue increase is driven by the continued ramp in the Project Dorothy sites, including hosting and proprietary mining.
Project Dorothy 1A and 1B fully operational as of October 31 2023 – Installed hashrate of 1.76 EH/s in Project Dorothy 1A/1B fully and it is fully operational. This brings the Company’s total installed hashrate to 2.6 EH/s. Project Dorothy consumed over 4,000 MWh of curtailed energy through the end of October solidifying the effectiveness of Soluna’s innovative solution to monetizing curtailed energy.
Ancillary services revenue – The Company completed its pre-registration for Ancillary Services with ERCOT, bringing it closer to diversifying its revenue by having Project Dorothy serve as a grid resource.
As of the end of the third quarter of 2023, Soluna deployed over 23,600 bitcoin miners (between hosting and prop mining) across all sites. And, the Company operated at an average hashrate of 2.4 EH/s across all sites as Project Dorothy became fully energized by late summer.
AI initiative – The Company launched a new initiative focused on a new data center purpose-built for AI training workloads. The new design, code-named “Helix”, will be part of Project Dorothy 2; due to start in the first quarter of 2024. The Company also formed a new Advisory Board to accelerate the Company’s AI initiatives and tapped Daniel Golding, a former head of advanced engineering and data center innovation at Google.
Financial Summary:
Key financial results for the third quarter include:
| 2023 Revenue By Quarter (in thousands) | ||||||||||||
| Revenue | Q1 2023 | Q2 2023 | Q3 2023 | YTD 2023 | ||||||||
| Data hosting revenue |
$ |
286 |
$ |
1,153 |
$ |
4,011 |
$ |
5,451 |
||||
| Cryptocurrency mining revenue |
|
2,796 |
|
915 |
|
1,786 |
|
5,497 |
||||
| Total revenue |
$ |
3,082 |
$ |
2,068 |
$ |
5,797 |
$ |
10,948 |
||||
| *may not foot due to rounding | ||||||||||||
- Total revenue in the third quarter of 2023 increased by 176% to $5.8 million compared to $2.1 million in the second quarter of 2023. The increase is primarily attributable to the ramping of Project Dorothy, commissioning of proprietary mining and continued ramping of hosting revenues.
| 2023 Gross Profit by Quarter (in thousands) | |||||||||||
| Gross Profit | Q1 2023 | Q2 2023 | Q3 2023 | YTD | |||||||
| Cryptocurrency mining revenue |
$ |
2,796 |
|
$ |
915 |
|
$ |
1,786 |
|
$ |
5,497 |
| Data Hosting Revenue |
|
286 |
|
|
1,153 |
|
|
4,011 |
|
|
5,451 |
| Total Revenue |
|
3,082 |
|
|
2,068 |
|
|
5,797 |
|
|
10,948 |
|
|
|
||||||||||
| Cost of cryptocurrency mining revenue, exclusive of depreciation |
|
2,252 |
|
|
1,160 |
|
|
1,040 |
|
|
4,452 |
| Cost of data hosting mining revenue, exclusive of depreciation |
|
272 |
|
|
759 |
|
|
2,150 |
|
|
3,181 |
| Cost of revenue – depreciation |
|
625 |
|
|
539 |
|
|
1,200 |
|
|
2,364 |
| Total cost of revenue |
|
3,149 |
|
|
2,458 |
|
|
4,390 |
|
|
9,997 |
| Gross Profit |
$ |
(67 |
) |
$ |
(390 |
) |
$ |
1,407 |
|
$ |
950 |
| *certain prior quarter amounts have been reclassified for consistency in the current quarter presentation | |||||||||||
- Gross profit improved to $1.4 million in the third quarter of 2023, as compared to $(390) thousand in the second quarter of 2023.
- General and Administrative, exclusive of depreciation and amortization expenses, decreased by 52% to $2.7 million in the third quarter of 2023, as compared to $5.7 million in the third quarter of 2022, primarily due to cost reductions related to salaries and benefits, and reduced consulting and professional fees.
- Stock compensation expense during the third quarter of 2023 was $595 thousand versus $890 thousand in the third quarter of 2022.
- Net loss from continuing operations improved to $6.0 million in the third quarter of 2023 from $56.2 million in the third quarter of 2022.
| 2023 Adjusted EBITDA by Quarter (in thousands) | |||||||||||||||||
| Q1 2023 | Q2 2023 | Q3 2023 | YTD 2023 | ||||||||||||||
| Net Loss |
$ |
(7,432 |
) |
$ |
(9,257 |
) |
$ |
(6,016 |
) |
$ |
(22,705 |
) |
|||||
| (+) Interest expense |
|
1,374 |
|
|
486 |
|
|
495 |
|
|
2,355 |
|
|||||
| (+) Income taxes |
|
(547 |
) |
|
(547 |
) |
|
569 |
|
|
(524 |
) |
|||||
| (+) Depreciation and amortization |
|
3,002 |
|
|
2,918 |
|
|
3,579 |
|
|
9,498 |
|
|||||
| EBITDA Table |
$ |
(3,603 |
) |
$ |
(6,400 |
) |
$ |
(1,373 |
) |
$ |
(11,376 |
) |
|||||
| Adjustments non-cash | |||||||||||||||||
| Stock based compensation |
|
879 |
|
|
2,232 |
|
|
595 |
|
|
3,709 |
|
|||||
| (Gain) loss on sale of fixed assets |
|
78 |
|
|
(48 |
) |
|
373 |
|
|
404 |
|
|||||
| Impairment on fixed assets |
|
209 |
|
|
169 |
|
|
41 |
|
|
418 |
|
|||||
| Debt extinguishment and revaluation |
|
(473 |
) |
|
2,054 |
|
|
769 |
|
|
2,350 |
|
|||||
| Adjusted EBITDA |
$ |
(2,910 |
) |
$ |
(1,993 |
) |
$ |
405 |
|
|
(4,495 |
) |
|||||
| *may not foot due to rounding | |||||||||||||||||
- Adjusted EBITDA positive – The measure improved to $405 thousand in the third quarter of 2023, as compared to $(2.0) million in the second quarter of 2023 and $(2.9) million in the first quarter of 2023, a quarter over quarter improvement.
The unaudited financial statements are available online. A presentation of this Third Quarter Update can also be found online.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.
In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.
About Soluna Holdings, Inc (SLNH)
Soluna Holdings, Inc. is the leading developer of green data centers that convert excess renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing intensive, batchable applications such as Bitcoin mining, AI, and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Soluna uses technology and intentional design to solve complex, real-world challenges. Up to 30% of the power of renewable energy projects can go to waste. Soluna’s data centers enable clean electricity asset owners to ‘Sell. Every. Megawatt.’
|
Soluna Holdings, Inc. and Subsidiaries |
||||||||
|
Condensed Consolidated Balance Sheets |
||||||||
|
As of September 30, 2023 (Unaudited) and December 31, 2022 |
||||||||
|
(Dollars in thousands, except per share) |
||||||||
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
2023 |
|
|
2022 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
5,625 |
|
|
$ |
1,136 |
|
|
Restricted cash |
|
|
3,428 |
|
|
|
685 |
|
|
Accounts receivable |
|
|
2,024 |
|
|
|
320 |
|
|
Notes receivable |
|
|
446 |
|
|
|
219 |
|
|
Prepaid expenses and other current assets |
|
|
1,593 |
|
|
|
1,107 |
|
|
Deposits and credits on equipment |
|
|
975 |
|
|
|
1,175 |
|
|
Equipment held for sale |
|
|
248 |
|
|
|
295 |
|
|
Total Current Assets |
|
|
14,339 |
|
|
|
4,937 |
|
|
Restricted cash |
|
|
1,000 |
|
|
|
– |
|
|
Other assets |
|
|
2,957 |
|
|
|
1,150 |
|
|
Property, plant and equipment, net |
|
|
45,938 |
|
|
|
42,209 |
|
|
Intangible assets, net |
|
|
29,370 |
|
|
|
36,432 |
|
|
Operating lease right-of-use assets |
|
|
483 |
|
|
|
233 |
|
|
Total Assets |
|
$ |
94,087 |
|
|
$ |
84,961 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,005 |
|
|
$ |
3,548 |
|
|
Accrued liabilities |
|
|
4,447 |
|
|
|
2,721 |
|
|
Line of credit |
|
|
– |
|
|
|
350 |
|
|
Convertible notes payable |
|
|
10,796 |
|
|
|
11,737 |
|
|
Current portion of debt |
|
|
9,053 |
|
|
|
10,546 |
|
|
Deferred revenue |
|
|
– |
|
|
|
453 |
|
|
Operating lease liability |
|
|
215 |
|
|
|
161 |
|
|
Total Current Liabilities |
|
|
27,516 |
|
|
|
29,516 |
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
1,497 |
|
|
|
203 |
|
|
Long-term debt |
|
|
1,050 |
|
|
|
– |
|
|
Operating lease liability |
|
|
273 |
|
|
|
84 |
|
|
Deferred tax liability, net |
|
|
8,362 |
|
|
|
8,886 |
|
|
Total Liabilities |
|
|
38,698 |
|
|
|
38,689 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies (Note 10) |
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
9.0% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share, $25.00 liquidation preference; authorized 6,040,000; 3,061,245 shares issued and outstanding as of September 30, 2023 and December 31, 2022 |
|
|
3 |
|
|
|
3 |
|
|
Series B Preferred Stock, par value $0.0001 per share, authorized 187,500; 62,500 shares issued and outstanding as of September 30, 2023 and December 31, 2022 |
|
|
— |
|
|
|
— |
|
|
Common stock, par value $0.001 per share, authorized 75,000,000; 1,492,729 shares issued and 1,451,988 shared outstanding as of September 30, 2023 and 788,578 shares issued and 747,837 shares outstanding as of December 31, 2022(1) |
|
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
|
286,799 |
|
|
|
277,429 |
|
|
Accumulated deficit |
|
|
(244,268 |
) |
|
|
(221,769 |
) |
|
Common stock in treasury, at cost, 40,741 shares at September 30, 2023 and December 31, 2022(1) |
|
|
(13,798 |
) |
|
|
(13,798 |
) |
|
Total Soluna Holdings, Inc. Stockholders’ Equity |
|
|
28,737 |
|
|
|
41,866 |
|
|
Non-Controlling Interest |
|
|
26,652 |
|
|
|
4,406 |
|
|
Total Stockholders’ Equity |
|
|
55,389 |
|
|
|
46,272 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
94,087 |
|
|
$ |
84,961 |
|
| (1) Prior period results have been adjusted to reflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023. |
|
Soluna Holdings, Inc. and Subsidiaries |
||||||||||||||||
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
For the Three and Nine Months Ended September 30, 2023 and 2022 |
||||||||||||||||
|
(Dollars in thousands, except per share) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cryptocurrency mining revenue |
|
$ |
1,786 |
|
|
$ |
5,387 |
|
|
$ |
5,497 |
|
|
$ |
20,696 |
|
|
Data hosting revenue |
|
|
4,011 |
|
|
|
985 |
|
|
|
5,451 |
|
|
|
3,668 |
|
|
Total revenue |
|
|
5,797 |
|
|
|
6,372 |
|
|
|
10,948 |
|
|
|
24,364 |
|
|
Operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of cryptocurrency mining revenue, exclusive of depreciation |
|
|
1,040 |
|
|
|
4,100 |
|
|
|
4,451 |
|
|
|
11,092 |
|
|
Cost of data hosting revenue, exclusive of depreciation |
|
|
2,150 |
|
|
|
1,078 |
|
|
|
3,181 |
|
|
|
3,192 |
|
|
Costs of revenue- depreciation |
|
|
1,200 |
|
|
|
6,010 |
|
|
|
2,364 |
|
|
|
15,872 |
|
|
Total costs of revenue |
|
|
4,390 |
|
|
|
11,188 |
|
|
|
9,996 |
|
|
|
30,156 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses, exclusive of depreciation and amortization |
|
|
2,723 |
|
|
|
5,686 |
|
|
|
11,219 |
|
|
|
15,441 |
|
|
Depreciation and amortization associated with general and administrative expenses |
|
|
2,379 |
|
|
|
2,378 |
|
|
|
7,134 |
|
|
|
7,127 |
|
|
Total general and administrative expenses |
|
|
5,102 |
|
|
|
8,064 |
|
|
|
18,353 |
|
|
|
22,568 |
|
|
Impairment on equity investment |
|
|
– |
|
|
|
750 |
|
|
|
– |
|
|
|
750 |
|
|
Impairment on fixed assets |
|
|
41 |
|
|
|
28,086 |
|
|
|
418 |
|
|
|
28,836 |
|
|
Operating loss |
|
|
(3,736 |
) |
|
|
(41,716 |
) |
|
|
(17,819 |
) |
|
|
(57,946 |
) |
|
Interest expense |
|
|
(495 |
) |
|
|
(1,671 |
) |
|
|
(2,355 |
) |
|
|
(7,856 |
) |
|
Loss on debt extinguishment and revaluation, net |
|
|
(769 |
) |
|
|
(12,317 |
) |
|
|
(2,350 |
) |
|
|
(12,317 |
) |
|
Loss on sale of fixed assets |
|
|
(373 |
) |
|
|
(988 |
) |
|
|
(404 |
) |
|
|
(2,606 |
) |
|
Other (expense) income, net |
|
|
(74 |
) |
|
|
2 |
|
|
|
(301 |
) |
|
|
2 |
|
|
Loss before income taxes from continuing operations |
|
|
(5,447 |
) |
|
|
(56,690 |
) |
|
|
(23,229 |
) |
|
|
(80,723 |
) |
|
Income tax (expense) benefit from continuing operations |
|
|
(569 |
) |
|
|
547 |
|
|
|
524 |
|
|
|
1,344 |
|
|
Net loss from continuing operations |
|
|
(6,016 |
) |
|
|
(56,143 |
) |
|
|
(22,705 |
) |
|
|
(79,379 |
) |
|
Income before income taxes from discontinued operations |
|
|
– |
|
|
|
(21 |
) |
|
|
– |
|
|
|
7,681 |
|
|
Income tax benefit from discontinued operations |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
70 |
|
|
Net income from discontinued operations |
|
|
– |
|
|
|
(21 |
) |
|
|
– |
|
|
|
7,751 |
|
|
Net loss |
|
|
(6,016 |
) |
|
|
(56,164 |
) |
|
|
(22,705 |
) |
|
|
(71,628 |
) |
|
(Less) Net (income) loss attributable to non- controlling interest |
|
|
(646 |
) |
|
|
272 |
|
|
|
206 |
|
|
|
272 |
|
|
Net loss attributable to Soluna Holdings, Inc. |
|
$ |
(6,662 |
) |
|
$ |
(55,892 |
) |
|
$ |
(22,499 |
) |
|
$ |
(71,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted (loss) earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations per share (Basic & Diluted) (1) |
|
$ |
(4.40 |
) |
|
$ |
(95.49 |
) |
|
$ |
(20.11 |
) |
|
$ |
(146.46 |
) |
|
Net income from discontinued operations per share (Basic & Diluted) (1) |
|
$ |
– |
|
|
$ |
(0.04 |
) |
|
$ |
– |
|
|
$ |
13.64 |
|
|
Basic & Diluted loss per share (1) |
|
$ |
(4.40 |
) |
|
$ |
(95.53 |
) |
|
$ |
(20.11 |
) |
|
$ |
(132.82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (Basic and Diluted) (1) |
|
|
1,374,364 |
|
|
|
587,921 |
|
|
|
1,149,745 |
|
|
|
568,307 |
|
|
(1) Prior period results have been adjusted to reflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023. |
|
Soluna Holdings, Inc. and Subsidiaries |
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|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
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|
For the Nine Months Ended September 30, 2023 and 2022 |
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|
(Dollars in thousands) |
||||||||
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2023 |
|
|
2022 |
|
||
|
Operating Activities |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(22,705 |
) |
|
$ |
(71,628 |
) |
|
Net income from discontinued operations |
|
|
– |
|
|
|
(7,751 |
) |
|
Net loss from continuing operations |
|
|
(22,705 |
) |
|
|
(79,379 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
2,387 |
|
|
|
15,888 |
|
|
Amortization expense |
|
|
7,111 |
|
|
|
7,111 |
|
|
Stock-based compensation |
|
|
3,640 |
|
|
|
2,747 |
|
|
Consultant stock compensation |
|
|
69 |
|
|
|
121 |
|
|
Deferred income taxes |
|
|
(524 |
) |
|
|
(1,344 |
) |
|
Impairment on fixed assets |
|
|
418 |
|
|
|
28,836 |
|
|
Amortization of operating lease asset |
|
|
177 |
|
|
|
151 |
|
|
Impairment on equity investment |
|
|
– |
|
|
|
750 |
|
|
Loss on debt extinguishment and revaluation, net |
|
|
2,350 |
|
|
|
12,317 |
|
|
Amortization on deferred financing costs and discount on notes |
|
|
748 |
|
|
|
6,630 |
|
|
Loss on sale of fixed assets |
|
|
404 |
|
|
|
2,606 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(1,552 |
) |
|
|
(1,498 |
) |
|
Prepaid expenses and other current assets |
|
|
(484 |
) |
|
|
(154 |
) |
|
Other long-term assets |
|
|
(307 |
) |
|
|
(69 |
) |
|
Accounts payable |
|
|
551 |
|
|
|
884 |
|
|
Deferred revenue |
|
|
(453 |
) |
|
|
118 |
|
|
Operating lease liabilities |
|
|
(172 |
) |
|
|
(148 |
) |
|
Other liabilities |
|
|
1,294 |
|
|
|
(306 |
) |
|
Accrued liabilities |
|
|
2,644 |
|
|
|
(382 |
) |
|
Net cash (used in) provided by operating activities |
|
|
(4,404 |
) |
|
|
(5,121 |
) |
|
Net cash provided by operating activities- discontinued operations |
|
|
– |
|
|
|
369 |
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
(12,534 |
) |
|
|
(61,867 |
) |
|
Purchases of intangible assets |
|
|
(49 |
) |
|
|
(114 |
) |
|
Proceeds from disposal on property, plant, and equipment |
|
|
2,266 |
|
|
|
2,525 |
|
|
Deposits and credits on equipment, net |
|
|
200 |
|
|
|
6,441 |
|
|
Net cash used in investing activities |
|
|
(10,117 |
) |
|
|
(53,015 |
) |
|
Net cash provided by investing activities- discontinued operations |
|
|
– |
|
|
|
9,004 |
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
Proceeds from preferred offerings |
|
|
– |
|
|
|
16,658 |
|
|
Proceeds from common stock securities purchase agreement offering |
|
|
817 |
|
|
|
– |
|
|
Proceeds from notes and debt issuance |
|
|
3,100 |
|
|
|
29,736 |
|
|
Costs of preferred offering |
|
|
– |
|
|
|
(1,910 |
) |
|
Costs of common stock securities purchase agreement offering |
|
|
(10 |
) |
|
|
– |
|
|
Costs and payments of notes and short-term debt issuance |
|
|
(510 |
) |
|
|
(2,428 |
) |
|
Cash dividend distribution on preferred stock |
|
|
– |
|
|
|
(3,852 |
) |
|
Payments on NYDIG loans and line of credit |
|
|
(350 |
) |
|
|
(3,841 |
) |
|
Contributions from non-controlling interest |
|
|
19,706 |
|
|
|
4,293 |
|
|
Proceeds from stock option exercises |
|
|
– |
|
|
|
153 |
|
|
Proceeds from common stock warrant exercises |
|
|
– |
|
|
|
779 |
|
|
Net cash provided by financing activities |
|
|
22,753 |
|
|
|
39,588 |
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash & restricted cash-continuing operations |
|
|
8,232 |
|
|
|
(18,548 |
) |
|
Increase in cash & restricted cash- discontinued operations |
|
|
– |
|
|
|
9,373 |
|
|
Cash & restricted cash – beginning of period |
|
|
1,821 |
|
|
|
10,258 |
|
|
Cash & restricted cash – end of period |
|
$ |
10,053 |
|
|
$ |
1,083 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
|
Noncash equipment financing |
|
|
– |
|
|
|
4,620 |
|
|
Interest paid on NYDIG loans and cash interest paid on line of credit |
|
|
567 |
|
|
|
1,179 |
|
|
Noncash disposal of NYDIG collateralized equipment |
|
|
2,576 |
|
|
|
– |
|
|
Proceed receivable from sale of MTI Instruments |
|
|
– |
|
|
|
205 |
|
|
Notes converted to common stock |
|
|
2,444 |
|
|
|
2,441 |
|
|
Warrant consideration in relation to promissory notes and convertible notes |
|
|
1,330 |
|
|
|
14,602 |
|
|
Promissory note and interest conversion to common shares |
|
|
845 |
|
|
|
15,236 |
|
|
Noncash note receivable from sale of equipment |
|
|
240 |
|
|
|
– |
|
|
Noncash non-controlling interest contributions |
|
|
2,746 |
|
|
|
290 |
|
|
Series B preferred dividend prefunded warrant and common stock issuance |
|
|
657 |
|
|
|
– |
|
|
Noncash activity right-of-use assets obtained in exchange for lease obligations |
|
|
403 |
|
|
|
20 |
|
Reconciliations of Adjusted EBITDA to net income from continuing operations, the most comparable GAAP financial metric, for historical periods are presented in the table below:
|
(Dollars in thousands) |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss from continuing operations |
|
$ |
(6,016 |
) |
|
$ |
(56,143 |
) |
|
$ |
(22,705 |
) |
|
$ |
(79,379 |
) |
|
Interest expense, net |
|
|
495 |
|
|
|
1,671 |
|
|
|
2,355 |
|
|
|
7,856 |
|
|
Income tax expense (benefit) from continuing operations |
|
|
569 |
|
|
|
(547 |
) |
|
|
(524 |
) |
|
|
(1,344 |
) |
|
Depreciation and amortization |
|
|
3,579 |
|
|
|
8,388 |
|
|
|
9,498 |
|
|
|
22,999 |
|
|
EBITDA |
|
|
(1,373 |
) |
|
|
(46,631 |
) |
|
|
(11,376 |
) |
|
|
(49,868 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: Non-cash items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation costs |
|
|
595 |
|
|
|
890 |
|
|
|
3,709 |
|
|
|
2,869 |
|
|
Loss on sale of fixed assets |
|
|
373 |
|
|
|
988 |
|
|
|
404 |
|
|
|
2,606 |
|
|
Impairment on equity investment |
|
|
– |
|
|
|
750 |
|
|
|
– |
|
|
|
750 |
|
|
Impairment on fixed assets |
|
|
41 |
|
|
|
28,086 |
|
|
|
418 |
|
|
|
28,836 |
|
|
Loss on debt extinguishment and revaluation, net |
|
|
769 |
|
|
|
12,317 |
|
|
|
2,350 |
|
|
|
12,317 |
|
|
Adjusted EBITDA |
|
$ |
405 |
|
|
$ |
(3,600 |
) |
|
$ |
(4,495 |
) |
|
$ |
(2,490 |
) |
Contacts
David Michaels
Soluna Holdings, Inc.
Chief Financial Officer
For Media Inquiries:
Sam Sova
Founder and CEO
SOVA
