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Accrued Liabilities
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Accrued Liabilities
6. Accrued Liabilities
Accrued liabilities consist of the following at:
(Dollars in thousands)March 31, 2026December 31, 2025
Salaries, wages, and related expenses$2,291 $2,204 
Liability to shareholders for previous acquisition363 363 
Legal, audit, tax, and professional fees2,872 1,786 
Sales tax accrual54 146 
Real estate taxes accrual421 453 
Hosting and utility fees1,706 1,541 
Construction fees2,202 2,252 
Financing fee accrual65 773 
Membership distribution accrual5,567 3,637 
Other27 27 
Total$15,568 $13,182 
Contract termination liability
In June 2024, Soluna AL Cloudco, LLC (“CloudCo”), a subsidiary of Soluna Cloud, entered into an agreement (the “HPE Agreement”) with Hewlett Packard Enterprise Company (“HPE”), with an initial pre-payment of $10.3 million and a total commitment of $34 million over a 36-month period. On March 24, 2025, CloudCo notified HPE of its termination of the HPE Agreement and, on March 26, 2025, HPE notified CloudCo of its termination of the HPE Agreement for cause, effective immediately, due to CloudCo’s material breach of its payment obligations that remained uncured for more than thirty (30) days. The HPE Agreement provided the Company access to datacenter and cloud services for AI and supercomputing applications utilizing NVIDIA H100 GPUs. In accordance with the terms of the HPE Agreement, CloudCo was required to pay all of the unpaid fees that were payable over the entire term of the HPE Agreement. In accordance with the terms of the HPE Agreement, upon a termination for cause by HPE, CloudCo must pay HPE the remaining payment stream under the term of the HPE Agreement, including all upfront payments and monthly charges, plus any fees incurred for the terminated Services (as defined in the HPE Agreement). As of March 31, 2026, the outstanding contract liability is approximately $19.3 million. CloudCo has not made any additional payments under the HPE Agreement since CloudCo notified HPE of its termination of the HPE Agreement.