Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 118

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 118
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 on the components of interest expense are presented
in the table below.

    (Dollars in thousands) 
    Nine
                                            months ended September
                                            30, 

    2025  
    2024 

    NYDIG equipment financing 
    $1,084  
    $1,092 
  
    Navitas term loan 
     2  
     122 
  
    Green Cloud secured loan and Additional CloudCo
    secured loan 
     1,075  
     465 
  
    Galaxy loan 
     498  
     - 
  
    Spring Lane financing cost 
     183  
     - 
  
    Generate loan 
     168  
     - 
  
    Equipment loan 
     236  
     15 
  
    Interest
    expense 
    $3,246  
    $1,694 

Gain
(Loss) on Debt Extinguishment and Revaluation, net: For the nine months ended September 30, 2025, we recognized a net gain on
extinguishment of debt of approximately $10.7 million. The gain primarily related to the settlement of the NYDIG equipment financing
loan and related interest obligations in September 2025, as well as the Assignment and Assumption Agreement for the Additional Notes
executed on March 14, 2025. These gains were partially offset by a loss on extinguishment resulting from the satisfaction and redemption
of the Project Kati equipment loan through the issuance of Class B Membership Interests in Project Kati, which were valued at approximately
three and three-tenth times the original borrowing amount.

For
the nine months ended September 30, 2024, we recognized a net loss on debt extinguishment and revaluation of approximately $1.9 million.
On February 28, 2024, we entered into the Fourth Amendment with its noteholders, which reduced the conversion price and resulted in the
issuance of new warrants and the repricing of existing warrants with revised exercise features. As a result, the Company recorded a gain
on revaluation of convertible notes of approximately $1.3 million during the first quarter of 2024 (as of February 28 and March 31, 2024),
primarily driven by changes in conversion assumptions, payout features, annualized volatility, and stock price conditions at the respective
valuation dates. A subsequent fair value assessment as of June 30,