Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 307

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 307
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. The loss also includes a $13.8 million fair value adjustment on the revaluation
of outstanding warrant liabilities as of September 30, 2025. These losses were primarily driven by the increase in the Company’s
stock price between July and September 2025, which resulted in a higher intrinsic value compared to the warrants’ original fair
value. In addition, we incurred an approximate $9.1 million loss in connection with the fair value of warrants issued in excess of the
related proceeds from the July 2025 Financing. These losses were partially offset by a gain of approximately $0.8 million related to
the revaluation of the Generate Common Warrant during the period.

For
the three months ended September 30, 2024, we recognized a gain of approximately $0.3 million related to the revaluation of the Soluna
Cloud warrants, which were subsequently written off.

Loss
on sale of fixed assets and credit on equipment deposit: During the three months ended September 30, 2025, we recognized a loss
of approximately $780 thousand related to the forfeiture of an equipment credit that had been recorded in prior periods. The credit,
which was restricted for use on future equipment purchases for Project Dorothy 2 and Project Kati through September 1, 2025, expired
unused, and no further extension was granted.

Other
financing expense: Other financing expenses totaled approximately $4.7 million for the three months ended September 30, 2025,
primarily related to consent fees associated with draws under the ATM Agreement and the SEPA facility, as well as transaction costs incurred
in connection with the July 2025 Financing.

Net
(loss) income attributable to non-controlling interest: We incurred a net loss attributable to non-controlling interest for the
three months ended September 30, 2025 of approximately $1.8 million compared to a net loss attributable to non-controlling interest for
the three months ended September 30, 2024 of $903 thousand, a change of approximately $928 thousand increase in net loss attributable
to non-controlling interest. The increase in net loss attributable to non-controlling interest was mainly due to a loss on $1.7 million
associated with the satisfaction of equipment loan through membership interest at Project Kati, in addition Project Kati costs of approximately
$608 thousand, in which no revenue had been generated yet for the three months ended September 30, 2025, and no comparable costs were