Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 37

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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, total
lease costs are comprised of the following:

Summary of Lease Expense Recognized
on Straight-line Basis Over Lease Term  

    2025  
    2024  
    2025  
    2024 

    (Dollars
    in thousands) 
    Three
                                            Months Ended  June
                                            30,  
    Six
                                            Months Ended  June
                                            30, 

    2025  
    2024  
    2025  
    2024 

    Operating
    lease cost 
    $18  
    $61  
    $37  
    $122 
  
    Short-term
    lease cost 
     38  
     —  
     38  
     — 
  
    Total
    net lease cost 
    $56  
    $61  
    $75  
    $122 

    25

Short-term
leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does
not record a related asset or liability for such leases. On April 3, 2025, Soluna KK Energy ServiceCo, LLC (“Soluna KK Energy”),
a subsidiary of the Company, entered into a lease agreement for 50
acres of property located in Willacy County, Texas, for the
purpose of constructing, installing, operating, and maintaining modular data centers and related facilities. Soluna KK Energy can terminate
the lease within six months of April 3, 2025. As of June 30, 2025, there was uncertainty over project funding  and whether
the Company would extend the lease  agreement. As such, the Company recorded the lease agreement as short-term. If Soluna KK Energy extends
the lease agreement for an additional term of twenty-two
years, the Company will record a right-of-use asset and lease liability.

Other
information related to leases was as follows:

 Schedule
of Other Information Related to Leases 

    Six
                                            Months Ended  June
                                            30, 2025 

    Weighted
    Average Remaining Lease Term (in years): 

    Operating
    leases 
     5.36 

    Weighted
    Average Discount Rate: 

    Operating
    leases 
     7.71%

    (Dollars
    in thousands)