Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 175

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 175
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073 shares of common stock, at an initial exercise price of $12.50, $15 and
$18 per share, respectively. The October Warrants are legally detachable and can be separately exercised immediately for five years upon
issuance, subject to applicable Nasdaq rules.

On
July 19, 2022 and on September 13, 2022, the Company entered into an Addendum and Addendum Amendment which adjusted the terms such as
maturity date, conversion prices, and the issuance of new warrants to the Noteholders. Pursuant to the Addendum and Addendum Amendment,
the Company evaluated whether the new addendums qualified as debt modification or debt extinguishment. Based on ASC 470, Debt, the Company
determined the Addendum and Addendum Amendment to fall under Debt Extinguishment treatment and the Company would be required to record
the new debt at fair value, and in turn write off the existing debt on the Company’s books.

Following
the debt extinguishment on July 19, 2022 as noted above, the Convertible Notes have been accounted for under the fair value method on
a recurring basis upon issuance (e.g., upon execution of the Addendum) per guidance within ASC 480, and at each subsequent reporting
period, with changes in fair value reported in earnings. See below for rollforward of the fair value of the convertible debt:

Schedule
of Fair value of Convertible Debt

    (in thousands) 

    Balance January 1, 2024 
    $8,474 
  
    Conversions of debt (January 1, 2024- June 30, 2024) 
     (3,712)
  
    Extension fee 
     325 
  
    Total revaluation losses
    and extinguishment of debt, net (January 1, 2024- June 30, 2024) 
     2,765 
  
    Balance June 30, 2024 
     7,852 
  
    Conversions of debt (July 1, 2024 – September 30, 2024) 
     (2,166)
  
    Revaluation gains and
    extinguishment of debt, net (July 1, 2024 – September 30, 2024) 
     (2,316)
  
    Balance September 30, 2024 
     3,370 
  
    Conversions of debt (October