Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 192

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 192
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MeOH
Power, Inc.

On
December 18, 2013, MeOH Power, Inc. and the Company executed a Senior Demand Promissory Note (the Note) in the amount of $380 thousand
to secure the intercompany amounts due to the Company from MeOH Power, Inc. upon the deconsolidation of MeOH Power, Inc. Interest accrues
on the Note at the Prime Rate in effect on the first business day of the month, as published in the Wall Street Journal. At the Company’s
option, all or part of the principal and interest due on this Note may be converted to shares of common stock of MeOH Power, Inc. at
a rate of $0.07 per share. Interest began accruing on January 1, 2014. The Company recorded a full allowance against the Note. As of
September 30, 2025 and December 31, 2024, $399 thousand and $385 thousand, respectively, of principal and interest are available to convert
into shares of common stock of MeOH Power, Inc. Any adjustments to the allowance are recorded as miscellaneous expense during the period
incurred.

    30

Employee
Receivables

Certain
employees have a receivable due to the Company based on their stock-based awards, in which $110 thousand and $178 thousand was outstanding
as of September 30, 2025 and December 31, 2024, respectively. The balance is currently presented as $13 thousand and $82 thousand, respectively
within Prepaid expenses and other current assets as of September 30, 2025 and December 31, 2024, and $97 thousand and $96 thousand, respectively
within Other assets on the condensed consolidated financial statements.

HEL
Transactions

As
discussed in the Company’s 2023 Annual Report and all agreements included as exhibits and defined within the 2023 Annual Report,
on October 29, 2021, the Company completed the Soluna Callisto acquisition pursuant to the merger agreement (the “Merger Agreement”).
The purpose of the transaction was for SCI to acquire substantially all of the assets (other than those assets physically located in
Morocco) formerly held by Harmattan Energy, Ltd. (“HEL”), which assets consisted of SCI’s existing pipeline of certain
cryptocurrency mining projects that HEL previously transferred to SCI, which was formed expressly for this purpose, and to provide SCI
with the opportunity to directly employ or