Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 306

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 306
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                                            months ended September
                                            30, 

    2025  
    2024 

    NYDIG equipment financing 
    $365  
    $369 
  
    Navitas term loan 
     -  
     21 
  
    Green Cloud secured loan and Additional CloudCo
    secured loan 
     298  
     430 
  
    Spring Lane financing cost 
     61  
     - 
  
    Galaxy loan 
     220  
     - 
  
    Generate loan 
     168  
     - 
  
    Equipment loan 
     100  
     1 
  
    Interest
    expense 
    $1,212  
    $821 

Gain
on Debt Extinguishment and Revaluation, net: For the three months ended September 30, 2025, we recognized a net gain on extinguishment
of debt of approximately $10.1 million, primarily related to the settlement of the NYDIG equipment financing loan and related interest
obligations. The gain was 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-tenths times the original borrowing amount.

For
the three months ended September 30, 2024, we recognized a net gain on revaluation of approximately $0.9 million, primarily related to
the remeasurement of convertible notes with an aggregate principal balance of $2.3 million. The gain resulted from changes in conversion
assumptions, payout terms, annualized volatility, and stock price conditions on the valuation dates compared to the conversion features
available to noteholders as of September 30, 2024. This gain was partially offset by a loss on extinguishment of debt of approximately
$1.4 million, resulting from the satisfaction and redemption of the Dorothy 2 equipment loan through the issuance of Class B Membership
Interests in the Dorothy 2 project, which were valued at approximately three times the original borrowing amount.

Fair
value adjustment, net: For the three months ended September 30, 2025, we recognized a net loss of approximately $22.0 million
related to the revaluation of the Series A and Series B warrants issued in connection with the July 2025 Financing, which were classified
as liabilities and subsequently exercised during the quarter