Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 110

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 110
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 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. 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