Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1604

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1604
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, assumption
on the lockup expiration date, closing price of the common stock on the lockup expiration date using daily volatility, and risk free
interest rates. The Company determined the fair value of the modified preferred stock using certain Level 3 inputs. In addition to the
fair value of the preferred stock, as part of the modified preferred stock consideration, the Company performed a Black-Scholes simulation
on the repriced and new penny warrants, using assumptions considered above similar to the convertible debt, and lastly applied a present
value calculation on future dividends to be paid. See Note 9 for details on the modified Series B Preferred Stock.

     F-12 

Revenue
Recognition

Cryptocurrency
Mining Revenue

The
Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principles of the revenue standard are that
a company should recognize revenue to depict the transfer of promised good or services to customers in an amount that reflects the consideration
to which the Company expects to be entitled for those goods or services. The following five steps are applied to achieve that core principle:

●
Step 1: Identify the contract with the customer

●
Step 2: Identify the performance obligations in the contract

●
Step 3: Determine the transaction price

●
Step 4: Allocate the transaction price to the performance obligations in the contract

●
Step 5: Recognize revenue when the Company satisfies a performance obligation

In
order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in
the contract and identify each promised goods or service that is distinct. A performance obligation meets ASC 606’s definition of
a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can
benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e.,
the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is
separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the
context of the contract).

If
a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services
is identified that is distinct.

The
transaction price is the amount of consideration to which an entity expects to be