Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 23

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 Company is required to adjust the value of the strategic contract pipeline
by approximately $10.9 million at inception date, which was recorded as a deferred tax liability, and this amount will be amortized over
the life of the asset. For the three and nine months ended September 30, 2025 and 2024, the Company amortized $547 thousand and $1.6
million, respectively.

The
Company provides for recognition of deferred tax assets if the realization of such assets is more likely than not to occur in accordance
with accounting standards that address income taxes. Significant management judgment is required in determining the period in which the
reversal of a valuation allowance should occur. The Company has considered all available evidence, both positive and negative, such as
historical levels of income and future forecasts of taxable income amongst other items, in determining its valuation allowance. In addition,
the Company’s assessment requires us to schedule future taxable income in accordance with accounting standards that address income
taxes to assess the appropriateness of a valuation allowance which further requires the exercise of significant management judgment.

The
Company believes that the accounting estimate for the valuation of deferred tax assets is a critical accounting estimate because judgment
is required in assessing the likely future tax consequences of events that have been recognized in our financial statements or tax returns.
The Company based the estimate of deferred tax assets and liabilities on current tax laws and rates and, in certain cases, business plans
and other expectations about future outcomes. In the event that actual results differ from these estimates, or the Company adjusts these
estimates in future periods, the Company may need to adjust the recorded valuation allowance, which could materially impact our financial
position and results of operations. The Company has a full valuation allowance for the deferred tax asset of $43.4 million and $38.5
million on September 30, 2025 and December 31, 2024, respectively. We will continue to evaluate the ability to realize our deferred tax
assets and related valuation allowance on a quarterly basis.

    15

8.
Debt

The
following table represents total debt outstanding by agreement as of September 30, 2025:

Schedule of Total Debt Outstanding

    (Dollars in thousands): 
    Current
    portion of debt  
    Long
    term debt  
    Total 
  
    NYDIG financing 
    $-  
    $-  
    $- 
  
    Green Cloud secured note 
     3,487