Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 116

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 in deposits and credits on equipment that had not yet been received by
the Company. Once the Company receives such equipment in a subsequent period, the Company will reclassify such balance into Property,
Plant, and Equipment. Included in these balances was a credit on equipment of $975 thousand, of which approximately $195 thousand has
been used as of March 31, 2025, and the remaining $780 thousand will be restricted to be used on future purchases for Project Dorothy
2 and Project Kati until June 1, 2025 (“expiration date”). The Company notes that if an order is not executed by the expiration
date, the credit would be forfeited. The Company intends to utilize the full credit balance for future orders prior to the expiration
date.

Debt Issuance Costs

Debt issuance costs consist of costs incurred in obtaining
long-term financing. These costs are classified on the condenses consolidated balance sheet as a direct deduction from the carrying amount
of the related debt liability and subsequently amortized as interest expense in the condensed consolidated statement of operations using
the effective interest rate method.

The Company evaluates amendments to its debt instruments in accordance
with ASC 470-50, Debt - Modifications and Extinguishments (“ASC 470”) to determine whether the amendment should be
accounted for as a modification or an extinguishment. An amendment may be considered modified when the terms of the new debt and original
instrument are not “substantially different” (as defined in the debt modification guidance in ASC 470). Amendments that are
considered modifications are accounted for prospectively as yield adjustments, based on the revised terms, and lender fees and costs directly
incurred with third parties, to the extent material, are recorded as debt discount and amortized to interest expense using the effective
interest rate method.

Reclassification

Certain prior year amounts have been reclassified
for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or net
assets.

3. Accounts Receivable, net

Schedule of Accounts Receivable

    (Dollars in thousands) 
    March 31, 2025  
    December 31, 2024 
  
    Data hosting 
    $1,602  
    $1,385 
  
    Demand response service receivable 
     681  
     1,159 
  
    Proprietary mining Coinbase receivable 
     -  
     37 
  
    Other