Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2482

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 2482
---
 approximately $158 thousand related to a note receivable as of December 31, 2024 due to a collectability issue with the counterparty.
The outstanding note receivable was moved to Accounts Receivable, and a full reserve was placed on the note. The Company evaluates any
potential need for loan loss reserves on a periodic basis based on relevant internal and external factors that affect loan collectability,
including the amount of outstanding loans owed to the Company, current collection patterns and current economic trends. As these conditions
change, the Company may need to record additional allowances in future periods.

Employee
Receivables

Certain
employees have a receivable due to the Company based on their stock-based awards, in which $178 thousand and $110 thousand was outstanding
as of December 31, 2024 and December 31, 2023, respectively. The balance is currently presented as $13 thousand within Notes receivable
as of December 31, 2024 and December 31, 2023, $69 thousand and $0, respectively within Prepaid expenses and other current assets as
of December 31, 2024 and 2023, and $96 thousand and $97 thousand, respectively within Other assets on the financial statements.

Deposits
and Credits on equipment 

As
of December 31, 2024 and December 31, 2023, the Company had approximately $5.1 million and $1.0 million, respectively, in deposits and
credits on equipment that had not yet been received by the Company as of the year end. Once the Company receives such equipment in the
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 $98 thousand has been used as of December 31, 2024, and the remaining $877 thousand
will be restricted to be used on future purchases for Project Dorothy 2 and Project Kati by 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.

Long-Lived
Assets

The
Company accounts for impairment or disposal of long-lived assets, which include property, plant, and equipment and also finite-lived
intangible assets, in accordance with accounting standards that address the financial accounting and reporting