Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 518

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 518
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 related consents for the SEPA on October 1, 2024; a conversion debt inducement
expense of approximately $388 thousand; and an extension fee expense of approximately $325 thousand, partially offset by a gain on settlement
of litigation with Atlas of approximately $254 thousand. For the year ended December 31, 2023, other expense, net was approximately $1.5
million, consisting of primarily an approximate $1.0 million penalty charge in relation to moving further in the settlement litigation
with NYDIG and a $250 thousand expense in relation to an extension fee for the Noteholders when the Second Amendment was signed on May
11, 2023, in addition to the prepayment penalty for the notes payable in the third quarter of fiscal 2023.

Income
Tax Benefit: Income tax benefit for the year ended December 31, 2024 was approximately $2.5 million, compared to approximately
$1.1 million thousand for the year ended December 321, 2023. The balances were mainly related to deferred tax amortization impact of
acquiring an asset in a transaction that is not a business combination when the amount paid exceeds the tax basis on the acquisition
date. As such, we are required to adjust the value of the strategic contract pipeline by approximately $10.9 million at inception date
(October 29, 2021), in which was recorded as a deferred tax liability and this amount will be amortized over the life of the asset. For
the year ended December 31, 2024 and 2023, we amortized approximately $2.2 million in each year, respectively. In addition, for the year
ended December 31, 2023, there were timing differences due to significant increase for in-service capital assets for the year ended December
31, 2023 which created an offset of approximately $1.1 million in deferred income tax expense.

Net
income attributable to non-controlling interest: Net income attributable to non-controlling interest for the year ended December
31, 2024 was approximately $5.0 million compared to a net income of approximately $1.5 million for the year ended December 31, 2023.
This amount relates to Spring Lane’s 85% noncontrolling interest of the net profit in Soluna DVSL ComputeCo, LLC (“DVSL”)
and Navitas 49% noncontrolling interest of the net profit in Soluna DV ComputeCo, LLC (“