Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 257

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 257
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 Revaluation, net: For the nine months ended September 30, 2025, we recognized a net gain on
extinguishment of debt of approximately $10.7 million. The gain primarily related to the settlement of the NYDIG equipment financing
loan and related interest obligations in September 2025, as well as the Assignment and Assumption Agreement for the Additional Notes
executed on March 14, 2025. These gains were partially offset by a loss on extinguishment resulting from the satisfaction and redemption
of the Project Kati equipment loan through the issuance of Class B Membership Interests in Project Kati, which were valued at approximately
three and three-tenth times the original borrowing amount.

For
the nine months ended September 30, 2024, we recognized a net loss on debt extinguishment and revaluation of approximately $1.9 million.
On February 28, 2024, we entered into the Fourth Amendment with its noteholders, which reduced the conversion price and resulted in the
issuance of new warrants and the repricing of existing warrants with revised exercise features. As a result, the Company recorded a gain
on revaluation of convertible notes of approximately $1.3 million during the first quarter of 2024 (as of February 28 and March 31, 2024),
primarily driven by changes in conversion assumptions, payout features, annualized volatility, and stock price conditions at the respective
valuation dates. A subsequent fair value assessment as of June 30, 2024 resulted in a loss on revaluation of approximately $4.0 million,
reflecting changes in conversion and payout assumptions and stock price volatility compared to conversion terms available to noteholders
at that date. The convertible notes were remeasured again as of September 30, 2024, resulting in a gain of approximately $2.3 million,
primarily due to the decline in the Company’s stock price, which offset prior-quarter fair value losses. In addition to these fair
value adjustments, we recognized a loss on debt extinguishment of approximately $1.4 million related to the satisfaction and redemption
of the Dorothy 2 equipment loan through the issuance of Class B Membership Interests in the Dorothy 2 project, which were valued at approximately
three times the original borrowing amount.

Fair
value adjustment, net: For the nine months ended September 30, 2025, we recognized a net loss of approximately $22.2 million
related to the revaluation of