Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 56

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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    2024 

    Operating lease cost 
    $70  
    $17  
    $106  
    $139 
  
    Short-term lease cost 
     13  
     —  
     50  
     — 
  
    Total
    net lease cost 
    $83  
    $17  
    $156  
    $139 

Short-term
leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does
not record a related asset or liability for such leases. On April 3, 2025, Soluna KK Energy ServiceCo, LLC (“Soluna KK Energy”),
a subsidiary of the Company, entered into a lease agreement for 50 acres of property located in Willacy County, Texas, for the purpose
of constructing, installing, operating, and maintaining modular data centers and related facilities. Soluna KK Energy can terminate the
lease within six months of April 3, 2025. Through July 2025, there was uncertainty over project funding and whether the Company would
extend the lease agreement. As such, the Company recorded the lease agreement as short-term. In August 2025, Soluna KK Energy extended
the lease agreement for the additional term of twenty-two years. Accordingly,  the Company recorded a right-of-use asset and lease liability.

Other
information related to leases was as follows:

Schedule
of Other Information Related to Leases

    Nine
                                            Months Ended September
                                            30, 2025 

    Weighted Average Remaining Lease Term (in years): 

    Operating leases 
     20.39 

    Weighted Average Discount Rate: 

    Operating leases 
     6.34%

    (Dollars in thousands) 
    Nine
                                            Months Ended September
                                            30, 2025  
    Nine
                                            Months Ended September
                                            30, 2024 

    Supplemental Cash Flows Information: 

    Cash paid for amounts included in the measurement
    of lease liabilities: 

    Operating cash
    flows from operating leases 
    $109  
    $141 

    Non-Cash Activity Right-of-use assets obtained
    in exchange for lease obligations: 

    Operating leases 
    $3,441  
    $- 

Maturities
of noncancellable operating lease liabilities are as follows for