Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1307

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1307
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, 2023. On May 11,
2023, we entered into a new debt amendment agreement (the “Second Amendment”) with the Noteholders and issued new warrants,
creating a loss on debt extinguishment of approximately $1.8 million. The main factor for the loss was the valuation of the new warrants.
On November 20, 2023, we entered into another amendment with the convertible noteholders (the “Third Amendment”) and incurred
an additional loss on extinguishment and revaluation of approximately $911 thousand. With quarterly fair value assessments and conversions
of debt throughout the year ending December 31, 2023, we incurred an additional loss on revaluation of approximately $1.2 million with
changes in annual volatility of the debt at each quarter end, in addition to note conversions that occurred throughout the year. See
Note 8 to our consolidated financial statements included in this Annual Report for further
details.

Other
expense, net: For the year ended December 31, 2024, other expense, net was approximately $3.4 million respectively, compared
to $1.5 million for the year ended December 31, 2023. The increase in other expense, net, for the year ended December 31, 2024 was primarily
as a result of $1.0 million general release agreement with our former placement agent; approximately $1.9 million in consent fees, waiver
fees, and other financing expenses in relation to the SEPA and 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