Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2801

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 2801
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3, 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 for the impairment or
disposal of long-lived assets, specify how impairment will be measured, and how impaired assets will be classified in the Consolidated
Financial Statements. On a quarterly basis, the Company analyzes the status of its long-lived assets at each subsidiary for potential
impairment. Recoverability of assets to be held and used are measured by a comparison of the carrying amount of an asset to undiscounted
future cash flows expected to be generated by the asset. Because the impairment test for long-lived assets held in use is based on estimated
undiscounted cash flows, there may be instances where an asset or asset group is not considered impaired, even when its fair value may
be less than its carrying value, because the asset or asset group is recoverable based on the cash flows to be generated over the estimated
life of the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the assets exceeds the fair value of the assets. During the year ended December 31, 2024 and 2023, the
Company has impaired approximately