Company: SLNH
Filing Date: 2025-01-15
Form Type: S-1/A
Source: 0001493152-25-002391
Chunk: 185

Company: Soluna Holdings, Inc
Filing Date: 2025-01-15
Form: S-1/A
Chunk 185
---
valuation losses                                       |     |   |  1,569 |   |
| Balance November 20, 2023 (date of Third Amendment)            |     | $ | 10,959 |   |
| Financial liabilities , Beginning balance                      |     | $ | 10,959 |   |
| Conversions of debt (November 20, 2023- December 31, 2023)     |     |   | (3,069 | ) |
| Conversions of debt                                            |     |   | (3,069 | ) |
| Total revaluation losses                                       |     |   |    584 |   |
| Total revaluation (gains) losses                               |     |   |    584 |   |
| Balance December 31, 2023                                      |     | $ |  8,474 |   |
| Financial liabilities, Ending balance                          |     | $ |  8,474 |   |

Consistent with the guidance in purchase accounting, the value of the pipeline of certain cryptocurrency mining projects previously owned by HEL acquired in the Soluna Callisto acquisition in October 2021 as of the acquisition date was estimated using an expected value approach, which probability-weights various future outcomes and uses certain Level 3 inputs. Included in those inputs are the following key assumptions: expected growth in share price at a risk-free rate in the risk-neutral framework based on U.S. Treasury Rates as of the valuation date, volatility of share price based on historical equity volatilities of comparable companies over a lookback period, assessments associated with qualified projects based on assessment on timing of payments and assessment of active megawatt scenarios and the associated probabilities. The resulting amounts are then discounted to present value through use of a discount rate that considers, among other things, the risk of the payments, credit risk of the Company, and overall weighted average cost of capital of the acquired business. The resulting calculations resulted in an estimated fair value of the acquired assets and consideration paid in common stock of approximately $ 33million, which was included as part of the consideration paid in the Soluna Callisto acquisition. As noted in Note 5, Accounting Standards Codification (“ASC”) 805-50 provides that assets acquired in an asset acquisition are measured based on the costs of the acquisition, which is the consideration that the acquirer transfers to the seller and includes direct transaction costs related to the acquisition in which costs were an additional $ 3.5million including as part of the acquired assets. For assessment