Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 6

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 6
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 with third parties, to the extent material, are recorded as debt
discount and amortized to interest expense using the effective interest rate method.

Reclassification

Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on
the reported results of operations or net assets.

3. Accounts Receivable, net

Accounts
receivables consist of the following at:

Schedule of Accounts Receivable

    (Dollars
    in thousands) 
    June
    30, 2025  
    December
    31, 2024 
  
    Data
    hosting 
    $1,714  
    $1,385 
  
    Demand
    response service receivable 
     842  
     1,159 
  
    Proprietary
    mining Coinbase receivable 
     33  
     37 
  
    Other 
     304  
     356 
  
    Accounts receivables, gross 
     2,893  
     2,937 
  
    Less:
    Allowance for expected credit losses 
     (244) 
     (244)
  
    Accounts receivables,
    net 
    $2,649  
    $2,693 

The
Company’s allowance for expected credit loss was $244 thousand at June 30, 2025 and December 31, 2024. For the year
ended December 31, 2024, one of the Company’s borrowers for a note receivable was having financial difficulty securing additional
financing to pay the note. As such, the Company fully reserved the note balance and incurred a provision on credit loss of approximately
$244 thousand. In addition, the Company had a credit provision for approximately $516 thousand due to a pricing dispute with a Bitcoin
hosting customer, in which the agreement with the customer was terminated in December 2024. As of December 31, 2024, the Company wrote
off the entire allowance with the Bitcoin hosting customer of $516 thousand.

    11

Rollforward
of Allowance of Expected Credit Losses:

Schedule
of Allowance of Expected Credit Losses 

    (Dollars
    in thousands) 
    January
    1, 2025- June 30, 2025  
    January
    1, 2024 – December 31, 2024 

    Allow