Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 40

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
 Kati. The redemption of debt through equity created approximately a $1.7 million
loss on debt extinguishment for the three and nine months ended September 30, 2025.

Per
ASC 835-30-S45-1, debt issuance costs related to line of credits should be recorded as an asset and amortized over the life of the line
of credit agreement. As such, the Company recorded $64 thousand and $53 thousand within Prepaid expenses and other current assets as
of September 30, 2025 and December 31, 2024 and $40 thousand and $75 thousand within Other assets on the consolidated balance sheet as
of September 30, 2025 and December 31, 2024, of which approximately $16 thousand and $46 thousand has been amortized and recorded within
Interest Expense for the three and nine months ended September 30, 2025.

Navitas
Term Loan

Schedule of Navitas Term Loan 

    (Dollars in thousands) 
    Maturity
    Date 
    Interest
    Rate  
    January
    1, 2025- September 30, 2025  
    January
    1, 2024- December 31, 2024 
  
    Term Loan and capitalized interest
    (excludes debt issuance cost) 
    May 9, 2025* 
     15% 
    $137  
    $1,707 
  
    Less: principal and capitalized
    interest payments 

     (137) 
     (1,570)
  
    Total outstanding debt 

    $-  
    $137 

    *
    May
    9, 2025 was the maturity date, however, as noted below, the Navitas loan was fully paid off in the first quarter of 2025, and as
    such no longer remains outstanding.

    22

On
May 9, 2023, DVCC and Navitas West Texas Investments SPV, LLC entered into a 2-year Loan Agreement (“Navitas Term Loan”)
for $2,050,000. As of September 30, 2025, the Company has paid the remaining outstanding balance of $137 thousand, therefore fulfilling
its debt obligation with Navitas. Interest expense related to the Navitas Term Loan for the three and nine months ended September 30,
2025 was approximately $0 and $2 thousand,