Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 270

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 270
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 determining its valuation allowance. In addition, the Company’s assessment requires us to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance which further requires the exercise of significant management judgment.

The Company believes that the accounting estimate for the valuation of deferred tax assets is a critical accounting estimate because judgment is required in assessing the likely future tax consequences of events that have been recognized in our financial statements or tax returns. The Company based the estimate of deferred tax assets and liabilities on current tax laws and rates and, in certain cases, business plans and other expectations about future outcomes. In the event that actual results differ from these estimates, or the Company adjusts these estimates in future periods, the Company may need to adjust the recorded valuation allowance, which could materially impact our financial position and results of operations. The Company has a full valuation allowance for the deferred tax asset of $ 36.7million and $ 36.8million on September 30, 2024 and December 31, 2023, respectively. We will continue to evaluate the ability to realize our deferred tax assets and related valuation allowance on a quarterly basis.

| F-61 |

7. Debt

The following table represents total debt outstanding by agreement as of September 30, 2024:

Schedule of Total Debt Outstanding

| (Dollars in thousands):           |     | Convertible notes payable |       |     | Current portion of debt |        |     | Long term debt |       |     | Total |        |
|:----------------------------------|:----|:--------------------------|------:|:----|:------------------------|-------:|:----|:---------------|------:|:----|:------|-------:|
| Convertible Notes                 |     | $                         | 3,370 |     | $                       |      - |     | $              |     - |     | $     |  3,370 |
| NYDIG financing                   |     |                           |     - |     |                         |  9,183 |     |                |     - |     |       |  9,183 |
| Navitas term loan                 |     |                           |     - |     |                         |    292 |     |                |     - |     |       |    292 |
| June 2024 secured note            |     |                           |     - |     |                         |  3,781 |     |                | 8,100 |     |