Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 715

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 715
---
 approximately $1.4 million, a financing loan
with Navitas of approximately $228 thousand, interest and other charges of approximately $212 thousand for the promissory notes issued
in January and February of 2023, and interest on amortization of warrants for the convertible debt of approximately $475 thousand, as
well as default interest charged through March 10, 2023 for the convertible holders of approximately $420 thousand.

Loss
on Debt Extinguishment and Revaluation, net: For the year ended December 31, 2024, we recorded a loss on debt extinguishment
and revaluation of approximately $7.3 million. On February 28, 2024, we entered into the Fourth Amendment Agreement with the Noteholders,
dated February 28, 2024 (the “Fourth Amendment”), and lowered the conversion price of the Convertible Notes as well as issued
new warrants and repriced additional warrants with certain exercise features. The issuance and reprice of warrants created a loss on
extinguishment of debt of approximately $5.8 million, which was partially offset by a gain on debt revaluation of the convertible debt
of approximately $1.3 million as of February 28, 2024 (date of the Fourth Amendment) and March 31, 2024 due to several factors including
assumptions on conversions and payouts, annual volatility, and stock price conditions on the dates of revaluations. In addition, there
was a revaluation of the warrant liability, as a result of which we recorded a gain on revaluation of approximately $1.5 million. We
also performed a fair value assessment of the Convertible Notes as of June 30, 2024, as a result of which we recorded a loss on revaluation
of approximately $4.0 million due to factors including assumptions on conversions and payouts, annual volatility, and stock price conditions
on the dates of revaluations compared to what the noteholders could convert at as of June 30, 2024. The Convertible Notes were revalued
again on September 30, 2024, as a result of which we recorded a gain of approximately $2.3 million due mainly to the change in the price
or our common stock offsetting the previous quarter assessments. In the fourth quarter of 2024, we had additional conversions and ultimately
fully converted the Convertible Notes payable creating an additional $247 thousand gain on debt extinguishment. As of December