Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 74

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 74
---
 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 31, 2024,
no Convertible Notes remain outstanding. In addition, in the second quarter of fiscal year 2024, we performed a revaluation of the warrants
through May 30, 2024, the date of Annual Shareholder approval to approve the repricing of the existing warrants, as a result of which
we recorded a loss on revaluation of approximately $1.6 million. In addition to the revaluation of the Convertible Notes and warrants,
we also recorded an additional loss on debt extinguishment of approximately $1.4 million due to the satisfaction and redemption of the
Dorothy 2 equipment loan through issuance of Class B Membership interests in the Dorothy 2 project valued at three times the borrowing
amount (i.e., $2.16 million).

50

We
incurred a loss on debt extinguishment and revaluation of approximately $3.9 million for the year ended December 31, 2023. On May 11,
2023, we entered into a new debt amendment agreement (the “Second Amendment”) with the Noteholders and issued new warrants,
creating a loss on debt extinguishment of approximately $1.8 million. The main factor for the loss was the valuation of the new warrants.
On November 20, 2023, we entered into another amendment with the convertible noteholders (the “Third Amendment”) and incurred
an additional loss on extinguishment and revaluation of approximately $911 thousand. With quarterly fair value assessments and conversions
of debt throughout the year ending December 31, 2023, we incurred an additional loss on revaluation of approximately $1.2 million with
changes in annual volatility of the debt at