Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 41

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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 day of the month, as published in the Wall Street Journal. At the Company’s
option, all or part of the principal and interest due on this Note may be converted to shares of common stock of MeOH Power, Inc. at
a rate of $0.07 per share. Interest began accruing on January 1, 2014. The Company recorded a full allowance against the Note. As of
June 30, 2025 and December 31, 2024, $394 thousand and $385 thousand, respectively, of principal and interest are available to convert
into shares of common stock of MeOH Power, Inc. Any adjustments to the allowance are recorded as miscellaneous expense during the period
incurred.

Employee
Receivables

Certain
employees have a receivable due to the Company based on their stock-based awards, in which $128
thousand and $178
thousand was outstanding as of June 30, 2025 and December 31, 2024, respectively. The balance is currently presented as $31
thousand and $82
thousand, respectively within Prepaid expenses and other current assets as of June 30, 2025 and December 31, 2024, and $97
thousand and $96
thousand, respectively within Other assets on the condensed consolidated financial statements.

HEL
Transactions

As
discussed in the Company’s 2023 Annual Report and all agreements included as exhibits and defined within the 2023 Annual Report,
on October 29, 2021, the Company completed the Soluna Callisto acquisition pursuant to the merger agreement (the “Merger Agreement”).
The purpose of the transaction was for SCI to acquire substantially all of the assets (other than those assets physically located in
Morocco) formerly held by Harmattan Energy, Ltd. (“HEL”), which assets consisted of SCI’s existing pipeline of certain
cryptocurrency mining projects that HEL previously transferred to SCI, which was formed expressly for this purpose, and to provide SCI
with the opportunity to directly employ or retain the services of four individuals whose services it had retained through HEL prior to
the merger. As a result of the merger, each share of common stock of Soluna Callisto issued and outstanding immediately prior to the
effective time of the merger, other than shares owned by the Company or any of our subsidiaries, was cancelled and converted into the
right to receive a proportionate share of the Merger Consideration.

In
connection with