Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 75

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 75
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 each quarter end, in addition to note conversions that occurred throughout the year. See
Note 8 to our consolidated financial statements included in this Annual Report for further
details.

Other
expense, net: For the year ended December 31, 2024, other expense, net was approximately $3.4 million respectively, compared
to $1.5 million for the year ended December 31, 2023. The increase in other expense, net, for the year ended December 31, 2024 was primarily
as a result of $1.0 million general release agreement with our former placement agent; approximately $1.9 million in consent fees, waiver
fees, and other financing expenses in relation to the SEPA and related consents for the SEPA on October 1, 2024; a conversion debt inducement
expense of approximately $388 thousand; and an extension fee expense of approximately $325 thousand, partially offset by a gain on settlement
of litigation with Atlas of approximately $254 thousand. For the year ended December 31, 2023, other expense, net was approximately $1.5
million, consisting of primarily an approximate $1.0 million penalty charge in relation to moving further in the settlement litigation
with NYDIG and a $250 thousand expense in relation to an extension fee for the Noteholders when the Second Amendment was signed on May
11, 2023, in addition to the prepayment penalty for the notes payable in the third quarter of fiscal 2023.

Income
Tax Benefit: Income tax benefit for the year ended December 31, 2024 was approximately $2.5 million, compared to approximately
$1.1 million thousand for the year ended December 321, 2023. The balances were mainly related to deferred tax amortization impact of
acquiring an asset in a transaction that is not a business combination when the amount paid exceeds the tax basis on the acquisition
date. As such, we are required to adjust the value of the strategic contract pipeline by approximately $10.9 million at inception date
(October 29, 2021), in which was recorded as a deferred tax liability and this amount will be amortized over the life of the asset. For
the year ended December 31, 2024 and 2023, we amortized approximately $2.2 million in each year, respectively. In addition, for the year
ended December 31, 2023, there were timing differences