Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 148

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 148
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 classified as current and $5.5 million was classified as non-current. As of December 31, 2024, the
Company had restricted cash of approximately $2.6 million, of which $1.1 million was classified as current and $1.5 million was classified
as non-current. Currently, the balance in restricted cash relates to restricted deposits held with customers that were for less than
12 months, or for debt covenant purposes. The Company has a long-term restricted cash balance in relation to a collateralized deposit.

Deposits
and Credits on equipment

As
of September 30, 2025 and December 31, 2024, the Company had approximately $813
thousand and $5.1
million, respectively, in deposits and credits on equipment that had not yet been received by the Company. Once the Company receives
such equipment in a subsequent period, the Company will reclassify such balance into Property, Plant and Equipment, net. Included in
the December 31, 2024 balance was a credit on equipment of $975
thousand, of which approximately $195
thousand had been used as of September 30, 2025, and the remaining $780
thousand to be used on future purchases for Project Dorothy 2 and Project Kati until September 1, 2025 (“expiration
date”). The Company did not execute an order by the expiration date, and no further extension was granted, and as  such
the credit was forfeited. The Company recorded a loss on the credit deposit of approximately $780
thousand which was included in Loss on sale of fixed assets and credit on equipment deposit on the condensed financial statements for
the three and nine months ended September 30, 2025.

Debt
Issuance Costs

Debt
issuance costs consist of costs incurred in obtaining long-term financing. These costs are classified on the condensed consolidated balance
sheet as a direct deduction from the carrying amount of the related debt liability and subsequently amortized as interest expense in
the condensed consolidated statement of operations using the effective interest rate method.

The
Company evaluates amendments to its debt instruments in accordance with ASC 470-50, Debt - Modifications and Extinguishments (“ASC
470”) to determine whether the amendment should be accounted for as a modification or an extinguishment. An amendment may be considered
modified when the terms of the new debt and original instrument are not “substantially different” (as defined in the