Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 121

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 121
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 us
to schedule future taxable income in accordance with accounting standards that address incomes taxes to assess the appropriateness of
a valuation allowance which further requires the exercise of significant management judgment.

The Company believes that the accounting
estimate for the valuation of deferred tax assets is a critical accounting estimate because judgment is required in assessing the likely
future tax consequences of events that have been recognized in our financial statements or tax returns. The Company based the estimate
of deferred tax assets and liabilities on current tax laws and rates and, in certain cases, business plans and other expectations about
future outcomes. In the event that actual results differ from these estimates, or the Company adjusts these estimates in future periods,
the Company may need to adjust the recorded valuation allowance, which could materially impact our financial position and results of
operations. The valuation allowance was $40.5
million and $36.8
million and on March 31, 2025 and December 31, 2024, respectively. We will continue to evaluate the ability to realize our deferred tax
assets and related valuation allowance on a quarterly basis.

 8. Debt

The following table represents total debt outstanding
by agreement as of March 31, 2025:

 Schedule of Total Debt Outstanding

    (Dollars in thousands): 
    Current portion of debt  
    Long term debt  
    Total 
  
    NYDIG financing 
    $9,183  
    $-  
    $9,183 
  
    Navitas term loan 
     -  
     -  
     - 
  
    June 2024 secured note 
     4,067  
     5,988  
     10,055 
  
    July 2024 additional secured note 
     -  
     -  
     - 
  
    Equipment loan 
     250  
     -  
     250 
  
    Galaxy loan 
     348  
     4,202  
     4,550 
  
    Total Debt 
    $13,848  
    $10,190  
    $24,038 

    13

The following table represents total debt outstanding
by agreement as of December 31, 2024:

    (Dollars in thousands): 
    Current portion of debt  
    Long term debt  
    Total 
  
    Convertible Notes 
    $-  
    $-  
    $