Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 93

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 February 28, 2024 (date of Fourth Amendment) and March 31, 2024 due to several factors including
assumptions on conversions and payouts, annual volatility, and stock price conditions on the dates of valuations. In addition, there was
a revaluation of the warrant liability which created a gain on revaluation of approximately $1.5 million. The Company did a fair value
assessment of the notes as of June 30, 2024, which created a loss on revaluation of approximately $4.0 million, as noted above. In addition,
in the second quarter of fiscal year 2024, the Company did a revaluation of the warrants through May 30, 2024, the date of Annual Shareholder
approval, which created a loss on revaluation of approximately $1.6 million.

Other
expense, net: Other expense, net increased by approximately $835 thousand for the six months ended June 30, 2025 compared to
June 30, 2024. For the six months ended June 30, 2025, we incurred approximately $118 thousand in fair value adjustments due to the timing
of the SEPA draws and when such shares were issued, $456 thousand financing expense mainly in relation to consent fees for the SEPA and
ATM Agreement draws, and we incurred a loss compensation cost of approximately $291 thousand in relation to the Las Majadas wind farm.
For the six months ended June 30, 2024, other expense, net was approximately $25 thousand, related to an extension fee expense of approximately
$325 thousand for the Convertible Notes, offset with a gain on settlement of litigation with Atlas of approximately $254 thousand, in
addition to some small additional other income items.

Net
(loss) income attributable to non-controlling interest: We incurred a net loss attributable to non-controlling interest for the
six months ended June 30, 2025 compared to a net income attributable to non-controlling interest for the six months ended June 30, 2024.
The decrease related mainly due the variances in gross profit related to D1A and D1B noted above mainly due to the halving event in April
2024 and the increase in profit sharing fees for data hosting for the six months ended June 30, 2025, which created an approximate $3.6
million variance between periods in non-controlling interest. In addition, in the second quarter of 2025