Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1611

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1611
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 generated over the estimated
life of the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the assets exceeds the fair value of the assets. During the year ended December 31, 2024 and 2023, the
Company has impaired approximately $130 thousand and $575 thousand, respectively, of property, plant, and equipment, and there was no
impairment for the intangible assets for the year ended December 31, 2024 and 2023.

     F-15 

Cash
and Cash Equivalents

Cash
and cash equivalents consist of cash and highly liquid short-term investments with original maturities of less than three months.

Restricted
Cash

Restricted
cash relates to cash that is legally restricted as to withdrawal and usage or is being held for a specific purpose and thus not available
to the Company for immediate or general business use. As of December 31, 2024, the Company had restricted cash of approximately $2.6
million, in which $1.1 million was classified as current and $1.5 million was classified as non-current. As of December 31, 2023, the
Company had restricted cash of approximately $4.0 million, of which $3.0 million was classified as current and $1.0 million was classified
as non-current. Currently, the balance in restricted cash relates to a restricted deposit held with a customer that was for less than
12 months. The Company has a long-term restricted cash balance in relation to a collateralized deposit.

Warrant
Liability

Under
the guidance in ASC 815, Derivatives and Hedging (ASC 815), certain Company warrants associated with the Fourth Amendment described
further in Note 8 on February 28, 2024 did not meet the criteria for equity treatment, due to being subject to shareholder approval,
the cap containment provision. As such, the warrants were recorded on the balance sheet at fair value. This valuation was subject to
re-measurement at each balance sheet date. With each re-measurement, the warrant valuation was adjusted to fair value, with the change
in fair value recognized in the Company’s consolidated Statement of Operations. On May 30, 2024, shareholder approval was obtained
removing the cap containment provision, and as such, the liability accounting treatment was no longer required. Since all other criteria
were met