Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1695

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1695
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6 million was offset to the liability, leaving a net liability balance of $20.0
million as of December 31, 2024.

Interest
expense: Interest expense for the year ended December 31, 2024 was approximately $2.5 million related to approximately $1.5 million
to the NYDIG loan, $900 thousand to compounded interest and deferred financing amortization expense of equipment financing loan and June
and July 2024 secured note financing, and $138 thousand to the Navitas loan. Interest expense for the year ended December 31, 2023 was
$2.7 million and related to default and continuing interest expense of the NYDIG loan of approximately $1.4 million, a financing loan
with Navitas of approximately $228 thousand, interest and other charges of approximately $212 thousand for the promissory notes issued
in January and February of 2023, and interest on amortization of warrants for the convertible debt of approximately $475 thousand, as
well as default interest charged through March 10, 2023 for the convertible holders of approximately $420 thousand.

Loss
on Debt Extinguishment and Revaluation, net: For the year ended December 31, 2024, we recorded a loss on debt extinguishment
and revaluation of approximately $7.3 million. On February 28, 2024, we entered into the Fourth Amendment Agreement with the Noteholders,
dated February 28, 2024 (the “Fourth Amendment”), and lowered the conversion price of the Convertible Notes as well as issued
new warrants and repriced additional warrants with certain exercise features. The issuance and reprice of warrants created a loss on
extinguishment of debt of approximately $5.8 million, which was partially offset by a gain on debt revaluation of the convertible debt
of approximately $1.3 million as of February 28, 2024 (date of the 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 revaluations. In addition, there
was a revaluation of the warrant liability, as a result of which we recorded a gain on revaluation of approximately $1.5 million. We
also performed a fair value assessment of the Convertible Notes as of June 30, 2024, as a result of which we recorded a loss on revaluation
of approximately $4