Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 90

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 general and administrative expenses
    were not material.

Depreciation and Amortization associated with
general and administrative expenses: Depreciation and amortization expense was comparable for the three months ended March 31,
2025 and three months ended March 31, 2024 in which the balances totaled approximately $2.4 million, respectively. The balances mainly
related to amortization expense related to the strategic pipeline contract that was acquired in October 2021.

45

Interest expense: Interest expense for
the three months ended March 31, 2025 was approximately $837 thousand compared to the $424 thousand for the three months ended March 31,
2024. See table below noting the difference mainly relates to the new loans entered into in fiscal year 2024 and 2025 (June and July SPA,
Galaxy Loan, and equipment loan), which includes amortization of deferred financing costs.

    (Dollars in thousands) 
    Three months ended March 31, 

    2025  
    2024 

    NYDIG interest expense 
    $357  
    $361 
  
    Navitas interest expense 
     2  
     63 
  
    June SPA interest expense 
     389  
     - 
  
    July SPA interest expense 
     33  
     - 
  
    Galaxy loan interest expense 
     42  
     - 
  
    Equipment loan interest expense 
     15  
     - 
  
    Interest expense 
    $838  
    $424 

Gain (Loss) on Debt Extinguishment and Revaluation,
net: For the three months ended March 31, 2025, there was a gain on extinguishment of debt of approximately $551 thousand. The
gain was in relation to the fulfillment of the Assignment and Assumption Agreement for the Additional Notes on March 14, 2025.

For the three months ended March 31, 2024, the Company
incurred a $3.1 million loss on debt extinguishment and revaluation. On February 28, 2024, the Company entered into the Fourth Amendment
with the Noteholders and lowered the conversion price and issued new warrants and repriced additional warrants with certain exercise features.
The issuance and reprice of warrants created a loss of extinguishment of debt of approximately $5.8 million, in which was offset by a
gain on debt revaluation of the convertible debt of approximately