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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 10. Commitments and Contingencies Commitments: Leases The Company determines whether an arrangement is a lease at inception. The Company and its subsidiaries have operating leases for certain manufacturing, laboratory, office facilities and certain equipment. The leases have remaining lease terms of approximately three years to 22twenty-two years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2025 and December 31, 2024, the Company has no assets recorded under finance leases. Lease expense for these leases is recognized on a straight-line basis over the lease term. For the three and nine months ended September 30, total lease costs are comprised of the following: Summary of Lease Expense Recognized on Straight-line Basis Over Lease Term
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
(Dollars in thousands) |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Operating lease cost |  | $ | 70 |  |  | $ | 17 |  |  | $ | 106 |  |  | $ | 139 |
Short-term lease cost |  |  | 13 |  |  |  | — |  |  |  | 50 |  |  |  | — |
Total net lease cost |  | $ | 83 |  |  | $ | 17 |  |  | $ | 156 |  |  | $ | 139 |
Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related asset or liability for such leases. On April 3, 2025, Soluna KK Energy ServiceCo, LLC (“Soluna KK Energy”), a subsidiary of the Company, entered into a lease agreement for 50 acres of property located in Willacy County, Texas, for the purpose of constructing, installing, operating, and maintaining modular data centers and related facilities. Soluna KK Energy can terminate the lease within six months of April 3, 2025. Through July 2025, there was uncertainty over project funding and whether the Company would extend the lease agreement. As such, the Company recorded the lease agreement as short-term. In August 2025, Soluna KK Energy extended the lease agreement for the additional term of twenty-two years. Accordingly, the Company recorded a right-of-use asset and lease liability. Other information related to leases was as follows: Schedule of Other Information Related to Leases
|  | Nine Months Ended September 30, 2025 |
Weighted Average Remaining Lease Term (in years): |  |  |  |
Operating leases |  |  | 20.39 |
Weighted Average Discount Rate: |  |  |  |
Operating leases |  |  | 6.34 | %
(Dollars in thousands) |  | Nine Months Ended September 30, 2025 |  |  | Nine Months Ended September 30, 2024 |
Supplemental Cash Flows Information: |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 109 |  |  | $ | 141 |
Non-Cash Activity Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Operating leases |  | $ | 3,441 |  |  | $ | - |
Maturities of noncancellable operating lease liabilities are as follows for the quarter ending September 30: Schedule of Maturity of Operating Lease Liabilities
(Dollars in thousands) |  |  |
|  | 2025 |
2025 (remainder of year) |  | $ | 91 |
2026 |  |  | 314 |
2027 |  |  | 320 |
2028 |  |  | 272 |
2029 |  |  | 279 |
Thereafter |  |  | 5,643 |
Total lease payments |  |  | 6,919 |
Less: imputed interest |  |  | (3,240 | )
Total lease obligations |  |  | 3,679 |
Less: current obligations |  |  | (96 | )
Long-term lease obligations |  | $ | 3,583 |
As of September 30, 2025, there were no additional operating lease commitments that had not yet commenced. Project Dorothy 2 and Project Kati Commitments: As of September 30, 2025, the Company was contractually committed for approximately $11.9 million of capital expenditures, primarily related to infrastructure builds, equipment procurement, and labor associated with the Company’s Project Dorothy 2 and Project Kati datacenters. These capital expenditures are expected to occur over the current year. Contingencies: Spring Lane Capital Contingency The Company has a potential contingency associated with an agreement with SLC of up to $250 thousand which would be reduced by a proportion of funding received from SLC up to the $45.0 million aggregate contribution cap. The Company considers the probability of a payment for the contingency to be remote. Legal We are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. When applicable, we accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred. On December 29, 2022, NYDIG filed a complaint against the Soluna Parties in the Court regarding the NYDIG Loans made by NYDIG to Borrower pursuant to a Master Equipment Finance Agreement, dated December 30, 2021, that were secured by certain assets of Borrower and guaranteed by Guarantor pursuant to a written guaranty agreement. The Soluna Parties and NYDIG entered into a Stipulation and Agreed Judgment which was approved by the Court on February 23, 2024, whereby judgment was granted to NYDIG on the counts in the complaint and the Soluna Parties became jointly and severally liable for an aggregate amount of approximately $9.2 million plus interest (the “Agreed Judgment Amount”). On September 29, 2025, the Soluna Parties and NYDIG entered into a Settlement Agreement (the “Settlement Agreement”), pursuant to which the Soluna Parties and NYDIG agreed to fully settle and resolve the Agreed Judgment Amount and all other matters relating to the NYDIG Loans in exchange for the Soluna Parties’ agreement to make certain settlement payments to NYDIG in accordance with the Settlement Agreement. As of the date of filing these condensed financial statements, the Settlement Agreement has been fully satisfied and paid.

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