Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 217

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 217
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”).

     F-29 

Effective
October 1, 2024 the dividend payment obligation has been modified to be annual. The amendment resulted in annual dividend payments going
forward. As a result of the amendment, the Company would be obligated to make annual dividend payments for the period starting from July
2023 as per the Series B Preferred Consent and Waiver, however, the board of directors has not yet declared any dividends for that period.
As such, the Company has accumulated approximately $941 thousand dividends in arrears in relation to the Series B Preferred Stock. The
dividends in arrears are included in the calculation of net loss per share as discussed in Note 11.

Standby Equity Purchase Agreement

On August 12, 2024, the Company entered into a Standby
Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD., a Cayman Islands exempt limited company (“YA”). Pursuant
to the terms of the SEPA, the Company agreed to issue and sell to YA, from time to time, and YA agreed to purchase from the Company, up
to $25 million of shares of the Company’s common stock (the “SEPA Shares”). The Company paid a commitment fee of approximately
$250 thousand to YA and consent fee of $25 thousand to the Series B holder, which was paid through issuance of 65,320 shares of common
stock. The commitment and consent fees were recorded within Other expense, net on the Company’s consolidated financial statements.
The Company and YA also entered into a registration rights agreement, pursuant to which the Company agreed to prepare and file with the
SEC a Registration Statement on Form S-1, registering the resale of the SEPA Shares. On November 12, 2024, the Company filed a registration
statement on Form S-1 (File No. 333-282559) with the SEC for the resale by YA of 3,000,000 SEPA Shares, which was declared effective by
the SEC on February 5, 2025. As of the date of this Annual Report, the Company has issued and sold approximately 1.5 million shares of
common stock to YA pursuant to the SEPA for aggregate net proceeds to the Company of approximately $2.0 million.

Reservation
of Shares

The
Company had reserved common shares for future issuance as follows as of December 31, 2024:

Schedule of Reserved Shares of Common Stock for Future Issuance