Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 29

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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 17, 2024. The Company also agreed to reduce the exercise price on all remaining
Amended Class C Warrants. The adjustment in the exercise price, resulted in an additional deemed dividend which amounted to approximately
$66 thousand for the year ended December 31, 2024.

For
the year ended December 31, 2024, 529,161 of the Amended Class C warrants have been exercised by both the Noteholders and non-Noteholders,
resulting in the issuance of 719,658 shares of $0.01 warrants, 846,657 shares of $4.20 warrants, and 846,657 shares of $5.70 warrants.

The
following table represents the significant fair value assumptions used for warrants issued or repriced during the year ended December
31, 2024. No warrants were issued or repriced for the three and six months ended June 30, 2025.

 Schedule of Fair Value Assumptions For Warrants Issued 

    Year
    ended  December 31, 2024 

    Stock
    price 
    $2.43-
                                            4.07 

    Exercise
    price 
    $0.01-
                                            287.50 

    Expected
    term in years 
     0.53
                                            – 8.77 

    Expected
    dividend yield 
     0.00%

    Volatility 
     105.0
                                            – 137.50%

    Risk-free
    interest rate 
     3.51-
                                            4.44%

    21

As
previously discussed in Footnote 1, the Company entered into the SEPA with YA on August 12, 2024. Access to the SEPA was subject to a
number of conditions precedent including, but not limited to, various consents from the Company’s Note Holders. On October 1, 2024,
the Noteholders entered into a Consent, Waiver, and Mutual Release Agreement (the “Master Consent”) which provides the following:

    ●
    consent
    to the Company’s entry into the SEPA;

    ●
    waiver
    of any rights of first refusal or participation rights in connection with the SEPA;

    ●
    standstill
    of the rights to exercise certain $0.01 warrants pursuant to the SPA;

    ●
    the
    right to prepay the convertible notes with a