Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 137

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 137
---
                                            – 3.78 
  
    Volatility 
     80.0
                                            – 115%
  
    Risk-free interest rate 
     4.73-
                                            5.46%

There were two additional amendments in fiscal year
2023. On February 28, 2024, the Company and the Noteholders entered into a Fourth Amendment Agreement to amend the Notes, SPA and related
agreements to facilitate future financings by the Company. In addition, the Company was permitted to unilaterally extend the maturity
date of the Notes for two 3-Month extensions if prior to the then in effect maturity date the Company gives notice to the Noteholders
and increases the principal amount of the Notes on the date of each such extension by two percent (2%) the principal amount of the Notes
outstanding on the date of such extension.

In consideration of the foregoing, the Company:

    ●
    Reduced the conversion price of the Notes to $3.78 per share;

    ●
    The Noteholders received an aggregate of 850,000 three year warrants exercisable at $0.01 per share;

    ●
    An aggregate of 320,005 warrants held by the Noteholders had the exercise price reduced to $3.78 per share (the “$3.78 Warrants”); and

    ●
    An aggregate of 478,951 warrants held by the Noteholders had the exercise price reduced to $6.00 per share (the “$6.00 Repriced Warrants”). For every one $6.00 Repriced Warrant exercised by a Purchaser, such Purchaser shall receive 1.36 new five-year warrants with an exercise price of $0.01, 1.6 new five-year warrants with an exercise price of $4.20, and 1.6 new five-year warrants with an exercise price of $5.70.

In June 2024, pursuant to
the Fourth Amendment Agreement, the Company exercised its right to extend the maturity date of the Notes for an additional six months,
or until January 24, 2025, to enable the Company to continue to pursue its significant project development opportunities for Soluna Cloud,
Dorothy 2, and other projects. The extension of the notes caused an increase in the convertible note balance of approximately $325 thousand
and the extension fee was recorded within Other Expense, net for the year ended December 31, 2024.

The effect of the additional