Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 33

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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, respectively.

Dividends

Pursuant
to the Certificate of Designations, Preferences and Rights of 9.0% Series A Cumulative Perpetual Preferred Stock of the Company, dividends,
when, as and if declared by the Board (or a duly authorized committee of the Board), will be payable monthly in arrears on the final
day of each month, beginning August 31, 2021. The Board of Directors had not declared any Series A Preferred Stock dividends beginning
October 2022 through June 30, 2025, as such the Company has accumulated approximately $18.5 million of dividends in arrears on the Series
A Preferred Stock through December 31, 2024, and an additional $2.8 million and $5.6 million of dividends in arrears for the three and
six months ended June 30, 2025, for a total of approximately $24.1 million.

The
Company’s Series B Preferred Stock included a 10%
accruing dividend compounded daily for 12 months from the original issue date of July 20, 2022, and annually thereafter, that may be
paid in cash or stock at the Company’s option at the earlier of (i) the date the Series B Preferred Stock is converted, or
(ii) the Series B Dividend Termination Date. On August 11, 2023, the Company paid a mandatory dividend on its outstanding Series B
 Preferred Stock in the amount of approximately $656
thousand. Pursuant to the Certificate of Designation for the Series B Preferred Stock, the Company had the option to pay the
dividend in cash or shares of Common Stock. Pursuant to a Dividend Payment Agreement, the Company and the holder of the Series B
Preferred Stock agreed to satisfy the payment of the dividend through the issuance of 44,000
shares of its Common Stock and 70,300
pre-funded warrants (the “Pre-funded Warrants”).

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