Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1905

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1905
---
 the option of the investors, into an aggregate of 71,043 shares of our common stock. On May 11, 2023,
we and the Noteholders entered into the Second Amendment with the Noteholders, which increased the principal outstanding balance of the
Convertible Notes to approximately $13.3 million and extended the maturity date of the Convertible Notes to July 2024. On November 20,
2023 we and the Noteholders entered into the Third Amendment to the SPA related agreements to facilitate future financings by us that
may include funds for prepayment of the Convertible Notes by permitting us to force conversion of up to $1.5 million of the Convertible
Notes under certain circumstances and reduce the prepayment penalty in return for reducing the conversion price of the $4.7 million of
the Convertible Notes to $3.78 and reducing the exercise price of 150,000 of the Warrants to $0.01.Between May 11, 2023 and December
31, 2023, the Noteholders converted approximately $4.6 million of the principal outstanding balance of the Convertible Notes and received
approximately 1.1 million shares of our common stock, reducing the principal balance to approximately $8.7 million as of December 31,
2023. On February 28, 2024, we and the Noteholders entered into the Fourth Amendment which allowed all the outstanding debt in relation
to the convertible notes to be converted at a rate of $3.78. Throughout fiscal year 2024, the Noteholders converted the remainder of
the outstanding principal balance under the Notes into approximately 2.5 million shares of our common stock. On
December 12, 2024, we entered into an agreement with the remaining three Noteholders who held an outstanding principal balance as December
12, 2024 of $772 thousand, pursuant to which the three remaining Noteholders elected to immediately convert all of the outstanding principal
of certain convertible notes into shares of our common stock. We recorded a debt inducement conversion expense of approximately $388
thousand in connection with an agreement with the last three remaining Noteholders to convert their portion of the outstanding principal
balance, which was recorded within Other Expense, net on the consolidated financial statements included in this Annual Report. No further
amounts are owed by us under the Convertible Notes as of December 31, 2024.

On
May 9, 2023, DVCC and Navitas West