Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2685

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 2685
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executive, management, employees, directors, and certain nonemployee personnel. The awards issued under the Plans can vest immediately,
over time or based upon the achievement of market, performance, or service conditions. RSAs and RSUs can vest immediately but generally
vest ratably over three years and Performance RSUs generally fully vest after three years, subject to achieving market, service or performance
conditions. In addition, the Company recognizes certain Awards held by certain employees and nonemployees that vest upon separation.
Each share granted subject to an Award reduces the number of shares available under the 2023 Plan and 2021 Plan by one share.

     F-32 

The
fair value of stock options is estimated based on the Black-Scholes model, taking into account the historical volatility of our stock,
consistent with the accounting guidance. The risk-free interest rate is based on the risk-free zero-coupon rate for a period consistent
with the expected option term at the time of grant. The expected option term is calculated based on our historical forfeitures and cancellation
rates.

During
April 2024, the Company cancelled certain vested Awards and modified the terms of certain unvested Awards, to permit different settlement
outcomes. The service period and vesting terms were changed at the time of modification. All such vested Awards were fully vested as
of the cancellation date and all compensation costs had been recognized. All such unvested equity awards were probable of vesting as of
the modification date and the change was accounted for as a Type I modification. In a Type I modification, the Company is required to
calculate the incremental difference of the awards, which equals the difference of new award value inclusive of estimated forfeitures
and the fair value of the original award as of the modification date. As of the modification date, there is no reversal or adjustment
of previously recognized stock compensation expenses.

Within
the 2021 and 2023 Plans, certain master grant agreements were executed on April 15, 2024 that have the potential for future additional
grants based on additional stock activity through certain anti-dilution provisions. A mutual understanding of the terms and conditions
for the specific awards cannot be obtained until a later date after all stock activity has occurred in the future period and necessary
approvals are obtained. When Board approval is obtained and the two grant conditions are met, the grant date will be identified and evidenced
through an additional restricted stock agreement. The compensation cost will be recognized per the vesting schedule within