Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 845

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 845
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 liability as of the date of shareholder approval
and reclassified balance to equity. As such, the Company accounted for the change in the fair value of the warrant liability as of the
date of the shareholder approval (May 30, 2024), in connection with its loss on revaluation of the warrant of approximately $1.6 million.

Pursuant
to additional agreements with holders of another 51,618 outstanding warrants, similar adjustments with those warrants, resulted in a
total adjustment to 530,569 warrants. As the 51,618 warrants were not with the Noteholders, the treatment of $6.00 repriced warrants
was recorded as a deemed dividend and adjusted the Company’s earnings per share calculation noted in Footnote 11 for the year ended
December 31, 2024. The fair value associated with the 51,618 warrants with non-Noteholders totaled approximately $386 thousand. On
May 17, 2024, the Company permitted the holders of the Company’s Amended Class C Warrants, previously exercisable at $6 per share,
to exercise such warrants at a reduced exercise price of $4 per share, provided that each such holder exercised at least 61.83% of their
Amended Class C Warrants by the close of business on May 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.

As
previously discussed in Footnote 1, the Company entered into a SEPA with YA II PN, LTD 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:

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