Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 49

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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2022 through September 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 $8.3 million of dividends in arrears for the three
and nine months ended September 30, 2025, for a total of approximately $26.9 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 relation to the Series B Preferred Stock through
December 31, 2024 and an additional $173 thousand and $508 thousand for the three and nine months ended September 30, 2025, for a total
of approximately $1.4 million. The dividends in arrears are included in the calculation of net loss per share as discussed below.

Standby
Equity Purchase Agreement

On
August 12, 2024, the Company entered into the SEPA with YA. Pursuant to the terms of the