Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 60

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 60
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 shareholders of record of our common stock. The number
of shareholders of record does not reflect the number of persons whose shares are held in nominee or “street” name accounts
through brokers.

Dividends

As
of December 31, 2024, we had 4,953,545 shares of our Series A Preferred Stock outstanding, which pursuant to the Certificate of Designations,
Preferences and Rights of 9.0% Series A Cumulative Perpetual Preferred Stock, of the Company entitle such holders to monthly dividends,
when, as and if declared by our board of directors. Our board of directors had not declared any Series A Preferred Stock dividends beginning
October 2022 through December 31, 2023, as such the Company has accumulated approximately $8.6 million of dividends in arrears on the
Series A Preferred Stock through December 31, 2023, and an additional $9.9 million of dividends in arrears for the year ended December
31, 2024, for a total of approximately $18.5 million.

Our
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 (as defined in the Certificate of Designation of the Series
B Preferred Stock). 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, we 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, we have accumulated approximately $941 thousand dividends in arrears in relation to the Series
B Preferred Stock.

The
Company does not intend to pay dividends on our common stock and do not anticipate or contemplate paying cash dividends on our common
stock in the foreseeable future. We currently intend to use all available funds to develop our business. We can give no assurance that
we will ever have excess funds available to pay dividends. Any future determination as to the payment of dividends will depend upon critical
requirements and limitations imposed by our credit