Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2189

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2189
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 up to an additional $112.5 million of capital raised, whether in the form of debt, equity, mixed or otherwise,
by Soluna Cloud and its subsidiaries and (ii) December 31, 2024 and (z) the number of shares of common stock of Soluna Cloud issuable
upon the exercise or conversion of any convertible securities of CloudCo issued during such period (other than certain issuances pursuant
to CloudCo’s equity compensation plans). On June 20, 2024, the Company determined that the warrant should be treated as a warrant
liability and based on valuation, the Company booked a warrant liability of approximately $314 thousand and a related debt discount which
will be amortized over the life of the loan.

On
July 12, 2024, the Company, CloudCo, Soluna Cloud, and the Investor entered into a First Amendment to the Note Purchase Agreement (the
“June SPA Amendment”). This amendment allows CloudCo to issue additional secured promissory notes totaling $1.25 million
(the “Additional Notes”) to new accredited investors (the “Additional Investors”). These Additional Notes are
subject to the same terms and conditions as the June SPA financing.

On October 1, 2024, CloudCo, Soluna Cloud and the Company entered
into assignment and assumption agreements (the “Assignment Agreements”) with the Additional Investors with respect to an
aggregate of $1.25 million of notes issued by CloudCo. Pursuant to the Assignment Agreements, the Company will be able to purchase such
notes for a purchase price of $750 thousand, or 60% of face value. The assignment and assumption will be effective once all conditions
of the agreement are met including fulfilling the purchase price. As of December 31, 2024, the assignment and assumption of the Additional
Notes had not become effective, however on March 14, 2025, the Company fulfilled the agreement and assumed the assignment and assumption
of the Additional Notes.

To
further incentivize the Additional Investors, Soluna Cloud issued warrants (the “Cloud Additional Warrants”) to each Additional
Investor. These Cloud Additional Warrants are exercisable within three years from the effective date of the June SPA Amendment. They
allow the purchase of a number of shares of Soluna Cloud common stock equal to 1.25% of Soluna Cloud’s issued and outstanding common
stock as of the Cloud Additional Warrant date, divided by 0.9875, plus