Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 45

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 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.

The
following table represents the significant fair value assumptions used for warrants issued or repriced during the year ended December
31, 2024. No warrants were issued or repriced for the three and nine months ended September 30, 2025 in relation to the warrants issued
in conjunction with convertible notes.

Schedule of Fair Value Assumptions For Warrants Issued

    Year
                                            ended  December
                                            31, 2024 

    Stock price 
    $2.43-
                                            4.07 

    Exercise price 
    $0.01-
                                            287.50 

    Expected term in years 
     0.53
                                            – 8.77 

    Expected dividend yield 
     0.00%

    Volatility 
     105.0
                                            – 137.50%

    Risk-free interest rate 
     3.51-
                                            4.44%

    24

As
previously discussed in Footnote 1, the Company entered into the SEPA with YA 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:

    ●
    consent
    to the Company’s entry into the