Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 143

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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 arrears on the Series A Preferred Stock through December 31, 2024,
and an additional $2.8 million of dividends in arrears for the three months ended March 31, 2025, for a total of approximately $21.3 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 Convertible
Preferred Stock in the amount of approximately $656 thousand. Pursuant to the Certificate of Designation for the Series B 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 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 $165 thousand
for the three months ended March 31, 2025, for a total of approximately $1.1 million. The dividends in arrears are included in the calculation
of net loss per share as discussed below.

    22

Standby Equity Purchase Agreement

On August 12, 2024, the Company entered into the SEPA
with YA. Pursuant to the terms of the SEPA, the Company agreed to issue and sell to YA, from time to time, and YA agreed to purchase from
the Company, up to $25 million of shares of the Company’s common