Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 59

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 thousand and $82 thousand, respectively
within Prepaid expenses and other current assets as of September 30, 2025 and December 31, 2024, and $97 thousand and $96 thousand, respectively
within Other assets on the condensed consolidated financial statements.

HEL
Transactions

As
discussed in the Company’s 2023 Annual Report and all agreements included as exhibits and defined within the 2023 Annual Report,
on October 29, 2021, the Company completed the Soluna Callisto acquisition pursuant to the merger agreement (the “Merger Agreement”).
The purpose of the transaction was for SCI to acquire substantially all of the assets (other than those assets physically located in
Morocco) formerly held by Harmattan Energy, Ltd. (“HEL”), which assets consisted of SCI’s existing pipeline of certain
cryptocurrency mining projects that HEL previously transferred to SCI, which was formed expressly for this purpose, and to provide SCI
with the opportunity to directly employ or retain the services of four individuals whose services it had retained through HEL prior to
the merger. As a result of the merger, each share of common stock of Soluna Callisto issued and outstanding immediately prior to the
effective time of the merger, other than shares owned by the Company or any of our subsidiaries, was cancelled and converted into the
right to receive a proportionate share of the Merger Consideration.

In
connection with the Soluna Callisto acquisition, effective as of October 29, 2021, upon and subject to the terms and conditions of the
Termination Agreement, on November 5, 2021: (1) the existing Operating and Management Agreements between HEL and SCI were terminated
in all respects; and (2)(A) SCI paid HEL $725 thousand, (B) SHI issued to HEL the Termination Shares, and (C) HEL and SHI entered into
an Amended and Restated Contingent Rights Agreement that, among other things, amended the existing Contingent Rights Agreement by and
between HEL and SHI, dated January 13, 2020, to provide SHI the right to invest directly in certain cryptocurrency mining opportunities
being pursued by HEL. SHI filed a registration statement with the SEC to register the resale of the Termination Shares on February 14,
2022.

Due
to conditions being met within the Merger Agreement in relation to energization and retention of employees, the Company has advised SCI
US Holdings LLC, a Delaware limited