Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1643

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1643
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 new 140,000
warrants is subject to a 12-month lockup, followed by a 12 month leak out where the holder may not sell shares during the lockup period
and may sell up to 1/12th of total conversion and warrant exercise shares per month during the leak out. The effects of the
modification of the Series B Preferred Stock on October 1, 2024, including repriced and newly issued penny warrants, and dividend amendments,
created an extinguishment on the Series B preferred stock in which the Company recorded a deemed dividend of approximately $1.7 million
which relates to the fair value consideration of the modified preferred stock less the original carrying value, excluding the consideration
of the Preferred B dividend as discussed below.

Common
Stock

The
Company has one class of common stock, par value $0.001 per share. Each share of the Company’s common stock is entitled to one
vote on all matters submitted to stockholders. As of December 31, 2024 and December 31, 2023, there were 10,607,020 and 2,505,620 shares
of common stock outstanding, respectively.

Dividends

Pursuant
to the Certificate of Designations, Preferences and Rights of 9.0% Series A Cumulative Perpetual Preferred Stock of the Company, dividends,
when, as and if declared by the Board (or a duly authorized committee of the Board), will be payable monthly in arrears on the final
day of each month, beginning August 31, 2021. The Board of Directors had not declared any Series A Preferred Stock dividends beginning
October 2022 through December 31, 2024, 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.

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