Company: SLNH
Filing Date: 2025-01-15
Form Type: S-1/A
Source: 0001493152-25-002391
Chunk: 218

Company: Soluna Holdings, Inc
Filing Date: 2025-01-15
Form: S-1/A
Chunk 218
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 exercise price reduced to $ 0.01(the “Repriced Warrants”), provided that prior to February 1, 2024, for each $ 31.33in Notes converted by a Noteholder, such Noteholder may exercise one Repriced Warrant and that on February 1, 2024, all Repriced Warrants became immediately exercisable.

With the Second Amendment on May 11, 2023, the principal value was reestablished to approximately $ 13.3million, and a new fair value was established at approximately $ 10.94million. The Second Amendment caused an extinguishment of debt of approximately $ 1.9million which includes a loss on revaluation of the debt of $ 554thousand and warrant valuation of New Class A and Class B warrants of $ 1.3million. In addition, there was a $ 250thousand extension fee cash payment that was included within “Other expense, net” on the consolidated financial statements for the year ended December 31, 2023. The Company had approximately $ 1.6million of note conversions between May 11, 2023 and November 20, 2023 (date of the Third Amendment).

The Company performed a fair value assessment as of November 20, 2023 due to the trigger of extinguishment of debt, and had a debt revaluation loss of approximately $ 911thousand, which included a valuation adjustment for the warrant repricing. The Company had approximately $ 3.1million of note conversions between November 21, 2023 through December 31, 2023. In addition, a fair value assessment was performed as of December 31, 2023, and a $ 584revaluation loss was recorded to adjust the fair value of the convertible debt to approximately $ 8.5million outstanding as of December 31, 2023. The Company has approximately an $ 8.7million principle balance outstanding for the convertible debt as of December 31, 2023.

| F-29 |

Promissory Notes

The Company had issued six promissory notes in fiscal year 2023 to certain holders totaling an aggregate principal balance of $ 900thousand in which were issued in $ 300thousand increments on January 13, 2023, February 3, 2023, and February 10, 2023. Each of the promissory notes accrued at an interest rate of 15% per