Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3305

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 3305
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 as of the first trading day of each quarter. The amendment to the Plan would change
this limitation to 22.75% from the first quarter of our fiscal year ending December 31, 2025 through the second quarter of our fiscal
year ending December 31, 2027. However, under the amendment to the Plan, effective at the end of the second quarter of our fiscal year
ending December 31, 2027 the percentage will revert to 18.75% of the number of Common Shares outstanding as of the first trading day
of each quarter.

Under
the 2023 Plan and 2021 Plan, the Company may grant stock options, restricted stock awards (RSAs) and restricted stock units (RSUs) to
executive, management, employees, directors, and certain nonemployee personnel. The awards issued under the Plans can vest immediately,
over time or based upon the achievement of market, performance, or service conditions. RSAs and RSUs can vest immediately but generally
vest ratably over three years and Performance RSUs generally fully vest after three years, subject to achieving market, service or performance
conditions. In addition, the Company recognizes certain Awards held by certain employees and nonemployees that vest upon separation.
Each share granted subject to an Award reduces the number of shares available under the 2023 Plan and 2021 Plan by one share.

     F-32 

The
fair value of stock options is estimated based on the Black-Scholes model, taking into account the historical volatility of our stock,
consistent with the accounting guidance. The risk-free interest rate is based on the risk-free zero-coupon rate for a period consistent
with the expected option term at the time of grant. The expected option term is calculated based on our historical forfeitures and cancellation
rates.

During
April 2024, the Company cancelled certain vested Awards and modified the terms of certain unvested Awards, to permit different settlement
outcomes. The service period and vesting terms were changed at the time of modification. All such vested Awards were fully vested as
of the cancellation date and all compensation costs had been recognized. All such unvested equity awards were probable of vesting as of
the modification date and the change was accounted for as a Type I modification. In a Type I modification, the Company is required to
calculate the incremental difference of the awards, which equals the difference of new award value inclusive of estimated forfeitures
and the fair value of the original