Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2351

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2351
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0.9875. On July 12,
2024, the Company determined that the additional warrants to be treated as a warrant liability and based on valuation, the Company booked
a warrant liability of approximately $13 thousand and a related debt discount in which will be amortized over the life of the loan.

A
“Qualified Issuance” includes any issuance of common stock by Soluna Cloud from the day after the Cloud Additional Warrant
date until the earlier of raising an additional $111.25 million or December 31, 2024, as well as shares issuable upon exercise or conversion
of convertible securities issued during this period, excluding certain equity compensation plan issuances.

For
the year ended December 31, 2024, the Company incurred approximately $901 thousand in interest expense in relation to the June SPA and
June SPA Amendment.

June
SPA Modification 

On March 23, 2025, the Note
Parties entered into a Modification Agreement (the “Modification Agreement”) to, among other things, (i) provide for the deposit
of 1,000,000 shares (the “Escrow Shares”) of the Company’s common stock, par value $0.001 per share (the “Common
Stock”), into an escrow account maintained by Northland Securities, Inc., pursuant to an escrow agreement (as further described
below), (ii) provide for the issuance to the Investor of a warrant to purchase shares of Common Stock upon the release by the Investor
of its lien on the property of the Company, (iii) amend the payment schedule of the Note to provide (a) for each of the six scheduled
payments occurring after the earlier of the effectiveness of a registration statement for the resale of the Escrow Shares and the Conversion
Shares (as defined below) or the date that the Escrow Shares and the Conversion Shares may be sold pursuant to Rule 144 under the Securities
Act of 1933, as amended (the “Securities Act”), without any information requirements, the amount of principal and interest
payable on such date shall be reduced by 50% (the aggregate amount of the six months of such reductions, the “Specified Amount”)
and (b) if the aggregate amount of payments on the Amended Note applied from the proceeds of the sale of the Escrow Shares on or prior
to the last six scheduled payments is less than the Specified Amount (such difference, the “Make Whole Amount”), than the
amount of each of