Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 183

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 183
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 the amount of approximately $656 thousand. Pursuant to the Certificate
of Designation for the Series B Preferred Stock, the Company had the option to pay the dividend in cash or shares of Common Stock. Pursuant
to a Dividend Payment Agreement, the Company and the holder of the Series B Preferred Stock agreed to satisfy the payment of the dividend
through the issuance of 44,000 shares of its Common Stock and 70,300 pre-funded warrants (the “Pre-funded Warrants”).

Effective
October 1, 2024, the dividend payment obligation has been modified to be annual. The amendment resulted in annual dividend payments going
forward. As a result of the amendment, the Company would be obligated to make annual dividend payments for the period starting from July
2023 as per the Series B Preferred Consent and Waiver, however, the board of directors has not yet declared any dividends for that period.
As such, the Company has accumulated approximately $941 thousand dividends in arrears in relation to the Series B Preferred Stock through
December 31, 2024 and an additional $173 thousand and $508 thousand for the three and nine months ended September 30, 2025, for a total
of approximately $1.4 million. The dividends in arrears are included in the calculation of net loss per share as discussed below.

Standby
Equity Purchase Agreement

On
August 12, 2024, the Company entered into the SEPA with YA. Pursuant to the terms of the SEPA, the Company agreed to issue and sell to
YA, from time to time, and YA agreed to purchase from the Company, up to $25 million of shares of the Company’s common stock (the
“SEPA Shares”). The Company paid a commitment fee of approximately $250 thousand to YA and consent fee of $25 thousand to
the holder of shares of Series B Preferred Stock, which was paid through the issuance of 65,320 shares of common stock. The commitment
and consent fees were recorded within Other expense, net on the Company’s consolidated financial statements for the year ended
December 31, 2024. The Company and YA also entered into a registration rights agreement, pursuant to which the Company agreed to prepare
and file with the SEC a Registration Statement on Form S-1, registering the resale of the SEPA Shares. On November 12, 2024, the Company
filed a registration statement on Form S-1 (File No.