Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2537

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 2537
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 the Company from MeOH Power, Inc. upon the deconsolidation of MeOH Power, Inc. Interest accrues
on the Note at the Prime Rate in effect on the first business day of the month, as published in the Wall Street Journal. At the Company’s
option, all or part of the principal and interest due on this Note may be converted to shares of common stock of MeOH Power, Inc. at
a rate of $0.07 per share. Interest began accruing on January 1, 2014. The Company recorded a full allowance against the Note. As of
December 31, 2024 and December 31, 2023, $385 thousand and $363 thousand, respectively, of principal and interest are available to convert
into shares of common stock of MeOH Power, Inc. Any adjustments to the allowance are recorded as miscellaneous expenses during the period
incurred.

Legal
Services

During
the years ended December 31, 2024 and December 31, 2023, the Company incurred $2 thousand and $2 thousand, respectively, to Couch White,
LLP for legal services associated with contract review. A partner at Couch White, LLP is an immediate family member of one of our Directors.

HEL
Transactions

As
discussed in the Company’s 2023 Annual Report, on October 29, 2021, the Company completed the Soluna Callisto acquisition pursuant
to the merger agreement (the “Merger Agreement”). The purpose of the transaction was for SCI to acquire substantially all
of the assets (other than those assets physically located in Morocco) formerly held by Harmattan Energy, Ltd. (“HEL”), which
assets consisted of SCI’s existing pipeline of certain cryptocurrency mining projects that HEL previously transferred to SCI, which
was formed expressly for this purpose, and to provide SCI with the opportunity to directly employ or retain the services of four individuals
whose services it had retained through HEL prior to the merger. As a result of the merger, each share of common stock of Soluna Callisto
issued and outstanding immediately prior to the effective time of the merger, other than shares owned by the Company or any of our subsidiaries,
was cancelled and converted into the right to receive a proportionate share of the Merger Consideration.

In
connection with the Soluna Callisto acquisition, effective as of October 29, 2021, upon and subject to the terms and conditions of the
Termination Agreement, on November 5,