Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 177

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 177
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 the Company is required to provide the following information according to the fair value accounting standards. These standards established a fair value hierarchy as specified that ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities are classified and disclosed in one of the following three categories:

| Level 
 1:    | Quoted                                                                                                                                    
 market prices in active markets for identical assets or liabilities, which includes listed equities.                                      |
| Level 
 2:    | Observable                                                                                                                                
 market-based inputs or unobservable inputs that are corroborated by market data. These items are typically priced using models or         
 other valuation techniques. These models are primarily financial industry-standard models that consider various assumptions, including    
 the time value of money, yield curves, volatility factors, as well as other relevant economic measures.                                   |
| Level 
 3:    | These                                                                                                                                     
 use unobservable inputs that are not corroborated by market data. These values are generally estimated based upon methodologies utilizing 
 significant inputs that are generally less observable from objective sources.                                                             |

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

On October 25, 2021, pursuant to a securities purchase agreement dated October 20, 2021 (the “SPA), the Company issued to certain accredited investors Class A, Class B and Class C common stock purchase warrants (collectively, the “Warrants”) to purchase up to an aggregate of 71,043shares of common stock (the “Warrant Shares”), at an exercise price $ 312.50, $ 375and $ 450per share, respectively. The Warrants were considered freestanding equity-classified instruments due to their detachable and separately exercisable features and meet the indexation criteria within derivative accounting. Accordingly, the Warrants were presented as a component of Stockholders’ Equity in accordance with derivative accounting.

As noted in Note 9, the Company entered into an Addendum and Addendum Amendment in which the Company surrendered their Class B and Class C warrants in July and September 2022, in exchange for Class D common stock purchase warrants at an exercise price of $ 87.50per share, Class E common stock purchase warrants of common stock at an exercise price of $ 112.50per share, Class F common stock purchase warrants of common stock at