Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 35

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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exercise price of $4 per share, provided that each such holder exercised at least 61.83% of their Amended Class C Warrants by the close
of business on May 17, 2024. The Company also agreed to reduce the exercise price on all remaining Amended Class C Warrants. The
adjustment in the exercise price, resulted in an additional deemed dividend which amounted to approximately $66 thousand for the year
ended December 31, 2024.

For the year ended December 31, 2024, 529,161 of the
Amended Class C warrants have been exercised by both the Noteholders and non-Noteholders, resulting in the issuance of 719,658 shares
of $0.01 warrants, 846,657 shares of $4.20 warrants, and 846,657 shares of $5.70 warrants.

As previously discussed in Footnote 1, the Company
entered into the SEPA with YA on August 12, 2024. Access to the SEPA was subject to a number of conditions precedent including, but not
limited to, various consents from the Company’s Note Holders. On October 1, 2024, the Noteholders entered into a Consent, Waiver,
and Mutual Release Agreement (the “Master Consent”) which provides the following:

    ●
    consent to the Company’s entry into the SEPA;

    ●
    waiver of any rights of first refusal or participation rights in connection with the SEPA;

    ●
    standstill of the rights to exercise certain $0.01 warrants pursuant to the SPA;

    ●
    the right to prepay the convertible notes with a 20% premium;

    ●
    termination of the SPA and related agreements upon the full payoff of the convertible notes; and

    ●
    mutual limited release of claims between the Noteholders and the Company.

In return for these consents, the Company agreed to
pay a $750 thousand waiver fee and to prepay to the remaining Note Holders the 20% premium for the prepayment of the Notes of approximately
$625 thousand. Such amounts were recorded as within Other Expense, net within the Annual Report.

For the year
ended December 31, 2024, the Company issued 2,512,581 shares of common stock for conversion of the debt, which includes the final conversion
shares noted below.

On December
12, 2024, the Company entered into an agreement with the