Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 158

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 158
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 aggregate number of shares of our Common Stock available for issuance under
the Third Amended and Restated 2021 Plan could have material effect on the number of shares of our Common Stock available for issuance
thereunder and could have a material dilutive effect on our stockholders.

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The Board approved amendments to both the 2021 and
2023 Plans on April 15, 2024. The amendments were subsequently approved by the stockholders at the 2024 Annual Meeting on May 30, 2024.
Under the 2021 and 2023 Plans, the number of shares of common stock available for awards is limited to, 18.75% for the 2021 Plan and 23.75%
for the 2023 Plan of the number of shares of common stock outstanding as of the first trading day of each quarter. The amendments to each
Plan would change the calculation of this limitation to reflect the applicable percentage to 18.75% and 23.75% respectively, after giving
effect to the increase in the number of shares subject to Awards after giving effect to the amount to the increase as of the date of the
calculation.

The Board approved an additional amendment to the
2021 Plan on October 16, 2024. The amendment was subsequently approved by the stockholders at the Special Meeting on November 15, 2024.
Under the 2021 Plan, the number of shares of common stock available for awards is limited to 18.75% of the number of Common Shares outstanding
as of the first trading day of each quarter. The amendment to the 2021 Plan would change this limitation to 22.75% from the first quarter
of our fiscal year ending December 31, 2025 through the second quarter of our fiscal year ending December 31, 2027 and, effective at the
end of the second quarter of our fiscal year ending December 31, 2027 the percentage will revert to 18.75% of the number of shares of
common stock outstanding as of the first trading day of each quarter.

There were no awards granted during the three months
ended March 31, 2025 and March 31, 2024.

13. Effect of Recent Accounting Updates

Accounting Updates Effective for fiscal year
2025

Changes to U.S. GAAP are established by the Financial
Accounting Standards Board (the “FASB”) in the form of accounting standard updates (“ASUs