Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1043

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 1043
---
ishment of approximately $5.8 million due to the fair value associated as of February
28, 2024. Such amounts were recorded as a loss on debt extinguishment and affected the Company’s warrant liability and additional
paid in capital balance account. Due to the requirement of the shareholder approval associated with the Fourth Amendment, the warrants
associated were initially treated as a liability. In addition, a warrant revaluation was done on March 31, 2024, which created a gain
on revaluation associated with the warrant liability of approximately $1.5 million. On May 30, 2024, shareholder approval was obtained
removing the cap containment provision for the warrants, and as such, the liability accounting treatment was no longer required. Since
all other criteria were met to be treated as equity, the Company adjusted the warrant liability as of the date of shareholder approval
and reclassified balance to equity. As such, the Company accounted for the change in the fair value of the warrant liability as of the
date of the shareholder approval (May 30, 2024), in connection with its loss on revaluation of the warrant of approximately $1.6 million.

Pursuant
to additional agreements with holders of another 51,618 outstanding warrants, similar adjustments with those warrants, resulted in a
total adjustment to 530,569 warrants. As the 51,618 warrants were not with the Noteholders, the treatment of $6.00 repriced warrants
was recorded as a deemed dividend and adjusted the Company’s earnings per share calculation noted in Footnote 11 for the year ended
December 31, 2024. The fair value associated with the 51,618 warrants with non-Noteholders totaled approximately $386 thousand. On
May 17, 2024, the Company permitted the holders of the Company’s Amended Class C Warrants, previously exercisable at $6 per share,
to exercise such warrants at a reduced 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