Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 657

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 657
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 Rights and Limitations for the
Series B Preferred Stock (“Series B Certificate of Designations”). On October 1, 2024, the Company agreed, as a condition
of a waiver of the Series B Investor’s’ right of first refusal and participation rights in connection with the SEPA, to reduce
the conversion price to $5.00 upon stockholder approval, which was obtained on November 15, 2024.

In
addition, in 2022, the Company issued to the Series B Investor 60,000 common stock purchase warrants (the “Series B Warrants”)
to purchase up to an aggregate of shares of common stock. In connection with the above referenced waiver, the exercise price of these
warrants was reduced to $0.01 per share and an additional 140,000 warrants exercisable for $0.01 per share were issued. The Series B
Investor is entitled to exercise the Series B Warrants at any time on or prior to January 19, 2028.

Effective
from October 1, 2024, the sale of common stock as a result of conversion of Series B Preferred Stock and exercise of the new 140,000
warrants is subject to a 12-month lockup, followed by a 12 month leak out where the holder may not sell shares during the lockup period
and may sell up to 1/12th of total conversion and warrant exercise shares per month during the leak out. The effects of the
modification of the Series B Preferred Stock on October 1, 2024, including repriced and newly issued penny warrants, and dividend amendments,
created an extinguishment on the Series B preferred stock in which the Company recorded a deemed dividend of approximately $1.7 million
which relates to the fair value consideration of the modified preferred stock less the original carrying value, excluding the consideration
of the Preferred B dividend as discussed below.

Common
Stock

The
Company has one class of common stock, par value $0.001 per share. Each share of the Company’s common stock is entitled to one
vote on all matters submitted to stockholders. As of December 31, 2024 and December 31, 2023, there were 10,607,020 and 2,505,620 shares
of common stock outstanding, respectively.

Dividends

Pursuant
to the Certificate of Designations, Preferences and Rights of 9.0% Series A Cumulative Perpetual