Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3765

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 15
Chunk 3765
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 611 

    Extension fee 
     325 
  
    Balance December 31, 2024 
    $- 
  
    Financial liabilities, Ending balance 
    $- 

On
December 12, 2024, the Company entered into an agreement with the remaining three Note Holders who held an outstanding principal balance
as December 12, 2024, pursuant to which the three remaining Note Holders elected to immediately convert all of the outstanding principal
of certain convertible notes into shares of the Company’s common stock. The agreement satisfied the full outstanding debt owed
to the remaining three Note Holders under the Convertible Notes and as such no further obligation remained for the Convertible Notes,
see Note 8 for details.

On
October 1, 2024, the Company modified the Series B Preferred Stock Agreement, which included a fixed reprice conversion of $5 per share
from originally $135.25 per share, reprice of additional 60,000 warrants to a penny, an additional 140,000 new penny warrants being issued,
and dividend payments being changed to annually from originally a one-time payment, which led to extinguishment accounting. The Company
would record a deemed dividend of approximately $1.7 million between the fair value of the modified preferred stock against the carrying
value of the original preferred stock. The Company performed a Monte Carlo simulation as of October 1, 2024 to determine the fair value
of the modified preferred stock, in which the fair value considerations included the fixed conversion price of the preferred stock, assumption
on the lockup expiration date, closing price of the common stock on the lockup expiration date using daily volatility, and risk free
interest rates. The Company determined the fair value of the modified preferred stock using certain Level 3 inputs. In addition to the
fair value of the preferred stock, as part of the modified preferred stock consideration, the Company performed a Black-Scholes simulation
on the repriced and new penny warrants, using assumptions considered above similar to the convertible debt, and lastly applied a present
value calculation on future dividends to be paid. See Note 9 for details on the modified Series B Preferred Stock.

     F-12 

Revenue
Recognition

Cryptocurrency
Mining Revenue

The
Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principles of the revenue standard are that
a company should recognize revenue to depict the transfer of promised good or services to customers in an amount that