Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 171

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 171
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million outstanding Generate Common Warrant to waive a clause that has a requirement to reserve 2.0
million shares of common stock until there is an increase in the authorized shares of the Company. If the Company does not get
shareholder approval to increase the authorized shares, then the Company would have to repurchase shares of common stock in the open
market and hold those shares in treasury as a reserve for the Generate Common Warrant. The Company was still required to reserve the
Generate Pre-Funded Warrant. As the Generate Common Warrant were contingent upon shareholder approval of increase of authorized
shares, and if the Company didn’t get approval, the Company would need to repurchase shares of common stock in the open
market, it created the Company to classify the 2.0
million Generate Common Warrant to liability as of September 30, 2025. The change in classification of the Generate Common Warrant
created a deemed dividend of approximately $3.8
million, in which was adjusted in the earnings per share calculation, see Note 9 for further details. The Company notes that the
Company obtained shareholder approval on November 7, 2025 to increase the authorized limit of shares to 375.0
million.

The
following table represents the significant fair value assumptions used for the Generate Warrants issued or revalued during the quarter
September 30, 2025.

Schedule
of Fair Value Assumptions used for Generate Warrants Issued or Revalued 

    Three
    and Nine Months ended September 30, 2025 

    Stock price 
    $0.72-2.75 

    Exercise price 
    $0.0001-
                                       1.18 

    Expected term in years 
     4.95
                                            – 5.00 

    Expected dividend yield 
     0.00%

    Volatility 
     130.00%

    Risk-free interest rate 
     3.63-
                                            3.76%

    21

Equipment
Loan Agreement

On
May 16, 2024, SDI SL Borrowing – 1, LLC, an affiliate of the Company (the “SDI Borrower”), entered into a loan agreement
(the “Equipment Loan Agreement” or the “Loan”) with Soluna2 SLC Fund II Project Holdco LLC (the “Lender”,
and collectively, the “Parties”). As further amended on February 28,