Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 36

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 remaining three Note Holders who held an outstanding principal balance as of
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. Following the conversion, 335,661 shares of common stock were issued to
the Note Holders in accordance with the terms of the Convertible Notes, as amended. The Company recorded a debt inducement conversion
expense of approximately $388 thousand within Other Expense, net on the Annual Report. No further amounts are owed by the Company under
the Convertible Notes as of December 31, 2024 and March 31, 2025.

Line of Credit

On September 15, 2021, the Company entered into a
$1.0 million unsecured line of credit with KeyBank National Association (“KeyBank”), that will, among other things, allow
the Company to request loans and to use the proceeds of such loans for working capital and other general corporate purposes (the “KeyBank
facility”). The line of credit bears interest at a rate of Prime + 0.75% per annum. Accrued interest is due monthly and principal
is due in full following KeyBank’s demand. The Company does not have any remaining balance outstanding as of December 31, 2024 and
March 31, 2025. The Company does not plan to draw down on the line of credit in the foreseeable future. In addition, future drawdowns
require pre-approval by KeyBank.

9. Stockholders’ Equity

Preferred Stock

The Company has two series of preferred stock outstanding:
the Series A Preferred Stock, with a $25.00 liquidation preference; and the Series
B Convertible Preferred Stock, par value $0.0001 per share (the “Series B Preferred Stock”). As of March 31, 2025 and
December 31, 2024 there were 4,953,545 shares of Series A Preferred Stock issued and outstanding, and as of March 31, 2025 and December
31, 2024 there was 62,500 shares of Series B Preferred Stock issued and outstanding.

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Series A Preferred Stock

The Series A Preferred Stock is not convertible into
or exchangeable into common stock of the Company, except upon the occurrence