Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2676

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 2676
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.6 million of dividends in arrears on the
Series A Preferred Stock through December 31, 2023, and an additional $9.9 million of dividends in arrears for the year ended December
31, 2024, for a total of approximately $18.5 million.

The
Company’s Series B Preferred Stock included a 10% accruing dividend compounded daily for 12 months from the original issue date
of July 20, 2022, and annually thereafter, that may be paid in cash or stock at the Company’s option at the earlier of (i) the
date the Series B Preferred Stock is converted, or (ii) the Series B Dividend Termination Date. On August 11, 2023, the Company paid
a mandatory dividend on its outstanding Series B Convertible Preferred Stock in the amount of approximately $656 thousand. Pursuant to
the Certificate of Designation for the Series B Stock, the Company had the option to pay the dividend in cash or shares of Common Stock.
Pursuant to a Dividend Payment Agreement, the Company and the holder of the Series B Stock agreed to satisfy the payment of the dividend
through the issuance of 44,000 shares of its Common Stock and 70,300 pre-funded warrants (the “Pre-funded Warrants”).

     F-29 

Effective
October 1, 2024 the dividend payment obligation has been modified to be annual. The amendment resulted in annual dividend payments going
forward. As a result of the amendment, the Company would be obligated to make annual dividend payments for the period starting from July
2023 as per the Series B Preferred Consent and Waiver, however, the board of directors has not yet declared any dividends for that period.
As such, the Company has accumulated approximately $941 thousand dividends in arrears in relation to the Series B Preferred Stock. The
dividends in arrears are included in the calculation of net loss per share as discussed in Note 11.

Standby Equity Purchase Agreement

On August 12, 2024, the Company entered into a Standby
Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD., a Cayman Islands exempt limited company (“YA”). Pursuant
to the terms of the SEPA, the Company agreed to issue and sell to YA, from time to time, and YA agreed to purchase from the Company, up
to $25 million of shares of the Company’s common