Company: SLNH
Filing Date: 2025-02-03
Form Type: S-1/A
Source: 0001493152-25-004555
Chunk: 279

Company: Soluna Holdings, Inc
Filing Date: 2025-02-03
Form: S-1/A
Chunk 279
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 For Convertible Notes

|                         |     | Nine months ended September 30, 2024 |             |   |
|:------------------------|:----|:-------------------------------------|------------:|:--|
| Stock price             |     | $                                    | 2.88 – 6.09 |   |
| Conversion price        |     | $                                    |        3.78 |   |
| Volatility              |     |                                      |  80.0 – 115 | % |
| Risk-free interest rate |     |                                      |  4.73- 5.46 | % |

The events of default stated in the Notice of Acceleration and Repossession defined below with NYDIG Financing constituted a cross-default under the terms of secured convertible notes issued to the Noteholders. In addition to such cross-default, the failure of the Company pursuant to the Addendum dated as of July 19, 2022, to escrow an aggregate amount of $ 950thousand for the benefit of the Noteholders by December 21, 2022, constituted an event of default under the Notes. Due to the default, the Company accrued interest at a rate of 18% which amounted to $ 617thousand as of March 10, 2023. On March 10, 2023, the Company entered into a Second Addendum Amendment with the Noteholders, in which the Company paid the accumulated default accrued interest of $ 617thousand using the restricted escrow accounts and contemporaneously with the payment, the Noteholders waived all existing events of default arising under the convertible notes.

On May 11, 2023, the Company entered into a Second Amendment Agreement (the “Second Amendment”) with the holders of its October Secured Notes to extend the maturity date of the October Secured Notes to July 25, 2024. In connection with the Second Amendment, the Company paid an extension fee of $ 250thousand and increased the principal amount of the outstanding October Secured Notes by 14%. The Company also issued 240,000new Class A warrants exercisable at $ 12.50and 80,000new Class B warrants exercisable at $ 20.00.

On November 20, 2023, the Company and the Noteholders entered into a Third Amendment Agreement to amend the Notes, the October SPA and related agreements (collectively, the “Transaction Documents”). The aim was to facilitate future financings by the Company that may include funds for