Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 198

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 198
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 measured based on the costs of the acquisition, which is the consideration that the acquirer transfers to the seller and includes direct transaction costs related to the acquisition. We include Soluna Callisto’s results of operations in our results of operations beginning on the effective date of the acquisition.

Termination Consideration

In connection with the Soluna Callisto acquisition, effective as of October 29, 2021, pursuant to the terms of a termination agreement dated as of August 11, 2021 by and among the Company, SCI, and HEL, on November 5, 2021, SCI paid HEL $ 725thousand and SHI issued to HEL 6,000shares of SHI common stock (the “Termination Shares”). SCI also reimbursed HEL $ 75thousand for transaction-related fees and expenses. SHI included the termination costs as part of asset acquisition per ASC 805-50. Based on the closing price of the SHI common stock on Nasdaq on November 5, 2021, SHI has valued the aggregate termination consideration at approximately $ 1.9million.

Merger Consideration

The fair value of the Merger Consideration includes various assumptions, including those related to the allocation of the estimated value of the maximum number of Merger Shares ( 118,800) issuable as Merger Consideration, which issuance is contingent on the achievement of certain milestones of generating active Megawatts from Qualified Projects in which the Cost Requirement is satisfied within five years after the effective date of the merger, as set forth in the Merger Agreement and the schedules thereto, as set forth below. The Merger Consideration and the timing of the payment thereof is subject to the following qualifications and limitations:

| 1a) | Upon                                                                                                                         
 the Company achieving each one active MegaWatts (“Active MWs”) from the projects in which the cost requirement is satisfied, 
 this will cause SHI to issue to HEL 792 shares for each one MW up to a maximum 150 Active MW.                                |

| i.  | If,                                                                                                                                     
 on or before June 30, 2022, SCI or Soluna Callisto directly or indirectly achieves at least 50 active MWs from one or more of three     
 current projects as set forth in the Merger Agreement that satisfy the Cost Requirement as defined within the Merger Agreement, then    
 the Merger Shares will be issued at an accelerated rate of 1,188 Merger Shares for each of such first 50 Active MW