Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 37

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 a minimum Forward Contracted Debt Service Coverage Ratio of 1.20:1.00, in each case as further described
in the Credit Agreement. The facility also includes customary mandatory prepayment provisions.

Pursuant
to the Credit Agreement, the Company issued to Generate Strategic Credit Master Fund I-B, L.P., an affiliate of the Lender and the Agent
(the “Holder”), in a private placement (the “Private Placement”): (i) a pre-funded warrant (the “Generate
Pre-Funded Warrant”) to purchase up to 2,000,000
shares of common stock; and (ii) a
common warrant (the “Generate Common Warrant” and, together with the Generate Pre-Funded Warrant, the “Generate Warrants”)
to purchase up to 2,000,000
shares of common stock.

On
September 28, 2025, the Company executed a side letter with the Holder in relation to 2.0
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