Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1100

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1100
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 Agreement for cause, effective immediately, due to
CloudCo’s material breach of its payment obligations that remained uncured for more than thirty (30) days. In accordance with
the terms of the HPE Agreement, upon a termination for cause by HPE, CloudCo must pay HPE the remaining payment stream under the
term of the HPE Agreement of approximately $19.3 million as of March 31, 2025 (approximately $20.0 million as of December 31, 2024), including all upfront payments and monthly charges, plus
any fees incurred for the terminated Services (as defined in the HPE Agreement).

45

SEPA

On
August 12, 2024, we 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, we agreed to issue and sell to YA, from time to time, and YA agreed
to purchase from us, up to $25 million of shares of our common stock (the “SEPA Shares”). We and YA also entered into a registration
rights agreement (the “Registration Rights Agreement”), pursuant to which we agreed to prepare and file with the SEC a Registration
Statement on Form S-1, registering the resale of the SEPA Shares. On November 12, 2024, we filed a registration statement on Form S-1
(File No. 333-282559) with the SEC for the resale by YA of 3,000,000 SEPA Shares, which was declared effective by the SEC on February
5, 2025. As of the date of this Annual Report, we have issued and sold approximately 1.5 million shares of our common stock to YA pursuant
to the SEPA for aggregate net proceeds to us of approximately $2.0 million. We intend to continue issuing shares of our common stock
to YA pursuant to the SEPA in future periods.

Assignment
and Assumption Agreements

CloudCo, Soluna Cloud, and the Company,
entered into assignment and assumption agreements on October 1, 2024, with one of the accredited investors issued convertible notes
and Class A, Class B and Class C common stock purchase warrants on October 25, 2021 (the
“ Purchasers”), and two other parties introduced by that Purchaser, with respect to an aggregate of $1.25 million
of notes (“Additional Notes”)