Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 199

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 199
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 and the fair value of the new award as of the modification date are
identical, as fair value is determined based on the stock price as of that date.

During
April 2024, the Company cancelled certain vested Awards and modified the terms of certain unvested Awards, to permit different settlement
outcomes. The service period and vesting terms were changed at the time of modification. All such vested Awards were fully vested as
of the cancellation date and all compensation cost had been recognized. All such unvested equity awards were probable of vesting as of
the modification date and the change was accounted for as a Type I modification. In a Type I modification, the Company is required to
calculate the incremental difference of the awards, which equals the difference of new award value inclusive of estimated forfeitures
and the fair value of the original award as of the modification date. As of the modification date, there is no reversal or adjustment
of previously recognized stock compensation expense. The modification related to the cancellation of 48,547 under the water stock options
granted to eight board members. The options were replaced with new awards of restricted stock. The amount of incremental compensation
cost resulting from the modification was approximately $4.0 million.

The
Company will recognize the compensation expense on a straight-line basis over the service period for the entire Awards. Accordingly,
as of September 30, 2025 and December 31, 2024, the Awards from the Plans are presented within the stockholders’ equity section
of the Company’s balance sheet.

As
of September 30, 2025, unrecognized compensation cost related to unvested Awards was approximately $8.2 million. That cost is expected
to be recognized over a weighted-average period of approximately 1.5 years.

    33

13.
Effect of Recent Accounting Updates

Accounting
Updates Effective for fiscal year 2025

Changes
to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of accounting standard
updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considered the applicability
and impact of all ASUs. ASUs not mentioned below were assessed and determined to be either not applicable or are expected to have minimal
impact on our consolidated financial position or results of operations.

Improvements
to Income Tax Disclosures

In
December 2023, the FASB issued ASU 2023-09