Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 46

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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 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 June 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 June 30, 2025, unrecognized compensation cost related to unvested Awards was approximately $9.3 million. That cost is expected to
be recognized over a weighted-average period of approximately 1.5 years.

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, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which
requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid,
among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted.
The amendment is required to be disclosed on an annual basis, in which the Company will include on its annual report for the year ended
December 31, 2025.

Stock
Compensation

In
March 2024