Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 770

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 770
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, 2014. The Company recorded a full allowance against the Note. As
of December 31, 2024 and December 31, 2023, $385 thousand and $363 thousand, respectively, of principal and interest are available to
convert into shares of common stock of MeOH. Any adjustments to the allowance are recorded as miscellaneous expenses during the period
incurred.

HEL
Transactions

On
October 29, 2021, the Company completed the Soluna Callisto acquisition pursuant to a merger agreement (the “Merger Agreement”).
The purpose of the transaction was for SCI to acquire substantially all of the assets (other than those assets physically located in
Morocco) formerly held by Harmattan Energy, Ltd. (formerly Soluna Technologies, Ltd.) (“HEL”), which assets consisted of
SCI’s existing pipeline of certain cryptocurrency mining projects that HEL previously transferred to SCI, which was formed expressly
for this purpose, and to provide SCI with the opportunity to directly employ or retain the services of four individuals whose services
it had retained through HEL prior to the merger. As a result of the merger, each share of common stock of Soluna Callisto issued and
outstanding immediately prior to the effective time of the merger, other than shares owned by the Company or any of our subsidiaries,
was canceled and converted into the right to receive a proportionate share of up to 118,800 shares (the “Merger Shares”)
of Mechanical Technology, Incorporated common stock, payable upon the achievement of certain milestones.

78

Due
to conditions being met within the Merger Agreement in relation to energization and retention of employees, the Company has advised SCI
US Holdings LLC, a Delaware limited liability company, who is the sole Effective Time Holder (as defined in the Merger Agreement) of
the right to receive the Merger Shares and that 19,800 Merger Shares were issued on April 19, 2024 and 39,600 Merger Shares were issued
on October 10, 2023. SCI US Holdings LLC has consented to the issuance of such Merger Shares as required under the Merger Agreement and
has directed the Company to issue such Merger Shares to its affiliate, HEL. Following the issuance of the 59,400 Merger Shares, a total
of 59,400 Merger Shares remain available for possible issuance pursuant to the terms of the Merger Agreement.

Several
of HEL’s equity holders are affiliated with Brookstone Partners, the investment