Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1947

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1947
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 of Brookstone IAC, which is the manager of Tera Joule, he has dispositive power over the equity interests that Tera
Joule owns in HEL. As a result, the approximate dollar value of the amount of Mr. Toporek’s and Mr. Lipman’s interest in
the Company’s transactions with HEL for the year ended December 31, 2024 was $0 and $0.

John
Belizaire, the Company’s Chief Executive Officer, and John Bottomley, who were elected to the Board upon the effective time of
SCI’s acquisition of Soluna Callisto, serve as directors of HEL. In addition, Mr. Belizaire is the beneficial owner of 1,317,567
shares of common stock of HEL and 102,380 Class Seed Preferred shares, which are convertible into 86,763 shares of common stock of HEL.
These interests give Mr. Belizaire an ownership of 10.54% in HEL. Mr. Belizaire also owns an interest in HEL indirectly through his 5.0139%
interest of Tera Joule’s 965,945 Class Seed Preferred shares, which are convertible into 818,596 shares of common stock of HEL.
Mr. Bottomley is the beneficial owner of 96,189, or approximately 0.72%, of the outstanding shares of common stock of HEL.

The
Company’s investment in HEL was initially carried at the cost of investment and was $750 thousand. Based on evaluation of projections
for the Company’s investment in HEL, the Company fully impaired the equity investment of $750 thousand as of December 31, 2022,
writing it down to $0.

The
Company owned approximately 1.79% of HEL, calculated on a converted fully diluted basis, as of December 31, 2024 and December 31, 2023.
The Company may enter into additional transactions with HEL in the future.

Yorkville
SEPA

YA
entered into the SEPA with the Company on August 12, 2024. Under the SEPA, the Company has the option to sell up to $25 million of Common
Stock to YA, and YA is obligated to purchase such shares, at a price and on the terms and subject to the conditions set forth in the
SEPA. YA beneficially owns more than 5% of our capital
stock.

79

Policies
and Procedures for Related Party Transactions

We
have adopted a written policy requiring