Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1406

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1406
---
. The warrants were collectively classified as a Level 3 measurement within the fair value
hierarchy because these valuation models involve the use of unobservable inputs relating to the Company’s estimate of its expected
stock volatility which was developed based on the historical volatility of a publicly traded set of peer companies.

The
following table represents the significant fair value assumptions used for warrants issued or repriced during the years ended December
31, 2024 and 2023:

 Schedule
of Fair Value Assumptions For Warrants Issued

    2024  
    2023 
  
    Stock price 
    $ 2.43-4.07  
    $ 2.93- 5.00 
  
    Exercise price  
    $ 0.01-287.50  
    $ 0.01- 20.00 
  
    Expected term in years 
     0.53-8.77  
     1.16- 5.00 
  
    Expected dividend 
     0.00% 
     0.00%
  
    Volatility 
     105.0- 137.50% 
     108.50 – 140%
  
    Risk-free interest rate 
     3.51-4.44% 
     3.36- 5.25%

Following
the debt extinguishment on July 19, 2022 as noted further in Note 8, the Convertible Notes will be accounted for under the fair value
method on a recurring basis upon issuance (e.g., upon execution of the Addendum) per guidance within ASC 480, and at each subsequent
reporting period, with changes in fair value reported in earnings. The Company had a subsequent Addendum Amendment on September 13, 2022,
a Second Amendment on May 11, 2023, a Third Amendment on November 20, 2023, a Fourth Amendment on February 28, 2024, and Final Conversion
inducement on December 12, 2024, which each caused a revaluation of the fair value on the executed Addendum Amendment, Second Amendment,
Third Amendment, Fourth Amendment,and final inducement date. Although the Convertible Notes are not being accounted for under 825-10,
the substance of the debt is considered to be the same and is therefore considered outside the scope of ASC 470-60. As such, the Company
performed a fair value analysis of