Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 28

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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31, 2024, the warrants were fair valued,
and deemed to not have any further value, as such the Company wrote down the liability balance to $0.

    17

For
the three and nine months ended September 30, 2025, the Company incurred approximately $298
thousand and $1.0
million in interest expense in relation to the June SPA, respectively, which includes interest paid on the note and amortization of
deferred financing costs.

June
SPA Modification

On
March 21, 2025, the Note Parties entered into a Modification Agreement (the “Modification Agreement”) to, among other things:

    (i)
    provide
    for the deposit of 1,000,000 shares (the “Escrow Shares”) of the Company’s common stock, into an escrow account
    maintained by Northland Securities, Inc., pursuant to an escrow agreement (as further described below),

    (ii)
    provide
    for the issuance to the Investor of penny warrants to purchase shares of the Company’s common stock. The number of penny warrants
    (exercise price at $0.01) shall equal $1.25 million divided by the 5-day VWAP of the Company’s common stock at time of issuance.
    The warrants will be issued at the time the Investor removes its lien on the property of the Company. As of November 14, 2025, the
    lien has not yet been removed and the warrants have not been issued,

    (iii)
    amend
    the payment schedule of the Note to provide (a) for each of the six scheduled payments occurring after the earlier of the effectiveness
    of a registration statement for the resale of the Escrow Shares and the Conversion Shares (as defined below) or the date that the
    Escrow Shares and the Conversion Shares may be sold pursuant to Rule 144 under the Securities Act of 1933, as amended (the “Securities
    Act”), without any information requirements, the amount of principal and interest payable on such date shall be reduced by
    50% (the aggregate amount of the six months of such reductions, the “Specified Amount”) and (b) if the aggregate amount
    of payments on the Amended Note applied from the proceeds of the sale of the Escrow Shares on or prior to the last six scheduled
    payments is less than the Specified Amount (such difference, the “Make Whole Amount”), than the amount of