Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 34

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 associated with the Fourth Amendment, the warrants associated were initially treated as a liability. In addition, a warrant revaluation
was done on March 31, 2024, which created a gain on revaluation associated with the warrant liability of approximately $1.5 million.

The following table represents the significant fair
value assumptions used for warrants issued or repriced during the year ended December 31, 2024. No warrants were issued or repriced for
the three months ended March 31, 2025.

 Schedule of Fair Value Assumptions For Warrants Issued

    Year ended  December 31, 2024

    Stock price 
    $2.43- 4.07

    Exercise price 
    $0.01- 287.50

    Expected term in years 
     0.53 – 8.77

    Expected dividend yield 
     0.00
    %
  
    Volatility 
     105.0 – 137.50
    %
  
    Risk-free interest rate 
     3.51- 4.44
    %

    20

On May 30, 2024, shareholder approval was obtained
removing the cap containment provision for the warrants, and as such, the liability accounting treatment was no longer required. Since
all other criteria were met to be treated as equity, the Company adjusted the warrant liability as of the date of shareholder approval
and reclassified balance to equity. As such, the Company accounted for the change in the fair value of the warrant liability as of the
date of the shareholder approval (May 30, 2024), in connection with its loss on revaluation of the warrant of approximately $1.6 million.

Pursuant to additional agreements with holders of
another 51,618 outstanding warrants, similar adjustments with those warrants, resulted in a total adjustment to 530,569 warrants. As the
51,618 warrants were not with the Noteholders, the treatment of $6.00 repriced warrants was recorded as a deemed dividend and adjusted
the Company’s earnings per share calculation for the year ended December 31, 2024. The fair value associated with the 51,618 warrants
with non-Noteholders totaled approximately $386 thousand. On May 17, 2024, the Company permitted
the holders of the Company’s Amended Class C Warrants, previously exercisable at $6 per share, to exercise such warrants at a reduced