Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 772

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 772
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una 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 that all related person transactions be reported to our executive management and/or the Board
and approved or ratified by the Audit Committee. In completing its review of proposed related person transactions, the Audit Committee
considers the aggregate value of the transaction, whether the transaction was undertaken in the ordinary course of business, the nature
of the relationships involved, and whether the transaction is on terms comparable to those that could be obtained in arm’s length
dealings with an unrelated third party.

Director
Independence

Pursuant
to the rules of Nasdaq, a director will only qualify as an “independent director