Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2474

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 2474
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3, 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 the Convertible Notes. For the year-ended December 31, 2024 and 2023, the Company had Monte Carlo
simulations run-out for the expected conversion dates of the Convertible Notes using risk free rates, annual volatility, daily trading
volumes, likely conversion profiles, and other assumptions based on principal and accrued interest as of the year-end. The Company determined
the fair value of the Convertible Notes using certain Level 3 inputs.

     F-11 

The
following table represents the significant and subjective fair value assumptions used for Convertible Notes during the years ended December
31, 2024 and 2023:

 Schedule of Fair Value Assumptions For Convertible Notes

    2024

    2023

    Stock
price
     
    $
    2.88
    – 6.09

    $
    3.60
    – 6.75

    Conversion
price
     
    $
    2.30
    - 3.78

    $
    3.78
    – 7.99

    Volatility

    80.0
    – 115
    %

    87.50
    – 150
    %
  
    Risk-free
    interest rate

    4.73-
    5.46
    %

    4.64-
    5.50
    %

Changes
in Level 3 Financial Liabilities Carried at Fair Value

 Schedule
of Changes in Level 3 Financial Liabilities Carried at Fair Value

    (Dollars in thousands) 

    Balance, December 31, 2022 
    $12,254 
  
    Conversions of debt (January 2023- May 11 2023) 
     (1,344)