Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 38

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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, 2028.

Effective from October 1, 2024, the sale of common
stock as a result of conversion of Series B Preferred Stock and exercise of the new 140,000 warrants is subject to a 12-month lockup,
followed by a 12 month leak out where the holder may not sell shares during the lockup period and may sell up to 1/12th of
total conversion and warrant exercise shares per month during the leak out. The effects of the modification of the Series B Preferred
Stock on October 1, 2024, including repriced and newly issued penny warrants, and dividend amendments, created an extinguishment on the
Series B preferred stock in which the Company recorded a deemed dividend of approximately $1.7 million which relates to the fair value
consideration of the modified Series B Preferred Stock less the original carrying value for the year ended December 31, 2024, excluding
the consideration of the Preferred B dividend as discussed below.

Common Stock

The Company has one class of common stock, par value
$0.001 per share. Each share of the Company’s common stock is entitled to one vote on all matters submitted to stockholders. As
of March 31, 2025 and December 31, 2024, there were 12,508,045 and 10,607,020 shares of common stock outstanding, respectively.

Dividends

Pursuant to the Certificate of Designations, Preferences
and Rights of 9.0% Series A Cumulative Perpetual Preferred Stock of the Company, dividends, when, as and if declared by the Board (or
a duly authorized committee of the Board), will be payable monthly in arrears on the final day of each month, beginning August 31, 2021.
The Board of Directors had not declared any Series A Preferred Stock dividends beginning October 2022 through March 31, 2025, as such
the Company has accumulated approximately $18.5 million of dividends in arrears on the Series A Preferred Stock through December 31, 2024,
and an additional $2.8 million of dividends in arrears for the three months ended March 31, 2025, for a total of approximately $21.3 million.

The Company’s Series B Preferred Stock included
a 10% accruing dividend compounded daily for 12 months from the original issue date of July 20, 2022, and annually thereafter, that