Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 469

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 469
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 as of
the modification date and the change was accounted for as a Type I modification. In a Type I modification, the Company is required to
calculate the incremental difference of the awards, which equals the difference of new award value inclusive of estimated forfeitures
and the fair value of the original award as of the modification date. As of the modification date, there is no reversal or adjustment
of previously recognized stock compensation expenses.

Within
the 2021 and 2023 Plans, certain master grant agreements were executed on April 15, 2024 that have the potential for future additional
grants based on additional stock activity through certain anti-dilution provisions. A mutual understanding of the terms and conditions
for the specific awards cannot be obtained until a later date after all stock activity has occurred in the future period and necessary
approvals are obtained. When Board approval is obtained and the two grant conditions are met, the grant date will be identified and evidenced
through an additional restricted stock agreement. The compensation cost will be recognized per the vesting schedule within the agreement
with no catch-up for the reduced period.

The
accounting impact resulting from the recognition of this equity-based compensation limits the comparability of the Company’s financial
statements between periods.

2014
Plan

The
2014 Plan was adopted by the Company’s Board of Directors on March 12, 2014, and approved by its stockholders on June 11, 2014.
The 2014 Plan provides an initial aggregate number of 500,000 shares of common stock that may be awarded or issued. The number of shares
that may be awarded under the 2014 Plan and awards outstanding may be subject to adjustment on account of any stock dividend, spin-off,
stock split, reverse stock split, split-up, recapitalization, reclassification, reorganization, combination or exchange of shares, merger,
consolidation, liquidation, business combination, exchange of shares or the like. Under the 2014 Plan, the Board-appointed administrator
of the 2014 Plan is authorized to issue stock options (incentive and nonqualified), stock appreciation rights, restricted stock, restricted
stock units, phantom stock, performance awards and other stock-based awards to employees, officers and directors of, and other individuals
providing bona fide services to or for, the Company or any affiliate of the Company. Incentive stock options may only be granted to employees
of the Company and its subsidiaries.

2012
Plan

The