Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 296

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 296
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 “Series B Preferred
Stock” together with the Series A Preferred Stock, the “Preferred Stock”), while such shares remain outstanding, rank
senior to the rights of the holders of shares of our common stock as to dividends and payments upon liquidation, dissolution or winding
up of our affairs. Upon liquidation, dissolution or winding up of our affairs, the holders of shares of our Series A Preferred Stock are
entitled to receive a liquidation preference of the stated value per share of $25 and the holders of shares of our Series B Preferred
Stock are entitled to receive a liquidation preference of the stated value per share of $100, plus all accrued but unpaid dividends, prior
and in preference to any distribution to the holders of shares of our common stock or any other class of our equity securities junior
to the Preferred Stock. In addition, the holders of the Series A Preferred Stock are entitled to receive, when, as and if declared by
the board of directors, cumulative cash dividends at the annual rate of 9.0% of the $25.00 liquidation preference per year. Our holders
of Series B Preferred Stock are entitled to receive an annual 10% dividend, which may be paid in cash or stock at our discretion at the
earlier of (i) the date the Series B Preferred Stock is converted, or (ii) the Series B Dividend Termination Date (as defined in the Certificate
of Designations of Preferences, Rights and Limitations for the Series B Preferred Stock).

These dividend payment obligations
could impact our liquidity and reduce the amount of cash available to us for our working capital needs, capital expenditures, funding
growth opportunities, acquisitions, and other general corporate purposes. Our obligations to the holders of Preferred Stock could also
limit our ability to obtain additional financing or increase our borrowing costs, which could have an adverse effect on our financial
condition. The preferential rights could also result in divergent interests between the holders of Preferred Stock and holders of our
common stock.

40

We do not anticipate
paying dividends on our common stock, and investors may lose the entire amount of their investment.

Cash dividends have never
been declared or paid on our common stock, and we do not anticipate such a declaration or payment for the foreseeable future. Any future
determination about the payment of dividends will be made at the discretion of our board of directors and will depend upon our earnings,
if any, capital requirements, operating and financial conditions, contractual restrictions, including any loan or debt