Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 139

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 repriced warrants was recorded as a deemed dividend and adjusted
the Company’s earnings per share calculation for the year ended December 31, 2024. The fair value associated with the 51,618 warrants
with non-Noteholders totaled approximately $386 thousand. On May 17, 2024, the Company permitted
the holders of the Company’s Amended Class C Warrants, previously exercisable at $6 per share, to exercise such warrants at a reduced
exercise price of $4 per share, provided that each such holder exercised at least 61.83% of their Amended Class C Warrants by the close
of business on May 17, 2024. The Company also agreed to reduce the exercise price on all remaining Amended Class C Warrants. The
adjustment in the exercise price, resulted in an additional deemed dividend which amounted to approximately $66 thousand for the year
ended December 31, 2024.

For the year ended December 31, 2024, 529,161 of the
Amended Class C warrants have been exercised by both the Noteholders and non-Noteholders, resulting in the issuance of 719,658 shares
of $0.01 warrants, 846,657 shares of $4.20 warrants, and 846,657 shares of $5.70 warrants.

As previously discussed in Footnote 1, the Company
entered into the SEPA with YA on August 12, 2024. Access to the SEPA was subject to a number of conditions precedent including, but not
limited to, various consents from the Company’s Note Holders. On October 1, 2024, the Noteholders entered into a Consent, Waiver,
and Mutual Release Agreement (the “Master Consent”) which provides the following:

    ●
    consent to the Company’s entry into the SEPA;

    ●
    waiver of any rights of first refusal or participation rights in connection with the SEPA;

    ●
    standstill of the rights to exercise certain $0.01 warrants pursuant to the SPA;

    ●
    the right to prepay the convertible notes with a 20% premium;

    ●
    termination of the SPA and related agreements upon the full payoff of the convertible notes; and

    ●
    mutual limited release of claims between the Noteholders and the Company.

In return for these consents, the Company agreed to
pay a $750 thousand waiver fee and to prepay to the