Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3282

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 3282
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 each such extension by two percent (2%) the principal amount of the Notes outstanding
on the date of such extension.

In
consideration of the foregoing, the Company:

    ●
    Reduced
    the conversion price of the Notes to $3.78 per share;

    ●
    The
    Noteholders received an aggregate of 850,000 three year warrants exercisable at $0.01 per share;

    ●
    An
    aggregate of 320,005 warrants held by the Noteholders had the exercise price reduced to $3.78 per share (the “$3.78 Warrants”);
    and

     F-24 

    ●
    An
    aggregate of 478,951 warrants held by the Noteholders had the exercise price reduced to $6.00 per share (the “$6.00 Repriced
    Warrants”). For every one $6.00 Repriced Warrant exercised by a Purchaser, such Purchaser shall receive 1.36 new five-year
    warrants with an exercise price of $0.01, 1.6 new five-year warrants with an exercise price of $4.20, and 1.6 new five-year warrants
    with an exercise price of $5.70.

In
June 2024, pursuant to the Fourth Amendment Agreement, the Company exercised its right to extend the maturity date of the Notes for an
additional six months, or until January 24, 2025, to enable the Company to continue to pursue its significant project development opportunities
for Soluna Cloud, Dorothy 2, and other projects. The extension of the notes caused an increase in the convertible note balance of approximately
$325 thousand and the extension fee was recorded within Other Expense, net for the year ended December 31, 2024.

The
effect of the additional penny warrants, $3.78 warrants, and the $6.00 repriced warrants including additional warrants if exercised with
the Noteholders, created a loss on debt extinguishment of approximately $5.8 million due to the fair value associated as of February
28, 2024. Such amounts were recorded as a loss on debt extinguishment and affected the Company’s warrant liability and additional
paid in capital balance account. Due to the requirement of the shareholder approval associated with the Fourth Amendment, the warrants
associated were initially treated as a liability. In addition, a warrant revaluation was done on March 31, 202