Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 52

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 52
---
 a fair value assessment on July 17, 2025, the Common Warrants had a fair value of approximately $8.6
million. For the three and nine months ended September 30, 2025, approximately 17.1
million warrants were exercised in which the Company received approximately $9.4
million in gross proceeds, and due to change in fair value on date of exercise and the original fair value on July 17, 2025, there
was a fair value adjustment loss of approximately $11.5
million. The Company also evaluated the fair value adjustment for the outstanding Common Warrants, and recognized an
additional fair value loss of approximately $2.3
million.

The
following table represents the significant fair value assumptions used for the Pre-funded, Series A, and Series B warrants issued or
revalued during the three and nine months ended September 30, 2025.

Schedule
of Fair Value Assumptions For Pre-funded, Series A and Series B Warrants Issued 

    Three
    and Nine Months ended September 30, 2025 

    Stock price 
    $0.60-
                                       3.50 

    Exercise price 
    $0.001-
                                       0.55 

    Expected term in years 
     1.79
                                            – 5.00 

    Expected dividend yield 
     0.00%

    Volatility 
     130.0
                                            – 140.0%

    Risk-free interest rate 
     3.51-
                                            3.99%

Reservation
of Shares

The
Company had reserved common shares for future issuance as follows as of September 30, 2025:

Schedule of Reserved Shares of Common Stock for Future Issuance

    Stock options outstanding 
     2,645 
  
    Restricted stock units outstanding 
     199,190 
  
    Warrants outstanding* 
     5,722,890 
  
    Series B Preferred Stock
    outstanding 
     1,250,000 
  
    Number of common shares reserved 
     7,174,725 

*The
Company noted that there are 7,722,890 warrants outstanding as of September 30, 2025. However, as noted in Note 8, on September 28, 2025,
the Company executed a side letter with the Holder in relation to the Generate Common Warrants
to waive a clause that requires the