Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 729

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 729
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 Company is not a party to any guaranty, collateral agreement, or other support agreement with or for the benefit of NYDIG. As such,
the principal balance of $10.5 million as of December 31, 2022 became due immediately and the Borrower shall bear interest, at a rate
per annum equal to 2.0% plus the rate per annum otherwise applicable to such obligations set forth in the MEFA. On February 23, 2023,
NYDIG proceeded to foreclose on all of the collateral securing the MEFA, and repossessed the collateralized assets that totaled approximately
$3.4 million, in which approximately $560 thousand was first used to pay off accrued interest and penalty to date. On September 5, 2023,
NYDIG provided a letter finalizing the accounting for the repossessed collateralized assets totaling proceeds of approximately $3.4 million.
A summary judgment motion was performed on February 13, 2024 and was agreed upon by both NYDIG and the Borrower, that the total outstanding
loan principal balance would be approximately $9.2 million, in which a penalty fee was applied of approximately $1.0 million to the repossessed
collateralized assets, and outstanding interest and penalty balance would be approximately $936 thousand as of December 31, 2023. As
of December 31, 2024, the Company still has an outstanding loan principal of approximately $9.2 million and outstanding interest and
penalty balance of approximately $2.3 million.

On
October 25, 2021, we issued the Convertible Notes to the Noteholders in the aggregate principal amount of approximately $16.3 million
for an aggregate purchase price of $15.0 million pursuant to the terms of the SPA. The Convertible Notes were convertible, subject to
certain conditions, at any time at the option of the investors, into an aggregate of 71,043 shares of our common stock. On May 11, 2023,
we and the Noteholders entered into the Second Amendment with the Noteholders, which increased the principal outstanding balance of the
Convertible Notes to approximately $13.3 million and extended the maturity date of the Convertible Notes to July 2024. On November 20,
2023 we and the Noteholders entered into the Third Amendment to the SPA related agreements to facilitate future financings by us that
may include funds for prepayment of the Convertible Notes by permitting