Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 30

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 30
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 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 remaining Note Holders the 20% premium
for the prepayment of the Notes of approximately $625 thousand. Such amounts were recorded as within Other Expense, net for the year
ended December 31, 2024.

For
the year ended December 31, 2024, the Company issued 2,512,581 shares of common stock for conversion of the debt, which includes the
final conversion shares noted below.

On
December 12, 2024, the Company entered into an agreement with the remaining three Note Holders who held an outstanding principal balance
as of December 12, 2024, pursuant to which the three remaining Note Holders elected to immediately convert all of the outstanding principal
of certain convertible notes into shares of the Company’s common stock. The agreement satisfied the full outstanding debt owed
to the remaining three Note Holders under the Convertible Notes. Following the conversion, 335,661 shares of common stock were issued
to the Note Holders in accordance with the terms of the Convertible Notes, as amended. The Company recorded a debt inducement conversion
expense of approximately $388 thousand within Other Expense, net for the year ended December 31, 2024. No further amounts are owed by
the Company under the Convertible Notes as of December 31, 2024 and June 30, 2025.

Line
of Credit

On
September 15, 2021, the Company entered into a $1.0 million unsecured line of credit with KeyBank National Association (“KeyBank”),
that will, among other things, allow the Company to request loans and to use the proceeds of such loans for working capital and other
general corporate purposes (the “KeyBank facility”). The line of credit bears interest at a rate of Prime + 0.75% per annum.
Accrued interest is due monthly and principal is due in full following KeyBank’s demand. The Company does not have any remaining
balance outstanding as of December 31, 2024 and June 30, 2025. The Company does not plan to draw down on the line of credit in