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

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 2025
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15%. Beginning on the last Business Day
of the month in which the In-Service Date occurs (date Dorothy 1B is put into full operation following the planned ramp-up period), and
continuing on the last Business Day of each month thereafter until the repayment of all Term Loan debt principal and accrued interest
occurs, DVCC shall make debt service payments on the Term Loan through a cash sweep with the Site-level Free Cash Flow (total revenue
of DVCC minus power costs and site level costs listed in Loan and Security agreement), otherwise to be distributed to Soluna Holdings,
Inc., the ultimate parent entity of DVCC (the “SLNH Cash”) being applied as a permanent repayment of the Loan in an amount
equal to the greater of: (i) the sum of (A) the amount of accrued and unpaid interest that has not yet been added to the principal
balance of the Term Loan, if any, plus (B) an amount equal to 1/24th of the then outstanding principal balance of the Term Loan;
provided that the aggregate amount payable pursuant to this clause (i) shall not exceed SLNH Cash times 0.60; or (ii) SLNH Cash times
0.33.

Any
and all monthly debt service amounts so paid to Lender shall be applied first to accrued and unpaid interest that has not yet been added
to the principal balance of the Term Loan, if any, and then to repayment of the then outstanding principal balance of the Term Loan.
On the Term Loan Maturity Date (May 9, 2025), all remaining principal and accrued and unpaid interest that has not yet been added to
the principal balance of the Term Loan, if any, shall become immediately due and owing in full and shall be paid by wire transfer in
immediately available funds. The Company has paid approximately $1.6 million in principal for the year ended December 31, 2024 and $547
thousand in principal and capitalized interest payments for the year ended December 31, 2023. Interest expense related to the Navitas
Term Loan for the years ended December 31, 2024 and 2023 was approximately $138 thousand and $204 thousand, respectively, which includes
interest associated with the debt issuance costs. Subsequent to the year-ended December 31, 2024, the Company has fully repaid the Navitas
loan and no longer has an outstanding balance.

Equipment
Loan Agreement

On
May 16,