Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 39

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 Interests in the Dorothy 2 project valued at three times
the borrowing amount (i.e., $2.16 million). The redemption of debt through equity created approximately a $1.4 million loss on debt extinguishment
for the year ended December 31, 2024.

On
March 21, 2025, the SDI Borrower drew down $250 thousand of the Loan with the Lender, in relation to Project Kati. In addition, on June
11, 2025 and July 16th, the SDI Borrower drew down an additional $269.2 thousand and $291.4 thousand of the Loan with the Lender, in
relation to Project Kati. The total amount of equipment loans of $810.6 thousand was outstanding prior to the assignment of equipment
and payoff of the loan. The SDI Borrower shall repay the Loans under these Borrowing Requests with a different MOIC Payment than as defined
in the Equipment Loan Agreement. The MOIC Payment for these Borrowing Requests only, shall be an amount equal to the difference of (i)
the greater of (a) the principal amount of the Loan being repaid plus all interest previously paid or simultaneously being paid
to Lender in respect of such principal of the Loan, and (b) the principal amount of the Loan being repaid multiplied by three and three
tenths (3.3), minus (ii) the sum of the principal amount of the Loan being repaid plus all interest previously paid or
simultaneously being paid to Lender in respect of such principal of the Loan. As of the date prior to the payoff, the Company had approximately
$180.6 thousand in Accrued interest payable in relation to the MOIC and 15% interest accruing on the Loan that was outstanding.

On
 August 1, 2025, the SDI Borrower satisfied and repaid the borrowing amount in full by issuing  Spring Lane Capital (“SLC”)
Class B Membership Interests in Soluna KKSL JVCo LLC (“Kati”) project for 3.3 times the membership units ($810.6 thousand
payoff equal to fair value of approximately $2.7 million for Class B membership units issued to SLC), as part of the contribution agreement
between the Parties. Through initial contributions of $810.6 thousand (debt repayment), SLC received 2,675 Class B Membership units,
which constituted a 100% initial membership interest of