Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 855

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 855
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ified Amount (such difference, the “Make Whole Amount”), than the
amount of each of the remaining scheduled payments shall be increased by an amount equal to the Make Whole Amount divided by the number
of remaining scheduled payments, (iv) modify the Note such that the Note is now convertible into up to 2,500,000 shares (the “Conversion
Shares”) of Common Stock based on a conversion price of $5.00, (v) amend the Note to provide that the Company will be a direct co-obligor
with CloudCo under the Note, and (vi) amend the SPA to allow the Company to organize or incorporate any subsidiary, over which the Company
shall have voting or beneficial control, which is being formed with the intent to engage in a business or line of business substantially
similar to that of Soluna Cloud or the Company, without first paying all of the principal and interest due under the Note and without
first obtaining Investor’s prior written consent.

The net proceeds from dispositions of the Escrow Shares (i) at a price
of up to $4.00 per share shall be applied to reduce the outstanding principal balance of the Note and (ii) at a price greater than $4.00
per share shall be applied first to reduce the outstanding principal balance of the Note in an amount equal to $4.00 per share of Common
Stock and then to the Investor.

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 allows 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. As of January 1, 2023, the Company had drawn on the line of credit
and approximately $350 thousand of the amount drawn under the line of credit remained outstanding. As of December 31, 2023, the remaining
$350 thousand had been paid down. The Company does not have any remaining balance outstanding as of December 31, 2024 and December 31,
2023. The Company does not plan to draw down on the line of credit in the foreseeable future. In addition, future drawdowns require pre-approval