Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 173

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 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 Kati. The redemption of debt through equity created approximately a $1.7 million
loss on debt extinguishment for the three and nine months ended September 30, 2025.

Per
ASC 835-30-S45-1, debt issuance costs related to line of credits should be recorded as an asset and amortized over the life of the line
of credit agreement. As such, the Company recorded $64 thousand and $53 thousand within Prepaid expenses and other current assets as
of September 30, 2025 and December 31, 2024 and $40 thousand and $75 thousand within Other assets on the consolidated balance sheet as
of September 30, 2025 and December 31, 2024, of which approximately $16 thousand and $46 thousand has been amortized and recorded within
Interest Expense for the three and nine months ended September 30, 2025.

Navitas
Term Loan

Schedule of Navitas Term Loan