Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3676

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 14
Chunk 3676
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, 2024, the Borrower satisfied and repaid the borrowing amount in full by issuing the Investor Class B Membership 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. 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 $53
thousand within Prepaid expenses and other current
assets and $75
thousand within Other assets on the consolidated
balance sheet as of December 31, 2024, of which $35
thousand has been amortized and recorded within
Interest Expense.

June
2024 secured note and July 2024 additional secured note

 Schedule of Secured Note Financing

    (Dollars in thousands) 
    Maturity Date 
    Interest Rate  
    June 20, 2024-  December 31, 2024 
  
    Term Loan and capitalized interest (excludes debt issuance cost) 
    June 20, 2027 
     9% 
    $14,062 
  
    Less: principal and capitalized interest payments 

     (1,105)
  
    Less: debt discount 

     (236)
  
    Less: debt issuance costs 

     (535)
  
    Total outstanding note 

     12,186 
  
    (Less) Current note outstanding 

     5,125 
  
    Long-term note outstanding 

    $7,061 

     F-27 

On
June 20, 2024, pursuant to the terms and subject to the conditions of a Note Purchase Agreement (the “June SPA”) by and among
(i) CloudCo, a Delaware limited liability company and indirect wholly owned subsidiary of the
Company, (ii) Soluna Cloud, a Nevada corporation, indirect wholly owned subsidiary of the Company, and parent of CloudCo, (iii) the Company and (iv) the accredited investor named therein (the “Investor”, and collectively the “Note Parties”), CloudCo issued to the Investor
a secured promissory note in a principal amount equal to $12.5 million (the “Note”).