Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3894

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 16
Chunk 3894
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 $-  
    $8,474 

The
events of default stated in the Notice of Acceleration and Repossession defined below with NYDIG Financing constituted a cross-default
under the terms of secured convertible notes issued to the Noteholders. In addition to such cross-default, the failure of the Company
pursuant to the Addendum dated as of July 19, 2022, to escrow an aggregate amount of $950 thousand for the benefit of the Noteholders
by December 21, 2022, constituted an event of default under the Notes.
Due to the default, the Company accrued interest at a rate of 18% which amounted to $617 thousand
as of March 10, 2023. On March 10, 2023, the Company entered into a Second Addendum Amendment with the Noteholders, in which the Company
paid the accumulated default accrued interest of $617 thousand using the restricted escrow accounts and contemporaneously with the payment,
the Noteholders waived all existing events of default arising under the convertible notes.

On
May 11, 2023, the Company entered into a Second Amendment Agreement (the “Second Amendment”) with the holders of its October
Secured Notes to extend the maturity date of the October Secured Notes to July 25, 2024. In connection with the Second Amendment, the
Company paid an extension fee of $250 thousand and increased the principal amount of the outstanding October Secured Notes by 14%. The
Company also issued 240,000 new Class A warrants exercisable at $12.50 and 80,000 new Class B warrants exercisable at $20.00.

On
November 20, 2023, the Company and the Noteholders entered into a Third Amendment Agreement to amend the Notes, the October SPA and related
agreements (collectively, the “Transaction Documents”). The aim was to facilitate future financings by the Company that may
include funds for prepayment of the Notes by permitting the Company to force conversion of up to $1.5 million of the Notes under certain
circumstances, reduce the prepayment penalty in return for reducing the conversion price of the $4.7 million of the Notes and reducing
the exercise price of 150,000 of the Warrants to $0.01.

On
February 28, 2024, the Company and the Noteholders entered into a Fourth Amendment Agreement to amend the Notes, SPA and related agreements
to facilitate future financ