Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 191

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 191
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Project
Dorothy 2 and Project Kati Commitments:

As
of September 30, 2025, the Company was contractually committed for approximately $11.9 million of capital expenditures, primarily related
to infrastructure builds, equipment procurement, and labor associated with the Company’s Project Dorothy 2 and Project Kati datacenters.
These capital expenditures are expected to occur over the current year.

Contingencies:

Spring
Lane Capital Contingency

The
Company has a potential contingency associated with an agreement with SLC of up to $250 thousand which would be reduced by a
proportion of funding received from SLC up to the $45.0 million aggregate contribution cap. The Company considers the probability
of a payment for the contingency to be remote.

Legal

We
are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. When applicable, we accrue for
losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional
information becomes available or circumstances change. Legal fees are charged to expense as they are incurred.

On
December 29, 2022, NYDIG filed a complaint against the Soluna Parties in the Court regarding the NYDIG Loans made by NYDIG to
Borrower pursuant to a Master Equipment Finance Agreement, dated December 30, 2021, that were secured by certain assets of Borrower
and guaranteed by Guarantor pursuant to a written guaranty agreement. The Soluna Parties and NYDIG entered into a Stipulation and
Agreed Judgment which was approved by the Court on February 23, 2024, whereby judgment was granted to NYDIG on the counts in the
complaint and the Soluna Parties became jointly and severally liable for an aggregate amount of approximately $9.2
million plus interest (the “Agreed Judgment Amount”).

On
September 29, 2025, the Soluna Parties and NYDIG entered into a Settlement Agreement (the “Settlement Agreement”),
pursuant to which the Soluna Parties and NYDIG agreed to fully settle and resolve the Agreed Judgment Amount and all other matters
relating to the NYDIG Loans in exchange for the Soluna Parties’ agreement to make certain settlement payments to NYDIG in
accordance with the Settlement Agreement. As of the date of filing these condensed financial statements, the Settlement Agreement
has been fully satisfied and paid.

11.
Related Party Transactions