Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 331

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 331
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. The Equipment Loan Agreement includes customary covenants for loans of this nature,
as well as a multiple on invested capital provision, which requires us to pay, in addition to principal and interest, 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, 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. On March 21, 2025, the SDI Borrower drew down $250 thousand of the Loan
with the Lender, in relation to Project Kati. In addition, on June 11, 2025 and July 16th, the SDI Borrower drew down an additional $269.2
thousand and $291.4 thousand of the Loan with the Lender, in relation to Project Kati. The total amount of equipment loans of $810.6
thousand was outstanding prior to the assignment of equipment and payoff of the loan. The SDI Borrower shall repay the Loans under these
Borrowing Requests with a different MOIC Payment than as defined in the Equipment Loan 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 the August 1, 2025, the SDI Borrower satisfied and repaid the Borrowing
amount in full by issuing the Spring Lane Capital (“SLC”) Class B Membership Interests in Soluna KKSL JVCo