Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 3802

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 15
Chunk 3802
---
the “Securities Act”), without any information requirements, the amount of principal and interest
payable on such date shall be reduced by 50% (the aggregate amount of the six months of such reductions, the “Specified Amount”)
and (b) if the aggregate amount of payments on the Amended Note applied from the proceeds of the sale of the Escrow Shares on or prior
to the last six scheduled payments is less than the Specified Amount (such difference, the “Make Whole Amount”), than the
amount of each of the remaining scheduled payments shall be increased by an amount equal to the Make Whole Amount divided by the number
of remaining scheduled payments, (iv) modify the Note such that the Note is now convertible into up to 2,500,000 shares (the “Conversion
Shares”) of Common Stock based on a conversion price of $5.00, (v) amend the Note to provide that the Company will be a direct co-obligor
with CloudCo under the Note, and (vi) amend the SPA to allow the Company to organize or incorporate any subsidiary, over which the Company
shall have voting or beneficial control, which is being formed with the intent to engage in a business or line of business substantially
similar to that of Soluna Cloud or the Company, without first paying all of the principal and interest due under the Note and without
first obtaining Investor’s prior written consent.

The net proceeds from dispositions of the Escrow Shares (i) at a price
of up to $4.00 per share shall be applied to reduce the outstanding principal balance of the Note and (ii) at a price greater than $4.00
per share shall be applied first to reduce the outstanding principal balance of the Note in an amount equal to $4.00 per share of Common
Stock and then to the Investor.

Line
of Credit

On
September 15, 2021, the Company entered into a $1.0 million unsecured line of credit with KeyBank National Association (“KeyBank”),
that allows the Company to request loans and to use the proceeds of such loans for working capital and other general corporate purposes
(the “KeyBank facility”). The line of credit bears interest at a rate of Prime + 0.75% per annum. Accrued interest is due
monthly and principal is due in full following KeyBank’s demand. As of January 1, 2023, the Company had drawn on the line of credit
and approximately $