Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2347

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2347
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 of the Loan in an amount
equal to the greater of: (i) the sum of (A) the amount of accrued and unpaid interest that has not yet been added to the principal
balance of the Term Loan, if any, plus (B) an amount equal to 1/24th of the then outstanding principal balance of the Term Loan;
provided that the aggregate amount payable pursuant to this clause (i) shall not exceed SLNH Cash times 0.60; or (ii) SLNH Cash times
0.33.

Any
and all monthly debt service amounts so paid to Lender shall be applied first to accrued and unpaid interest that has not yet been added
to the principal balance of the Term Loan, if any, and then to repayment of the then outstanding principal balance of the Term Loan.
On the Term Loan Maturity Date (May 9, 2025), all remaining principal and accrued and unpaid interest that has not yet been added to
the principal balance of the Term Loan, if any, shall become immediately due and owing in full and shall be paid by wire transfer in
immediately available funds. The Company has paid approximately $1.6 million in principal for the year ended December 31, 2024 and $547
thousand in principal and capitalized interest payments for the year ended December 31, 2023. Interest expense related to the Navitas
Term Loan for the years ended December 31, 2024 and 2023 was approximately $138 thousand and $204 thousand, respectively, which includes
interest associated with the debt issuance costs. Subsequent to the year-ended December 31, 2024, the Company has fully repaid the Navitas
loan and no longer has an outstanding balance.

Equipment
Loan Agreement

On
May 16, 2024, SDI SL Borrowing – 1, LLC, an affiliate of Soluna Holdings, Inc. (the “Borrower”) entered into a loan
agreement (the “Equipment Loan Agreement” or the “Loan”) with Soluna2 SLC Fund II Project Holdco LLC (the “Lender”,
and collectively, the “Parties”). The Equipment Loan Agreement provides for the Company to borrow, from time to time, up
to $1.0 million, and further amended on February 28, 2025 to $4.0 million to be used to purchase necessary equipment for the progression
of Project Dorothy 2 and Project Kati.  Any