Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1709

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1709
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 2022, the Company had a subsequent
drawdown of $9.6 million. On December 20, 2022, Soluna MC Borrowing 2021-1 LLC (“Borrower”) received a Notice of Acceleration
and Repossession (the “NYDIG Notice”) from NYDIG with respect to the MEFA, by and between Borrower, a subsidiary of Soluna MC, LLC, a subsidiary of Soluna Digital, a subsidiary
of the Company, and NYDIG. The obligations
of Borrower under the MEFA and reflected in the NYDIG Notice are ring-fenced to Borrower and its direct parent company, Soluna MC LLC.
The Company is not a party to any guaranty, collateral agreement, or other support agreement with or for the benefit of NYDIG. As such,
the principal balance of $10.5 million as of December 31, 2022 became due immediately and the Borrower shall bear interest, at a rate
per annum equal to 2.0% plus the rate per annum otherwise applicable to such obligations set forth in the MEFA. On February 23, 2023,
NYDIG proceeded to foreclose on all of the collateral securing the MEFA, and repossessed the collateralized assets that totaled approximately
$3.4 million, in which approximately $560 thousand was first used to pay off accrued interest and penalty to date. On September 5, 2023,
NYDIG provided a letter finalizing the accounting for the repossessed collateralized assets totaling proceeds of approximately $3.4 million.
A summary judgment motion was performed on February 13, 2024 and was agreed upon by both NYDIG and the Borrower, that the total outstanding
loan principal balance would be approximately $9.2 million, in which a penalty fee was applied of approximately $1.0 million to the repossessed
collateralized assets, and outstanding interest and penalty balance would be approximately $936 thousand as of December 31, 2023. As
of December 31, 2024, the Company still has an outstanding loan principal of approximately $9.2 million and outstanding interest and
penalty balance of approximately $2.3 million.

On
October 25, 2021, we issued the Convertible Notes to the Noteholders in the aggregate principal amount of approximately $16.3 million
for an aggregate purchase price of $15.0 million pursuant to the terms of the SPA