Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 271

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 271
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reement (the “Settlement Agreement”), pursuant to which the Borrower 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 Borrower’s agreement to make
certain settlement payments to NYDIG in accordance with the Settlement Agreement. In exchange for such settlement payments, NYDIG,
on behalf of itself and its related parties, and its and their respective predecessors, successors, heirs and assigns, agreed to
release the Borrower and their affiliates from any and all claims, demands, actions, causes of action, liabilities, damages, costs,
and expenses, whether known or unknown, arising out of or relating to the Agreed Judgment Amount and the NYDIG loans (other than
obligations under the Settlement Agreement). The Company has recorded a gain on extinguishment of debt for the outstanding principal
and accrued interest and penalties. As of September 30, 2025, the Borrower has paid a portion of the Settlement Agreement amount,
and the remaining settlement obligation is included in “Accrued Expenses”. Subsequently, the remaining Settlement
Agreement amount has been fully paid and satisfied.

65

On
May 9, 2023, DVCC and Navitas West Texas Investments SPV, LLC entered into a 2-year Loan Agreement for $2,050,000. The unpaid principal
balance of the Term Loan shall bear interest at per annum rate equal to 15%. As of September 30, 2025, the Navitas loan has been fully
paid off.

On
May 16, 2024, the SDI Borrower, entered into the Equipment Loan Agreement with the Lender. The Equipment Loan Agreement provides for
the SDI Borrower to borrow, from time to time, up to $4.0 million, as further amended on February 28, 2025, to be used to purchase necessary
equipment for the progression of D2 and Project Kati. Any loans made under the Equipment Loan Agreement have a maturity date of May 16,
2027 and bear interest at a rate of 15% per annum. 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