Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 652

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 652
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 2027 
     9% 
    $14,062 
  
    Less: principal and capitalized interest payments 

     (1,105)
  
    Less: debt discount 

     (236)
  
    Less: debt issuance costs 

     (535)
  
    Total outstanding note 

     12,186 
  
    (Less) Current note outstanding 

     5,125 
  
    Long-term note outstanding 

    $7,061 

     F-27 

On
June 20, 2024, pursuant to the terms and subject to the conditions of a Note Purchase Agreement (the “June SPA”) by and among
(i) CloudCo, a Delaware limited liability company and indirect wholly owned subsidiary of the
Company, (ii) Soluna Cloud, a Nevada corporation, indirect wholly owned subsidiary of the Company, and parent of CloudCo, (iii) the Company and (iv) the accredited investor named therein (the “Investor”, and collectively the “Note Parties”), CloudCo issued to the Investor
a secured promissory note in a principal amount equal to $12.5 million (the “Note”). The Note accrues interest at a rate
9.0% per annum, subject to adjustment upon an event of default. The Note matures on June 20, 2027. CloudCo’s obligations under
the Note will be secured by all or substantially all of CloudCo’s assets, including pursuant to a security agreement to be executed
and delivered by CloudCo in favor of the Investor (the “CloudCo Security Agreement”, and together with the June SPA and the
Note, the “CloudCo Agreements”).

As
further inducement for the Investor to purchase the Note, Soluna Cloud issued to the Investor a warrant (the “Warrant”) exercisable
within three years from June 20, 2024 for a number of shares of common stock of Soluna Cloud equal to the sum of (a) 12.5% of Soluna
Cloud’s issued and outstanding common stock as of the date of the Warrant divided by 0.875, plus (b) the percentage of each Qualified
Issuance (as defined below) divided by 0.875. For purposes of the Warrant, “Qualified Issuance” means (y) each issuance of
common stock of Soluna Cloud during the period commencing on the day after the date of the