Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 133

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 through equity created approximately a $1.4 million loss on debt extinguishment for the year ended
December 31, 2024.

On March 21, 2025, the SDI
Borrower drew down $250 thousand of the Loan with the Lender, in relation to Project Kati. The amount is outstanding as of March 31, 2025.
The SDI Borrower shall repay the Loan under this Borrowing Request with a different MOIC Payment than as defined in the Equipment Loan
Agreement. The MOIC Payment for this Borrowing Request only, shall be 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 being paid to Lender in respect of
such principal of the Loan, and (b) the principal amount of the Loan being repaid multiplied by three and three tenths (3.3), minus
(ii) the sum of the principal amount of the Loan being repaid plus all interest previously paid or simultaneously being paid
to Lender in respect of such principal of the Loan.

Per ASC 835-30-S45-1, debt issuance costs related
to line of credits should be recorded as an asset and amortized over the life of the line of credit agreement. As such, the Company recorded
$62 thousand and $53 thousand, respectively within Prepaid expenses and other current assets as of March 31, 2025 and December 31, 2024
and $72 thousand and $75 thousand within Other assets on the consolidated balance sheet as of March 31, 2025 and December 31, 2024, respectively,
of which approximately $14 thousand has been amortized and recorded within Interest Expense for the three months ended March 31, 2025.

Navitas Term Loan

 Schedule of Navitas Term Loan

    (Dollars in thousands) 
    Maturity Date  
    Interest Rate  
    January 1, 2025-  March 31, 2025  
    January 1, 2024-
 December 31, 2024 
  
    Term Loan and capitalized interest (excludes debt issuance cost) 
    May 9, 2025*  
     15% 
    $137  
    $1,707 
  
    Less: principal and capitalized interest payments 

     (137) 
     (1,570