Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 32

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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principal and 50% interest payments and use of 20% SEPA funds. Effectively, the remaining debt assignment was assumed by Soluna Holdings,
Inc. and was recorded as an intercompany debt obligation that was eliminated on the Company’s condensed consolidated financial
statements as of September 30 2025. The Company recorded a gain on extinguishment of the July 2024 Additional Secured Notes of approximately
$551 thousand for the nine months ended September 30, 2025. For the three and nine months ended September 30, 2025, the Company incurred
approximately $0 and $33 thousand in interest expense in relation to the July Additional Secured Note.

Galaxy
Loan

Schedule
of Galaxy Loan

    (Dollars in thousands) 
    Maturity
    Date 
    Interest
    Rate  
    March
    12, 2025 – September 30, 2025 
  
    Term Loan 
    March 12, 2030 
     15% 
    $5,000 
  
    Less: principal payments 

     (250)
  
    Less: debt discount and
    issuance costs 

     (358)
  
    Total outstanding note 

     4,392 
  
    (Less) Current note outstanding 

     636 
  
    Long-term note outstanding 

    $3,756 

    19

On
March 12, 2025, Soluna SW LLC (the “SW Borrower”), a Delaware limited liability company and subsidiary of Soluna SW Holdings
LLC (“SW Holdings”, and together with the SW Borrower, the “SW Loan Parties”), a subsidiary of SDI, a Nevada
corporation and wholly owned subsidiary of Company, entered into a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings
and Galaxy Digital LLC (the “Lender”).

The
Galaxy Loan Agreement provides for a term loan facility in the principal amount of $5.0 million (the “Term Loan Facility”).
The Term Loan Facility bears interest at a rate of 15.0% per annum, subject to an increase of 5.0% (for a total of 20.0%) in the event
an Event of Default as defined within the Galaxy Loan Agreement has occurred and is continuing. The Term Loan Facility matures on March
12, 2030 and includes scheduled payments over a five-year term. For the three and