Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 105

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 agreements amended the multiple on invested capital
provision to 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.

On
March 12, 2025, the SW Borrower, a Delaware limited liability company and subsidiary of SW Holdings, itself a subsidiary of SDI, a Nevada
corporation and wholly owned subsidiary of the Company, entered into the Galaxy Loan Agreement with SW Holdings and Galaxy Digital LLC.
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 has occurred and is continuing. The Term Loan Facility matures on March 12, 2030 and includes scheduled payments
over a five-year term. As of June 30, 2025, the outstanding principal balance is approximately $4.9 million as we were compliant with
all debt covenants.

58

Critical
Accounting Policies and Significant Judgments and Estimates

The
above discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States of America. Note 2, Accounting
Policies, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024 includes a
summary of our most significant accounting policies. There have been no material changes to the critical accounting policies previously
disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024. The preparation of these condensed consolidated financial
statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses,
and related disclosure of assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related
to revenue