Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 124

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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 Soluna in the approximate amount of $10.3 million for
principal and interest and penalties. On January 12, 2024, Soluna filed its objection to NYDIG’s motion for summary judgment on
the grounds that NYDIG failed to explain what collateral of which loan was sold and how the sale proceeds were allocated to each loan.
A summary judgment motion hearing took place on February 13, 2024, where it was agreed upon by both NYDIG and the Borrower, that the total
outstanding loan principal balance would be approximately $9.2 million. The Company applied the per diem interest rate agreed upon with
the summary judgement and recorded interest expense for the three months ended March 31, 2025 and 2024 of approximately $357 thousand
and $361 thousand, respectively, and has an outstanding interest and penalty accrual of approximately $2.6 million recorded within “Accrued
liabilities” as of March 31, 2025. See Note 10 for further information in relation to the NYDIG litigation matter.

June 2024 secured note

 Schedule of Secured Note Financing 

    (Dollars in thousands) 
    Maturity Date 
    Interest Rate  
    January 1, 2025-                                                                                March 31, 2025  
    July 20, 2024-
                                                                               December
31, 2024 
  
    Term Loan and capitalized interest (excludes debt issuance cost) 
    June 20, 2027 
     9% 
    $11,748  
    $12,784 
  
    Less: principal and capitalized interest payments 

     (1,060) 
     (1,036)
  
    Less: debt discount 

     (189) 
     (230)
  
    Less: debt issuance costs 

     (444) 
     (535)
  
    Total outstanding note 

     10,055  
     10,983 
  
    (Less) Current note outstanding 

     4,067  
     3,922 
  
    Long-term note outstanding 

    $5,988  
    $7,061 

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