Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 38

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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    and Nine Months ended September 30, 2025 

    Stock price 
    $0.72-2.75 

    Exercise price 
    $0.0001-
                                       1.18 

    Expected term in years 
     4.95
                                            – 5.00 

    Expected dividend yield 
     0.00%

    Volatility 
     130.00%

    Risk-free interest rate 
     3.63-
                                            3.76%

    21

Equipment
Loan Agreement

On
May 16, 2024, SDI SL Borrowing – 1, LLC, an affiliate of the Company (the “SDI Borrower”), entered into a loan agreement
(the “Equipment Loan Agreement” or the “Loan”) with Soluna2 SLC Fund II Project Holdco LLC (the “Lender”,
and collectively, the “Parties”). As further amended on February 28, 2025, the Equipment Loan Agreement provides for the
Company to borrow, from time to time, up to $4.0 million, to be used to purchase necessary equipment for the progression of Project Dorothy
2 and Project Kati. Any loans made under the Equipment Loan Agreement have a maturity date of May 16, 2027 and will bear interest at
a rate of 15% per annum. The Equipment Loan Agreement includes customary covenants for loans of this nature including financial reporting,
monthly updates, event reporting, as well as conduct of business. In addition, the Equipment Loan Agreement contains a multiple on invested
capital (“MOIC”) provision, which requires the Company to pay, in addition to principal and interest, 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,
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
May 17, 2024, the SDI Borrower drew down $720 thousand of the Loan with the Lender. On July 22, 2024, the SDI Borrower satisfied and
repaid the borrowing amount in full by issuing the Investor Class B Membership