Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 187

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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 to reduce the outstanding
principal balance of the Note and (ii) at a price greater than $4.00 per share shall be applied first to reduce the outstanding principal
balance of the Note in an amount equal to $4.00 per share of our common stock and then to the Investor. The outstanding share numbers
in this filing do not give effect to the 1,000,000 Escrow Shares to be deposited by the Company in escrow.

Also under the
Modification Agreement, we agreed to register for resale the Escrow Shares and Conversion Shares (together, the “Registrable Securities”)
as promptly as commercially practicable, as determined by us, following the registration for resale of certain other securities. We also
agreed to register for resale the shares of our common stock issuable upon exercise of the Warrant as promptly as commercially practicable,
as determined by us, after the issuance of the Warrant.

Subsequently, we and the Investor mutually agreed
that the 1,000,000 Escrow Shares would instead be issued directly to the Investor, and, on April 29, 2025, we issued 1,000,000 shares
of common stock to the Investor.

Galaxy Note

On March 12, 2025, Soluna SW LLC (the “SW Borrower”),
a Delaware limited liability company and a subsidiary of Soluna SW Holdings LLC (“SW Holdings”), a Delaware limited liability
company and a subsidiary of Soluna Digital, Inc. (“SDI”), a Nevada corporation and a subsidiary of the Company, entered into
a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings and Galaxy Digital LLC (the “Lender”). The Galaxy
Loan Agreement comprises a term loan facility in the principal amount of $5.0 million (the “Term Loan Facility”). The Term
Loan Facility bears interest at 15.0% per annum, unless an Event of Default (as defined therein)
has occurred and is continuing, in which case the Galaxy Term Loan Facility shall bear interest at a rate of 5% above the then applicable
interest rate. The Term Loan Facility will mature on March 12, 2030 and will be paid over a five-year term.

SEPA

On August 12, 2024, we entered
into a Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD., a Cayman Islands exempt limited company (“YA”).
Pursuant to the terms of the SEPA