Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 149

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 149
---
FA, and repossessed the collateralized assets. Subsequently, NYDIG filed its Motion for Summary Judgment seeking entry of a judgment
against the NYDIG Defendants in the approximate amount of $10.3 million, and NYDIG and the NYDIG Defendants consensually resolved the
motion in the form of a Stipulation and Agreed Judgment, which the Circuit Court approved on February 23, 2024.

    25

On March 13, 2024, NYDIG served the NYDIG
Defendants with a post-judgment discovery seeking information regarding the NYDIG Defendants’ assets and liabilities. The NYDIG
Defendants completed responding to NYDIG’s initial document requests on May 13, 2024. On September 24, 2024, NYDIG sent a letter
seeking supplemental discovery from the NYDIG Defendants, and the NYDIG Defendants completed responding to NYDIG’s additional/supplemental
document requests by November 20, 2024. A deposition of a representative of the NYDIG Defendants occurred on January 23, 2025. On April
2, 2025, NYDIG sent another letter seeking supplemental discovery from the NYDIG Defendants or alternatively to commence discovery discussions.
The NYDIG Defendants sent a response on April 10, 2025 requesting contact information for potential settlement discussions and proposing
a rolling discovery schedule; as of May 15, 2025 there has not  been a response on the proposed discovery schedule.

Additionally, NYDIG has stated its intention to pursue
the parent company of Guarantor (“Parent Entity”) under a piercing of the corporate veil theory relating to NYDIG Defendants’
debts and liabilities under the loan documents. Parent Entity intends to vigorously defend itself from NYDIG’s parent company claims.
Parent Entity denies any such liability and filed a complaint for a declaratory judgment against NYDIG in the Eighth Judicial District
Court in Clark County, Nevada on March 16, 2023, seeking a declaratory judgment as to such matter. On June 22, 2023, the court issued
an order granting NYDIG’s motion to dismiss, without prejudice. Parent Entity intends to continue to vigorously defend any allegations
regarding liability on account of NYDIG Defendants’ debts and liabilities to NYDIG under their loan documents.

As of March 31, 2025, the Company still has an outstanding
principal of approximately $9.2 million and outstanding interest and penalty balance of approximately $2.6 million.