Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 128

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 128
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000 shares of common stock to  the Investor.

July 2024 Additional Secured Note

 Schedule
of Additional Secured Note Financing

    (Dollars in thousands) 
    Maturity Date  
    Interest Rate  
    January 1, 2025-  March 31, 2025  
    July 12, 2024- December 31, 2024 
  
    Term Loan and capitalized interest (excludes debt issuance cost) 
    July 12, 2027*  
     9% 
    $1,209  
    $1,278 
  
    Less: principal and capitalized interest payments 

     (658) 
     (69)
  
    Debt discount 

     -  
     (6)
  
    Gain on extinguishment 

     (551) 
     - 
  
    Total outstanding debt 

    $-  
    $1,203 

  *
  On March 14, 2025, the Company
  satisfied the assignment and assumption agreement, as such a gain on extinguishment was recorded.

On July 12, 2024, the Company, CloudCo, Soluna Cloud,
and the Investor entered into a First Amendment to the Note Purchase Agreement (the “June SPA Amendment”). This amendment
allows CloudCo to issue additional secured promissory notes totaling $1.25 million (the “Additional Notes”) to new accredited
investors (the “Additional Investors”). These Additional Notes are subject to the same terms and conditions as the June SPA
financing.

To
further incentivize the Additional Investors, Soluna Cloud issued warrants (the “Cloud Additional Warrants”) to each Additional
Investor. These Cloud Additional Warrants are exercisable within three years from the effective date of the June SPA Amendment. They
allow the purchase of a number of shares of Soluna Cloud common stock equal to 1.25% of Soluna Cloud’s issued and outstanding common
stock as of the Cloud Additional Warrant date, divided by 0.9875, plus 1.25% of each Qualified Issuance, divided by 0.9875. On
July 12, 2024, the Company determined that the additional warrants were treated as a warrant liability and based on valuation, the Company
booked a warrant liability of approximately $13
thousand and a related debt discount in which will be amortized over