Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 501

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 501
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 terms.

We
believe these facilities are generally well-maintained and adequate for the Company’s current needs and for expansion, if required.
Our business growth, however, is dependent on developing additional properties, and we believe our project pipeline is strong enough
to support our current business plan.

Item
3: Legal Proceedings

At
any point in time, we may be involved in various lawsuits or other legal proceedings. Such lawsuits could arise from the sale of products
or services or from other matters relating to our regular business activities, compliance with various governmental regulations and requirements,
or other transactions or circumstances.

On
December 29, 2022, NYDIG filed a complaint against Borrower, a subsidiary of Soluna MC, LLC, a subsidiary of Soluna Digital, a
subsidiary of the Company, and Guarantor in Marshall Circuit Court of the Commonwealth of Kentucky regarding the NYDIG Loans made by
NYDIG to Borrower pursuant to the MEFA that were secured by certain assets of Borrower and guaranteed by Guarantor pursuant to a
written guaranty agreement executed by Guarantor. On February 23, 2023, NYDIG proceeded to foreclose on all of the collateral
securing the MEFA 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 Court approved on February 23,
2024.

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 and the deposition of a representative of the Defendants
on or before December 15, 2024. Per agreement between NYDIG and the NYDIG Defendants, (i) the deadline to respond to the supplemental
discovery demands was extended to December 12, 2024 but with rolling weekly production to commence on November 21, 2024