Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 329

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 329
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 met including fulfilling the purchase price.
The assignment and assumption was on March 14, 2025, therefore we extinguished the remaining third-party outstanding debt on the Additional
Note, and a gain on extinguishment of the debt of approximately $551 thousand was recorded. In relation to the Green Cloud Secured Note,
as of September 30, 2025, the Company had an outstanding principal balance of approximately $8.5 million.

On
January 14, 2022, the Company effected an initial drawdown under the Master Equipment Finance Agreement (“MEFA”) with
NYDIG in the aggregate principal amount of approximately $4.6 million that bore interest at 14%. On January 26, 2022, the Company
had a subsequent drawdown of $9.6 million. On December 20, 2022, Soluna MC Borrowing 2021-1 LLC (“Borrower”) received a
Notice of Acceleration and Repossession (the “NYDIG Notice”) from NYDIG with respect to the MEFA, by and between
Borrower, a subsidiary of Soluna MC, LLC, a subsidiary of Soluna Digital, a subsidiary of the Company, and NYDIG. The obligations of
Borrower under the MEFA and reflected in the NYDIG Notice are ring-fenced to Borrower and its direct parent company, Soluna MC LLC.
The Company is not a party to any guaranty, collateral agreement, or other support agreement with or for the benefit of NYDIG. As
such, the principal balance of $10.5 million as of December 31, 2022 became due immediately and the Borrower shall bear interest, at
a rate per annum equal to 2.0% plus the rate per annum otherwise applicable to such obligations set forth in the MEFA. On February
23, 2023, NYDIG proceeded to foreclose on all of the collateral securing the MEFA, and repossessed the collateralized assets that
totaled approximately $3.4 million, in which approximately $560 thousand was first used to pay off accrued interest and penalty to
date. On September 5, 2023, NYDIG provided a letter finalizing the accounting for the repossessed collateralized assets totaling
proceeds of approximately $3.4 million. A summary judgment motion was performed on February 13, 2024 and was agreed upon by both
NYDIG and the Borrower, that the total outstanding