Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 165

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 165
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 the Cloud Additional Warrant
date until the earlier of raising an additional $111.25 million or December 31, 2024, as well as shares issuable upon exercise or conversion
of convertible securities issued during this period, excluding certain equity compensation plan issuances.

On
October 1, 2024, CloudCo, Soluna Cloud and the Company entered into assignment and assumption agreements (the “Assignment Agreements”)
with the Additional Investors with respect to an aggregate of $1.25 million of notes issued by CloudCo. Pursuant to the Assignment Agreements,
the Company will be able to purchase such notes for a purchase price of $750 thousand, or 60% of face value. The assignment and assumption
will be effective once all conditions of the agreement are met including fulfilling the purchase price. The notes will be paid to the
note holders from an escrow that is funded in installments from the SEPA funding. The transfer is not effective until payment from the
escrow is made. The Company was required to escrow 20% of all SEPA draws until the $750 thousand purchase price is accumulated. In addition
to the 20% of SEPA funds, the Company would apply all principal payments and 50% of interest payments made to date from October 1, 2024,
until the $750 thousand purchase price has been met.

On
March 14, 2025, the Company fulfilled the purchase obligations, and assumed the Additional Notes through payment of $750 thousand through
principal and 50% interest payments and use of 20% SEPA funds. Effectively, the remaining debt assignment was assumed by Soluna Holdings,
Inc. and was recorded as an intercompany debt obligation that was eliminated on the Company’s condensed consolidated financial
statements as of September 30 2025. The Company recorded a gain on extinguishment of the July 2024 Additional Secured Notes of approximately
$551 thousand for the nine months ended September 30, 2025. For the three and nine months ended September 30, 2025, the Company incurred
approximately $0 and $33 thousand in interest expense in relation to the July Additional Secured Note.

Galaxy
Loan

Schedule
of Galaxy Loan

    (Dollars in thousands) 
    Maturity
    Date 
    Interest
    Rate  
    March
    12, 2025 – September 30, 2025 
  
    Term Loan 
    March