Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 30

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 2-year Loan Agreement (“Term Loan”) for $2,050,000. The unpaid principal balance of the Term Loan
shall bear interest at per annum rate equal to 15%. Beginning on the last Business Day of the month in which the In-Service Date occurs
(date Dorothy 1B is put into full operation following the planned ramp-up period), and continuing on the last Business Day of each month
thereafter until the repayment of all Term Loan debt principal and accrued interest occurs, DVCC shall make debt service payments on the
Term Loan through a cash sweep with the Site-level Free Cash Flow (total revenue of DVCC minus power costs and site level costs listed
in Loan and Security agreement), otherwise to be distributed to Soluna Holdings, Inc., the ultimate parent entity of DVCC (the “SLNH
Cash”) being applied as a permanent repayment of the Loan in an amount equal to the greater of: (i) the sum of (A) the amount
of accrued and unpaid interest that has not yet been added to the principal balance of the Term Loan, if any, plus (B) an amount
equal to 1/24th of the then outstanding principal balance of the Term Loan; provided that the aggregate amount payable pursuant to this
clause (i) shall not exceed SLNH Cash times 0.60; or (ii) SLNH Cash times 0.33.

Any and all monthly debt service amounts so paid to
Lender shall be applied first to accrued and unpaid interest that has not yet been added to the principal balance of the Term Loan, if
any, and then to repayment of the then outstanding principal balance of the Term Loan. On the Term Loan Maturity Date (May 9, 2025), all
remaining principal and accrued and unpaid interest that has not yet been added to the principal balance of the Term Loan, if any, shall
become immediately due and owing in full and shall be paid by wire transfer in immediately available funds. As of March 31, 2025, the
Company has paid the remaining outstanding balance of $137 thousand, therefore fulfilling its debt obligation with Navitas. Interest expense
related to the Navitas Term Loan for the three months ended March 31, 2025 and 2024 was approximately $2 thousand and $63 thousand.

Convertible Notes

On October 25, 2021, pursuant to a
Securities Purchase Agreement (the “October SPA”), the Company issued to certain accredited investors (the