Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 151

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 151
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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 loan principal balance
would be approximately $9.2 million, in which a penalty fee was applied of approximately $1.0 million to the repossessed collateralized
assets, and outstanding interest and penalty balance would be approximately $936 thousand as of December 31, 2023. As of June 30, 2025,
the Company still has an outstanding loan principal of approximately $9.2 million and outstanding interest and penalty balance of approximately
$3.0 million as of June 30, 2025.

On
May 9, 2023, DVCC and Navitas West Texas Investments SPV, LLC entered into a 2-year Loan Agreement for $2,050,000. The unpaid principal
balance of the Term Loan shall bear interest at per annum rate equal to 15%. As of June 30, 2025, the Navitas loan has been fully paid
off.

On
May 16, 202