Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 130

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 130
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 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
was also applied (the “Agreed Judgment Amount”). On September 29, 2025, the Borrower and NYDIG entered into a Settlement
Agreement (the “Settlement Agreement”), pursuant to which the Borrower and NYDIG agreed to fully settle and resolve the
Agreed Judgment Amount and all other matters relating to the NYDIG loans in exchange for the Borrower’s agreement to make
certain settlement payments to NYDIG in accordance with the Settlement Agreement. In exchange for such settlement payments, NYDIG,
on behalf of itself and its related parties, and its and their respective predecessors, successors, heirs and assigns, agreed to
release the Borrower and their affiliates from any and all claims, demands, actions, causes of action, liabilities, damages, costs,
and expenses, whether known or unknown, arising out of or relating to the Agreed Judgment Amount and the NYDIG loans (other than
obligations under the Settlement Agreement). The Company has recorded a gain on extinguishment of debt for the outstanding principal
and accrued interest and penalties. As of September 30, 2025, the Borrower has paid a portion of the Settlement Agreement amount,
and the remaining settlement obligation is included in “Accrued Expenses”. Subsequently, the remaining Settlement
Agreement amount has been fully paid and satisfied.

65

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 September 30, 2025, the Nav