Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 20

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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 the $750 thousand purchase price has been met.

    17

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 June 30 2025. The Company recorded a gain on extinguishment of the July 2024 Additional Secured Notes of approximately
$551 thousand for the six months ended June 30, 2025. For the three and six months ended June 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 –
 June 30, 2025 
  
    Term
    Loan 
    March
    12, 2030 
     15% 
    $5,000 
  
    Less:
    principal payments 

     (125)
  
    Less:
    debt discount and issuance costs 

     (395)
  
    Total
    outstanding note 

     4,480 
  
    (Less)
    Current note outstanding 

     492 
  
    Long-term
    note outstanding 

    $3,988 

On
March 12, 2025, Soluna SW LLC (the “SW Borrower”), a Delaware limited liability company and subsidiary of Soluna SW Holdings
LLC (“SW Holdings”, and together with the SW Borrower, the “SW Loan Parties”), a subsidiary of SDI, a Nevada
corporation and wholly owned subsidiary of Company, entered into a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings
and Galaxy Digital LLC (the “Lender”).

The
Galaxy Loan Agreement provides for a term loan facility in the principal amount of $5.0 million (the “Term Loan Facility”).
The Term Loan Facility bears interest at a rate of 15.0% per annum, subject to an increase of 5.0% (for a total of