Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 506

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 506
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 with one of the accredited investors issued convertible notes
and Class A, Class B and Class C common stock purchase warrants on October 25, 2021 (the
“ Purchasers”), and two other parties introduced by that Purchaser, with respect to an aggregate of $1.25 million
of notes (“Additional Notes”) issued by CloudCo (the “Assignment Agreements”). Pursuant to the Assignment
Agreements, we 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. As of December
31, 2024, the assignment and assumption of the Additional Notes has not been become effective, however on March 14, 2025, the
Company has fulfilled the agreement and assumed the assignment and assumption of the Additional Notes for the remaining outstanding
balance.

Galaxy
Note

On
March 12, 2025, Soluna SW LLC (the “SW Borrower”), a Delaware limited liability company and a subsidiary of Soluna SW Holdings
LLC (“SW Holdings”), a Delaware limited liability company and a subsidiary of Soluna Digital, Inc. (“SDI”),
a Nevada corporation and a subsidiary of Soluna Holdings, Inc. (the “Company”), entered into a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings and Galaxy Digital LLC (the “Lender”). The Galaxy Loan Agreement comprises
a term loan facility in the principal amount of $5.0 million (the “Term Loan Facility”). The Term Loan Facility bears interest
at 15.0% per annum, unless an Event of Default (as defined therein) has occurred and is continuing,
in which case the Galaxy Term Loan Facility shall bear interest at a rate of 5% above the then applicable interest rate. The Term
Loan Facility will mature on March 12, 2030 and will be paid over a five-year term.

June SPA Modification

On June 20, 2024, pursuant to the terms and subject to the conditions of
a Note Purchase Agreement (the “June SPA”) by and among (i) Soluna AL CloudCo, LLC, a Delaware limited liability company (“CloudCo”),
and indirect wholly owned subsidiary of the Company, (ii) Soluna Cloud, Inc., a Nevada corporation, indirect wholly owned subsidiary of
the Company, and parent of CloudCo (“Soluna Cloud”), (iii