Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 26

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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31, 2025, the Company incurred approximately
$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 – March 31, 2025 
  
    Term Loan 
    March 12, 2030 
     15% 
    $5,000 
  
    Less: principal payments 

     - 
  
    Less: debt discount and issuance costs 

     (450)
  
    Total outstanding note 

     4,550 
  
    (Less) Current note outstanding 

     348 
  
    Long-term note outstanding 

    $4,202 

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 20.0%) in the event an Event of Default as
defined within the Galaxy Loan Agreement has occurred and is continuing. The Term Loan Facility matures on March 12, 2030 and includes
scheduled payments over a five5-year term. As of March 31, 2025, the Company has accrued approximately $42 thousand in interest expense.

The SW Borrower may voluntarily
prepay all or part of the Term Loan Facility at any time together with accrued and unpaid interest on the principal amount to be prepaid
up to the date of prepayment. The SW Borrower shall prepay all or part of the Term Loan Facility with 100% of the Net Cash Proceeds (as
defined therein) received upon the occurrence of (i) an Asset Sale or Casualty Event (each as defined therein), (ii) an Equity Issuance
(as defined therein),