Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 23

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 23
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 repaid plus all interest previously paid or simultaneously
being paid to Lender in respect of such principal of the Loan.

On
May 17, 2024, the SDI Borrower drew down $720 thousand of the Loan with the Lender. On July 22, 2024, the SDI Borrower satisfied and
repaid the borrowing amount in full by issuing the Investor Class B Membership Interests in the Dorothy 2 project valued at three times
the borrowing amount (i.e., $2.16 million). The redemption of debt through equity created approximately a $1.4 million loss on debt extinguishment
for the year ended December 31, 2024.

On
March 21, 2025, the SDI Borrower drew down $250 thousand of the Loan with the Lender, in relation to Project Kati. In addition, on June
11, 2025, the SDI Borrower drew down an additional $269 thousand of the Loan with the Lender, in relation to Project Kati. The total
amount of equipment loans of $519 thousand was outstanding as of June 30, 2025. The SDI Borrower shall repay the Loans under these Borrowing
Requests with a different MOIC Payment than as defined in the Equipment Loan Agreement. The MOIC Payment for these Borrowing Requests
only, shall be an amount equal to the difference of (i) the greater of (a) the principal amount of the Loan being repaid plus all
interest previously paid or simultaneously being paid to Lender in respect of such principal of the Loan, and (b) the principal amount
of the Loan being repaid multiplied by three and three tenths (3.3), minus (ii) the sum of the principal amount of the Loan being
repaid plus all interest previously paid or simultaneously being paid to Lender in respect of such principal of the Loan. As of
June 30, 2025, the Company had approximately $108 thousand in Accrued interest payable in relation to the MOIC and 15% interest accruing
on the Loan that was outstanding.

Per
ASC 835-30-S45-1, debt issuance costs related to line of credits should be recorded as an asset and amortized over the life of the line
of credit agreement. As such, the Company recorded $62 thousand and $53 thousand within Prepaid expenses and other current assets as
of June 30, 2025 and December