Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 18

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 18
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 modification.

Subsequently,
the Company and the Investor mutually agreed that the 1,000,000 Escrow Shares would instead be issued directly to the Investor and, on
April 29, 2025, the Company issued 1,000,000 shares of common stock to the Investor.

July
2024 Additional Secured Note

 Schedule
of Additional Secured Note Financing 

    (Dollars
    in thousands) 
    Maturity
    Date 
    Interest
    Rate  
    January
    1, 2025-  June 30, 2025  
    July
    12, 2024- December 31, 2024 
  
    Term
    Loan and capitalized interest (excludes debt issuance cost) 
    July
    12, 2027* 
     9% 
    $1,209  
    $1,278 
  
    Less:
    principal and capitalized interest payments 

     (658) 
     (69)
  
    Debt
    discount 

     -  
     (6)
  
    Gain
    on extinguishment 

     (551) 
     - 
  
    Total
    outstanding debt 

    $-  
    $1,203 

    *
    On
    March 14, 2025, the Company satisfied the assignment and assumption agreement, as such a gain on extinguishment was recorded.

On
July 12, 2024, the Company, CloudCo, Soluna Cloud, and the Investor entered into a First Amendment to the Note Purchase Agreement (the
“June SPA Amendment”). This amendment allows CloudCo to issue additional secured promissory notes totaling $1.25 million
(the “Additional Notes”) to new accredited investors (the “Additional Investors”). These Additional Notes are
subject to the same terms and conditions as the June SPA financing.

To
further incentivize the Additional Investors, Soluna Cloud issued warrants (the “Cloud Additional Warrants”) to each Additional
Investor. These Cloud Additional Warrants are exercisable within three years from the effective date of the June SPA Amendment. They
allow the purchase of a number of shares of Soluna Cloud common stock equal to 1.25% of Soluna Cloud’s issued and outstanding common
stock as of the Cloud Additional Warrant date, divided by 0.9875, plus 1.25% of each Qualified