Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1711

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1711
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2024.

On
May 9, 2023, DVCC and Navitas West Texas Investments SPV, LLC entered into a 2-year Loan Agreement for $2,050,000.
The unpaid principal balance of the Term Loan shall bear interest at per annum rate equal to 15%. As of December 31, 2024, the Company
has an outstanding principal balance of approximately $137 thousand. As of the date of these consolidated financial statements, the Navitas
loan has been fully paid off.

57

On
May 16, 2024, SDI SL Borrowing – 1, LLC, an affiliate of Soluna Holdings, Inc. (the “Borrower”), entered into a loan
agreement (the “Equipment Loan Agreement” or the “Loan”) with Soluna2 SLC Fund II Project Holdco LLC (the “Lender”).
The Equipment Loan Agreement provides for Borrower to borrow, from time to time, up to $1.0 million, and further amended on February
28, 2025 to $4.0 million to be used to purchase necessary equipment for the progression of Project Dorothy 2 and Project Kati. Any loans
made under the Equipment Loan Agreement have a maturity date of May 16, 2027 and bear interest at a rate of 15% per annum. The Equipment
Loan Agreement includes customary covenants for loans of this nature, as well as a multiple on invested capital provision, which requires
us to pay, in addition to principal and interest, 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, 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. On May 17, 2024, the Borrower drew down $720 thousand of the Loan. On July 22, 2024, Borrower satisfied and repaid the borrowing
amount in full by issuing the Lender 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