Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1634

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1634
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, 2023, NYDIG proceeded to foreclose on all of the collateral securing the MEFA, and repossessed the collateralized assets
that totaled approximately $3.4 million, in which approximately $560 thousand was first used to pay off accrued interest and penalty
to date. On September 5, 2023, NYDIG provided a letter finalizing the accounting for the repossessed collateralized assets totaling proceeds
of approximately $3.4 million. This included legal and other expenses associated with the sale of the assets net a modest gain on the
estimated net book value of the assets totaling $251 thousand that was expensed as a loss on disposition of assets for the year ended
December 31, 2023. On December 7, 2023, NYDIG filed its Motion for Summary Judgment seeking entry of a judgment against Soluna in the
approximate amount of $10.3 million for principal and interest and penalties. On January 12, 2024, Soluna filed its objection to NYDIG’s
motion for summary judgment on the grounds that NYDIG failed to explain what collateral of which loan was sold and how the sale proceeds
were allocated to each loan. A summary judgment motion hearing took place on February 13, 2024, where it was agreed upon by both NYDIG
and the Borrower, that the total outstanding loan principal balance would be approximately $9.2 million, to which a penalty fee was applied
of approximately $1.0 million with respect to the repossessed collateralized assets, and outstanding interest and penalty balance would
be approximately $936 thousand as of December 31, 2023. The Company applied the per diem interest rate agreed upon with the summary judgement
for the year ended December 31, 2024 and recorded interest expense of approximately $1.4 million and has an outstanding interest and
penalty accrual of approximately $2.3 million recorded within “Accrued Liabilities” as of December 31, 2024. See Note 13
for further information in relation to the NYDIG litigation matter.

Navitas
term loan

 Schedule of Navitas Term Loan

    (Dollars in thousands) 
    Maturity Date 
    Interest Rate  
    January 1, 2024-  December 31, 2024  
    May 9, 2023-  December 31, 2023 
  
    Term Loan and capitalized interest (