Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 160

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 160
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 principal and capitalized interest payments

    (3,252
    )

    (1,036
    )
  
    Less:
    debt discount

    (126
    )

    (230
    )
  
    Less:
    debt issuance costs

    (294
    )

    (535
    )
  
    Total
    outstanding note

    8,076

    10,983

    (Less)
    Current note outstanding

    3,487

    3,922

    Long-term
    note outstanding

    $
    4,589

    $
    7,061

On
June 20, 2024, pursuant to the terms and subject to the conditions of a Note Purchase Agreement (the “June SPA”) by and among
(i) CloudCo, a Delaware limited liability company and indirect wholly owned subsidiary of the Company, (ii) Soluna Cloud, a Nevada corporation,
indirect wholly owned subsidiary of the Company, and parent of CloudCo, (iii) the Company and (iv) the accredited investor named therein
(the “Investor”, and collectively the “Note Parties”), CloudCo issued to the Investor a secured promissory note
in a principal amount equal to $12.5 million (the “Note” or “Green Cloud secured note”). The Note accrues interest
at a rate 9.0% per annum, subject to adjustment upon an event of default. The Note matures on June 20, 2027. CloudCo’s obligations
under the Note will be secured by all or substantially all of CloudCo’s assets, including pursuant to a security agreement to be
executed and delivered by CloudCo in favor of the Investor (the “CloudCo Security Agreement”, and together with the June
SPA and the Note, the “CloudCo Agreements”).

As
further inducement for the Investor to purchase the Note, Soluna Cloud issued to the Investor a warrant (the “Warrant”) exercisable
within three years from June 20, 2024 for a number of shares of common stock of Soluna Cloud equal to the sum of (a) 12.5% of Soluna
Cloud’s issued and outstanding common stock as of the date of the Warrant divided by 0.875, plus (b) the percentage of each Qualified
Issuance (as defined below) divided by 0.875. For purposes of the Warrant, “Qualified Issuance” means