Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 218

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 218
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 for the repossessed collateralized assets totaling proceeds of approximately $ 3.4million. 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 $ 251thousand 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 $ 10.3million 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 was performed on February 13, 2024, and was agreed upon by both NYDIG and the Borrower, that the total outstanding loan principal balance would be approximately $ 9.2million, in which a penalty fee was applied of approximately $ 1.0million to the repossessed collateralized assets, and outstanding interest and penalty balance would be approximately $ 694thousand as of October 31, 2023. The Company applied the per diem interest rate agreed upon for the remaining two months, incurring an additional $ 242thousand in interest and penalties, for a total outstanding interest and penalties balance of $ 936thousand as of December 31, 2023.

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Additionally, NYDIG has stated its intention to pursue SCI, the parent company of Guarantor, under a piercing of the corporate veil claim relating to NYDIG Defendants’ debts and liabilities under the loan documents. SCI denies any such liability and has filed a complaint for a declaratory judgment against NYDIG in the Eighth Judicial District Court in Clark County, Nevada on March 16, 2023 seeking a declaratory judgment as to such matter. NYDIG filed a motion to dismiss in response to SCI’s declaratory judgment complaint on April 13, 2023. SCI filed a response in opposition to NYDIG’s motion to dismiss on April 27, 2023. The court heard oral arguments on May 16, 2023. On June 22, 2023, the court issued an order granting NYDIG’s motion to dismiss, on the basis that the case was not ripe for decision, without prejudice. SCI intends to continue to vigorously defend