Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 40

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 40
---
 NYDIG’s initial document requests on May 13, 2024. On September
24, 2024, NYDIG sent a letter seeking supplemental discovery from the NYDIG Defendants, and the NYDIG Defendants completed responding
to NYDIG’s additional/supplemental document requests by November 20, 2024. A deposition of a representative of the NYDIG Defendants
occurred on January 23, 2025. On April 2, 2025, NYDIG sent another letter seeking supplemental discovery from the NYDIG Defendants or
alternatively to commence discovery discussions. The NYDIG Defendants sent a response on April 10, 2025 requesting contact information
for potential settlement discussions and proposing a rolling discovery schedule; as of August 14, 2025 there has not been a response
on the proposed discovery schedule.

Additionally,
NYDIG has stated its intention to pursue the parent company of Guarantor (“Parent Entity”) under a piercing of the corporate
veil theory relating to NYDIG Defendants’ debts and liabilities under the loan documents. Parent Entity intends to vigorously defend
itself from NYDIG’s parent company claims. Parent Entity denies any such liability and 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. On June 22, 2023, the court issued an order granting NYDIG’s motion to dismiss, without prejudice. Parent Entity intends
to continue to vigorously defend any allegations regarding liability on account of NYDIG Defendants’ debts and liabilities to NYDIG
under their loan documents.

As
of June 30, 2025, the Company still has an outstanding principal of approximately $9.2 million and outstanding interest and penalty balance
of approximately $3.0 million. This settlement did not result in the admission of any liability on the part of SHI, whose declaratory
judgment remains the subject of litigation.

    27

11. Related Party Transactions

MeOH
Power, Inc.

On
December 18, 2013, MeOH Power, Inc. and the Company executed a Senior Demand Promissory Note (the Note) in the amount of $380 thousand
to secure the intercompany amounts due to the Company from MeOH Power, Inc. upon the deconsolidation of MeOH Power, Inc. Interest accrues
on the Note at the Prime Rate in effect on the first business