Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 159

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 159
---

December 20, 2022, after the Borrower defaulted on the NYDIG Loans, NYDIG issued a Notice of Acceleration and Repossession under the
Master Agreement. The obligations under this facility were ring-fenced to the Borrower and its direct parent, Soluna MC LLC.
The Company itself was not a guarantor of the loans.

On February 23, 2023, NYDIG foreclosed on the collateral,
repossessing assets valued at approximately $3.4 million, of which about $0.6 million was applied to accrued interest and penalties. On
December 7, 2023, NYDIG filed a motion for summary judgment seeking approximately $10.3 million for unpaid principal, interest, and penalties.
Following court proceedings, the parties agreed that the total outstanding principal was approximately $9.2 million (the “Agreed
Judgment Amount”).

On September 29, 2025, the Borrower and NYDIG executed
a Settlement Agreement to fully resolve the Agreed Judgment Amount and all related claims. Under the Settlement Agreement, the Borrower
agreed to make certain settlement payments to NYDIG, and in return, NYDIG and its affiliates released the Borrower and its related parties
from all claims related to the NYDIG Loans.

As a result, the Company recorded a gain on extinguishment
of debt for the remaining principal, accrued interest, and penalties. As of September 30, 2025, a portion of the settlement amount had
been paid, with the remainder recorded in Accrued liabilities. The remaining balance was paid after quarter-end, and no further obligations
remain as of the date of this filing.

See Note 10 — Commitments and Contingencies
for additional information regarding the NYDIG litigation matter.

    16

Green
Cloud secured note

Schedule of Secured Note Financing 

    (Dollars
    in thousands)
     
    Maturity
    Date
     
    Interest
    Rate

    January
                                            1, 2025-
    September
    30, 2025

    June
                                            20, 2024-
    December
    31, 2024

    Term
    Loan and capitalized interest (excludes debt issuance cost)
     
    June
    20, 2027

    9
    %
     
    $
    11,748

    $
    12,784

    Less: