Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 101

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 101
---
. On February 23, 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. 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 $9.2 million, in which a penalty fee was applied of
approximately $1.0 million to the repossessed collateralized assets, and outstanding interest and penalty balance would be approximately
$936 thousand as of December 31, 2023. As of March 31, 2025, the Company still has an outstanding loan principal of approximately $9.2
million and outstanding interest and penalty balance of approximately $2.6 million as of March 31, 2025.

On May 9, 2023, DVCC and Navitas West Texas Investments
SPV, LLC entered into a 2-year Loan Agreement for $2,050,000. The unpaid principal balance of the Term Loan shall bear interest at per
annum rate equal to 15%. As of December 31, 2024, the Company has an outstanding principal balance of approximately $137 thousand. As
of March 31, 2025, the Navitas loan has been fully paid off.

50

On May 16, 2024, the SDI
Borrower, entered into the Equipment Loan Agreement with the Lender. The Equipment Loan Agreement provides for the SDI Borrower to borrow,
from time to time, up to $4.0 million, as further amended on February 28, 2025, to be used to purchase necessary equipment for the progression
of D2 and Project Kati. Any loans made under the Equipment Loan Agreement have a maturity date of May 16, 2027 and bear interest at a
rate of 15% per annum. The Equipment Loan Agreement includes customary covenants for loans of this nature, as well as a multiple on invested
capital provision, which requires us to pay, in addition to principal and interest, an amount equal to the