Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 23

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 amount of each of the remaining scheduled payments shall be increased by an amount equal to the Make Whole Amount divided by the number of remaining scheduled payments,

    (iv) 
    modify the Note such that
    the Note is now convertible into up to 2,500,000
    shares of the Company’s common stock based (“Conversion Shares”)
    on a conversion price of $5.00,

    (v) 
    amend the Note to provide that the Company will be a direct co-obligor with CloudCo under the Note; and

    (vi) 
    amend the SPA to allow the Company to organize or incorporate any subsidiary, over which the Company shall have voting or beneficial control, which is being formed with the intent to engage in a business or line of business substantially similar to that of Soluna Cloud or the Company, without first paying all of the principal and interest due under the Note and without first obtaining Investor’s prior written consent (collectively, the “June SPA Modification”).

The joint-and-several liability arrangement
is between the Company and CloudCo. While no written agreement has been created to establish the amount that each entity agrees
to pay under the obligation, the nature of the relationship is such that the Company has taken a significant role in the economics of
the Notes. The Company expects to make any necessary payments on behalf of CloudCo in order to prevent default on the Notes because
the Investor has a lien on all property and assets of the Company in connection with the Notes. Based on quantitative analysis performed
by the Company, it was determined that the terms of the debt instrument before and after the June SPA Modification were not substantially
different. Accordingly, the June SPA Modification is accounted for as a debt modification.

Subsequent to March 31, 2025, the Company and the
Investor mutually agreed that the 1,000,000 Escrow Shares would instead be issued directly to the Investor, and on, April 29, 2025, the
Company issued 1,000,000 shares of common stock to  the Investor.

July 2024 Additional Secured Note

 Schedule
of Additional Secured Note Financing

    (Dollars in thousands) 
    Maturity Date  
    Interest Rate  
    January 1, 2025-  March 31, 2025  
    July 12, 2024- December 31, 2024 
  
    Term Loan and capitalized interest (excludes debt