Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 104

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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itas 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 June 30, 2025, the Navitas loan has been fully paid
off.

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 difference of (i) the greater of (a) the principal amount of the Loan being repaid plus all interest previously paid or
simultaneously being paid to Lender in respect of such principal of the Loan, and (b) the principal amount of the Loan being repaid multiplied
by three, minus (ii) the sum of the principal amount of the Loan being repaid plus all interest previously paid or simultaneously
being paid to Lender in respect of such principal of the Loan. On May 17, 2024, the SDI Borrower drew down $720 thousand of the Loan.
On July 22, 2024, SDI Borrower satisfied and repaid the borrowing amount in full by issuing the Lender Class B Membership Interests in
the D2 valued at three times the borrowing amount (i.e., $2.16 million). The redemption of debt through equity created approximately
a $1.4 million loss on debt extinguishment for the year ended December 31, 2024. On March 21, 2025, and June 11, 2025 the SDI Borrower
drew down $250 thousand and $269 thousand of the Loan, in relation to Project Kati. The total amount of $519 thousand is outstanding
as of June 30, 2025. In addition, the $519 thousand outstanding balance Equipment Loan