Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 166

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 166
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12, 2030 
     15% 
    $5,000 
  
    Less: principal payments 

     (250)
  
    Less: debt discount and
    issuance costs 

     (358)
  
    Total outstanding note 

     4,392 
  
    (Less) Current note outstanding 

     636 
  
    Long-term note outstanding 

    $3,756 

    19

On
March 12, 2025, Soluna SW LLC (the “SW Borrower”), a Delaware limited liability company and subsidiary of Soluna SW Holdings
LLC (“SW Holdings”, and together with the SW Borrower, the “SW Loan Parties”), a subsidiary of SDI, a Nevada
corporation and wholly owned subsidiary of Company, entered into a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings
and Galaxy Digital LLC (the “Lender”).

The
Galaxy Loan Agreement provides for a term loan facility in the principal amount of $5.0 million (the “Term Loan Facility”).
The Term Loan Facility bears interest at a rate of 15.0% per annum, subject to an increase of 5.0% (for a total of 20.0%) in the event
an Event of Default as defined within the Galaxy Loan Agreement has occurred and is continuing. The Term Loan Facility matures on March
12, 2030 and includes scheduled payments over a five-year term. For the three and nine months ended September 30, 2025, the Company incurred
approximately $220 thousand and $498 thousand in interest expense in relation to the Term Loan Facility, which includes interest paid
on the note and amortization of deferred financing costs.

The
SW Borrower may voluntarily prepay all or part of the Term Loan Facility at any time together with accrued and unpaid interest on the
principal amount to be prepaid up to the date of prepayment. The SW Borrower shall prepay all or part of the Term Loan Facility with
100% of the Net Cash Proceeds (as defined therein) received upon the occurrence of (i) an Asset Sale or Casualty Event (each as defined
therein), (ii) an Equity Issuance (as defined therein), (iii) an issuance or incurrence of Indebtedness (as defined therein), or (iv)
an Extraordinary Receipt (as defined therein), each subject to certain exceptions. In addition, certain principal payments