Soluna Holdings, Inc — Form 10-Q

On August 6, 2026, Soluna's subsidiaries (Dorothy 1A, Dorothy 2, Tranche B, and Tranche C Borrowers) obtained Limited Waiver No. 3 from Generate Lending LLC, their administrative agent. Soluna waived multiple covenant failures (late April 2026 operating statement, Briscoe real estate post-closing obligations, maintenance reserve funding 7 days late, Bank of America account closure delay) and extended the Briscoe deadline to October 15, 2026. Concurrently, Dorothy 1A and Dorothy 2 Borrowers prepaid $5.69M (Tranche A-1) and $13.43M (Tranche A-3) in loans plus prepayment premiums and accrued interest. The June 30, 2026 Debt Service Coverage Ratio test was waived for both Dorothy borrowers and Briscoe was given a DSCR exclusion period. All four borrower entities acknowledged failures but secured lender forbearance conditional on the full prepayment.