Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1005

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 1005
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48 MW modular data center (the “Project Dorothy 2”). Project Dorothy 2 is financed by Soluna2 SLC Fund II Project Holdco
LLC, an investment vehicle of Spring Lane Capital (“SLC”) and SDI. As of December 31, 2024, SDI has a 15% ownership interest
in Project Dorothy 2.

On
June 18, 2024, Soluna AL CloudCo, LLC (“CloudCo”), a subsidiary of Soluna Cloud, entered into an agreement (the
“HPE Agreement”) with Hewlett Packard Enterprise Company (“HPE”). Under this agreement, HPE provided
datacenter and cloud services for AI and supercomputing applications utilizing NVIDIA H100 Graphic Processing Units
(“GPUs”). This agreement involved an initial pre-payment of $10.3
million, with a total commitment of $34
million over a 36-month period and offered the potential for expansion based on mutual agreement. On March 24, 2025, CloudCo notified
HPE of its termination of the HPE Agreement in accordance with the provisions of Section 8(d), and, on March 26, 2025, HPE notified
CloudCo of its termination of the HPE Agreement in accordance with the provisions of Section 8(b)(i), effectively exiting the GPU
business. See Note 17 for further disclosure.

Soluna
is committed to leveraging its modular data centers and renewable energy partnerships to support the growing demands of Bitcoin mining,
AI, and other high-performance computing industries, while maintaining a focus on sustainable, cost-effective energy use.

Going
Concern and Liquidity

The
Company’s financial statements as of December 31, 2024, have been prepared using generally accepted accounting principles in
the United States of America (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets
and liquidation of liabilities in the normal course of business. As shown in the Consolidated Financial Statements, the Company was
in a net loss, has negative working capital, and has significant outstanding debt as discussed in Note 8 as of December 31, 2024. In
addition, Soluna MC Borrowing has a litigation matter with NYDIG ABL LLC (“NYDIG”) in relation to their Master Equipment
Finance Agreement. See further discussion around the NYDIG litigation in Note 13. The
Company had outstanding commitments as of December 31, 2024, related