Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 277

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 277
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 Texas where we have significant operations.

At
the same time, the regulatory environment surrounding climate change is evolving rapidly. Governments at all levels are considering or
enacting new legislation related to energy use, emissions, and environmental impact. We, along with our hosted customers, could face
higher compliance costs for energy use, environmental monitoring, capital equipment upgrades, or operational changes. These rules may
not distinguish between operations powered by renewable energy (as many of ours are) and those powered by fossil fuels, potentially putting
us at a disadvantage despite our cleaner energy profile.

The
lack of consistent regulation also creates uncertainty, especially as investor groups, policymakers, and the public increasingly scrutinize
companies for their environmental practices. Increased focus on ESG (Environmental, Social, and Governance) performance could require
additional time and resources to address stakeholder concerns or respond to reputational risk.

Additionally,
future regulatory changes could affect our business planning and capital investment decisions. For example, assumptions we have made
about the regulatory landscape—such as for our Dorothy facility—may change, resulting in unexpected costs or challenges in
execution. In Texas, we currently participate in demand response programs to reduce strain on the grid during high-demand periods. While
beneficial today, future regulatory changes could impact our ability to participate in or benefit from such programs.

Given
the uncertainty surrounding climate change policy and energy regulation, we cannot predict how these issues will evolve or the long-term
effects on our operations. However, any of the risks described above could materially impact our financial condition, operating performance,
and ability to compete.

We may be affected by price fluctuations in
the wholesale and retail power markets.

While the majority of our power and hosting arrangements
contain fixed power prices, some also contain certain price adjustment mechanisms in case of certain events. Furthermore, a portion of
our power and hosting arrangements includes merchant power prices, or power prices reflecting market movements. Market prices for power,
generation capacity and ancillary services are unpredictable. Over the past year, the market prices for power have generally been increasing,
driven in part by the price increases in various commodities, including natural gas. Depending upon the effectiveness of any price risk
management activity undertaken by us, an increase in market prices for power, generation capacity, and ancillary services may adversely
affect our business, prospects, financial condition, and operating results. Long- and short-term power prices may fluctuate substantially
due to a variety of factors outside of our control, including, but not limited to:

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