Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 922

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 922
---
     (34,378) 
     (13,891)
  
    Net loss from continuing operations 
     (58,300) 
     (27,703)
  
    Net cash used in operating activities 
     (5,069) 
     (2,987)
  
    Purchase of property, plant and equipment 
     (9,160) 
     (12,705)

As
of December 31, 2024, we had a consolidated accumulated deficit of approximately $314.3 million and we had negative working capital
of approximately $34.4 million. As of December 31, 2024, we had total debt outstanding of approximately $21.5 million as summarized
further below in the Debt table. In addition, we had outstanding commitments related to Soluna Digital Inc. (“SDI”) of
approximately $8.5 million in capital expenditures related to Project Dorothy 2. In addition, due to CloudCo’s
termination of the HPE Agreement on March 24, 2025, and HPE’s termination of the HPE Agreement on March 26, 2025, and the acceleration of the remaining unpaid amounts of the contract in accordance with Section 8(h)(ii) of the HPE Agreement,
a Type 1 Subsequent Event, we have recognized a liability for the remainder of the HPE Agreement on the balance sheet of our
subsidiary, CloudCo, of approximately $20.0 million , net of a prepaid deposit of $8.6 million. As of December 31, 2024, we had $7.8 million of cash available to
fund our operations.

Based
on business developments, including changes in production levels, staffing requirements, and network infrastructure improvements, we
will require additional capital equipment in the foreseeable future. We are focused on developing and monetizing green, zero-carbon computing
and cryptocurrency mining facilities, as well as facilities capable of hosting customers engaged in cryptocurrency mining, and data centers
to provide specialized AI Cloud and colocation services.

54

We
plan to continue funding operations, including working capital and operating deficits, from operating cash flows and cash flow debt and
equity financings, including the YA SEPA and others to be closed as needed consistent with management’s plans.

The
ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining
the necessary financing to meet its obligations and repay its liabilities arising from