Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 44

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 44
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 percent or more of the voting power
of the then outstanding shares of the corporation. The definition of the term “business combination” is sufficiently broad
to cover virtually any kind of transaction that would allow a potential acquirer to use the corporation’s assets to finance the
acquisition or otherwise to benefit its own interests rather than the interests of the corporation and its other stockholders. The effect
of Nevada’s business combination law is to potentially discourage parties interested in taking control of us from doing so if it
cannot obtain the approval of our Board.

34

General Risk Factors

We may become subject to claims of infringement
or misappropriation of the intellectual property rights of others, which could prohibit us from selling our products, require us to obtain
licenses from third parties or to develop non-infringing alternatives, and subject us to substantial monetary damages and injunctive relief.

While we believe our current offerings—including Bitcoin hosting,
renewable energy curtailment, demand response services, and GPU-as-a-Service —do not infringe on others’ intellectual property,
there is a risk that third parties could claim otherwise. For example, we may receive claims alleging that our services infringe on existing
or future patents, including in areas where patent applications may still be pending and not yet publicly known.

Defending against such claims could result in legal costs or require us
to modify our offerings or obtain licenses, which may not always be feasible or cost-effective. Although we believe this risk is currently
low, any disputes could potentially impact our operations or financial condition if they were to arise.

If we are unable to protect our information
systems against service interruption or failure, misappropriation of data or breaches of security, our operations could be disrupted,
we could be subject to costly government enforcement actions and private litigation and our reputation may be damaged. 

We rely heavily on complex information systems—both internal and
from third-party providers—to run our operations, manage data, and support our customers and employees. These systems store sensitive
information, including personal and financial data, and are critical to our day-to-day activities.

Our systems face constant threats, including hacking, phishing, malware,
ransomware, and other cyberattacks, as well as risks from human error, software bugs, and system failures. Some threats may come from
sophisticated or state-sponsored actors and may not be detected until after they cause harm. Third-party vendors who handle data or support
our systems may also introduce risk if they fail to follow proper security