Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 10

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 the Company will need to raise additional capital through financing
raising activities, to meet its capital expenditure needs for its current pipeline and other operational needs. On August 12, 2024, the
Company entered into a Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD., a Cayman Islands exempt limited
company (“YA”). In accordance with the terms of the SEPA, YA has agreed to purchase up to $25 million in aggregate gross purchase
price of newly issued fully paid shares of the Company’s common stock from time to time subject to the limits and the conditions
of the SEPA. The Company drew on the SEPA in the first quarter of 2025, and the proceeds were be used to pay debt, invest in data center
projects, and for working capital and general corporate purposes. As of March 31, 2025, the Company has drawn approximately $2.0 million
on the SEPA. Additionally, on April 29, 2025, the Company entered into an At the Market Offering
Agreement with H.C. Wainwright & Co., LLC (“Wainwright”), as sales agent, pursuant to which the Company may offer and
sell, from time to time, through Wainwright, up to $3.75 million of shares of common stock.

The Company, in fiscal year 2025, will continue to
look to evaluate different strategies to obtain financing to fund operations. However, management cannot provide any assurances that the
Company will be successful in accomplishing additional financing or any of its other plans. These financial statements do not include
any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.

2. Basis of Presentation

In the opinion of management, the Company’s
condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement
of the results for the periods presented in accordance with United States of America’s Generally Accepted Accounting Principles
(“U.S. GAAP”). The results of operations for the interim periods presented are not necessarily indicative of results for the
full year.

Certain information and footnote disclosures normally
included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited
condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements
and notes ther