Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 288

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 288
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 liability, and costly repairs. It could also result in the loss
of customers or increased security and insurance expenses. Even with insurance coverage, the financial and reputational impact of a significant
cybersecurity incident could materially affect our business and financial results.

35

Our risk management process may not identify
all risks that we are subject to and will not eliminate all risk.

Our Enterprise Risk Management (“ERM”)
process seeks to identify and address significant risks. Our ERM process uses the most recent integrated risk framework in Internal
Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission to assess, manage,
and monitor risks. We believe that risk-taking is an inherent aspect of the pursuit of our growth and performance strategy. Our goals
are to proactively manage risks in a structured approach in conjunction with strategic planning, with the intent to preserve and enhance
shareowner value, and to manage prudently, rather than wholly avoiding, risks. We can mitigate risks and their impact on the Company,
however, only to a limited extent, and no ERM process can identify all risks that we may face. Therefore, there may be risks that we are
currently unaware of, that may develop in the future or that we currently consider immaterial. Further, our management of risks may prove
inadequate. The emergence of risks of which we were unaware or are unable to manage could have a material adverse effect on our business,
financial condition, results of operations and prospects,

Our officers and directors are indemnified against
certain conduct that may prove costly to defend.

Our Articles and Bylaws generally provide broad indemnification
to our officers and directors against judgments, fines, amounts paid in settlement and expenses, including attorneys’ fees actually
incurred in connection with most actions or proceedings to which they are or are threatened to be made a party that relates to their service
as an officer or director, except as limited as set forth therein. We are also obligated to advance expenses as they are incurred by a
director or officer in defending an action or proceeding prior to final disposition upon receipt of an undertaking by the applicable person
to repay such advanced amount if the advancement is ultimately found to not be permitted by law or otherwise.

In addition, the NRS provides that no director or
officer is individually liable for damages as a result of an act or failure to act in his or her capacity as a director or officer except
if (i) the presumption that such director or officer