Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 23

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 23
---
and as a result a significant number of banks have determined to limit such activities. Accordingly, we have had and may have in the future,
difficulty in opening bank accounts, obtaining letters of credit and generally accessing the banking system for our operational needs.

Our business plan is heavily dependent upon
acquisitions and strategic alliances and our ability to identify, acquire or ally on appropriate terms, and successfully integrate and
manage any acquired companies or alliances will impact our financial condition and operating results.

As
part of our growth strategy, we may seek to acquire other businesses or form strategic alliances and partnerships that expand our market
presence, complement our offerings, or provide access to new technologies. We may also need to do so to remain competitive. However,
we may not be able to identify suitable opportunities, negotiate favorable terms, secure necessary financing, or successfully complete
or integrate any such transactions.

Even
when successful, acquisitions and partnerships carry significant risks, including:

●Failure
                                            to realize expected benefits or synergies;

●Challenges
                                            integrating operations, systems, personnel, or cultures;

●Disruption
                                            to ongoing operations and diversion of management time;

●Loss
                                            of key employees, customers, or partners;

●Incompatibility
                                            of business practices or internal controls;

●Financial
                                            risks, including write-offs, increased expenses, or underperformance;

●Entry
                                            into unfamiliar markets with greater competition;

●Potential
                                            liabilities or unforeseen costs; and

●Negative
                                            impacts on our financial results, including accounting and tax implications.

We
may finance future deals by issuing equity or convertible debt, which could dilute existing stockholders or increase leverage.

Our
strategic relationships, including those with SLC and Navitas, or any future partnerships, must be well-managed to avoid harming our
operations or results. There is no guarantee that any acquisition or alliance will achieve its intended goals or deliver the expected
return, and differences in cost structures could cause fluctuations in our financial performance.

We are subject to risks associated with our
need for significant electrical power.

Our operations currently require significant amounts
of electrical power, and we anticipate our demand for electrical power will continue to grow as we continue to expand our mining fleet
and begin to operate our Dorothy Facility, and as we expand our business to implement our strategy to move into the cloud service business
and HPC/AI hosting business. The fluctuating price of electricity required for our operations and to power our expansion may inhibit our
profitability. If we are unable to