Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 137

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 137
---
 specific focus on establishing reliable
    controls over fair value measurements to ensure the accuracy of financial reporting.

    ●
    Engage qualified consultants
    and third-party specialists to assist in the review of complex transactions, ensuring that all entries recorded align with applicable
    accounting guidance and meet the reporting expectations for the condensed consolidated financial statements.

We cannot provide
any assurance that these remediation efforts will be successful or that our internal control over financial reporting will be effective
as a result of these efforts. In addition, we continue to evaluate and work to improve our internal control over financial reporting related
to the identified material weakness, management may determine to take additional measures to address control deficiencies or determine
to modify the remediation plan described above.

(b) Changes in Internal Control Over Financial
Reporting

We are taking the remedial actions described above
and expect to implement them prior to December 31, 2025.  Other than the changes for our control procedures around complex transactions
in which we plan to remediate above, there have been no changes in our internal control over financial reporting, as such term is defined
in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our fiscal quarter ended September 30, 2025 that have materially affected,
or are reasonably likely to materially affect, our internal control over financial reporting.

PART
II. OTHER INFORMATION

Item
1. Legal Proceedings

At
any point in time, we may be involved in various lawsuits or other legal proceedings. Such lawsuits could arise from the sale of products
or services or from other matters relating to our regular business activities, compliance with various governmental regulations and requirements,
or other transactions or circumstances.

NYDIG

On
December 29, 2022, NYDIG filed a complaint against the Soluna Parties in the Court regarding the NYDIG Loans made by NYDIG to
Borrower pursuant to a Master Equipment Finance Agreement, dated December 30, 2021, that were secured by certain assets of Borrower
and guaranteed by Guarantor pursuant to a written guaranty agreement. The Soluna Parties and NYDIG entered into a Stipulation and
Agreed Judgment which was approved by the Court on February 23, 2024, whereby judgment was granted to NYDIG on the counts in the
complaint and the Soluna Parties became jointly and severally liable for an aggregate amount of approximately $9.2 million plus
interest (the “Agreed Judgment Amount”).