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

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 membership interest in Project Dorothy 2.
On July 22, 2025, the Company closed financing with Spring Lane Capital for a 35 megawatt (MW) expansion of Project Kati in Texas
with Project Kati 1. The funds and further contributions are being used for the construction of Project Kati 1 that began in the third
quarter of 2025. As of September 30, 2025, SDI has 100% Class A membership and 0% Class B membership interest in Project Kati 1.

Going
Concern, Liquidity, and Capital Resources

The
Company’s condensed consolidated financial statements as of September 30, 2025 have been prepared using generally accepted
accounting principles in the United States of America (“U.S. GAAP”) applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. As shown in the accompanying condensed
consolidated financial statements, the Company has continued to experience negative cash flows from operations and net losses
and its subsidiary its Soluna AL Cloudco, LLC (“CloudCo”) has received a notice of breach of contract. Refer to Note 6
in relation to CloudCo.

The future use of our available liquidity will be
based upon the ongoing review of the funding needs of our businesses, the optimal allocation of our resources, successful defense against
subsidiary claims, and the timing of cash flow generation. To the extent that we desire to access alternative sources of capital, market
conditions could adversely impact our ability to do so at that time and at terms favorable to the Company. Currently, management is evaluating
and implementing different strategies to obtain financing to fund the Company’s expenses and growth to achieve a level of revenue
adequate to support the Company’s current cost structure. Financing strategies may include, but are not limited to, stock issuances,
project level equity, debt borrowings, partnerships and/or collaborations. If the Company is unable to meet its financial obligations,
it could be forced to restructure or refinance, seek additional equity capital or sell its assets. The Company might then be unable to
obtain such financing or capital or sell its assets on satisfactory terms. There can be no assurance that additional financing will be
available to the Company when needed or, if available, that it can be obtained on commercially reasonable terms. If the Company is not
able to obtain the additional financing on a timely basis, if and when it is needed,