Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 200

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 200
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 a Adjusted EBITDA improve from the third quarter of 2024 through
the first quarter of 2025.

Liquidity
and Capital Resources

Several key indicators of our liquidity are summarized in the following
table:

    Three Months Ended or as of

    Three Months Ended or as of

    Year Ended or as of

    March 31,

    March 31,

    December 31,

    (Dollars in thousands)
     
    2025

    2024

    2024

    Cash
     
    $9,161

    $8,438

    $7,843

    Restricted cash

    5,287

    2,956

    2,610

    Working capital (deficit)

    (31,802
    )

    (15,502
    )

    (34,378
    )
  
    Net loss

    (7,354
    )

    (2,544
    )

    (58,300
    )
  
    Net cash (used in) provided by operating activities

    (177
    )

    3,850

    (5,069
    )
  
    Purchase of property, plant and equipment

    (3,808
    )

    (524
    )

    (9,160
    )

As of March
31, 2025, we had a consolidated accumulated deficit of approximately $321.9 million and we had negative working capital of approximately
$31.8 million. As of March 31, 2025, we had total debt outstanding of approximately $24.0 million as summarized further below
in the Debt table. In addition, we had outstanding commitments related to Soluna Digital Inc. (“SDI”) of approximately $10.4
million in capital expenditures mainly related to Project Dorothy 2 and Project Kati. In addition, due to CloudCo’s termination
of the HPE Agreement on March 24, 2025, and HPE’s termination of the HPE Agreement on March 26, 2025, and the acceleration of the
remaining unpaid amounts of the contract in accordance with the HPE Agreement, we have recognized a liability for the remainder of the
HPE Agreement on the consolidated balance sheet of approximately $19.3 million. As of March 31, 2025, we had $9.2 million of cash
available to fund our operations.

Based on business developments,