Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 39

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 39
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business in the future. This competition from other entities with greater resources, experience and reputations may result in our
failure to maintain or expand our business, as we may never be able to successfully execute our business plan. If we are unable to
expand and remain competitive, our business could be negatively affected which would have an adverse effect on our business, results
of operations, financial condition, and the trading price of our common stock, which would harm our investors.

Our business model depends upon the demand
for data centers. 

We intend to be in the business of owning,
leasing and operating data centers. A reduction in the demand for data center space, power or connectivity would have an adverse
effect on our business and financial condition. We are susceptible to general economic slowdowns as well as adverse developments in
the data center, internet and data communications and broader technology industries. Any such slowdown or adverse development could
lead to reduced corporate information technology (“IT”) spending or reduced demand for data center space. Reduced demand
could also result from business relocations, including to markets that we do not currently serve. Changes in industry practice or in
technology could also reduce demand for the physical data center space we provide. In addition, our customers may choose to develop
new data centers or expand their own existing data centers or consolidate into data centers that we do not own or operate, which
could reduce demand for our data centers or result in the loss of one or more key customers. If any of our key customers were to do
so, it could result in a reduction in our revenues and/or put pressure on our pricing. If we lose a customer, we may not be able to
replace that customer at a competitive rate or at all. Mergers or consolidations could further reduce the number of our
customers and potential customers and make us more dependent on a more limited number of customers. If our customers merge with or
are acquired by other entities that are not our customers, they may discontinue or reduce the use of our data centers in the future.
Our financial condition, results of operations, cash flows and ability to satisfy our debt service obligations could be materially
adversely affected as a result of any or all of these factors.

32

We rely on highly skilled personnel and the
continuing efforts of our executive officers and, if we are unable to retain, motivate or hire qualified personnel, our business may be
severely disrupted. In addition, increased labor costs and the unavailability of skilled workers could