Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 242

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 242
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 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, including changes
in production levels, staffing requirements, and network infrastructure improvements, we will require additional capital equipment in
the foreseeable future. We are focused on developing and monetizing green, zero-carbon computing and cryptocurrency mining facilities,
as well as facilities capable of hosting customers engaged in cryptocurrency mining, and data centers to provide specialized AI Cloud
and colocation services.

48

We plan to continue funding operations, including
working capital and operating deficits, from operating cash flows and cash flow debt and equity financings, including the YA SEPA and
others to be closed as needed consistent with management’s plans.

The ability to continue as a going concern is dependent
upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay
its liabilities arising from normal business operations when they come due. In the near term, 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, it will be forced to delay or scale down some or all of its development activities
or perhaps even cease the operation of its business.

Operating Activities

Net cash
used by operations was approximately $177 thousand during the three months ended March 31, 2025. The Company had a net loss for
the three months ended March 31, 2025 of approximately $7.4 million. Non-cash items included approximately $1.5 million of depreciation
expense, and $2.4 million of amortization expenses, and $1.8 million of stock compensation expenses. These non