Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2943

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 2943
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icate that there is substantial doubt about the Company’s ability to continue as a going concern within one year after
issuance of the Consolidated Financial Statements as of December 31, 2024, or March 31, 2025.

     F-7 

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.

In
addition to the Company’s cash on hand for available use of approximately $7.8 million as of December 31, 2024, the Company will
need to raise additional capital through raising activities, to meet its capital expenditure needs for its current pipeline and other
operational needs. On August 12, 2024, the Company entered into a Standby Equity Purchase Agreement (the “SEPA”) with YA
II PN, LTD., a Cayman Islands exempt limited company (“YA”). In accordance with the terms of the SEPA, YA has agreed to purchase
up to $25 million in aggregate gross purchase price of newly issued fully paid shares of the Company’s common stock from time to
time subject to the limits and the conditions of the SEPA. The Company has begun to draw on the SEPA beginning in the first quarter of
2025, in which the proceeds will be used to pay debt, invest in data center projects, and for working capital and general corporate purposes.