Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 274

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 274
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acts, new environmental regulations, or our use of renewable energy. These cost increases could materially affect our financial condition,
operating results, and cash flows.

26

The Dorothy Facility is subject to a five-year
ground lease, and if we are unable to renew its term, we may be unable to fully realize the anticipated benefits of the ongoing development
of the site.

The Dorothy Facility is subject to a ground
lease with an initial term of five years, followed by five one-year renewal options, unless terminated earlier. The long-term
success of our plans for the Dorothy Facility is largely based on our ability to maintain the lease in effect and to renew it going
forward. If we fail to maintain the lease or renew it once its initial term expires and the landlord requires us to vacate the
premises, we will likely incur significant costs in relocating our operations, if we could do so at all, and our operations would be
interrupted during such relocation. Further, if we fail to renew the lease on terms favorable to us, and our costs are increased,
then we may not realize the anticipated benefits of our investment in the facility or any future development of its remaining
available capacity. Any disruptions or changes in our present relationship with the landlord for the Dorothy Facility could disrupt
our business and our results of operations negatively.

Our properties may experience damages, including
damages that are not covered by insurance.

Our properties are subject to a variety of risks relating
to physical condition and operation, including:

●the presence of construction or repair defects or other structural
or building damage;

●any noncompliance with or liabilities under applicable environmental,
health or safety regulations or requirements or building permit requirements; and

●any damage resulting from natural disasters, such as hurricanes,
earthquakes, fires, floods, and windstorms.

For example, our facilities could be rendered inoperable,
temporarily, or permanently, as a result of a fire or other natural disaster or by a terrorist or other attack on the site. The security
and other measures we take to protect against these risks may not be sufficient. Additionally, our processing equipment could be materially
adversely affected by a power outage, loss of access to the electrical grid, or loss by the grid of cost-effective sources of electrical
power generating capacity. Given the power requirement, it would not be feasible to run miners on back-up power generators in the event
of a power outage. Our insurance covers the replacement cost of any lost or damaged miners but does