Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 9

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 9
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, China, Europe, and Japan. Among other things, concepts in these patents/patent applications
generally relate to modular architecture, cooling technology, data center control, simulation, variable power consumption and local co-optimization
of power generation supply with demand. Specifically, the two issued patents (US11,974,415 and US12,250,794) focus on the layout of modular
data center buildings on a site, which is crucial for thermal efficiency.

We meet regularly with IP counsel to manage the portfolio and
determine strategies to pursue protection of additional technologies. We maintain company policies requiring our employees, contractors,
consultants and other third parties to enter into confidentiality and proprietary rights agreements to control access to our proprietary
information. While there is no assurance that our pending applications will result in issued patents, we believe that our intellectual
property portfolio provides us with a competitive advantage in our industry.

We also rely on trade secrets, proprietary know-how, and
contractual agreements to protect our technology. However, our ability to maintain and enforce our intellectual property rights may be
subject to challenges, including the risk of third-party disputes, opposition proceedings, and evolving patent laws in various jurisdictions.
Loss of key patent rights or failure to obtain additional protections could adversely impact our business and competitive position.

12

We also hold a registered trademark for our Company
name, Soluna.

We have developed a proprietary software system called
MaestroOS™ to enable the automation, management, and operations of critical elements of our data centers. We have a dedicated team that
engages in activities to continue to enhance the MaestroOS to drive innovation and growth in its business. MaestroOS incorporates software
components licensed to the general public under open-source software licenses. We obtain many components from software developed and released
by contributors to independent open-source components of our platform. Open-source licenses grant licensees broad permissions to use,
copy, modify and redistribute those open-source components of our platform. As a result, open-source development and licensing practices
can limit the value of our software copyright assets.

Environmental

There are increasing concerns about the quantity of
carbon-intensive energy used by data centers, especially those used for Bitcoin Mining and increasingly Generative AI. We believe the
integration of computing and renewable energy is the future of the modern grid.

By colocating our data centers with underutilized
renewable resources, we aim to reduce the carbon footprint of our data centers and encourage renewable power plant development. An independent
study done by RE