Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 21

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 21
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 in the process of
renegotiating the HPE Agreement, but this is not considered probable to occur.

Subsequently, on March 26, 2025, HPE sent notice
of its termination of the HPE Agreement for cause, effective immediately, due to CloudCo’s material breach of its payment
obligations that remained uncured for more than thirty (30) days. This
default could result in a range of actions that could include legal or collections actions by HPE against CloudCo, any
and all of which could have a material adverse effect on our business, financial condition, and results of operations.

19

We may be unable to refinance our indebtedness
at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness.

It is likely that we will
need to refinance at least a portion of our outstanding debt as it matures. If we are unable to refinance or extend principal payments
due at maturity or pay them with proceeds of other capital transactions, then our cash flow may not be sufficient in all years to repay
all such maturing debt and to pay distributions. Further, if prevailing interest rates or other factors at the time of refinancing result
in higher interest rates upon refinancing, then the interest expense relating to that refinanced indebtedness would increase. Refinancing
our indebtedness may also require us to expense previous debt issuance costs or to incur new debt issuance costs.

Joint ventures, joint
ownership and strategic partner arrangements and other projects pose unique challenges, and we may not be able to fully implement or realize
synergies, expected returns or other anticipated benefits associated with such projects.

From time to time, and as we expand our operations
into the cloud and HPC/AI hosting business, we may be involved in strategic joint ventures and other joint ownership and
strategic partnership arrangements. As of December 31, 2024, we had two primary project-level partners: SLC and Navitas. We may not always
be in complete alignment with our joint venture, joint owner or strategic partner counterparties; we may have differing strategic or commercial
objectives and may be outvoted by our joint venture or other strategic partners, or we may disagree on governance matters with respect
to the joint venture entity or the jointly owned assets. As a result, when we enter into joint ventures, joint ownership, and strategic
partnership arrangements, we may be subject to a number of risks. In some joint ventures and joint