Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 16

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 16
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 be sold into the
market as a result of our being party to the SEPA and you may experience immediate and substantial dilution in the net tangible book
value per share of our common stock.

●It is not possible to predict the actual number of shares we
will sell under the SEPA, or the actual gross proceeds resulting from those sales.

Risks Relating
to the Company and its Growth Strategy

Our recurring losses from operations have raised
substantial doubt regarding our ability to continue as a going concern, and we will require additional capital to support our business
and objectives and grow our business. 

We have incurred recurring losses since inception
and, as of December 31, 2024, had an accumulated deficit of approximately $314.3 million. We anticipate operating losses to continue for
the foreseeable future as we grow our business, and it is possible we will never achieve profitability.

We expect our unrestricted cash and cash equivalents
of $7.8 million as of December 31, 2024 to be insufficient to meet our operating expenses and capital expenditure requirements for at
least 12 months from the filing of this Form 10-K. Our consolidated financial statements do not include any adjustments to the amounts
and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern. Our ability to
continue as a going concern is dependent on our ability to raise additional working capital through public or private equity or debt financings
or other sources. There can be no assurance, however, that such financing will be available, on acceptable terms and conditions, or at
all. The precise amount and timing of the funding needs cannot be determined accurately at this time, and will depend on a number of factors,
including our ability to generate significant revenue, the market demand for our services, management of working capital, and the continuation
of normal payment terms.

Until such time as we can generate substantial revenue,
we expect to finance our working capital requirements through a combination of equity offerings and debt financing. To the extent that
we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the
terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt
financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability
to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures, or declaring dividends. If