Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 37

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 37
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’s operating reliability and security and our ability to effectively market our product
offerings. Our inability to develop, provide or effectively execute any of these factors may hinder the development, growth and retention
of a diverse and balanced customer base and adversely affect our business, financial condition, and results of operations.

We are heavily dependent on our senior management,
and a loss of a member of our senior management team could cause the market prices of our securities to suffer.

If we lose the services of John Belizaire, our Chief
Executive Officer and member of our board of directors, and/or certain key employees, we may not be able to find appropriate replacements
on a timely basis, and our business could be adversely affected. We do not currently maintain key life insurance policies on these officers
or key employees. Our existing operations and continued future development depend to a significant extent upon the performance and active
participation of these individuals and certain key employees. We may not be successful in retaining the services of these individuals,
and if we were to lose any of these individuals, we may not be able to find appropriate replacements on a timely basis and our financial
condition and results of operations could be materially adversely affected.

We
depend upon third-party suppliers for power, and we are vulnerable to service failures and price increases by such suppliers and to volatility
in the supply and price of power in the open market.

Our
data centers depend on third-party utility providers for electricity. If these providers fail to deliver sufficient power—due to
supply shortages, outages, or delays in adding new capacity—our operations and customer service could be disrupted. Power outages,
even temporary ones, may exceed the limits of our backup systems, potentially damaging equipment, harming customer relationships, and
impacting our ability to generate revenue.

We
are also exposed to rising and unpredictable energy costs. Power prices may increase due to fuel cost volatility (e.g., natural gas or
coal), carbon regulations, grid modernization fees, recovery charges from extreme weather events, or geopolitical instability. Higher
power costs at specific sites could make those data centers less competitive compared to others with cheaper electricity.

In
some cases, we have entered long-term power purchase agreements (PPAs) for renewable energy and credits at fixed prices. If market
prices fall, we may pay more under these agreements than we would on the open market. Additionally, disruptions to our renewable energy
suppliers—such as from extreme weather or equipment failure—could limit our access to renewable energy or credits.

Any