Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 49

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 49
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, 2024. See “Item 9A Controls and Procedures.”

Effective internal controls
are necessary for us to provide reasonable assurance with respect to our financial reports and to effectively prevent financial fraud.
Pursuant to the Sarbanes-Oxley Act, we are required to periodically evaluate the effectiveness of the design and operation of our internal
controls. Internal controls over financial reporting may not prevent or detect misstatements because of inherent limitations, including
the possibility of human error or collusion, the circumvention or overriding of controls, or fraud. If we fail to maintain an effective
system of internal controls, our business and operating results could be harmed, and we could fail to meet our reporting obligations,
which could have a material adverse effect on our business and our share price. Additionally, for as long as we are a “smaller reporting
company” under the U.S. securities laws, our independent registered public accounting firm will not be required to attest to the
effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act. An independent assessment
of the effectiveness of internal control over financial reporting could detect problems that management’s assessment might not.
Undetected material weaknesses in our internal control over financial reporting could lead to further financial statement restatements
and require us to incur the expense of remediation.

If we fail to maintain proper
disclosure controls and procedures or have additional material weaknesses in our internal control over financial reporting, we may be
unable to accurately report our financial results or report them within the timeframes required by law or any stock exchange regulations,
and we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common
stock to decline. Failure to maintain effective internal control over financial reporting also could potentially subject us to sanctions
or investigations by the SEC or other regulatory authorities or stockholder lawsuits, which could require additional financial and management
resources.

If our estimates or
judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations
could fall below the expectations of investors, resulting in a decline in the market price of our common stock.

The preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires
management to make estimates and assumptions that affect the amounts reported in our financial statements. Significant assumptions and
estimates used in preparing our financial statements include those related to assets, liabilities, revenue