Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 265

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 265
---
     (19,782) 
     (58,300)
  
    Net cash used in operating activities 
     (3,479) 
     (3,412) 
     (5,069)
  
    Purchase of property, plant and equipment,
    including deposits 
     (18,036) 
     (7,811) 
     (13,277)

As
of September 30, 2025, we had a consolidated accumulated deficit of approximately $353.2 million and we had positive working capital
of approximately $10.2 million, in which was due to significant financings in the third quarter of 2025. As of September 30, 2025, we
had total debt outstanding of approximately $23.3 million as summarized further below in the Debt table. In addition, we had outstanding
commitments related to Soluna Digital Inc. (“SDI”) of approximately $11.9 million in capital expenditures mainly related
to Project Dorothy 2 and Project Kati. In addition, due to CloudCo’s termination of the HPE Agreement on March 24, 2025, and HPE’s
termination of the HPE Agreement on March 26, 2025, and the acceleration of the remaining unpaid amounts of the contract in accordance
with the HPE Agreement, we have recognized a liability for the remainder of the HPE Agreement on the consolidated balance sheet of approximately
$19.3 million. As of September 30, 2025, we had $51.4 million of cash available to fund our operations.

Based
on business developments, including changes in production levels, staffing requirements, and network infrastructure improvements, we
will require additional capital equipment in the foreseeable future. We are focused on developing and monetizing green, zero-carbon computing
and cryptocurrency mining facilities, as well as facilities capable of hosting customers engaged in cryptocurrency mining, and data centers
to provide specialized AI Cloud and colocation services.

We
plan to continue funding operations, including working capital and operating deficits, from operating cash flows and cash flow debt and
equity financings, including the ATM Agreement, SEPA, July 2025 Offering, and others to be closed as needed consistent with management’s
plans.

The
ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining
the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.