Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 143

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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missioned in February 2023, while Project Sophie transitioned
its focus from proprietary Bitcoin mining to hosting customers’ Bitcoin mining operations in the second quarter of 2023. All 25
MW of Project Sophie now perform data hosting services. The Company has since sold all Bitcoin miners at Project Sophie and redeployed
the capital.

The
Company’s Texas site (“Project Dorothy”), located at a wind farm, holds the potential for up to 100 MW of power generation.
By June 2024, SHI had energized 50 MW of the site across two phases, Project Dorothy 1A and 1B. As of September 30, 2025, SHI holds a
15% Class B membership interest in Soluna DVSL ComputeCo, LLC (“DVSL”), owner of Project Dorothy 1A, and a subsidiary of
SHI holds a 100% Class A membership interest in DVSL. SHI also holds a 51% ownership interest in Soluna DV ComputeCo, LLC (“DVCC”),
owner of Project Dorothy 1B. On July 22, 2024, the Company closed financing for the 48 MW modular data center (the “Project Dorothy
2”). Project Dorothy 2 is financed by Soluna2 SLC Fund II Project Holdco LLC, an investment vehicle of Spring Lane Capital (“SLC”)
and SDI. As of September 30, 2025, SDI has 100% Class A membership and 0% Class B membership interest in Project Dorothy 2.
On July 22, 2025, the Company closed financing with Spring Lane Capital for a 35 megawatt (MW) expansion of Project Kati in Texas
with Project Kati 1. The funds and further contributions are being used for the construction of Project Kati 1 that began in the third
quarter of 2025. As of September 30, 2025, SDI has 100% Class A membership and 0% Class B membership interest in Project Kati 1.

Going
Concern, Liquidity, and Capital Resources

The
Company’s condensed consolidated financial statements as of September 30, 2025 have been prepared using generally accepted
accounting principles in the United States of America (“U.S. GAAP”) applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. As shown in the accompanying condensed
consolidated financial