Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 258

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 3
Chunk 258
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 discovery discussions. The NYDIG Defendants sent a response on April
10, 2025 requesting contact information for potential settlement discussions and proposing a rolling discovery schedule; as of May
15, 2025 there has not  been a response on the proposed discovery schedule.

Additionally, NYDIG has stated its intention to pursue
the parent company of Guarantor (the “Parent Entity”) under a piercing of the corporate veil theory relating to NYDIG Defendants’
debts and liabilities under the loan documents. Parent Entity intends to vigorously defend itself from NYDIG’s parent company claims.
Parent Entity denies any such liability and filed a complaint for a declaratory judgment against NYDIG in the Eighth Judicial District
Court in Clark County, Nevada on March 16, 2023, seeking a declaratory judgment as to such matter. On June 22, 2023, the court issued
an order granting NYDIG’s motion to dismiss without prejudice. Parent Entity intends to continue to vigorously defend any allegations
regarding liability on account of NYDIG Defendants’ debts and liabilities to NYDIG under their loan documents.

Item 1A. Risk Factors

Part II, Item 1A (Risk Factors) of our most recently
filed Annual Report on Form 10-K with the SEC, filed on March 31, 2025, sets forth information relating to important risks and uncertainties
that could materially adversely affect our business, financial condition and operating results. There have been no material changes to
our risk factors disclosed in our most recently filed Annual Report on Form 10-K. Those risk factors continue to be relevant to an understanding
of our business, financial condition and operating results, however, and, accordingly, you should review and consider such risk factors
in making any investment decision with respect to our securities.

If
we fail to regain compliance with the continued listing requirements of Nasdaq, our common stock may be delisted and the price of our
common stock and our ability to access the capital markets could be negatively impacted.

Our common stock is currently
listed for trading on Nasdaq. On May 8, 2025, we received notice from The Nasdaq Stock Market LLC indicating that we are not in compliance
with the requirement to maintain a minimum bid price of $1.00 per share for continued listing on Nasdaq (the “minimum closing bid
price requirement”). We were provided an initial compliance period of 180 calendar days from the date of the notice, or until November
4, 2025, to