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

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
 it will be forced to delay or scale down some or
all of its development activities or perhaps even cease the operation of its business.

    9

The
Company’s unrestricted cash and cash equivalents of $51.4 million as of September 30, 2025, may be insufficient to meet our operating
expenses and capital expenditure requirements for at least 12 months from the filing of this Form 10-Q. We have incurred recurring losses
since inception and we expect operating losses to continue for the foreseeable future as we grow our business, and it is possible we
will never achieve profitability and, as a result, our ability to continue as a going concern is dependent on our ability to raise additional
working capital through public and private equity, debt financings and other sources. There can be no assurance that such financing will
be available, on acceptable terms and conditions, or at all. The precise amount and timing of the funding needs cannot be determined
accurately at this time, and will depend on a number of factors, including our ability to generate significant revenue, the market demand
for our services, management of working capital, and the continuation of normal payment terms.

Until
such time as we can generate substantial revenue, we expect to finance our working capital requirements through a combination of equity
offerings and debt financing. Debt financing and preferred equity financing, if available, may involve agreements that include covenants
limiting or restricting our ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures,
or declaring dividends. If we are unable to raise additional funds through equity or debt financing or other sources when needed, we
may be required to scale back or curtail our operations or expansion efforts, including limiting our ability to expand our hosting and
cryptocurrency business to a larger-scale operation.

Other
financing activities include the following:

On
April 29, 2025, the Company entered into an At the Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright &
Co., LLC (“Wainwright”), as sales agent, pursuant to which the Company may offer and sell, from time to time, through Wainwright,
up to $87,650,000 from time to time through Wainwright. As of September 30, 2025, the Company has drawn approximately $23.0 million
in net proceeds pursuant to the ATM Agreement and has over $60 million available. Refer to Note 9 for details.

On August