Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 335

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 335
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 do update one or more forward-looking
statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Item
3. Quantitative and Qualitative Disclosures About Market Risk

Not
applicable.

Item
4. Controls and Procedures

The
certifications of our Chief Executive Officer and Chief Financial Officers are attached as Exhibits 31.1 and 31.2 to this Quarterly Report
on Form 10-Q include, in paragraph 4 of such certification, information concerning our disclosure controls and procedures and internal
control over financial reporting. Such certification should be read in conjunction with the information contained in this Item 4 for
a more complete understanding of the matters covered by such certification.

67

(a)
Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief
Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September
30, 2025. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act,
means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in
the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified
in the SEC rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure
that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and
communicated to the company’s management, including our principal executive and principal financial officers, as appropriate to
allow timely decisions regarding required disclosure. We recognize that any controls and procedures, no matter how well designed and operated,
can provide only reasonable assurance of achieving their objectives and we necessarily apply our judgment in evaluating the cost-benefit
relationship of possible controls and procedures. Based on this evaluation, our management concluded
that our disclosure controls and procedures were not effective at the reasonable assurance level as of September 30, 2025,
due to the following material weakness:

●The
                                            Company did not maintain effective control over the accurate calculation of both basic and
                                            diluted EPS. Specifically, controls failed to ensure the correct treatment of complex equity
                                            instruments, as evidenced by an error identified in the financial statements concerning the
                                            calculation of earnings per share (EPS). This error involved the incorrect inclusion of un