Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 144

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 statements, the Company has continued to experience negative cash flows from operations and net losses
and its subsidiary its Soluna AL Cloudco, LLC (“CloudCo”) has received a notice of breach of contract. Refer to Note 6
in relation to CloudCo.

The future use of our available liquidity will be
based upon the ongoing review of the funding needs of our businesses, the optimal allocation of our resources, successful defense against
subsidiary claims, and the timing of cash flow generation. To the extent that we desire to access alternative sources of capital, market
conditions could adversely impact our ability to do so at that time and at terms favorable to the Company. Currently, management is evaluating
and implementing different strategies to obtain financing to fund the Company’s expenses and growth to achieve a level of revenue
adequate to support the Company’s current cost structure. Financing strategies may include, but are not limited to, stock issuances,
project level equity, debt borrowings, partnerships and/or collaborations. If the Company is unable to meet its financial obligations,
it could be forced to restructure or refinance, seek additional equity capital or sell its assets. The Company might then be unable to
obtain such financing or capital or sell its assets on satisfactory terms. There can be no assurance that additional financing will be
available to the Company when needed or, if available, that it can be obtained on commercially reasonable terms. If the Company is not
able to obtain the additional financing on a timely basis, if and when it is needed, 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