Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 9

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
 termination of the HPE Agreement and, on March
26, 2025, HPE notified CloudCo of its termination of the HPE Agreement for cause, effective immediately, due to CloudCo’s material
breach of its payment obligations that remained uncured for more than thirty (30) days. In accordance with the terms of the HPE Agreement,
upon a termination for cause by HPE, CloudCo must pay HPE the remaining payment stream under the term of the HPE Agreement of approximately
$19.3 million as
of March 31, 2025, including all upfront payments and monthly charges, plus any fees incurred for the terminated Services (as defined
in the HPE Agreement). CloudCo has not made any additional payments under the HPE Agreement since CloudCo notified HPE of its termination
of the HPE Agreement. These factors, among others indicate that there is substantial doubt about the Company’s ability to continue
as a going concern within one year after issuance of these condensed financial statements as of March 31, 2025, or May 15, 2025.

    9

The ability to continue as a going concern is dependent
upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay
its liabilities arising from normal business operations when they come due. In the near term, 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.

In addition to the Company’s cash on hand for
available use of approximately $9.2 million as of March 31, 2025,