Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 3

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 3
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. 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 $9.9 million as of June 30, 2025, the Company will need
to raise additional capital through financing raising activities, to meet its capital expenditure needs for its current pipeline and
other operational needs. On August 12, 2024, the Company entered into a Standby Equity Purchase Agreement (the “SEPA”) with
YA II PN, LTD., a Cayman Islands exempt limited company (“YA”). In accordance with the terms of the SEPA, YA has agreed to
purchase up to $25 million in aggregate gross purchase price of newly issued fully paid shares of the Company’s common stock from
time to time subject to the limits and the conditions of the SEPA. The Company drew on the SEPA in the first quarter of 2025, and the
proceeds were used to pay debt, invest in data center projects, and for working capital and general corporate purposes. As of June 30,
2025, the Company has drawn approximately $2.0 million on the SEPA. Additionally, 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 $3.75 million of shares of common stock. As of June 30, 2025, the Company has drawn approximately $2.2 million pursuant
to the ATM Agreement. On July 15, 2025, the Company entered into a securities purchase agreement with the purchasers signatory thereto,
pursuant to which the Company received gross proceeds of $5.0