Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1398

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1398
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 accepted accounting principles in
the United States of America (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets
and liquidation of liabilities in the normal course of business. As shown in the Consolidated Financial Statements, the Company was
in a net loss, has negative working capital, and has significant outstanding debt as discussed in Note 8 as of December 31, 2024. In
addition, Soluna MC Borrowing has a litigation matter with NYDIG ABL LLC (“NYDIG”) in relation to their Master Equipment
Finance Agreement. See further discussion around the NYDIG litigation in Note 13. The
Company had outstanding commitments as of December 31, 2024, related to SDI of $8.5 million in capital expenditures related to
Project Dorothy 2 and a liability of approximately $20.0 million related to CloudCo with HPE. 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 the Consolidated Financial Statements as of December 31, 2024, or March 31, 2025.

     F-7 

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