Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 261

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 261
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, and our inability to do so on favorable terms may adversely affect our operations and the market price of our
securities.

We have raised capital to finance the strategic growth
of our business through public offerings of our common stock and the issuance of debt, and plan to raise additional capital through similar
offerings to fund current and future expansion initiatives. We may not be able to secure additional debt or equity financing on favorable
terms, if at all, which could hinder our growth and adversely impact our operations. In 2022 and 2023, a number of digital asset platforms
and exchanges filed for bankruptcy and/or became the subjects of investigation by various governmental agencies for, among other things,
fraud. These disruptions in the crypto asset market may impact our ability to obtain favorable financing. If we raise additional equity
financing, stockholders may experience dilution of their ownership interests, and the per share value of our common stock could decline.
If we are unable to generate sufficient cash flows to support our strategic growth, we may be required to adopt one or more alternatives,
such as reducing or delaying investments or capital expenditures, selling assets, or obtaining additional equity financing on terms that
may be onerous or highly dilutive. Furthermore, as we engage in debt financing, in the event of bankruptcy, the holders of any debt we
issue would likely have priority over the holders of shares of our common stock in terms of order of payment preference. We may be required
to accept terms that restrict our ability to incur additional debt or take other actions, including accepting terms that require us to
maintain specified liquidity or other ratios that could otherwise not be in the interests of our stockholders.

If we cannot achieve or maintain profitability, stockholders could
lose all or part of their investment.

We intend to continue scaling our company to increase
our customer base and implement initiatives, including new business lines. As a result, we will incur increased costs associated with
growth, expanding our customer base and being a public company. Our efforts to grow our business may be costlier than we expect, or the
revenue growth rate may be slower than we expect and may not result in increased profitability in the short term or at all. As we pivot
towards new markets such as the HPC/AI hosting business, our limited experience in these areas may impact our ability to accurately
assess our prospects. The likelihood of our success must be considered in light of the expenses, difficulties, complications, problems,
and delays frequently encountered in connection