Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 97

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 97
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 debt and equity financings, including the YA SEPA and
others to be closed as needed consistent with management’s plans.

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.

Operating Activities

Net cash
used by operations was approximately $177 thousand during the three months ended March 31, 2025. The Company had a net loss for
the three months ended March 31, 2025 of approximately $7.4 million. Non-cash items included approximately $1.5 million of depreciation
expense, and $2.4 million of amortization expenses, and $1.8 million of stock compensation expenses. These non-cash items were offset
with a deferred tax benefit of $437 thousand and gain on extinguishment of debt of approximately $551 thousand. The change in asset and
liabilities of $1.9 million mainly relates to decrease in other long term assets of $1.6 million in relation to receipt of Briscoe deposit
in January 2025. The other changes in assets and liabilities of approximately $500 thousand mainly related to decrease in accounts
receivable due to timing and amounts billed related to March services, an increase in accounts payable related to timing and billing
amounts of invoices, including increases in legal fees, an increase in interest payable in relation to NYDIG loan and Galaxy loan