Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 4019

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 4019
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 period and offered the potential for expansion based on mutual agreement. On March 24, 2025, CloudCo notified
HPE of its termination of the HPE Agreement in accordance with the provisions of Section 8(d), and, on March 26, 2025, HPE notified
CloudCo of its termination of the HPE Agreement in accordance with the provisions of Section 8(b)(i), effectively exiting the GPU
business. See Note 17 for further disclosure.

Soluna
is committed to leveraging its modular data centers and renewable energy partnerships to support the growing demands of Bitcoin mining,
AI, and other high-performance computing industries, while maintaining a focus on sustainable, cost-effective energy use.

Going
Concern and Liquidity

The
Company’s financial statements as of December 31, 2024, have been prepared using generally 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