Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1900

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1900
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 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 in operations was approximately $5.1 million during the year ended December 31, 2024. We had a net loss for the year ended
December 31, 2024 of approximately $58.3 million. Results included cost of revenue in connection with the HPE Agreement for $5.7
million. Non-cash items included approximately $6.2 million of depreciation expense and $9.5 million of amortization expenses,
approximately $28.6 million on loss on contract, $5.3 million of stock compensation expenses, $7.3 million of loss on debt
extinguishment and revaluation, $2.1 million in debt issuance costs, $760 thousand in provision for credit losses, and $351 thousand
amortized deferred financing costs. These non-cash items were offset with a deferred tax benefit of $2.5 million. The change in
assets and liabilities is mainly due to an increase in prepaid expenses and other long term assets by $8.1 million due to a
prepayment of an arrangement with HPE of $10.3 million that was being amortized over the life of the agreement and a decrease in
customer deposits of $1.4 million due to timing of deposits applied in December 2024, offset by an increase in accrued expenses and
accounts payable of approximately $5.5 million in relation to NYDIG interest, and related bills associated with Project Dorothy 2
and Project Kati. The other changes in assets and liabilities were not material.

Net
cash used in operating activities from continuing operations was approximately $3.0 million for the year ended December 31, 2023