Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1510

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1510
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 agreement for services where the quarterly service expense was approximately one million in each third and fourth
quarter of 2024.

Liquidity
and Capital Resources

Several
key indicators of our liquidity are summarized in the following table:

    Years Ended December 31, 
  
    (Dollars in thousands) 
    2024  
    2023 
  
    Cash 
    $7,843  
    $6,368 
  
    Restricted cash 
     2,610  
     3,999 
  
    Working deficit 
     (34,378) 
     (13,891)
  
    Net loss from continuing operations 
     (58,300) 
     (27,703)
  
    Net cash used in operating activities 
     (5,069) 
     (2,987)
  
    Purchase of property, plant and equipment 
     (9,160) 
     (12,705)

As
of December 31, 2024, we had a consolidated accumulated deficit of approximately $314.3 million and we had negative working capital
of approximately $34.4 million. As of December 31, 2024, we had total debt outstanding of approximately $21.5 million as summarized
further below in the Debt table. In addition, we had outstanding commitments related to Soluna Digital Inc. (“SDI”) of
approximately $8.5 million in capital expenditures related to Project Dorothy 2. In addition, due to CloudCo’s
termination of the HPE Agreement on March 24, 2025, and HPE’s termination of the HPE Agreement on March 26, 2025, and the acceleration of the remaining unpaid amounts of the contract in accordance with Section 8(h)(ii) of the HPE Agreement,
a Type 1 Subsequent Event, we have recognized a liability for the remainder of the HPE Agreement on the balance sheet of our
subsidiary, CloudCo, of approximately $20.0 million , net of a prepaid deposit of $8.6 million. As of December 31, 2024, we had $7.8 million of cash available to
fund our operations.

Based
on business developments, including changes in production levels, staffing requirements, and network infrastructure improvements, we
will require additional capital equipment in the foreseeable future. We are focused on developing and monetizing green, zero-carbon computing
and cryptocurrency mining facilities