Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 17

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 17
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 we
are unable to raise additional funds through equity or debt financings or other arrangements when needed, we may be required to scale
back or curtail our operations or expansion efforts, including limiting our ability to expand our hosting and cryptocurrency business
to a larger-scale operation. The perception that we may not be able to continue as a going concern may cause others to choose not to deal
with us due to concerns about our ability to meet our contractual obligations.

17

We have a limited operating history and we may
not recognize operating income in the future.

We began our cryptocurrency and computer hosting operations
in January 2020 and therefore our business is subject to all the risks inherent in a business with limited operating history in a rapidly
developing and changing industry. Furthermore, in 2024 we began to implement a strategy to move into the HPC/AI
hosting business to provide green energy to power-intensive AI applications, in an attempt to leverage our expertise in advanced data
processing applications. This is a new strategic direction for the Company and we have no prior history of operations in either of these
lines of business, from which we can evaluate our future operating performance in this segment. We have not yet been able to confirm that
our business model can or will be successful over the long term, and we may not ever recognize operating income from this business. Our projections have been developed internally and may not prove
to be accurate and our operating results will likely fluctuate moving forward as we focus on growing our operations. We may need to make
business decisions that could adversely affect our operating results, such as modifications to our business structure or operations. There
can be no assurance that we will be successful in either of these lines of business, which could significantly adversely affect our ability
to scale the growth of our customer base or increase our revenue, which could have a material adverse effect on our results of operations
in the future.

Given our status as an early operating stage company,
without positive operating income, there is a substantial risk regarding our ability to succeed. You should consider our business and
prospects in light of these risks and the risks and difficulties that we will encounter as we continue to develop our business model.
We may not be able to address these risks and difficulties successfully, which would materially harm our business and operating results,
and we could be forced to terminate our business, liquidate our assets and dissolve, and you could lose part or all of your investment.

We have financed our strategic growth primarily
by issuing new