Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 38

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 38
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of these issues—supply failures, price increases, or contract imbalances—could materially affect our business, operations,
and financial results.

31

Our confidentiality agreements with employees
and others may not adequately prevent disclosure of our trade secrets and other proprietary information, which could limit our ability
to compete.

In addition to the protection afforded by patents,
we rely on trade secrets to protect much of our proprietary technology and processes. Despite such protection, however, it is possible
that a third party may copy or otherwise obtain and use our proprietary information without our authorization and trade secrets can be
difficult to protect. Policing unauthorized use of our intellectual property and trade secrets is difficult, particularly in light of
the global nature of the Internet and because the laws of other countries may afford us little or no effective protection of our intellectual
property. Potentially expensive litigation may be necessary in the future to enforce our intellectual property rights, to protect our
trade secrets, to determine the validity and scope of the proprietary rights of others or to defend against claims of infringement or
invalidity. Additionally, we enter into confidentiality and intellectual property assignment agreements with our employees, consultants,
and other advisors. These agreements generally require that the other party keep confidential and not disclose to third parties’
confidential information developed by the party under such agreements or made known to the party by us during the course of the party’s
relationship with us. Our employees, consultants, and other advisors, however, may not honor these agreements and enforcing a claim that
a party illegally obtained and is using our trade secrets is difficult, expensive and time-consuming and the outcome is unpredictable.
Our failure to obtain and maintain trade secret protection could adversely affect our competitive position.

We may not be able to compete with other companies,
some of which have greater resources and experience.

We may not be able to compete successfully
against present or future competitors. We do not have the resources to compete with larger providers of similar products or services
at this time. The crypto asset industry (mining and hosting) as well as the cloud and AI/HPC industry has attracted various
high-profile and well-established operators, some of which have substantially greater liquidity and financial resources than we do.
With the limited resources we have available, we may experience great difficulties in expanding and improving our services and
product offerings to remain competitive. Competition from existing and future competitors, particularly those that have access to
competitively priced energy, could result in our inability to secure acquisitions and partnerships that we may need to expand our