Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 163

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 163
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, the Company, Spring Lane,
Devco and the Project Company entered into (a) the Fourth Amended and Restated Limited Liability Company Agreement of the Project Company,
dated as of March 10, 2023 (the “Fourth A&R LLCA”), an amendment and restatement of the Third Amended and Restated Limited
Liability Company Agreement of the Project Company dated as of March 3, 2023, and (b) the Amended and Restated Contribution Agreement,
dated as of March 10, 2023 (the “A&R Contribution Agreement”), an amendment and restatement of the Contribution Agreement
dated as of August 5, 2022. The Fourth A&R LLCA provides for certain updates in respect of Spring Lane’s majority ownership.
The A&R Contribution Agreement reflects updated pro rata member funding percentages as a result of the Sale as well as updated contribution
caps for each of the Company and Spring Lane.

As of January 1, 2023, there were no changes in the
Limited Liability Agreement of DVSL other than those related to incorporating the new investment and the purpose and design of DVSL has
not changed. The Company evaluated the concepts under ASC 810 for DVSL after the change in membership interest, concluding that this resulted
in the Project Company not being structured with non-substantive voting rights, as the noncontrolling shareholders have disproportionately
fewer voting rights but the activities are not conducted on their behalf. This, in conjunction with there being sufficient equity at risk
to finance its activities and the equity holders as a group having the characteristics of a controlling financial interest in DVSL, results
in DVSL not meeting the definition of a VIE. The Company’s consolidation model is based on the concept of power. Given the Company’s
Class A membership interest, the Company has the ability to control the significant decisions made in the ordinary course of the business
of DVSL. The non-controlling shareholders do not hold substantive participating rights, voting rights or liquidation rights. This results
in the Project Company being a voting interest entity (“VOE”), therefore allowing the Company to continue to consolidate.

The carrying amount of the assets and liabilities
was as follows for DVSL:

 Schedule
of Variable Interest Entities of Assets and Liabilities

    (Dollars in thousands) 
    March 31, 2025  
    December 31, 2024 

    Current assets: 

    Cash and restricted cash 
    $2