Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 56

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 56
---

to consolidate this entity.

The
Company evaluated this legal entity under ASC 810, Consolidations and determined that this entity is a VIE, as the equity holders
as a group do not have the characteristics of a controlling financial interest. Even though SLC has all of the Class B membership, the
Company holds all the Class A membership, which gives them the ability to control the significant decisions made in the ordinary course
of business. The Company has the right to receive benefits that could potentially be significant to the VIE through its Class A membership
interest, as it is eligible to receive 50% of distributions upon SLC obtaining a specified internal rate of return. The non-controlling
shareholders do not hold substantive participating rights, voting rights or liquidation rights.

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

 Schedule of Variable Interest Entities of Assets and Liabilities

    (Dollars in thousands) 
    June 30, 2025  
    December 31, 2024 

    Current assets: 

    Cash and restricted cash 
    $1,080  
    $402 
  
    Accounts receivable, trade 
     171  
     - 
  
    Accounts receivable, intercompany 
     -  
     2,868 
  
    Prepaid expenses and other current assets 
     210  
     41 
  
    Other receivable, related party 
     3,118  
     3,370 
  
    Total current assets 
     4,579  
     6,681 

    Other assets 
     463  

    Other assets, related party 
     14,152  
     13,223 
  
    Operating lease right-of-use assets 
     78  
     82 
  
    Property, plant and equipment, net 
     9,132  
     - 
  
    Deposits on equipment 
     -  
     716 
  
    Total assets 
    $28,404  
    $20,702 

    Current liabilities: 

    Accounts payable, trade 
    $468  
    $- 
  
    Accounts payable, related party 
     2,685  
     3,598 
  
    Accrued liabilities 
     172  
     - 
  
    Due to intercompany 
     -