Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 75

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 75
---
  
     1,392 
  
    Operating lease liability 
     4  
     4 
  
    Current portion of debt 
     -  
     137 
  
    Total current liabilities 
     2,222  
     3,008 

    Operating lease liability 
     36  
     39 
  
    Total liabilities 
    $2,258  
    $3,047 

On
July 22, 2024 (the “Effective Date”), Soluna Holdings, Inc. (the “Company”) closed financing for the Dorothy
2 project. This project involves Soluna Digital, Inc. (the “Developer”) and Soluna DVSL II ComputeCo, LLC (“DVSL II”),
a special purpose vehicle initially owned solely by the Developer. They are collaborating on the development, design, procurement, and
construction of a 48 MW modular data center (the “Project Dorothy 2”) in Silverton, Texas. This facility is owned by DVSL
II and operated by Soluna US Services, LLC, and may engage in cryptocurrency, batch processing, and other non-crypto related activities.
It is adjacent to two other company modular data center projects at the same site.

    37

Project
Dorothy 2 is financed by Soluna2 SLC Fund II Project Holdco LLC, an investment vehicle of SLC with
a capital contribution of up to $29.98 million, and the Developer, as the parent company of DVSL II, with an initial capital contribution
of up to $4.6 million. As of the Effective Date, the Company and the Developer became co-owners of DVSL II. In exchange for contributions
to DVSL II, the Company and SLC were initially issued 42% and 58% of the Class B Membership Interests in DVSL II respectively, and were
admitted as Class B members of DVSL II. Further, DVSL II issued 100% of its Class A Membership Interests to SDI. In relation to distributions,
once ERCOT Achievement Date has been met ( date on which SLC and the Company have mutually agreed upon the parameters for power trading
or demand response program in the ERCOT market) until the Target Return Date (last day of quarter in which the Class B members achieve
an 18% internal rate of return), the Class A members will obtain 7.5% of the distributable cash with the remaining 92