Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 68

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 activities (collectively, the “Project”). On May 3, 2022, SCI entered
into a Bilateral Master Contribution Agreement (the “Bilateral Contribution Agreement”) with Spring Lane Capital, pursuant
to which Spring Lane agreed, pursuant to the terms and conditions of such agreement, to make one or more capital contributions to, and
in exchange for equity in, SCI or one of its subsidiaries up to an aggregate amount of $45 million, as amended in the third quarter of
fiscal year 2024 to fund certain projects to develop green data centers co-located with renewable energy assets (the “Spring Lane
Commitment”).

On
August 5, 2022, the Company entered into a Contribution Agreement (the “Dorothy Contribution Agreement”) with Spring Lane,
Soluna DV Devco, LLC (“Devco”), an indirect wholly owned subsidiary of SCI, and DVSL an entity formed in order to further
the Company’s development for Project Dorothy, (each, a “Party” and, together, the “Parties”). Pursuant
to the Dorothy Contribution Agreement, the Company committed to a capital contribution of up to approximately $26.3 million to DVSL (the
“Company Commitment”), and on August 5, 2022, the Company was deemed to have contributed approximately $8.1 million, through
payment of capital expenditures and development costs made on behalf of DVSL by the Company prior to August 5, 2022. Further under the
Agreement, Spring Lane committed to a capital contribution of up to $12.5 million to DVSL (the “Spring Lane Dorothy Commitment”),
and as of December 31, 2022, Spring Lane had actually contributed approximately $4.8 million. Under the Dorothy Contribution Agreement,
the Company and Spring Lane have committed to make subsequent contributions, up to their respective Company Commitment and Spring Lane
Dorothy Commitment amounts, on a pro rata basis, upon receipt of a contribution request from DVSL, as set forth in the Dorothy Contribution
Agreement and subject to the satisfaction of certain conditions described therein. The proceeds of any subsequent commitments will be
applied to pay project costs in accordance with the project budget.

In
exchange for their contributions, the Company and Spring Lane were issued 67.8% and 32.2% of the Class B Membership Interests in DVSL,
respectively, and were admitted as Class B members of DVSL. Further pursuant to the