Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 201

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 201
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ASU 2024-03”). ASU 2024-03 requires, in the notes to the financial statements, disclosures of specified
information about certain costs and expenses specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods
beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The
Company is evaluating the impact the updated guidance will have on its disclosures.

Debt
with Conversion and Other Options

In
December 2024, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2024-04, Debt - Debt with Conversion and
Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. ASU 2024-04 clarifies the requirements for
determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion to improve relevance
and consistency. The new standard is effective for the Company for its annual periods beginning after December 15, 2025 and interim periods
within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of adopting the
standard.

    34

14.
Variable Interest Entities and Voting Interest Entities

On
January 26, 2022, DVSL was created in order to construct, own, operate and maintain data centers in order to support the mining of cryptocurrency
assets, batch processing and other non-crypto related 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, (