Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1279

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1279
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 Spring Lane owns 39,791,988
Class B Membership Interests (constituting 85.4%
of the Class B Membership Interests). The cash portion of the purchase price paid by Spring Lane to the Company was approximately $5.8
million, which represented the purchase price
of $7.5
million less the Company’s pro rata share
of certain contributions funded entirely by Spring Lane in the earlier portion of this series of transactions occurring during February
2023 and March 2023. As a further part of these transactions, the parties agreed that from January 1, 2023 onwards, the Company would
bear only 14.6%
of the costs relating to the construction and operation of the Dorothy Phase 1A Facility, compared to its 67.8%
share until that time, including during the calendar year 2022. After
Spring Lane Capital realizes an 16% Internal Rate of Return hurdle on its investments, the Company retains the right to 50% of the profits
on DVSL. In connection with the Spring Lane transactions and agreements, Soluna DV Services, LLC. will be providing
the operations and maintenance services to DVSL. DVCC expects to receive a margin of 20% for
services rendered on certain expenses.

     F-40 

Concurrently
with the Sale, 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 DV