Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 172

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 172
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 whether
a change to the consolidation conclusion is required each reporting period. Refer to Note 15.

Entities
that do not qualify as a VIE are assessed for consolidation under the VOE model. Under the VOE model, Soluna consolidates the entity
if it determines that Soluna holds control over significant decisions and the other equity holders do not have substantive voting, participating
or liquidation rights. Refer to Note 15.

Non-Controlling
Interests

The
ownership interest held by owners other than the Company in less than wholly-owned subsidiaries are classified as non-controlling interests.
The value attributable to the non-controlling interests is presented on the consolidated balance sheets separately from the equity attributable
to the Company. Net income (loss) attributable to non-controlling interests are presented separately on the consolidated statements of
operations.

     F-10 

Fair
Value Measurement

The
estimated fair value of certain financial instruments, including cash, accounts receivable and short-term debt approximates their carrying
value due to their short maturities and varying interest rates. “Fair value” is the price that would be received to sell
an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes
valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability
of the inputs used in the valuation methods, the Company is required to provide the following information according to the fair value
accounting standards. These standards established a fair value hierarchy as specified that ranks the quality and reliability of the information
used to determine fair values. Financial assets and liabilities are classified and disclosed in one of the following three categories:

    Level
    1:
    Quoted
    market prices in active markets for identical assets or liabilities, which includes listed equities.
  
    Level
    2:
    Observable
    market-based inputs or unobservable inputs that are corroborated by market data. These items are typically priced using models or
    other valuation techniques. These models are primarily financial industry-standard models that consider various assumptions, including
    the time value of money, yield curves, volatility factors, as well as other relevant economic measures.
  
    Level
    3:
    These
    use unobservable inputs that are not corroborated by market data. These values are generally estimated based upon methodologies utilizing
    significant inputs that are generally less observable from objective sources.

The
fair value hierarchy also requires an entity to maximize