Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1208

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1208
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 all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities.
This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying
which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the
VIE (management and representation on the Board of Directors) and have the right to unilaterally remove those decision-makers are deemed
to have the power to direct the activities of a VIE.

To
assess whether Soluna has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially
be significant to the VIE, Soluna considers all of its economic interests, which primarily include equity investments in the entity that
are deemed to be variable interests in the VIE. This assessment requires Soluna to apply judgment in determining whether these interests,
in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing the significance include: the design
of the VIE, including its capitalization structure; subordination of interests; payment priority; and who handles the day-to-day activities.

At
the VIE’s inception Soluna determines whether it is the primary beneficiary and if the VIE should be consolidated based on the
facts and circumstances. Soluna then performs on-going reassessments of the VIE based on reconsideration events and reevaluates 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