Company: SLNH
Filing Date: 2025-01-15
Form Type: S-1/A
Source: 0001493152-25-002391
Chunk: 319

Company: Soluna Holdings, Inc
Filing Date: 2025-01-15
Form: S-1/A
Chunk 319
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 Agreement of DVSL other than those related to incorporating the new investment and the purpose and design of DVSL has not changed. The Company evaluated the concepts under ASC 810 for DVSL after the change in membership interest, concluding that this resulted in the Project Company not being structured with non-substantive voting rights, as the noncontrolling shareholders have disproportionately fewer voting rights but the activities are not conducted on their behalf. This, in conjunction with there being sufficient equity at risk to finance its activities and the equity holders as a group having the characteristics of a controlling financial interest in DVSL, results in DVSL not meeting the definition of a VIE. The Company’s consolidation model is based on the concept of power. Given the Company’s Class A membership interest, the Company has the ability to control the significant decisions made in the ordinary course of the business of DVSL. The non-controlling shareholders do not hold substantive participating rights, voting rights or liquidation rights. This results in the Project Company being a voting interest entity (“VOE”), therefore allowing the Company to continue to consolidate.

The carrying amount of the assets and liabilities was as follows for DVSL:

Schedule of Variable Interest Entities of Assets and Liabilities

|                                                                                                                            | (Dollars in thousands) |   | September 
  30, 2024 |     |   | December 
 31, 2023 |
|:---------------------------------------------------------------------------------------------------------------------------|:-----------------------|:--|----------:|:----|:--|---------:|
| Current assets:                                                                                                            |                        |   |           |     |   |          |
| Cash and restricted cash                                                                                                   |                        | $ |     3,693 |     | $ |    2,275 |
| Accounts receivable, net (allowance for expected credit losses $367 and $0 as of September 30, 2024 and December 31, 2023) |                        |   |       751 |     |   |    1,201 |
| Other receivable, related party                                                                                            |                        |   |       397 |     |   |      185 |
| Prepaids and other current assets                                                                                          |                        |   |        45 |     |   |        - |
| Total current assets                                                                                                       |                        |   |     4,886 |     |   |    3,661 |
| Other assets- long term, related party                                                                                     |                        |   |     2,452 |     |   |