Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 2543

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 2543
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 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) 
    December 31, 2024  
    December 31, 2023 

    Current assets: 

    Cash and restricted cash 
    $2,598  
    $2,275 
  
    Accounts receivable, net 
     481  
     1,201 
  
    Other receivable, related party 
     1,090  
     185 
  
    Prepaids and other current assets 
     34  
     - 
  
    Total current assets 
     4,203  
     3,661 

    Other assets- long term, related party 
     2,452  
     2,172 
  
    Operating lease right-of-use assets 
     42  
     90 
  
    Deposits on equipment 

    Property, plant, and equipment 
     12,744  
     13,712 
  
    Total assets 
    $19,441  
    $19,635 

    Current liabilities: 

    Due to intercompany 
    $51  
    $- 
  
    Accrued expense 
     1,608  
     677 
  
    Customer deposits-current 
     296  
     - 
  
    Operating lease liability