Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 205

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 205
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 LLC, and Soluna KK I ComputeCo LLC entered into a First Priority Leasehold Deed
of Trust (the “Deed of Trust”) with Generate which provides Generate with the power of sale and right of entry and possession
of the Trust Property.

Following
the Dorothy Restructuring, Project Dorothy 1A consists of Soluna DVSL JVCo, LLC (“DVSL JVCo”), which has Class A units owned
by SDI and Class B units owned by SLC (Soluna SLC Fund I). DVSL JVCo is then the sole parent of Soluna DVSL HoldCo, LLC (“DVSL
HoldCo”), which holds 100% of the Class A units in DVSL. The Class B units of DVSL ComputeCo are held by the Company. The total
ownership of Project Dorothy 1A remains such that the Developer holds all Class A units and that SLC holds 85.4% of Class B units with
the Company holding the remaining 14.6% of Class B units.

The
Company noted that 1) there is no substantive change to the ascending view of the organizational chart since the Company (through SDI
and newly created DVSL JVCo and DVSL ComputeCo) beneficially own the Class A units (i.e., managing units) of DVSL and 2) there are no
substantive kick-out rights that exist within Project Dorothy 1A that would cause SDI to not have the ability to direct the activities
that most significantly impact the economic performance of DVSL. In addition, the entity’s obligation to absorb losses and right
to receive benefits has not changed. As such, Soluna would continue to consolidate the entity since a change in control has not occurred
following the execution of Generate Credit Agreement and Deed of Trust.

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

Schedule
of Variable  Interest Entities of Assets and Liabilities

    (Dollars in thousands) 
    September
    30, 2025  
    December
    31, 2024 

    Current assets: 

    Cash and restricted cash 
    $7,493  
    $2,598 
  
    Accounts receivable, net 
     997  
     481 
  
    Other receivable, related party 
     1,790  
     1,090 
  
    Prepaid expenses and other
    current