Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 74

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 74
---
 being structured with non-substantive voting rights. This is due to the following two factors being
met as outlined in ASC 810-10-15-14 that require the VIE model to be followed.

    a.
    The
    voting rights of the Company are not proportional to their obligation to absorb the expected losses of the legal entity. The Company
    gave Navitas veto rights over significant decisions, which resulted in Soluna having fewer voting rights relative to their obligation
    to absorb the expected losses of the legal entity.

    b.
    Substantially
    all of DVCC’s activities are conducted on behalf of the Company, which has disproportionally fewer voting rights.

Also,
the Company is the primary beneficiary due to having the power to direct the activities of DVCC that most significantly impact the performance
of DVCC due to its role as the manager handling the day-to-day activities of DVCC as well as majority ownership and the obligation to
absorb losses or gains of DVCC that could be significant to the Company.

Accordingly,
the accounts of DVCC are consolidated in the accompanying financial statements.

The
carrying amount of the VIE’s assets and liabilities was as follows for DVCC:

Schedule
of Variable  Interest Entities of Assets and Liabilities

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

    Current assets: 

    Cash and restricted cash 
    $1,515  
    $2,057 
  
    Accounts receivable 
     -  
     37 
  
    Prepaid expenses and other current assets 
     137  
     49 
  
    Other receivable, related
    party 
     372  
     1,692 
  
    Total current assets 
     2,024  
     3,835 

    Other assets, related party 
     1,948  
     2,452 
  
    Operating lease right-of-use assets 
     40  
     42 
  
    Property, plant and equipment,
    net 
     15,474  
     17,774 
  
    Total assets 
    $19,486  
    $24,103 

    Current liabilities: 

    Due to intercompany 
    $1,570  
    $1,475 
  
    Accrued liabilities 
     648