Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 311

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 311
---
15-14that 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 results 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, 2024 |     |   | December 
 31, 2023 |
|:---------------------------------------|:-----------------------|:--|----------:|:----|:--|---------:|
| Current assets:                        |                        |   |           |     |   |          |
| Cash and restricted cash               |                        | $ |     1,841 |     | $ |    2,575 |
| Accounts receivable                    |                        |   |        31 |     |   |      217 |
| Prepaids and other current assets      |                        |   |        63 |     |   |        - |
| Other receivable, related party        |                        |   |       449 |     |   |      476 |
| Total current assets                   |                        |   |     2,384 |     |   |    3,268 |
| Other assets- long term, related party |                        |   |     2,452 |     |   |    2,172 |
| Operating lease right-of-use assets    |                        |   |        85 |     |   |       90 |
| Property, plant, and equipment, net    |                        |   |    18,735 |     |   |