Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 612

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 612
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 loss will include our proportionate share, if any, of the net income or loss of our equity
method investee. When the Company records its proportionate share of net income, it increases equity income (loss), net in our consolidated
statements of operations and our carrying value in that investment. Conversely, when the Company records its proportionate share of a
net loss, it decreases equity income (loss), net in our consolidated statements of operations and our carrying value in that investment.
When the Company’s carrying value in an equity method investee company has been reduced to zero, no further losses are recorded
in the Company’s financial statements unless the Company guaranteed obligations of the investee company or has committed additional
funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals
the amount of its share of losses not previously recognized.

As
of December 31, 2024, the Company owned approximately 47.5% of MeOH Power, Inc.’s outstanding common stock, or 75,049,937 shares.
The number of shares of MeOH Power, Inc.’s common stock authorized for issuance is 240,000,000 as of December 31, 2024. The Company
records its investment in MeOH Power, Inc. using the equity method of accounting. The fair value of the Company’s interest in MeOH
Power, Inc. has been determined to be $0 as of December 31, 2024 and December 31, 2023, based on MeOH Power, Inc.’s net position
and expected cash flows.

Variable
Interest Entities and Voting Interest Entities

Soluna
consolidates those entities in which it has a direct or indirect controlling financial interest based on either the Variable Interest
Entity (“VIE”) model or the Voting Interest Entity (“VOE”) model.

VIEs
are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii)
have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance,
the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The
Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities
that most significantly impact the VIE’s economic performance and (ii) through its