Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1673

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1673
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 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) 
    December 31, 2024  
    December 31, 2023 

    Current assets: 

    Cash and restricted cash 
    $2,057  
    $2,575 
  
    Accounts receivable 
     37  
     217 
  
    Prepaids and other current assets 
     49  
     - 
  
    Other receivable, related party 
     1,692  
     476 
  
    Total current assets 
     3,835  
     3,268 

    Other assets- long term, related party 
     2,452  
     2,172 
  
    Operating lease right-of-use assets 
     42  
     90 
  
    Property, plant, and equipment, net 
     17,774  
     22,188 
  
    Total assets 
    $24,103  
    $27,718 

    Current liabilities: 

    Due to intercompany 
    $1,475  
    $1,259 
  
    Accrued expense 
     1,392  
     2,213 
  
    Operating lease liability 
     4  
     7 
  
    Current portion of debt 
     137  
     1,682 
  
    Total current liabilities 
     3,008