Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 211

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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 Soluna DVSL II JVCo, LLC (“DVSL II JVCo”), which has Class A units
owned by the Developer and Class B units owned by SLC. DVSL II JVCo is then the sole parent of Soluna DVSL II HoldCo, LLC (“DVSL
II HoldCo”), which is the sole owner of DVSL II ComputeCo. The total ownership of Project Dorothy 2 remains such that the Developer
holds all Class A units and that SLC holds all 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 the
Developer and newly created DVSL II JVCo and DVSL II ComputeCo) beneficially own the Class A units (i.e., managing units) of DVSL II
and [2] there are no substantive kick-out rights that exist within Project Dorothy 2 that would cause the Developer to not have the ability
to direct the activities that most significantly impact the economic performance of DVSL II. 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 Credit Agreement and Deed of Trust.

    38

The
carrying amount of the assets and liabilities was as follows for DVSL II 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 
    $7,004  
    $402 
  
    Accounts receivable, trade 
     2,079  
     - 
  
    Accounts receivable, intercompany 
     -  
     2,868 
  
    Prepaid expenses and other current assets 
     750  
     41 
  
    Other receivable, related
    party 
     2,580  
     3,370 
  
    Total current assets 
     12,413  
     6,681 

    Other assets 
     172  
     - 
  
    Other assets, related party 
     10,437  
     13,223 
  
    Operating lease right-of-use assets 
     76  
     82