Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 56

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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-03 requires, in the notes to the financial statements, disclosures of specified information
about certain costs and expenses specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods beginning after
December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating
the impact the updated guidance will have on its disclosures.

    29

Debt
with Conversion and Other Options

In December
2024, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2024-04, Debt - Debt with Conversion and Other Options
(Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. ASU 2024-04 clarifies the requirements for determining whether
certain settlements of convertible debt instruments should be accounted for as an induced conversion to improve relevance and consistency.
The new standard is effective for the Company for its annual periods beginning after December 15, 2025 and interim periods within those
annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

14.
Variable Interest Entities and Voting Interest Entities

On January 26, 2022, DVSL was created in order to
construct, own, operate and maintain data centers in order to support the mining of cryptocurrency assets, batch processing and other
non-crypto related activities (collectively, the “Project”). On May 3, 2022, SCI entered into a Bilateral Master Contribution
Agreement (the “Bilateral Contribution Agreement”) with Spring Lane Capital, pursuant to which Spring Lane agreed, pursuant
to the terms and conditions of such agreement, to make one or more capital contributions to, and in exchange for equity in, SCI or one
of its subsidiaries up to an aggregate amount of $45 million, as amended in the third quarter of fiscal year 2024 to fund certain projects
to develop green data centers co-located with renewable energy assets (the “Spring Lane Commitment”).

On August 5, 2022, the Company entered into a Contribution
Agreement (the “Dorothy Contribution Agreement”) with Spring Lane, Soluna DV Devco, LLC (“Devco”), an indirect
wholly owned subsidiary of SCI, and DVSL an entity formed in order to further the Company’s development for Project Dorothy, (each,
a “Party” and, together, the “Parties”). Pursuant to