Company: SLNH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024045
Chunk: 51

Company: Soluna Holdings, Inc
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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 January 1, 2023, there were no changes in the Limited Liability Agreement of DVSL other than those related to incorporating the new
investment and the purpose and design of DVSL has not changed. The Company evaluated the concepts under ASC 810 for DVSL after the change
in membership interest, concluding that this resulted in the Project Company not being structured with non-substantive voting rights,
as the noncontrolling shareholders have disproportionately fewer voting rights but the activities are not conducted on their behalf.
This, in conjunction with there being sufficient equity at risk to finance its activities and the equity holders as a group having the
characteristics of a controlling financial interest in DVSL, results in DVSL not meeting the definition of a VIE. The Company’s
consolidation model is based on the concept of power. Given the Company’s Class A membership interest, the Company has the ability
to control the significant decisions made in the ordinary course of the business of DVSL. The non-controlling shareholders do not hold
substantive participating rights, voting rights or liquidation rights. This results in the Project Company being a voting interest entity
(“VOE”), therefore allowing the Company to continue to consolidate.

The
carrying amount of the assets and liabilities was as follows for DVSL:

 Schedule
of Variable Interest Entities of Assets and Liabilities 

    (Dollars in thousands) 
    June 30, 2025  
    December 31, 2024 

    Current assets: 

    Cash and restricted cash 
    $2,785  
    $2,598 
  
    Accounts receivable, net 
     689  
     481 
  
    Other receivable, related party 
     434  
     1,090 
  
    Prepaid expenses and other current assets 
     90  
     34 
  
    Total current assets 
     3,998  
     4,203 

    Other assets, related party 
     1,948  
     2,452 
  
    Operating lease right-of-use assets 
     41  
     42 
  
    Property, plant and equipment, net 
     12,285  
     12,744 
  
    Total assets 
    $18,272  
    $19,441 

    Current liabilities: 

    Due to intercompany 
    $-  
    $51 
  
    Acc