Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 204

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 204
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 March 3, 2023, and (b) the Amended
and Restated Contribution Agreement, dated as of March 10, 2023 (the “A&R Contribution Agreement”), an amendment and
restatement of the Contribution Agreement dated as of August 5, 2022. The Fourth A&R LLCA provides for certain updates in respect
of Spring Lane’s majority ownership. The A&R Contribution Agreement reflects updated pro rata member funding percentages as
a result of the Sale as well as updated contribution caps for each of the Company and Spring Lane.

As
of 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. Effective January 1, 2023, the Company’s ownership
in DVSL was reduced from 67.8% to 14.6%; see above for details.

    35

In
September 2025, the Company agreed to terms of a debt facility with Generate under a Credit and Guarantee Agreement, as discussed in
Note 8. Several events occurred in connection with the debt facility, [1] the Company completed a restructuring of the subsidiaries that
comprise “Project Dorothy 1A” and “Project Dorothy 2” (herein referred to as the “Dorothy Restructuring”),
[2] Soluna DVSL ComputeCo LLC, Soluna DVSL II ComputeCo