Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1403

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1403
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 Power, Inc.’s outstanding common stock, or 75,049,937 shares.
The number of shares of MeOH Power, Inc.’s common stock authorized for issuance is 240,000,000 as of December 31, 2024. The Company
records its investment in MeOH Power, Inc. using the equity method of accounting. The fair value of the Company’s interest in MeOH
Power, Inc. has been determined to be $0 as of December 31, 2024 and December 31, 2023, based on MeOH Power, Inc.’s net position
and expected cash flows.

Variable
Interest Entities and Voting Interest Entities

Soluna
consolidates those entities in which it has a direct or indirect controlling financial interest based on either the Variable Interest
Entity (“VIE”) model or the Voting Interest Entity (“VOE”) model.

VIEs
are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities independently, or (ii)
have equity holders that do not have the power to direct the activities of the entity that most significantly impact its economic performance,
the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected residual returns. The
Company consolidates a VIE when it is the primary beneficiary, which is the party that has both (i) the power to direct the activities
that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb
expected losses or the right to receive expected benefits from the VIE that could potentially be significant to the VIE.

To
assess whether Soluna has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance,
Soluna considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities.
This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying
which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the
VIE (management and representation on the Board of Directors) and have the right to unilaterally remove those decision-makers are deemed
to have the power to direct the activities of a VIE.

To
assess whether Soluna has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially
be