Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 64

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 64
---
 amount (i.e.,
$2.16 million).

As of March 31, 2025 SLC owns 88% and SDI owns 12% of ComputeCo. Subsequent
to March 31, 2025, the Company transferred its Class B Membership to SLC, resulting in 0% Class B Membership Interests held by the Company
as of April 4, 2025. SDI still retains 100% Class A Membership Interests in ComputeCo.

The Company evaluated this legal entity under ASC
810, Consolidations and determined that this is not a VIE. This entity is a VOE primarily due to there being sufficient equity at
risk to finance its activities, the equity holders as a group having the characteristics of a controlling financial interest and the entity
is not structured with non-substantive voting rights. 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 ComputeCo. Even though SLC has a majority of the Class B membership, the Company holds all the Class A membership,
which gives them the ability to control the significant decisions made in the ordinary course of business. The non-controlling shareholders
do not hold substantive participating rights, voting rights or liquidation rights.

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

 Schedule of Variable Interest Entities of Assets and Liabilities

    (Dollars in thousands) 
    March 31, 2025  
    December 31, 2024 

    Current assets: 

    Cash and restricted cash 
    $394  
    $402 
  
    Accounts receivable, intercompany 
     2,868  
     2,868 
  
    Prepaids and other current assets 
     55  
     41 
  
    Other receivable, related party 
     3,344  
     3,370 
  
    Total current assets 
     6,661  
     6,681 

    Other assets- long term, related party 
     17,070  
     13,223 
  
    Operating lease right-of-use assets 
     80  
     82 
  
    Deposits on equipment 
     716  
     716 
  
    Total assets 
    $24,527  
    $