NON-CONTROLLING INTEREST

9 Months Ended

Sep. 30, 2021

NON-CONTROLLING INTERESTThe Company is the sole managing member of Stronghold LLC and as a result consolidates the financial results of Stronghold LLC and reports a non-controlling interest representing the Common Units of Stronghold LLC held by Q Power. Changes in the Company’s ownership interest in Stronghold LLC while the Company retains its controlling interest

in Stronghold LLC will be accounted for as mezzanine equity transactions. As such, future redemptions or direct exchanges of common units of Stronghold LLC by the Continuing Equity Owners will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest. Refer to Note 15- Mezzanine Equity and Common Stock - Class V that describes the Redemption Rights of the non-controlling interest.

The following summarizes the mezzanine equity adjustments pertaining to the non-controlling interest from April 1, 2021 through September 30, 2021:


	Mezzanine Equity Adjustments
Balance- April 1, 2021 (1)	$	(2,877,584)
Net losses for the three months ended June 30, 2021	(2,235,219)
Maximum redemption right valuation (2)	172,774,052
Balance- June 30, 2021	$	167,661,249
Net losses for the three months ended September 30, 2021	(4,328,460)
Adjustment of mezzanine equity to redemption amount (3)	79,669,602
Balance- September 30, 2021	$	243,002,391

1 As of the date of reorganization- refer to Note 1
2 Based on 27,057,600 Common Class V shares outstanding at $6.39 issuance price as of April 1, 2021
3 Based on 27,057,600 Common Class V shares outstanding at $9.33 fair valuation price as of September 30, 2021