Cea Industries Inc. · NASDAQ:BNC
Cea Industries — Surna — Q3 2019 Earnings Presentation
15 slides from Cea Industries's earnings presentation, Nov 20, 2019
Slide 1: Q3 2019 Investor Presentation
== SURNA Q3 2019 INVESTOR PRESENTATION November 20, 2019
Slide 2: Cautionary Statements
== surna’ Cautionary Statements Forward Looking Statements This investor presentation may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements
Slide 3: Q3 2019 Results Year-to-Date Report: Milestones Achieved
Financial Q3 2019 Results surna Year-to-Date Report: Milestones Achieved Revenue $5.5MM Net Income $222,000 ‘© Company record for quarterly revenue surpassing Q219 record of $4.2 MM © $1.3 MM increase over Q2 19, or 31% + Firstever back-to-back quarters of positive net income ‘© $421,000 adjusted op
Slide 4: Operating Results
surna’ Qperating Results For the Three Months. For the Nine Months Ended September 30, Ended September 30, Revenue, net $ 5,524,105 $ 3,324,621 $ 11,505,728 $ 7,387,094 Cost of revenue 3,943,758 2,228,069 7,987,516 5,385,103 Gross profit 1,580,347 1,096,552 3,518,212 2,001,991 Operating expenses: Ad
Slide 5: Key Financial Metrics
== surna Key Financial Metrics REVENUE GROSS MARGIN e.0mition 40% 48% ° oO 4 a @ @ a@ a a @ 3 a a @ @ a@ a @ a 2017 2017 20182018 2018-2018 «2019 2019-2019 2017 2017 2018 20182082018 201920192019 OPERATING INCOME SS) CASH 25 $25 millon 20) Sia o3 af af 623 tts a a4 a a @ a a a a 2017 2017 2018-2018
Slide 6: Bookings, Backlog and Revenue Conversion
surna Bookings, Backlog and Revenue Conversion $14 million Cod Revenue S130 Conversion Revenue conversion % = $12 | quarterly revenue / prior quarter-end backlog $15 ab Gu) aie), $10.1 10 a0. rN (46%) $8.9 $8.9 ww $8.5 8 (40%) a0 yy a $7.0 () (26%) ) Backlog Ss I Net Bookings a 6 9 Gout $5.7 30 4 1
Slide 7: Expanded Market Focus
surna’ Expanded Market Focus Q3 2019 YTD Results (¢ in millions) (includes only projects under contracts signed Commercial-Scale Project Type Q3 19 YTD with value > $100,000) Multi-Facility Operators (MFOs) No. of Projects 2 3 1 6 #915) — average project size Bookings $14 $5.5 $13 $7.9 + 90% — Q3 19
Slide 8: Trusted Climate Control Advisor
== surne’ Trusted Climate Control Advisor Weacle) Greater and Expanded Wider Range Over the Product/Service of of Cultivators’ of Facility's femmes More Consistent Offering Environmental Full Lifecycle —_ and Predictable Control Needs Revenue ant ach By —covsructon _ I =, =o ‘7 Products - modular ch
Slide 9: Corporate Profile
Symbol Trading Venue Stock Price 52-Week Price Range Avg. Daily Volume (3 month) Number Record Holders Number Beneficial Holders (as of 3/19/19) Penny Stock CAPITALIZATION (as of 9/30/19) Market Capitalization Debt Common Shares Outstanding Potentially Dilutive Securities Investor Warrants (wt. avg.
Slide 10: Market Comparables
== surnea Market Comparables Fe American Generation | KushCo | Growlife | <.Sf™ | Helix TCs Cannabis Alpha ne. | Holdings | “ne. | Gen Inc. Company oe: Inc Ticker Symbol SRNA NAL. KSHB-——s PHOT = GRWG-UHILIX KERN CANN AMMJ Stock Exchange OTCQB —OTCAB-—«««OTCQX~=—OTCPink_-«OTCGX = OTCQB_—NasdagCM © O
Slide 11: Potential for Value Accretion
== surna’ Potential for Value Accretion Q3 2019 Results Revenue Net Income $5.5MM $222,000 ‘© Company record for quarterly revenue »» Back-to-back quarters of positive net income +» $1.3 MM increase over Q2 19, or 31% +» $421,000 adjusted operating income — key metric for cash profitability Surna Va
Slide 12: Strategic Plan
surna Strategic Plan Facility Facility Facility Operating Costs Controls & Automation [BB current Suma offering TE Steateyicatiance targets 2020 2021 « Identify select companies for © Attempt to add $10 to $20 MM of strategic alliance annual revenues via acquisitions * Establish at least one signifi
Slide 13: Contact Information
To receive Surna news via email, please visit our website at www.surna.com/investor-relations/ CONTACT INFORMATION Tony McDonald Chief Executive Officer (303) 993-5271 tony@surna.com
Slide 14: Appendix A: Management Team
SURNA Tony McDonald Chief Executive Officer | Troy Rippe ) Director of Product Development Kenneth Loshelder | Director of Engineering { \ Robert Fisher Manager, R&D | Jon Kozlowski | Global Sales Manager Appendix A: Management Team VP/Sales, Director Major Accounts, Coolerado Inc., a cleantech HVAC
Slide 15: Appendix B: Old and New Surna
SURNA Appendix B: Old and New Surna Brand Building New Surna iD 2015 Formation: Founded as Hydro Innovations, LLC Product Offering: Limited HVAC equipment; introduced chilled water systems for indoor cannabis grows Markets: Targeted hobbyists, small growers, Diys Initial Commercial Project: AZ licen