Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Q1 2024 Earnings Presentation
42 slides from Soluna's earnings presentation, May 22, 2024
Slide 1: 1Q 2024 Results & Business Update
S—ULUN HOLDINGS 1Q 2024 Results & Business Update May 2024
Slide 2: Preamble
Preamble The following content is completely qualified by the legal disclosures on the slide following this one. Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our business. We operate in a hyper dynamic economic environment. T
Slide 3: Legal Disclosure & Disclaimer
w Legal Disclosure & Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act that reflect our current views with respect to, among other things, our operations, business strategy, interpretation of prior development activiti
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Slide 5: 2024 Corporate Focus
2024 Corporate Focus Launch Al We have 2 MW of our Project Dorothy 2 site slated for our Helix Pilot, focused on next generation data centers for Al. To partner with industry leaders to bring this online and create a repeatable blueprint for our new Al business. Optimize Projects Our objective is to
Slide 6: Q1 FY24 Highlights (1 of 2)
Q1 FY24 Highlights (1 of 2) Record Adjusted EBITDA Adjusted EBITDA (non- GAAP) ramped to $5.1 million compared to first quarter 2023 of ($2.9) million, an increase of $8.0 million driven by strong revenue growth and cost discipline. Strong Cash Growth Cash grew 85% from 1Q23 and 32% from end of 2023
Slide 7: Q1 FY24 Highlights (2 of 2)
Q1 FY24 Highlights (2 of 2) Soluna Launches New Al Cloud Service The company recently announced its new Al Cloud service, Soluna Cloud, in collaboration with a leading High Performance Computing Company. Post-Halving Optimizations The Company continued its post- halving optimization plan to boost ha
Slide 8: Revenue Quarterly
Revenue Quarterly * Trend FY 2023-24 (in 000’s) ~ Includes Revenue % Change Quarter over Quarter Q1 23 Q2 23 Q3 23 Q4 23 Qi 24 ll Data Hosting Revenue $286 $286 $4,011 $4,745 $5,278 ll Cryptocurrency Mining Revenue 2,796 2.796 1,786 5.105 6,396 Hl Demand Response Services — = =- 286 875 Grand Total
Slide 9: Gross Profit Quarterly
Gross Profit Quarterly Trend FY 2023-24 (in 000’s) I Total Revenue $14,000 a Total Cost of Revenue $12,000 ™ Gross Profit $10,000 $8,000 $6,000 $4,000 $2,000 ($390) $o Q123 Q223 Q3 23 Q4.23 Qi 24 ($2,000)
Slide 10: General & Administrative
10 General & Administrative Q1 2024 Highlights (in 000’s) 10% Reduction in G&A $5.0 7 ee $4.0 -0.5 a $4.0M : _ -0.1 $3.0 $2.0 $1.0 1Q23 G&A Legal Fees Stock-based iT stor Sali 1Q24 G&A ‘Compensation Relati $0.0
Slide 11: Adjusted EBITDA & Revenue
11 Adjusted EBITDA & Revenue FY 2023-24 by Quarter (in 000’s) 14,000 I Revenue $ $12,549 IB Adjusted EBITDA $12,000 $10,118 $10,000 $8,000 $5,797 $6,000 $5,147 $3,082 4,000 7 $2,068 $2,000 $405 $1,041 $0 ($2,000) ($1,993) ($2,910) ($4,000) Q123 Q223 Q323 Q4.23 Qi 24
Slide 12: Condensed Consolidated Balance Sheet Highlights
Condensed Consolidated Balance Sheet Highlights 11)Prior period results have been adjusted to feflect the Reverse Stock Split of the Common Stock at a ratio of 1-for-25 that became effective October 13, 2023 12 March 31, (Dollars in thousands, except per share) 2024 Current Assets: Cash s 8.438 Rest
Slide 13: Company Overview
D Company Overview
Slide 14: Soluna develops data centers co-located with renewable power plants
Soluna develops data centers co-located with renewable.power plants, turning their wasted energy into sustainable computing resources.
Slide 15: How Soluna Makes Money
How Soluna Makes Money e@ Current revenue sources e@ Future revenue sources Prop Bitcoin Mining + Soluna or JV owned Bitcoin mining machines + Bitcoin sold daily * Soluna provides Managed Infrastructure Services Hosting for Bitcoin Miners + Third-party machines hosted at Soluna Data Centers + Soluna
Slide 16: Why Soluna
Why Soluna Power producers and computing partners choose Soluna because of our four pillars of expertise Project Energy Computing Project Development Markets Technology Finance
Slide 17: The Soluna Way
The Soluna Way We tackle wasted energy through digital infrastructure. As we optimize the grid and serve our customers, we fuel our growth, funding further expansion to make renewable energy a superpower. Source low-cost curtailed power from IPPs Grow Build, own, pipeline operate MDCs with 2-yr ROIC
Slide 18: Renewable energy has a wasted energy problem
7 > 7: 7 / \ To reach its full enewable =| potential Al Energy has a | | needs a wasted energy \ | sustainable problem. energy source. \ / \v7 RENEWABLE COMPUTING
Slide 19: AI is the fastest growing technology today
Al is the fastest Time it took for selected online growing technology services to reach one million users today COMPANY LAUNCHE D Netflix 1999 Kickstarter* 2009 Airbnb** 2008 Twitter 2006 Foursquare** 2009 * 2004 Facebook 2008 Dropbox 2008 Spotify 2010 2.5 months Instagram*** 2022 | 5 days ChatGPT *
Slide 20: AI's hidden challenges
Al’s hidden challenges Alis hungry Albis thirsty Al is dirty Al computing’s energy Traditional data centers, Traditional data centers are density and space needs particularly those utilized for responsible for 2% of overall exceed, current hyperscale. Al, exhibit substantial water U.S. greenhouse ga
Slide 21: Quote on renewable energy grids for training neural networks
“Using renewable energy grids for training neural networks is the single biggest change that can be made. It can make emissions vary by a factor of 40, between a.fully renewable grid and a full coal grid.” - Alexandra Luccioni, Hugging Face
Slide 22: The Lifecycle of AI
The Lifecycle of Al Gen Al is batchable: Parts of the Generative Al lifecycle are perfect computing applications for co-location with renewable power plants, because they are inherently batchable. I Batchable process ff Real-time process Training al Fine Inferencing c Tuning Anew model is created fr
Slide 23: Soluna's Data Center Strategy
Soluna’s Data — Irect Liqui / Center Strategy AE Costing (oc) | Scalable Soluna’s Helix Data Centers are purpose-built for Al, with a unique access to power. | CH Plug & Play Soluna’s behind-the-meter structure allows flexibility for its proprietary data centers - drawing power from the grid or serv
Slide 24: We have a massive pipeline of wasted renewable energy
We have a massive pipeline of wasted renewable energy to power high perfor man compra
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Slide 26: Key Operating Metrics
Key Operating Metrics? NASDAQ SLNH / SLNHP MW MANAGED 75 MW > 291 MW? INSTALLED HASHRATE 2.5 EH/s1*4 AVERAGE POWER COST* <$29 / MWh? CURTAILED ENERGY MONETIZED 56,145 MWh? BITCOIN MINERS DEPLOYED ~24,0001&4 AVERAGE J / TH/s ~26 J / TH/s1*4 POWER USAGE EFFECTIVENESS (PUE) 1.033
Slide 27: Project Dorothy 1A
27 Project Dorothy 1A CAPACITY 25 MW INSTALLED HASHRATE 949 PH/s? POWER USAGE EFFECTIVENESS 1.032 POWER SOURCE . Wind CURTAILED ENERGY CONSUMED 27,112 MWh? (1) All numbers are as of March 31st, 2024 (2) 3-me 024 @) Since fo March 2024 MODEL Hosting ENERGIZATION Operational AVERAGE 3-MONTH ANNUAL LCO
Slide 28: Project Dorothy 1B
28 Project Dorothy 1B CAPACITY MODEL 25 MW Prop Mining INSTALLED HASHRATE ENERGIZATION 817 PH/s? Operational POWER USAGE EFFECTIVENESS AVERAGE 3-MONTH ANNUAL LCOE* 1.032 ~$28 / MWh2 POWER SOURCE PARTNER Wind Navitas Global CURTAILED ENERGY CONSUMED 26,128 MWh? (1) All numbers are as of March 31st, 2
Slide 29: Project Sophie
C ) Project Sophie - CAPACITY 25 MW INSTALLED HASHRATE 778 PH/st POWER USAGE EFFECTIVENESS 1.032 POWER SOURCE Hydro/Grid MODEL . Hosting ENERGIZATION Operational AVERAGE 3-MONTH ANNUAL LCOE* ~$31/MWh2 PARTNER None
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Slide 31: Project Dorothy 2
31 Project Dorothy 2 CAPACITY MODEL 50 MW Hosting & Al POWER SOURCE ENERGIZATION Wind Design & Planning PARTNER AVERAGE ANNUAL LCOE TBD ~$27 / MWh
Slide 32: Project Kati
32 4) Project Kati Gud CAPACITY 166 MW POWER SOURCE Wind PARTNER TBD MODEL . Hosting ENERGIZATION Development AVERAGE ANNUAL LCOE ~$30 / MWh
Slide 33: We have a growing pipeline of projects
We have a growing pipeline of projects Data 2MWw Pp 100MW Db 166MW Bb — 2GW+ long-term Centers & Sophie Dorothy Kati pipeline with Pipeline Operating 5OMW Design & large (PPs and Operating Development* infrastructure funds in the US Powered by Hl x*« 4 and beyond L l| *Design — design and developmen
Slide 34: Welcome to Renewable Computing
SOLUNA WELCOME TO COMPUTING Learn more at
Slide 35: Appendix
Appendix
Slide 36: Consolidated Balance Sheet
March 31, December 31, 2024 2023 Consolidated piers Balance Sheet —— a: 8 Equipment held for sale ——___176_ 107. Total Current Assets 16,996 14284 Restricted cash, noncurrent 1,000 000 Other a 21953 2954 (2}Prior period results have been adjusted to Depesice aad credits om ooaipresat 5364 sore refle
Slide 37: Consolidated Statement of Operations
Consolidated _ Feet ‘@oollars in thousands, except per share) 2042023 Statement of Pn, ee Data hosting revenue 5,278 286 Demand response service revenue 875 - = oe 12,549 3,082 fing costs: Operations CoE OTE —_— Cost of data hosting revenue, exclusive of depreciation 2,251 272 Costs of revenue-depre
Slide 38: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Dollars in thousands) Operating Activities Net loss Impairment on fixed assets Amortization of operating lease asset Loss (gain) on debt extinguishment and revaluation, net Amortization on deferred financing costs and discount on notes Loss on sale of fixed asset
Slide 39: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Financing Activities from common stock warrant exercises Proceeds from common stock securities purchase agreement offering Proceeds from notes and debt issuance Payments on Nayjtas loan Costs of common stock securities purchase agreement offering Payments on NYDI
Slide 40: March 31, 2023 Prior Year Comparison
‘March 31, 2023 Prior Year Deters) Net loss Interest expense, net 7 Income tax benefit omparison a EBITDA iJ Adjustments- Non-cash items Adjusted —a Impairment on fixed assets Loss on sale of fixed assets Loss (gain) on debt revaluation and extinguishment, net Adjusted EBITDA $ (7,432)
Slide 41: Adjusted EBITDA by Quarter FY 2023-24
FY 2023-24 by Quarter Adjusted EBITDA Three months Three months Three months ‘Three months Three months ended March ended June ended September ended December ended March (Dollars in thousands) 02: 30, 2023 30, 2023 31,2023 31,2024 ‘Net loss from contimiing ‘operations $ 7,432) $ O27) $ 016) $ 4998)
Slide 42: Connect With Us
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