Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Q3 2022 Earnings Presentation
52 slides from Soluna's earnings presentation, Oct 27, 2022
Slide 1: Soluna Holdings October 2022
SOLUNA Seam HOLDINGS COMPUTING Septer 1 October 2022
Slide 2: Preamble
Preamble > > The following discussion is completely qualified by the legal disclosures on the several pages 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 The discussion is in line with our princ
Slide 3: Legal Disclosure & Disclaimer
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 activities
Slide 4: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer The material in this presentation has been prepared by Soluna and is general background information about Soluna’s activities, current as at the date of this presentation and is provided for information purposes only. It should be read in conjunction with Soluna’s perio
Slide 5: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer Use of Projections and Illustrations This presentation contains certain financial forecasts and illustrations. Neither Soluna’s [nor Soluna Holdings] independent auditors have studied, reviewed, compiled or performed any procedures with respect to the projections for th
Slide 6: Key Operating Principles
Key Operating Principles Alignment of Interests & Transparency Private equity firm owns 24%) High Velocity Execution Senior Brookstone personnel involved in active executive capacity Focus on Return of Invested Capital (ROIC) & Capital Discipline KX Ne Long-Term Strategy Beyond Crypto (4) Calculated
Slide 7: Converting curtailed renewable power to computing
buy curtailed é le from renewable power og fh convert it to clean, low-cost global computing. Excess energy from renewable sources Batch-oriented Computing like cryptocurrency miningl % o °
Slide 8: Opportunity beyond crypto
opportunity beyond crypto is The mat Oe Graphics/viged,p cessi $40B Scientific reséar vn Tf
Slide 9: Agenda
Agenda In this presentation, we will be covering the following items: RY Business Update Flash September .S 2022 Results
Slide 10: Slide 10
Slide 11: Engineered to thrive in volatile environment
Engineered at ae to thrive in company ha oer e- ihe ie! 1 . ew 2 \ downtern - Right Right plan’ for volatile SOLUNA environment ee ><:
Slide 12: Soluna Status Report
Soluna Status Report Dorothy 50MW o Continue to work towards ERCOT approval — key gating items are being addressed, expect to announce more detail in the coming weeks 50MW doubles Soluna’s operating footprint &Yy Focus on Liquidity to Support Dorothy Energization o Focus on near-term cash to build o
Slide 13: Dorothy Energizing Status
Dorothy Energizing Status Soluna is approaching move from Planning to Modeling D> Modeling Planning * Part of ERCOT approval * Typically no more than 90 process focused on grid days stability and compliance. * Once Soluna enters this phase we should have clear line of sight to energization date. + V
Slide 14: Common Offering
Common Offering Ww Priced $2 million of common equity to support continued build out of Dorothy on October 24th 20% discount to Friday, October 21°t price of $1.80 / share, zero warrant coverage Soluna Holdings demonstrates conviction in Soluna’s long- S rN Additional Spring Lane Capital investment
Slide 15: Power Cost Improvement
Power Cost Improvement Updates on Sophie and Marie Power Costs D> FCA has averaged 1.5 cents - 2.0 cents per kWh for the last seven years; the FCA in July and August were at unprecedented levels* D> October FCA of 2.992 cents per kWh represents a 33% decline from August FCA > Current understanding f
Slide 16: Hosting Update - Revised Contract
Hosting Update - Revised Contract Anticipate hosting contribution margins to increase on an absolute and percent margin basis Contract structured to mitigate volatility in power markets and Bitcoin price Prior economics became challenged as Bitcoin prices declined and power costs increased Cash Flow
Slide 17: Facility Results Review
Facility Results Review > We will review each facility > Then look at the consolidated results
Slide 18: September Business Summary
September Business Summary B Flat BTC Production Despite Volatile Market o BTC equivalent mined per day only decreased 3% despite average 7-day network hashrate increasing ~15% from the beginning of August to the end of September o Peak hashrate remained above 1 EH/s PAN Cash Contribution Margins Im
Slide 19: Path to 2.5 EH/s Scale
Path to 2.5 EH/s Scale Consolidated Hashrate (SHA-256, PH/s) 403 316 126 23) Oct 2021 Nov 2021 Dec 2021 * Excludes hashrate attributable to 616 364 252 Jan 2022 Feb 2022 Mar 2022 897 869 604 265 Apr 2022 May2022 Jun 2022 mw Hosted JV mm Prop Mining 876 Jul 2022 856 606 250 Aug 2022 1,005* 894 Sept 2
Slide 20: Sophie
Sophie > Average September PH/s decreased by 1% to 377.0 PH/s versus August PH/s of 381.7 > Adjusted Cash Contribution Margin (Non-caap) in September was $323 thousand versus $358 thousand in August o The 10% decrease in Cash Contribution Margin was largely due to a 23% decline in revenue largely dr
Slide 21: Sophie: Non-GAAP Historical Financials
Sophie: Non-GAAP Historical Financials (S in 000s) (Unaudited) Actual | Actual | Actual Actual | Estimate Estimate Estimate _| Estimate | Estimate Q421 | FY21 | Q122 | Apr22 May22 Jun22 | Q222 | Jul22 Aug22 Sep22 | Q322 | YTD22 Revenue 2,772 Qype 3,808 1,634 1,310 1,077 4,022 1,099 1,176 895, 3,170
Slide 22: Marie
- co? Marie Sy) Nir} > Average hashrate in September was 517.1, compared to 464.4 in August o The 11% increase was in part due to seasonal factors in August including TVA curtailments, weather related hash rate reductions, outages and a transformer malfunction that was resolved o Average prop hashra
Slide 23: Marie: Non-GAAP Historical Financials
Marie: Non-GAAP Historical Financials!4) (Sin 000s) (Unaudited) Revenue (Non-GAAP) Prop Mining Hosting Electricity/Direct Costs* Prop Mining Hosting Overhead Costs Prop Mining Hosting Adjusted Cost of Cryptocurrency Revenue 2** (Non-GAAP) Prop Mining Hosting Cash Contribution Margin (Non-GAap) Prop
Slide 24: Marie: Operating Metrics
Marie: Operating Metrics‘) Key Operating Metrics: Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 ‘Avg. MW Deployed 1459 1920 i791 1809 1756 1849 Prop Mining 770 1048 10.00 970 936 956 Hosted MW (Legacy) = = z 2 = = Hosted JV 689 872 791 839 820 893 Avg. Hashrate (SHA-256, PH/s) 42108 56186 499.94 49383 4
Slide 25: Site Consolidation
Site Consolidation > Average BTC mined declined by 3% versus August > Installed hashrate remained above 1 EH/s, Average hashrate increased by 4% to 894 PH/s over average 856 PH/s average in August > 42% increase in Cash Contribution margin from August despite a 21% decline in average Hashprice from
Slide 26: Consolidated Soluna Computing Non-GAAP Historical Financials
Consolidated Soluna Computing Non-GAAP Historical Financials‘) Excludes ~$276k of power costs which are passed directly to hosting customer (Sin. 000s) (Unaudited) i i Actual | Actual | Actual | Actual | Actual Actual |Estimate Estimate Estimate [Estimate] Estimate Q221 | 321 | Q421 | FY21 | Q122 |
Slide 27: Consolidated Soluna Computing Operating Metrics
Consolidated Soluna Computing Operating Metrics‘) Key Operating Metrics: Q2 217] Q3 217] Q4219] FY 21% [Qi 227] Apr22 May22 Jun22 [Q2Z229] Jul22 Aug22 Sep 22 [Q3227 YTD 22% Avg. MW Deployed 334 | 485 | 1980 | 933 | 3117 | 3148 3654 3421 | 3407 | 3578 3515 3577 | 3557 | 3333 Prop Mining 334 | 352 | 1
Slide 28: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures a
Slide 29: 2022 September YTD GAAP Revenue to Non-GAAP Revenue
2022 September YTD - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue YTD September 2022 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Total Cryptocurrency revenue (GAAP) $1,161 $12,204 $10,999 $o $24,364 less Legacy Hosting Revenue 0 52 0
Slide 30: 2022 September YTD Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 September YTD - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) YTD September 2022 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Total Cryptocurrency revenue (GAAP) $1,161 $12,204 $10,999 $o $24,3
Slide 31: 2022 September YTD Reconciliation Of Non-GAAP Results
2022 September YTD - Reconciliation Of Non-GAAP Results Contribution Margin & Cash Contribution Margin (Non-GAAP) YTD September 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Total Cryptocurrency revenue (GAAP) $1,161 $12,204 $10,999 $o $24,364 Cost of cryptocurrency revenu
Slide 32: 2022 Q2 GAAP Revenue to Non-GAAP Revenue
2022 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue (S in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) Q2 2022 Soluna Computing Edith Marie Sophie Dorothy Corporate| Total $418 $4,236 $4,022 so $o $8,676
Slide 33: 2022 Q2 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q2 2022 (S$ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy _ Corporate| Total Cryptocurrency revenue (GAAP) $418 $4,236 $4,022 so so $8,676 Cost of
Slide 34: 2022 Q2 Reconciliation Of Non-GAAP Results
2022 Q2 - Reconciliation Of Non-GAAP Results Reconcilation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin Q2 2022 (S$ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Dorothy Corporate| Total Cryptocurrency revenue (GAAP) $418 $4,236 $4,022 $o $0 $8,676 Co
Slide 35: 2022 Q1 GAAP Revenue to Non-GAAP Revenue
2022 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q1 2022 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 $o $9,316 less Legacy Hosting Revenue 0 52 0 0 52 Revenue (Non-GAAP)
Slide 36: 2022 Q1 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2022 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q1 2022 (S$ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 $o $9,316 Cost of cryptocurrenc
Slide 37: 2022 Q1 Revenue and Cost of Revenue to Contribution Margin
2022 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin Q1 2022 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $4,991 $3,808 so $9,316 Cost of crypto
Slide 38: 2021 FY GAAP Revenue to Non-GAAP Revenue
2021 FY - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue (S in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) FY 2021 Soluna Computing Edith Marie Sophie Corporate Total $3,648 $7,925 $2,772 $o $14,345 (0) 1/335
Slide 39: 2021 FY Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 FY - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) FY 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $o $14,345 Cost of cryptocurre
Slide 40: 2021 FY Revenue and Cost of Revenue to Contribution Margin
2021 FY - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) FY 2021 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $o $14,345
Slide 41: 2021 Q4 GAAP Revenue to Non-GAAP Revenue
2021 Q4 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Cryptocurrency revenue (GAAP) less Legacy Hosting Revenue Revenue (Non-GAAP) Q4 2021 Soluna Computing Edith Marie Sophie Corporate Total $864 $4,933 $2,772 $o $8,569 0 579 0 0 yf
Slide 42: 2021 Q4 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q4 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) Q4 2021 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 So $8,569 Cost of cryptocurrency
Slide 43: 2021 Q4 Revenue and Cost of Revenue to Contribution Margin
2021 Q4 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) Q4 2021 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $o $8,569 Cos
Slide 44: 2021 Q3 GAAP Revenue to Non-GAAP Revenue
2021 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue Q3 2021 ($ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total MTI Corporate | Consolidated Product revenue (GAAP) $o $o $o $o $o $1,949 $o $1,949 Cryptocurrency revenue (GAAP) $905
Slide 45: 2021 Q3 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) (Sin 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP): Electricity/Direct
Slide 46: 2021 Q3 Revenue and Cost of Revenue to Contribution Margin
2021 Q3 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin & Cash Contribution Margin (Non-GAAP) ( in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP) C
Slide 47: 2021 Q2 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP): Electricity/Direct
Slide 48: 2021 Q2 Revenue and Cost of Revenue to Contribution Margin
2021 Q2 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q2 2021 (S$ in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total MTIl Corporate |Consolidated| Product revenue (GAAP) $0 $o $o $o $o $1,647 $o $1,647 Cry
Slide 49: 2021 Q1 Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue
2021 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Product revenue (GAAP) Cryptocurrency revenue (GAAP) Cost of product revenue (GAAP) Cost of cryptocurrency revenue (GAAP): Electricity/Direct
Slide 50: 2021 Q1 Revenue and Cost of Revenue to Contribution Margin
2021 Q1 - Reconciliation Of Non-GAAP Results Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) Q1 2021 (S in 000s) (Unaudited) Soluna Computing Edith Marie Sophie Corporate Total MTIl Corporate |Consolidated Product revenue (GAAP) $0 $0 $0 $0 et) $1,337 $o $1,337 Cryp
Slide 51: The future of renewable energy is computing
The future of renewable energy Is computing.
Slide 52: Learn more at solunacomputing.com
“MEGAWATT Learn more at solunacomputing.com