Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — Q3 2024 Earnings Presentation
44 slides from Soluna's earnings presentation, Nov 15, 2024
Slide 1: 3Q2024 Results & Business Update
3Q2024Results& Business Update NASDAQ:SLNH November 2024
Slide 2: Preamble
2 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.
Slide 3: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer “This presentation nlucesonatd-leckng statements the meaning otha Pia Sacuies Litigation RefrAt hat fect een vies th respec among eter things, ou operations, buses suatey. terpecaton of Pilot development aches, plans i Gevlop and commer ols out products and services. pe
Slide 4: Company Overview
Company Overview
Slide 5: Driving the convergence of renewable energy and advanced computing infrastructure
We are driving the convergence of renewable energy & advanced computing infrastructure. Up to 40% of generated energy goes unused. Soluna converts this excess into high performance computing, turning wasted power into value. ~ RENEWABLE > COMPUTING
Slide 6: All forms of renewable energy are growing faster than ever
GW All forms of 12,000 renewable energy are growing faster than ever. 6,000 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Slide 7: Renewable energy has a wasted energy problem
RENEWABLE ENERGY HAS A WASTED ENERGY PROBLEM 0-40" of energy produced by renewable plants goes unused. 7 Nasdaq: SLNH
Slide 8: Computing is ready now
Computing is ready now. ©) 8 | Nasdaq: SLNH
Slide 9: ip y ab |
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Slide 10: Soluna operates data centers co-located with renewable power plants
Soluna operates data — centers co-located with renewable power plants, turning their wasted energy into ] sustainable computing : resources. a
Slide 11: 11 | Nasdaq: SLNH
11 | Nasdaq: SLNH
Slide 12: 2024 Corporate Focus
2024 Corporate Focus -O @ ) -O Launch Optimize Finance Grow Al Projects Projects Pipeline We have 2 MW of our Our objective is to achieve Plan to raise funds to ‘Aim to double our assets Project Dorothy 2 site operational excellence support our growth under management to slated for our Helix Pilot,
Slide 13: Why Soluna, Why Now
Why Soluna, Why Now 13 | Nasdaq: SLNH We have 26GW 18% behind-the-meter greener i pipeline of wasted epproacito source than traditional data power, track record of : cxecution, a business att centers, ready to drive : sustainable Al. We have an experienced team with deep expertise in project develop
Slide 14: 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. 14 | Nasdaq: SLNH Source low-cost curtailed power from IPPs Grow Build, own, pipeline operate M
Slide 15: Business Segments
Business Segments Diversified Revenue Streams Soluna Cloud | Nesdag: SLNH High Performance Computing + GPU Cloud — AIM visualization, predictive analytics, and deep learning U machines could be ho ned juna at Projec
Slide 16: Meet the Soluna Leadership Team
Meet the Soluna Leadership Team 150 years of combined experience in starting, managing, and leading companies @ IANESESUENT : x v LockHEED wa John Belizaire Michael Toporek John Tunison _—Dipul Patel —Mary O'Reilly @ Pregis viacomces Chief Executive Officer Executive Chairman Chief Financial Officer
Slide 17: Soluna Cloud: AI Cloud and AI Infrastructure
SOLUNA aa >», CLOUD Al Cloud == Al Infrastructure Training. Tuning. Inference. GPU-as-a-Service Solutions for Enterprise 512 Cluster provided by Renewable at HPE DC Energy Strategic Partner — Hewlett Packard Enterprise 47 | Nasdac: SLNH Hosted Infrastructure / Colocation Service at our purpose-built
Slide 18: AI is the fastest growing technology today
Al is the fastest growing technology today Netix Kickstarter* Airbnb** Twitter Foursquare™** Facebook Dropbox Spotify Instagram*** ChatGPT * one million backers: Source: Company annour 18 | Nasdaq: SLNH 1999 2009 2008 2006 2009 2004 2008 2008 2010 2022 Time it took for selected online services to re
Slide 19: AI has an energy consumption challenge
Al HAS AN ENERGY CONSUMPTION CHALLENGE Al energy demand is growing exponentially Each step increase in the power of Al models requires an exponential increase in "energy consumption just ~ for traning=—— “ — TGhedstight-on-iks- glst=170420157263 ChatGPT-3 ; Training Time 19 | Nasdag: SLNH D GPT-4
Slide 20: 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. Training Fine | Tuning ‘Anew model is created from seratch by learning from a large corpus of text. The
Slide 21: Powered by renewable energy, enterprise scalable, full turnkey
* ei We're powered by We're enterprise Full turnkey renewable energy scalable software platform designed for rapid deployment of Gen Al workloads.
Slide 22: Slide 22
Slide 23: Soluna Highlights
Soluna Highlights + INSTALLED HASHRATE 2.6 EH/s 2 MW MANAGED 75 MW > 478 MW? YEAR TO DATE REVENUE $29.7 Million AVERAGE POWER COST® CURTAILED ENERGY MONETIZED GROWTH EQUITY LINE $30 / MWh* 87,377 MWh $25 Million GPUs DEPLOYED POWER DEVELOPMENT PIPELINE AVERAGE J / TH/s 512 ~2.6 GW <26 J / TH/s * 23
Slide 24: Our Accomplishments in 2024
Our Accomplishments in 2024 © Business Milestones e Hire new CFO e Launch new business unit, Soluna Cloud Sign strategic OEM deal with HPE to secure 512 Nvidia H-100 GPUs ® Raise $25M in growth capital from Yorkville Advisors @ Reduced Convertible Notes below $2M and extended term to January 2025 24
Slide 25: We have a growing pipeline of projects
We have a PROJECTS MW growing pipeline of projects Total Power Partners 2GW+ long-term fucaoe Projects per Power Partner ‘4 7 m states pipeline with large IPPs and infrastructure funds in the US and beyond es eo <o® ort 39 Peg ara ow eo . es yw gone «1% eo eso on es so om Pine sa ee oo cater co oo o
Slide 26: Our Data Center Projects
Our Data Center Projects We have over 478 MW of data center capacity in operation, construction or development Project Location Power Source Size (MW) — Model Status Partner Dorothy1A TX Wind 25 BTC Hosting Operating Spring Lane Dorothy1B TX Wind 25 BTC Mining Operating Navitas Sophie ky Grid 28 BTC
Slide 27: Project Dorothy II
Project Dorothy | Construction is underway at the expansion of our flagship project. Foundations for the first 30 MW have been poured and MDC fabrication and framing are underway. The initial scope of work for the substation interconnection has been scheduled to be completed in November with a tie-i
Slide 28: Soluna Cloud Update
Soluna Cloud Update Milestones Q3 sr oD Tep yo 2 103 13 ctf Pa a f 'S 28 | Nasdaq: SLNH
Slide 29: Financial Highlights
See Financial | | Highlights |
Slide 30: Q3 FY24 Financial Highlights
Q3 FY24 Financial Highlights Solid Third Quarter Revenue Revenue increased by 30% to $7.5 million in the three months ended third quarter of 2024 compared to $5.8 million in the three months ended of third quarter of 2023, 30 | Nasdaq: SLNH Continued Strong Revenue 2024 Year to Date (*YTD") revenue
Slide 31: Cumulative Revenue by Quarter
Cumulative Revenue by Quarter (Consolidated) Q3 2023-24 (in 000’s) Best YTD Revenue to Date - 2024 Year to Date (“YTD”) revenue reaches a high of $29.7 million, compared to the 2023 YTD of $10.9 million, a $18.8 million increase or 172%. 2023 mi 2024 31 | Nasdaq: SLNH $35,000 $29,749 $30,000 25,000
Slide 32: Cumulative Adjusted EBITDA by Quarter
Cumulative Adjusted EBITDA by Quarter (Consolidated) $8,000 $0 loss of ($4.5 million), an increase of $8.0 million driven by continued (2,000) revenue growth despite Bitcoin Q1 2023-24 an Ti (in 000’s) . —_— $4,000 $3,461 Resilient Adjusted EBITDA - 2024 ., YTD adjusted EBITDA is $3.5 : million, com
Slide 33: Revenue & Cost of Revenue by Project Site
Revenue & Cost of Revenue by Project Site (in 000’s) Revenue for the third quarter of 2024 was $7.5 million, currently representing 100% of the company's consolidated revenue. This is an increase of $1.7 million over the third quarter of 2023. Total Cost of Revenue for the third quarter of 2024 was
Slide 34: Revenue & Cost of Revenue by Project Site
Revenue & Cost of Revenue by Project Site Q3 2023 - (in 000's) = ae Dorothy Dorothy Project Project Digital (Dolarsin thousands) 18 14 Sophie Marie —_Other_—_‘Total Cryptocurency mining revenue $ 1739 $ - $ 47 § = $ - $ 1786 Data hosting revenue 3016 98 4 aon Demand response services Total revenue 1
Slide 35: Cumulative Gross Profit by Quarter
Cumulative Gross Profit by Quarter (Digital) Q1 2023-24 (in 000’s) Year-to-date 2024 Gross Profit is $12.5 million, compared to the 2023 YTD of $1.0 million. 35 | Nasdaq: SLNH $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 ($2,000) $12,540 $11,044 $6034 $5:237 $952 er — aa ($455) Q323 9323 Q
Slide 36: Welcome to Soluna
SOLUNA WELCOME TO = ‘ q | a Vy = Learn more at solunacomputing.com
Slide 37: Connect With Us
Connect With Us X / Twitter LinkedIn Newsletter @SolunaHoldings Soluna Holdings bit.ly/solunasubscribe
Slide 38: Appendix
D Appendix
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet annan Steck sta ato of or 39 | Nasdaq: SLNH (Dollars in thousands, except per share) Asets Current Assets: ‘Cath Restcte each _Acous receivable, nt (owanc for expeced credit ses S61 and 80 as of September 3, Okan Decent 31,203), cxpnues nd ober coent ret Equpment eld forsa
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Stock ata roto of -for-25 40 | Nasdaq: SLNH ‘Commitments and Contingencies (Note 9) Stockholders’ Equity: 9.0% Series A Cumulative Perpetual Preferred Stock, par value '$0.001 per share, $25.00 liquidation preference; authorized 6,040,000; 4,953,545 and 3,061,245 shares is
Slide 41: Consolidated Statement of Operations
Consolidated Statement of Operations feflet the Reverse Stock Spt of he (Comoran Stock tarot of I for-25 that 41 | Nasdaq: SLNH Date hosting revenue Bi ‘computing service Net loee atributable to Soluma Holdings, Ine. Basic and Diluted loss per common ‘Base ae Ditutea tow per share Weighted average s
Slide 42: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 42 | Nasdaq SLNH (Dollars in thousands) ‘Operating Activities Netioss ‘Adjustments to reconcile net lots to net cash used in operating activities: Impairment on fixed assets Brovision for credit losses Amortization of operating lease asset 352) Gea Go 331 as az 1
Slide 43: Prior Year Comparison Adjusted EBITDA
Prior Year Comparison Adjusted EBITDA 43 | Nasdag: SLNH (Dollars in thousands) Net loss Interest expense Income tax (benefit) expense Depreciation and amortization EBITDA Adjustments: Non-cash items Stock-based compensation costs (Gain) loss on sale of fixed assets Provision for credit losses Impair
Slide 44: Adjusted EBITDA by Quarter
FY 2023-24 by Quarter Adjusted EBITDA 44 | Nasdaq: SLNH (Dott in thousands) Netloss Interest espense, net Income tx (benefit) expense Depreciation and amortization EBITDA Adjustments: Non-cash items, ‘Stock-based compensation costs Loss (gain onsale of fed assets Provision for credit lozses Impaimen