Cea Industries Inc. · NASDAQ:BNC
Cea Industries — Surna — LDMicro Main Event 2019
19 slides from Cea Industries's conference presentation, Dec 9, 2019
Slide 1: LDMicro Main Event
== SURNA’ LDMicro Main Event December 10, 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: The Trusted Advisor for Cultivation Facility Success
==surna The Trusted Advisor THE TRUSTED ADVISOR FOR CULTIVATION FACILITY SUCCESS 5-© Design, Engineering, Assessment of Equipment Review & Refurbishment Potential Facility for Cultivation Facilities of Existing Facilities Acquisitions
Slide 4: Our Business: Environmental Control For Indoor Cannabis Cultivation
surna’ Our Business: Environmental Control For Indoor Cannabis Cultivation ©) ® Sentry|Q”
Slide 5: Years in the Cannabis Industry and Projects
14+ Years in the Cannabis Industry Projects Large-Scale Commercial Grows
Slide 6: Our Products
=surna Our Products Fans and chillers Ductless fan coil units Dehumidifiers niagara Computerized control systems
Slide 7: Our Services: Engineering Design
== surne Our Services: Engineering Design Relacine Hurley,
Slide 8: Our Opportunity: Cannabis Retail Market
surna Our Opportunity: Cannabis Retail Market U.S. Cannabis Retail Sales Estimates: 2018 — 2023 (In Billions of U.S. Dollars) $30 billions Il Recreational $25.0-$30.4 Medical 25 $22.4-$27.4 $19.4-$23.5 20 $15.7 -$19.0 $15.7 - $19.4 a5, $13.0 - $15.7 $11.2 -$13.7 $102 -$122 10 $8.6 -$10.0 Total $7.0
Slide 9: Management Team
surna Management Team © VP/Sales, Director Major Accounts, Coolerado Inc., a cleantech HVAC company pony mcaouaid © Managing Director/VP Acquisitions private equity, consultant KPMG Chief Executive Officer as ce : MBA Harvard; BS Engineering, US Military Academy, West Point, NY | hoy Rippe © Sales r
Slide 10: Old and New Surna
SURNA Old and New Surna Brand Building New Surna 2006 © 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 licensed med
Slide 11: Financial: Q3 2019 Results
$ Financial Q3 2019 Results surna Year-to-Date Report: Milestones Achieved Revenue $5.5MM Net Income $222,000 ‘= Company record for quarterly revenue surpassing 2:49 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
Slide 12: .0maiion 40%
.0maiion 40% 4% a3 a a @ a a@ a a2 a a as ats 2017 2017 | 201820182018 2018 2019-2019 2019 2017 2017 2018-2018 2018-2018 «1920192019 $12 | $12 ogame cor ene | zor oe ellis 20! sa] $19 oo a @ @ o a @ @ a) ae att jaa es "adl ign saa as 207 ©2017 «20820182018 «2018 2019-2019 2019 2017 2017 201820182018
Slide 13: Bookings, Backlog and Revenue Conversion
surna Bookings, Backlog and Revenue Conversion $14 million 70% Revenue $13.0 Conversion Revenue conversion % = $12 — | quarterly revenue / prior quarter-end backlog $11.5 oY (54%) a $10.1 10 : 50 $8.9 $8.9 J $8.5 few’ yo (2%) 8 (40%) P a 40 al $7.0 (arm) Coad i ) (36%) Backlog i Ne a Net Bookin, Ci
Slide 14: Expanded Market Focus
surna Expanded Market Focus Q3 2019 YTD Results ($ in millions) . . (includes only projects under contracts signed Commie cial orale colect ty pe Multi-Facility Operators (MFOs) No. of Projects 2 3 4 6 » $1.3 - average project size . Wi Bookings 1.4 5 1.3 7.9 * 90% ~—Q3 "19 YTD conversion rate* @ sf
Slide 15: Strategic Plan
surna Strategic Plan Controls & Automation [EB current suma offering Strategic alliance 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 significant * Create widely held, actively traded a
Slide 16: Potential for Value Accretion
surn4 Potential for Value Accretion Q3 2019 Results Revenue Net Income $5.5MM $222,000 Financial = Company record for quarterly revenue » Back-to-back quarters of positive net income © $1.3 MM increase over Q219, or 31% + $421,000 adjusted operating income — key metric for cash profitability Suma Va
Slide 17: Market Comparables
= Market Comparables Garman] seco | crmte |oanttion| HeixTes | Atma | cenit, | Grae Corp. Corp ri Ticker Symbol SRNA GNAL_-—KSHB_-—— PHOT HLIX KERN CANN AMM Stock Exchange OTCOB —OTCQB.«—«OTCOX = OTCPInk © OTCQX. © OTCOB NasdagCM © OTCOX —OTCOB Stock Price (11/14/2019) $0.10 $0.02 s161 $0002 $3.81 $
Slide 18: Corporate Profile
surna Corporate Profile TRADING (as of 9/30/19, except as indicated) INDEPENDENT DIRECTORS Symbol SRNA Timothy Keating Trading Venue ercae ‘© 34 years on Wall Street, incl. Bear Steams, Nomura & Kidder, Peabody Stock Price $0.082 ‘© 17 years as principal owner of Keating 52-Week Price Range $0.021 -
Slide 19: 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