Cea Industries Inc. · NASDAQ:BNC
Cea Industries — Surna — Q2 2019 Earnings Presentation
13 slides from Cea Industries's earnings presentation, Aug 19, 2019
Slide 1: Q2 2019 Investor Presentation
== SURNA Q2 2019 INVESTOR PRESENTATION August 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: Q2 2019 Results: Year-to-Date Report: Milestones Achieved
Financial Q2 2019 Results =surna Year-to-Date Report: Milestones Achieved Revenue $4.2MM Net Income $140,000 e Company record for quarterly revenue e $2.4 MM increase over Q1 2019, or 138% e Positive quarterly net income for first time in history $390,000 adjusted operating income — key metric for c
Slide 4: Operating Results
== surna Operating Results For the Three Months For the Six Months Ended June 30, Ended June 30, Revenue, net $ 4,210,393 $ 2,007,745 $ 5,981,623 $ 4,062,473 Cost of revenue 2,762,601 1,484,320 4,043,758 3,157,034 Gross profit 1,447,792 523,425 1,937,865 905,439 Operating expenses: Advertising and m
Slide 5: Key Financial Metrics
== SURNA’ Key Financial Metrics $4.5 milion a 40 35 3.0 28 $2.2 20 $1.8 $17 46 15 10 0s 0 Q2 Q3 Q4 Qi Q2 Q4 Qi Q2 2017) «2017, 2017'S 2018 =. 2018 ante 2018 =62019 = 2019 0s $0.0 million 50-1} aot $0.6] lead 05 $0.6 “1.0 $0.9 -$0.9 $1.2 © -$1.2 -1.5 | Adjusted $1.4 Operating Income 9 2 pol tess) |[o
Slide 6: Bookings, Backlog and Revenue Conversion
Bookings, Backlog and Revenue Conversion $14 million 70% Revenue $13.0 Conversion Revenue conversion % = quarterly revenue / prior quarter-end backlog $12 $115 60 y ON (54% ) wy 10 80 yo N _ (46% ) (46% ) $8.9 $8.9 wy wy $8.5 _ 8 { 40%) ar 40 Backlog : $7.0 (37% i, HB Net Bookings . ay ia 6 ( 29%) $
Slide 7: Q2 2019 YTD Results: Expanded Market Focus
Q2 2019 YTD Results (¢ in millions) (includes only projects under contracts signed in H1 19 with value > $100,000) Multi-Facility Operators (MFOs) * $1.8 — average project size ° $4.1 -est. Q3 19 revenue" * 96% — est. Q3 19 YTD conversion rate? Independent/Small Growers (ISGs) » $0.6 — average proje
Slide 8: Trusted Climate Control Advisor
==surna Trusted Climate Control Advisor Meeting Expanded Wider Range Over the Greater and Product/Service of Cultivators’ Ee Facility’s More Consistent Offering L Environmental | Full Lifecycle = and Predictable Control Needs Revenue a ol ETB ¥ Design options v Budgeting ¥ Project timelines Engineer
Slide 9: Corporate Profile
==surna Corporate Profile TRADING INDEPENDENT DIRECTORS Symbol SRNA Timothy Keating Trading Venue OTCQB e 34 years on Wall Street, incl. Bear Stearns, Nomura & Kidder, Peabody Stock Price (as of 6/30/19) $0.039 a e 17 years as principal owner of Keating 52-Week Price Range (as of 6/30/19) $0.035 - 0
Slide 10: Market Comparables
== surna Market Comparables Generation | KushCo r Grow HelixtTcs | General ee Alpha Inc. Holdings row Mtoe Saal Inc. ve Company, Ticker Symbol SRNA GNAL KSHB PHOT GRWG HLIX CANN AMMJ Stock Exchange OTCQB OTCQB OTCQB OTCPink OTCQX OTCQB OTCQX OTCQB Stock Price (8/9/2019) $0.08 $0.06 $4.40 $0.01 $5.10
Slide 11: Current Surna Offering
|| Current Surna offering Acquisition target Point B: Business One-Stop Shopping for Indoor Cannabis Growers’ Equipment and Supplies Needs Sensors & Controls
Slide 12: Execution Plan
== SURNA’ Point A (2018) Execution Plan 2 g g = a z ° & Goal: Organic Business Tx \ wy) © Revenue: $9.6 MM (3-year CAGR 8%) © Adjusted net loss: $(2.6) MM © New build projects: Nearly 100% of revenue © Expansion/retrofit projects: Target 25% of revenue © Facility lifecycle products/services: Recurri
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