Soluna Holdings, Inc. · NASDAQ:SLNH
Soluna — March 2022 Earnings Presentation
59 slides from Soluna's earnings presentation, Apr 18, 2022
Slide 1: March 2022 Flash, April 2022
1 HOLDINGS COMPUTING March 2022 Flash April 2022
Slide 2: Preamble
2 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 princip
Slide 3: Legal Disclosure & Disclaimer
3 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
Slide 4: Legal Disclosure & Disclaimer
4 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 per
Slide 5: Legal Disclosure & Disclaimer: Use of Projections and Illustrations
5 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
Slide 6: Key Operating Principles
6 Key Operating Principles (1) Calculated as a percent of total undiluted shares
Slide 7: Batch-oriented computing from excess renewable energy
7 Batch-oriented Computing like cryptocurrency mining Excess energy from renewable sources We buy curtailed energy from renewable power plants and convert it to clean, low-cost global computing.
Slide 8: The opportunity beyond crypto is Batchable Computing
8 The opportunity beyond crypto is Batchable Computing
Slide 9: Agenda
9 Agenda Business Update March 2022 results in detail In this presentation, we will be covering the following items:
Slide 10: Business Update
10 Business Update
Slide 11: Business Summary
11 Business Summary On track to achieve 1.26 EH/s by the end of Q2 2022. Working on a plan to deliver 30 days early As of April 8th, 2022, 982.6 PH/s plugged in with more machines on the ground and in-transit Second quarter proprietary hashrate expected to grow over 36% Edith facility investment hit
Slide 12: Our Targets For 2022
12 Our Targets For 2022 Note: 2022 Earnings Power Illustration released on January 19th, 2022. Not updated since original publication. Press release and presentation can be viewed here. Our Energized Capacity Ramps Over 150 MW Our Hashrate Scales Over 3 EH ü w ü w
Slide 13: We achieved our EH/s goal
13 We achieved our 1 EH/s goal *Our Hosting JV Commitment is fulfilled **Management Estimate +/- 30 days March estimate of 714 PH/s includes impact of forced shutdown at Marie on average hashrate 982.6 PH/s installed as of April 8th, 2022 36% Prop Mining hashrate growth over the second quarter 17.4
Slide 14: Facility Results Review
14 We will review each facility Then look at the consolidated results Facility Results Review
Slide 15: Edith
15 Edith Continue to optimize equipment mix at mature facility Cash Contribution Margin (Non-GAAP) at $108 thousand for March o BTC equivalent mined decreased by 5% from 4.54 in February to 4.31 in March o Average Hashrate and MW deployed increased a bit due to optimizing mix of coins mined As of Ap
Slide 16: Edith: Strong Return On Capital Investment
16 Edith: Strong Return On Capital Investment All Capital Returned ~16 months 2x Capital Achieved ~22 months 3x Capital Anticipated
Slide 17: Edith: Non-GAAP Historical Financials
17 Edith: Non-GAAP Historical Financials For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, which are prepared and
Slide 18: Sophie
18 Sophie Ramped to 385.9 PH/s as of April 8th, 2022 o A 70% increase from the average hashrate of 226.6 PH/s in March o Significant ramp up of installed machines at the end of March Cash Contribution Margin (Non-GAAP) increased 60% to $753 thousand in March from $472 thousand in February Margins wi
Slide 19: Sophie: Non-GAAP Historical Financials
19 Sophie: Non-GAAP Historical Financials For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, which are prepared an
Slide 20: Marie
20 Marie Prop Mining hashrate increased 37% from average 213.2 PH/s in March to 292.0 PH/s on April 8th o In April, Margins and BTC equivalent mined per day will increase proportionately In March, facility experienced a near complete shut down for several days due to failure of electrical infrastruc
Slide 21: Marie: Impact of forced shutdown
21 Marie: Impact of forced shutdown *Note: Management estimate ($ in 000s) Estimate Shutdown Estimate Mar 22 Impact* Pro-Forma Revenue (Non-GAAP) $1,637 $319 $1,956 Prop Mining 1,191 249 1,440 Hosted JV 446 70 515 Cash Contribution Margin (Non-GAAP) $867 $163 $1,031 Prop Mining 774 149 923 Hosted JV
Slide 22: Marie: Non-GAAP Historical Financials
22 Marie: Non-GAAP Historical Financials(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information on these non-GAAP finan
Slide 23: Marie: Operating Metrics
23 Marie: Operating Metrics(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information on these non-GAAP financial measures
Slide 24: Site Consolidation
24 Site Consolidation Combined installed hashrate increased by 43% to 982.6 PH/s over average 686.3 PH/s in March Marie forced shutdown negatively impacted revenue and margins o Issue has been resolved and team proactively managing site, including infrastructure outside of Soluna’s responsibility an
Slide 25: Consolidated Soluna Computing Non-GAAP Historical Financials
25 Consolidated Soluna Computing Non-GAAP Historical Financials(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information
Slide 26: Consolidated Soluna Computing Operating Metrics
26 Consolidated Soluna Computing Operating Metrics(A) (A) Marie excludes pass-through revenue and expenses from Legacy Hosting customers. Electricity/Direct Costs reduced by Marie “Prepaid Lease Cost” August 2021 onward. For details on legacy hosting, see appendix. For more information on these non-
Slide 27: A Closer Look At SG&A
27 A Closer Look At SG&A (1) Includes non-recurring cash compensation, consultant fees/expenses, legal fees/expenses Note: Non-recurring expenses are management estimates ($ in 000s) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Selling, general & administrative expenses ("SG&A") (GAAP) $ 1,298 $ 2,503 $
Slide 28: Comparing Q1 2022 Performance To Illustration
28 Comparing Q1 2022 Performance To Illustration Macro factors such as BTC Price and Network Difficulty should be considered while making the comparison o Illustration assumed flat BTC price of $45,000 We rolled off Legacy Hosting customer at Marie earlier than anticipated, resulting in underabsorpt
Slide 29: Appendix
29 Appendix
Slide 30: Earnings Power Illustration: Various BTC Prices
30 Earnings Power Illustration: Various BTC Prices Note: The three scenarios represent changes in BTC price only (in 000's) Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Scenario 1: BTC is $20,000 Total Revenue 6,528 7,450 12,062 20,104 46,145 25,393 Contribution Margin (Non-GAAP) 3,437 3,932 7,344 13,372 28,0
Slide 31: Our data centers are named after catalyzers
31 Our data centers are named after catalyzers TNT Anaconda Python Edith Sophie Marie Marie Curie was a fearless seeker of truth—a pioneer in the field of radioactivity. She won two Nobel Prizes. In pursuit of the truth, Soluna is constructing a data center with complete transparency to help make th
Slide 32: Impact of Tornado on December 2021 site-level economics
32 Impact of Tornado on December 2021 site-level economics Estimate ($ in 000s) Edith Combined Estimate Tornado Estimate Estimate Tornado Estimate Estimate Pro-Forma Dec 21 Impact* Pro-Forma Dec 21 Impact* Pro-Forma Dec 21 Dec 21 Revenue (Non-GAAP) $1,181 $185 $1,366 $1,840 $56 $1,895 $222 $3,484 Pr
Slide 33: Consolidated Non-GAAP Historical Financials With Legacy Hosting
33 Consolidated Soluna Computing Non-GAAP Historical Financials With Legacy Hosting For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated f
Slide 34: Consolidated Operating Metrics With Legacy Hosting
34 Consolidated Operating Metrics With Legacy Hosting For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, which are
Slide 35: Marie: Non-GAAP Historical Financials With Legacy Hosting
35 Marie: Non-GAAP Historical Financials With Legacy Hosting For more information on these non-GAAP financial measures, please see the section captioned “Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures”. To supplement our consolidated financial statements, wh
Slide 36: Reconciliation of non-GAAP results to comparable GAAP measures
36 Reconciliation of non-GAAP results of operations to the nearest comparable GAAP measures
Slide 37: Reconciliation from GAAP Revenue to Non-GAAP Revenue
37 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $5,009 $3,808 $0 $9,333 less Legacy Hosting Revenue 0 52 0 0 52 Revenue (Non-GAAP) $517 $4,957 $3,808 $0 $9,282 Q1
Slide 38: Reconciliation to Adjusted Cost of Revenue (Non-GAAP)
38 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $5,009 $3,808 $0 $9,333 Cost of cryptocurrency revenue (GAAP): Electricity/Direct costs* 131 2,155 1,438 0 3,724
Slide 39: Reconciliation to Contribution Margin & Cash Contribution Margin
39 ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $517 $5,009 $3,808 $0 $9,333 Cost of cryptocurrency revenue (GAAP) 285 4,118 3,258 0 7,660 Depreciation 91 1,668 1,563 0 3,322 Project Equipment Repairs 0 0 0 0 0 Contribution Margin (Non-GAAP)* $323 $2,559 $
Slide 40: Reconciliation from GAAP Revenue to Non-GAAP Revenue
40 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 less Legacy Hosting Revenue 0 1,335 0 0 1,335 Revenue (Non-GAAP) $3,648 $6,590 $2,772 $0
Slide 41: Reconciliation to Adjusted Cost of Revenue (Non-GAAP)
41 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 Cost of cryptocurrency revenue (GAAP): Electricity/Direct costs* 611 3,712 884 0 5,207
Slide 42: Reconciliation to Contribution Margin & Cash Contribution Margin
42 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 Cost of cryptocurrency revenue (GAAP) 1,174 4,992 1,904 0 8,070 Depreciation 314 1,096 713 0 2,123 Project Equipment Repairs 23 0 0 0 23 Cont
Slide 43: Reconciliation to Adjusted EBITDA (Non-GAAP)
43 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $3,648 $7,925 $2,772 $0 $14,345 Cost of cryptocurrency revenue (GAAP) 1,174 4,992 1,904 0 8,070 Depreciation 314 1,096 713 0 2,123 Project Equipment Repairs 23 0 0 0 23 plus
Slide 44: Reconciliation from GAAP Revenue to Non-GAAP Revenue
44 Reconciliation Of Non-GAAP Results Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 less Legacy Hosting Revenue 0 579 0 0 579 Revenue (Non-GAAP) $864 $4,354 $2,772 $0 $7,990 Q
Slide 45: Reconciliation to Adjusted Cost of Revenue (Non-GAAP)
45 Reconciliation Of Non-GAAP Results Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 Cost of cryptocurrency revenue (GAAP): Electricity/Dir
Slide 46: Reconciliation to Contribution Margin & Cash Contribution Margin
46 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 Cost of cryptocurrency revenue (GAAP) 299 3,274 1,881 0 5,455 Depreciation 91 938 713 0 1,742 Project Equipment Repairs 0 0 0 0 0 Contribution M
Slide 47: Reconciliation to Adjusted EBITDA (Non-GAAP)
47 Reconciliation Of Non-GAAP Results ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total Cryptocurrency revenue (GAAP) $864 $4,933 $2,772 $0 $8,569 Cost of cryptocurrency revenue (GAAP) 299 3,274 1,881 0 $5,455 Depreciation 91 938 713 0 $1,742 Project Equipment Repairs 0 0 0 0 $0 plus Prepai
Slide 48: Reconciliation from GAAP Revenue to Non-GAAP Revenue
48 Reconciliation from GAAP Revenue to Non-GAAP Revenue ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $905 $2,219 $0 $0 $3,124 $0 $0 $3,124 less Legacy Hosting Revenue 0 757
Slide 49: Reconciliation to Adjusted Cost of Revenue (Non-GAAP)
49 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $905 $2,219 $0 $0 $3,124 $0 $0 $3,1
Slide 50: Reconciliation to Contribution Margin & Cash Contribution Margin
50 ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,949 $0 $1,949 Cryptocurrency revenue (GAAP) $905 $2,219 $0 $0 $3,124 $0 $0 $3,124 Cost of product revenue (GAAP) 0 0 0 0 0 661 0 661 Cost of cryptocurrency revenue (GAAP
Slide 51: Reconciliation to Adjusted EBITDA Contribution (Non-GAAP)
51 Reconciliation Of Non-GAAP Results Reconciliation from Operating (Loss) Income to Adjusted EBITDA Contribution (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Net (Loss) Income (GAAP) $581 $259 ($217) ($1,089) ($466) $678 ($822) ($610) Interest (G
Slide 52: Reconciliation to Adjusted Cost of Revenue (Non-GAAP)
52 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocurrency revenue (GAAP) $988 $669 $0 $0 $1,657 $0 $0 $1,657
Slide 53: Reconciliation to Contribution Margin (Non-GAAP)
53 Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,647 $0 $1,647 Cryptocurrency revenue (GAAP) $988 $669 $0 $0 $1,657 $0 $0 $1,657 Cost of
Slide 54: Reconciliation to Adjusted EBITDA Contribution (Non-GAAP)
54 Reconciliation from Operating (Loss) Income to Adjusted EBITDA Contribution (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Net (Loss) Income (GAAP) $554 $321 ($38) ($126) $710 ($270) ($1,614) ($1,174) Other Income (Expense) $0 $0 $0 $0 $0 $5 ($3)
Slide 55: Reconciliation to Adjusted Cost of Revenue (Non-GAAP)
55 Reconciliation from Cost of Cryptocurrency Revenue to Adjusted Cost of Revenue (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,337 $0 $1,337 Cryptocurrency revenue (GAAP) $891 $104 $0 $0 $995 $0 $0 $995 Cos
Slide 56: Reconciliation to Contribution Margin (Non-GAAP)
56 Reconciliation from Revenue and Cost of Revenue to Contribution Margin (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Product revenue (GAAP) $0 $0 $0 $0 $0 $1,337 $0 $1,337 Cryptocurrency revenue (GAAP) $891 $104 $0 $0 $995 $0 $0 $995 Cost of pro
Slide 57: Reconciliation to Adjusted EBITDA Contribution (Non-GAAP)
57 Reconciliation from Operating (Loss) Income to Adjusted EBITDA Contribution (Non-GAAP) ($ in 000s) (Unaudited) Edith Marie Sophie Corporate Total MTII Corporate Consolidated Operating (Loss) Income (GAAP) $566 ($287) ($170) ($48) $62 ($402) ($331) ($671) Depreciation (GAAP) $68 $8 $0 $0 $76 $17 $
Slide 58: The future of renewable energy is computing.
58 The future of renewable energy is computing.
Slide 59: Learn more at solunacomputing.com
59 Learn more at solunacomputing.com