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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Project Dorothy interconnection now complete and ready for energization.</li><li>Soluna announced that it has completed the final interconnection construction, setting up for the energization of the first 25 MW phase of the project, which will soon be followed by the 25 MW phase (Dorothy 1B).</li><li>The final energization requests have been submitted to ERCOT (the grid operator) and we expect the project to be energized in the coming weeks.</li></ul>

Project Dorothy interconnection now complete and ready for energization.Soluna announced that it has completed the final interconnection construction, setting up for the energization of the first 25 MW phase of the project, which will soon be followed by the 25 MW phase (Dorothy 1B).The final energization requests have been submitted to ERCOT (the grid operator) and we expect the project to be energized in the coming weeks.

More Milestones Reached on the Path of the Company's Evolution

<ul><li>Soluna announced the promotion of John Belizaire to CEO of Soluna Holdings, with Michael Toporek stepping up to become Executive Chairman.</li><li>John Belizaire will remain as CEO of Soluna Computing, the operating company he founded prior to its acquisition by Soluna Holdings’ predecessor Mechanical Technology Inc. (MTI).</li><li>We view this as a logical step given the energization of Project Dorothy will be transformative for the company.</li></ul>

Soluna announced the promotion of John Belizaire to CEO of Soluna Holdings, with Michael Toporek stepping up to become Executive Chairman.John Belizaire will remain as CEO of Soluna Computing, the operating company he founded prior to its acquisition by Soluna Holdings’ predecessor Mechanical Technology Inc. (MTI).We view this as a logical step given the energization of Project Dorothy will be transformative for the company.

Continued Evolution at Soluna as John Belizaire Appointed CEO; Dorothy Energization Imminent

<ul><li>Final funding for Project Dorothy is now secured, with energization scheduled for the first week of April, pending approval from ERCOT. </li><li>Soluna recently announced $7.5 million in funding from existing project investor Spring Lane Capital (SLC) that will be used to complete the final energization of Dorothy and support corporate expenses.</li><li>SLC’s stake in the 25 MW Dorothy 1A increases to ~85% from 32%, but Soluna retains the right to 50% of 1A’s profits after SLC achieves an 18% IRR hurdle.</li></ul>

Final funding for Project Dorothy is now secured, with energization scheduled for the first week of April, pending approval from ERCOT. Soluna recently announced $7.5 million in funding from existing project investor Spring Lane Capital (SLC) that will be used to complete the final energization of Dorothy and support corporate expenses.SLC’s stake in the 25 MW Dorothy 1A increases to ~85% from 32%, but Soluna retains the right to 50% of 1A’s profits after SLC achieves an 18% IRR hurdle.

Dorothy Energization Scheduled; Financing Secured; Company at an Inflection Point

Thematic (Sector/Industry)

<ul><li>WTR Sustainable Index: During the week ended March 3, 2023, the WTR Sustainable Index performed in line with the broader market, rising 2.0% W/W versus the S&amp;P 500 Index (up 1.9%), the Russell 2000 Index (up 2.0%), and the Nasdaq Composite Index (up 2.6%).</li><li>Energy Technology (8.5% of the index) drove the index performance, rising 4.4%, while Advanced Transportation Solutions (69.6% of the index) was up 1.2% and Industrial Climate and Ag Technology was up 3.4%.</li><li>Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.0x versus 18.3x for the S&amp;P 500.</li></ul>

WTR Sustainable Index: During the week ended March 3, 2023, the WTR Sustainable Index performed in line with the broader market, rising 2.0% W/W versus the S&amp;P 500 Index (up 1.9%), the Russell 2000 Index (up 2.0%), and the Nasdaq Composite Index (up 2.6%).Energy Technology (8.5% of the index) drove the index performance, rising 4.4%, while Advanced Transportation Solutions (69.6% of the index) was up 1.2% and Industrial Climate and Ag Technology was up 3.4%.Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.0x versus 18.3x for the S&amp;P 500.

Weekly Sustainable Investing Surveyor: Week Ended March 3, 2023

<ul><li>The WTR Sustainable Index underperformed the broader market, falling 4.9% W/W versus the S&amp;P 500 Index (down 2.7%), the Russell 2000 Index (down 2.9%), and the Nasdaq Composite Index (down 3.3%).</li><li>Advanced Transportation Solutions (70.2% of the index) drove the underperformance, falling 6.0% , while Energy Technology (8.3% of index) was down 5.4% and Industrial Climate and Ag Technology was down 1.9%.</li><li>Top 10 Performers: NNOMF, LMRMF, VMC.V, APPH, FIX, AROC, LOOP, KTOS, CUBXF, TPIC</li></ul>

The WTR Sustainable Index underperformed the broader market, falling 4.9% W/W versus the S&amp;P 500 Index (down 2.7%), the Russell 2000 Index (down 2.9%), and the Nasdaq Composite Index (down 3.3%).Advanced Transportation Solutions (70.2% of the index) drove the underperformance, falling 6.0% , while Energy Technology (8.3% of index) was down 5.4% and Industrial Climate and Ag Technology was down 1.9%.Top 10 Performers: NNOMF, LMRMF, VMC.V, APPH, FIX, AROC, LOOP, KTOS, CUBXF, TPIC

Weekly Sustainable Investing Surveyor: Week Ended February 24, 2023

United States

Soluna Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, builds, owns, and operates modular data centers that eliminate wasted energy and deliver revenue to renewable energy producers. Soluna Holdings serves customers worldwide.

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Soluna Holdings (SLNH US)

More Milestones Reached on the Path of the Company's Evolution

Soluna announced that it has completed the final interconnection construction, setting up for the energization of the first 25 MW phase of the project

Water Tower Research

Continued Evolution at Soluna as John Belizaire Appointed CEO; Dorothy Energization Imminent

Soluna announced the promotion of John Belizaire to CEO of Soluna Holdings, with Michael Toporek stepping up to become Executive Chairman.

Water Tower Research

Dorothy Energization Scheduled; Financing Secured; Company at an Inflection Point

Final funding for Project Dorothy is now secured, with energization scheduled for the first week of April, pending approval from ERCOT.

Water Tower Research

Weekly Sustainable Investing Surveyor: Week Ended March 3, 2023

During the week ended March 3, 2023, the WTR Sustainable Index performed in line with the broader market, rising 2.0% W/W versus the S&P 500 Index...

Water Tower Research

Weekly Sustainable Investing Surveyor: Week Ended February 24, 2023

The WTR Sustainable Index underperformed the broader market, falling 4.9% W/W versus the S&P 500 Index (down 2.7%), the Russell 2000 Index...

Water Tower Research

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