Investor Presentation

April 2024

Nasdaq: UGRO

Safe harbor statement

Nasdaq: UGRO

Except for historical information, all of the statements, expectations, and assumptions contained in this presentation are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in documents which we file with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to, among other things: our ability to effectively execute on our growth strategy; our ability to continue winning engineering and design contracts, our ability to deliver on those contracts; and our reliance on key personnel. Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, we do not undertake any obligation to update any forward-looking statements.

  • professional services consulting company.

Nasdaq: UGRO

Licensed

Sectors

Global

Experts

Served

Footprint

• Architects

• Controlled

• US: 4 offices

• Interior Designers

Environment

• Europe: 1 office

• Engineers

Agriculture ("CEA")

• Construction

• Light Industrial

Management

• Healthcare

• Horticulturists

• Hospitality

• Laboratories

• Cold Storage

Key Takeaways

Nasdaq: UGRO

01

Diversified

Complete Design-Buildand à

la carte platform capabilities

Multi-Sectorincluding

Controlled Environment

Agriculture ("CEA"), Light

Industrial, Healthcare and More.

02

Deep Domain Expertise

Early stage A.E.C. (Architecture,

Engineering, and Construction

Management) Company

>1000 projects completed

with experience in multiple sectors and

deep domain expertise in CEA

03

Strong Momentum

Entering Q2 2024:

Project Backlog of $99M

Primary Focus is Positive

Adjusted EBITDA

Analyst Coverage**

ROTH MKM Capital Partners (Scott Fortune), Craig-Hallum Capital Group (Eric Des Lauriers), Small-Cap

Consumer Research (Eric Beder), Maxim Capital (Anthony Vendetti), First Berlin (Ellis Acklin)

**urban-gro is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding urban-gro's performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of urban-gro or its management. urban-gro does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

Nasdaq: UGRO

Turnkey Approach Saves Time & Expense

T R A D I T I O N A L

Owner Contracted

Owner's

Representative

Topographical

Survey

Geotechnical

Survey

Acoustical

General

Contractor

The traditional owner contracted method requires the owner to find and collaborate with a reputable architect and in addition, source multiple other services and resources.

ArchitectD E S I G N S E R V I C E S

Architect

Contracted

Infusion

•

Civil Design

•

Mechanical

Benching

•

Plumbing

•

Fire Protection

•

Landscaping

Lighting

•

Electrical

•

Structural

The owner retains just a single point of contact that handles over 20 services.

Time & Cost Savings in

Efficient Service Bundles

Speed to Launch

Architect

General

Contractor

Acoustical

Landscaping

U G R O T U R N K E Y

Design-Build Contracted

Design-Build

Representative

TopographicalMechanical Survey

GeotechnicalCivil Survey

Plumbing Structural

ElectricalFire Protection

CEA Only

Water Treatment

Extraction

Odor Mitigation

Environmental

•

Odor Mitigation

CEA Only

Controls

•

Cultivation Space

Planning

Fertigation

•

Integrated

Cultivation

Design

Equipment System

Procurement &

Integration

Water

Environmental

Extraction

Treatment

Controls

Infusion

Integrated

Odor

Cultivation Design

Mitigation

Cultivation

Benching

Equipment System

Space Planning

Procurement

&Integration

LightingFertigation

PROJECT OVERVIEW

CEA: CANNABIS

Professional Services and Design-Build

How UGRO adds value to Cannabis Clients

DIFFERENTIATED VALUE

CEA Expertise

Risk Mitigation Throughout Process, Including Identified

Licensing Help and Feasibility

Decision Impact Around HVAC, Water, Regulations

Equipment Knowledge and Procurement Power

DIFFERENTIATED VALUE

Single Point of Responsibility Design-Build Platform

Speed to Market

Drives Vertical Integration (Cultivation + Retail)

Post Construction Support

PROJECT OVERVIEW

HEALTHCARE / INDUSTRIAL

Professional Services and Design-Build

How UGRO adds value to Commercial Clients

DIFFERENTIATED VALUE

DIFFERENTIATED VALUE

Relationships & Sector Diversification

Single Point of Responsibility Design-Build Platform

Same Trusted Advisory, Same Track Record of

Local Representation and Decision Makers with

Execution, More Capabilities

National Strength Brought to Bear

Expertise Capable of Flexing in as Needed

Contacts Remain the Same Throughout

Engagement

Recent Financials

Solutions Revenue ($MM) by Quarter

18.4

18.9

21.1

18.8

20.9

3.6

16.4

17.3

16.8

1.5

3

15

15.5

12.4

2.9

11

14.8

3

11.5

10.2

10.2

9.8

17.1

5.4

16.5

15.6

3

10.2

2.8

3.5

2.9

3.4

2.5

3.1

4.6

3.9

2.9

3

2.3

2.1

2.5

Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024

Equipment Professional Services Construction Other

Revenue ($MM) by Sector by Year

FY 2021

60.2

2 3.2% Non- CEA

FY 2022

44

23

34.3% Non- CEA

FY 2023

21.6

50

70% Non-CEA

FY 2024

4.4

11.1

71.6% Non-CEA

YTD

CEA

Non-CEA

Nasdaq: UGRO

Solutions Backlog ($MM) by Quarter

105

110

99

93

84

79

67

82

96

102

93

77

30

56

70

22.5

22

22

5

25

6

10

22.5

16

5

6

6

4

4

5

7

5

7

5

5

5

5

2

1

1

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2021

2021

2022

2022

2022

2022

2023

2023

2023

2023

2024

Equipment

Professional Services

Construction

Revenues and Backlog Have Remained Strong

Supported by Turnkey Offering and Sector Diversification

Nasdaq: UGRO

FY 2023 and Q1 2024 Highlights

Financials

Record FY23

Revenue

$71.5M

Project Backlog entering Q2 24 $99M

Diversified Go-to-Market Strategy Fully Executed

Non-CEA in FY23 YOY:

70% vs 34%

Multi-Sector Focus De-Risks

Strategy:

Non-CEA business growth positions company to take advantage of CEA

rebound

Focus on

Adjusted EBITDA

Company scaled to meet

demand

SG&A will not proportionately increase with revenues, $8.3M in annualized SG&A cut

Integration:

Driving efficiencies between acquisitions made and cross- selling to contracted clients.

Nasdaq: UGRO

Looking forward to 2024

FY 2024 Guidance:

Catalysts to Reignite Cannabis Market Demand

Revenue > $84M

Rescheduling of Cannabis from

(18% YoY Increase)

Schedule 1 to 3

Passage of SAFER Banking Bill

Positive Adjusted EBITDA

Florida Recreational Adult Use and Other State

Progress

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Disclaimer

Urban-Gro Inc. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:16:35 UTC.