to be renamed - Zest Labs€¦ · Mobile Intelligent Routing Live Dashboards Access ©2018 Ecoark...

OTCQX: ZEST

Breakthrough freshness management for AgTech

to be renamed

1©2018 Ecoark Holdings Inc., to be renamed Zest Technologies

Safe Harbor Statement

This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any security of Ecoark Holdings, Inc. and/or its subsidiaries(“Ecoark” or the “Company”). This Presentation has been prepared to assist interested parties in making their own evaluation of Ecoark and does notcontain all of the information that prospective investors, purchasers or parties may need or desire. Nothing contained herein shall be construed asinvestment, financial, legal or tax advice. Interested parties should conduct their own investigation and analysis of Ecoark, by reviewing its publicfilings with the Securities and Exchange Commission (the “SEC”) and other publicly-available information along with the data set forth in thisPresentation.

This Presentation contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements”for purposes of federal and state securities laws, including, but not limited to: statements concerning the business and possible or assumed futureresults of operations of the Company and its subsidiaries; any projections of earnings, revenues or other financial items; any statements of the plans,strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; anystatements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any ofthe foregoing. Forward-looking statements may include, but are not limited to, statements that include the words “may,” “will,” “estimate,”“intend,” “believe,” “expect,” “plan,” “anticipate” and other similar words.

Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: access to growthcapital on favorable terms; adverse economic changes affecting markets we serve; competition in our markets and industry segments; theprofitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration ofthe businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our SEC filings. Although we believe theexpectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements aremade, and our future results, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this Presentation to conform these statements to actual results or to changes in our expectations, except asrequired by law.

All third party logos and trademarks appearing in this Presentation are the properties of their respective owners.


Seasoned Leadership TeamBackgrounds across technology, retail, transportation,

government and implementation

Randy May, Chairman, CEO, and Founder

Former Walmart Executive

Peter Mehring, President

Former Apple Executive

John Cahill, Attorney - Former Chief of Staff for the Governor of New York

Mike Green Former IBM Executive

Gary Metzger - Former Amco International Executive

Steven Nelson - Former Vice President, Controller of Dillard’s, Inc.

Independent Directors

Executive Officers


Food Waste Challenge

Annual fresh food waste in the U.S alone

• >33% post-harvest waste** = >$85B

• >50% of waste in retail is pre-consumer

• Zest Fresh reduces pre-consumer waste by >50% - potentially saving >$15B*

* Zest Fresh targets 70% of perishable market

Fixing Food Waste is a Huge Opportunity

©2018 Ecoark Holdings Inc., to be renamed Zest Technologies 3**UN FAO Food Losses and Food Waste


The Industry is Facing a Perfect Storm

Increasing margin pressures are forcing changes for retailers & producers

New low cost competitors

Dramatic increases in freight costs

Increasing demand for transparency and sustainability

4

Preventing Food Waste Improves Product Margins

• 30 year old approach – pricing shrink into the product

• Waste can not be accepted as the cost of doing business

• Zest Labs is the only AgTech company with a proven solution that cuts post-harvest waste

• A breakthrough approach, proven to pro-actively prevent waste at every step from field to store

• Immediately improves product margins

5


Produce SeafoodDairyMeats & Poultry

What We Do

Without Changing Operations:

1. Improve Fresh Product Margin

2. Proactive Food Safety & Traceability

3. Increase Sustainability Performance

6

©2017 Ecoark Holdings Inc., DBA Zest Technologies | Confidential 7

Lack of Shelf-life Leads to Shrink

• Shelf Life Driven By Harvest Quality &

Temperature Handling

StrawberriesAfter Harvest, 1 Hour at 85o

Reduces 1 Day of Shelf Life

7


Field /

Production

Pack House / Processing

Retail DC Retail StoreQC QC QC

Prioritizes Routing & Inventory by Freshness Capacity

Predictive Analytics Generates “Dynamic Use By Date”

Blockchain for Transparency & Traceability

Zest Fresh Continually Measures Freshness Capacity

and Accurately Calculates Remaining Shelf Life

8


$78B

$152B

$30B

$182B

$182B Total Addressable Market

(1) Food Marketing Institute (FMI) via Progressive Grocer’s Annual Consumer Expenditures Study (CES), 68th Annual CES, July 2015 pp. 62-64

Zest Fresh Annual Revenue Potential: $750M US, $1.5B+ Globally

Total US Perishables: $260B

Total US Waste: $85B

Served Market70% of Perishables

Targeting

Pre-consumer Waste

Zest Revenue at

10% of Avoided Waste

= $1.5B

50% of Waste Avoided

= $15B savings

50% US Market Adoption

= $750M

Revenue Opportunity

Retailers influence growers use of technology

50% of retail grocery sales driven by top 7 retailers

Adoption by a small number of retailers moves the market

Total Addressable

Market: $182B


A Complete Solution for AgTech

A Grower-Centric Solution that Delivers Value to

Retailers & Restaurants Food Freshness & Safety are based on grower execution

Improving shelf life consistency is a grower responsibility

Zest Fresh Integrates Technologies that Deliver on Value Blockchain, IoT, Cloud analytics, machine learning all integrated

Using technology to make it, “easy to do the right thing” every time

©2018 Ecoark Holdings Inc., to be renamed Zest Technologies 10


More Than Produce

Meat, Poultry, Pork and Seafood Represent

Significant Waste

Same Challenges as in Produce• Variable delivered shelf life

• No proactive product condition monitoring & feedback

Zest Fresh Delivers Value to Protein• Supplier process monitoring & real-time alerts

• Predictive freshness modeling & intelligent routing

• Food safety and True Transparency



Zest Fresh – A Proven Value

Users Love Zest Fresh• More than 2 years of broad use, with strong user endorsements

• Working with leading retailers and producers

Proven Value • Freshness compliance improved from 30% to >85%

(delivered remaining shelf life)

• Reduce retail shrink by >50% (waste & markdowns)

• Growers gain confidence through process visibility

“I’ve been working in the dark all along, and Zest

turned on a light so I can now see freshness. I can

never go back to working in the dark again.”

- Blackberry Grower QA Manager



Automated and reliable product data capture

Grower-centric with real-time operational value

Intelligent routing to ensure delivered freshness

Blockchain security and trust for suppliers to retailers

67 Issued US Patents - >$100M invested to date

Barriers to Entry

©2018 Ecoark Holdings Inc., to be renamed Zest Technologies

Why Zest Fresh is Unique in AgTech

13


Empowering Workers withValuable Insights

©2018 Ecoark Holdings Inc., to be renamed Zest Technologies

Value Throughout Supply ChainZest Fresh Delivers Real Value with an opportunity for revenue at each Node

Producers DC/Logistics Store Consumer Merchandising

14


True Transparency with Blockchain

Trusted, Accessible Records• True Transparency comes from including the necessary data

• Zest analytics provide data to empower decisions

• Combine “Track & Trace” with Zest Freshness & Food Safety Data

Pro-active and Preventative• Pro-active, automated recalls based on Blockchain technology and

smart contracts

• Automatically connect post-shipment product data (i.e. test results,

ingredient updates) to in-transit product

Zest Fresh + Blockchain Delivers Increased Value

for Growers, Producers, Shippers and Retailers©2018 Ecoark Holdings Inc., to be renamed Zest Technologies 15


Zest Fresh Delivers Blockchain

Turn-key Support for Zest Fresh users

Integration eliminates technical barriers

Sensor driven blockchain transactions

Data privacy and management built-in

B L O C K C H A I N

16


A Complete, Integrated Solution

Practical, Automated Wireless IoT Sensors

Cloud-based Predictive Analytics & Product Visibility

Wireless Pallet-level Sensors Wireless Access

Freshness Capacity

(# of days remaining)Intelligent Routing Live DashboardsMobile

Access


Competitive Landscape

End-to-End

Product-Centric,

Data Driven Solution

Temperature Recorder

Device Suppliers

Proactive Real

Time Supply Chain

Management

After the fact,

Forensic Analytics

Competitors do not address food waste, as they only report historic data

Zest Fresh proactively manages freshness through

predictive analytics to reduce food waste before it happens


Go to Market Strategy

Sales focus on retailers and influencers

• brokers, distributors, 3PLs, consultants

Growers & Suppliers – “land and expand”

Network effect as retailers influence growers, who serve multiple retailers


Revenue Model

Zest Fresh

Main product drives 60% Gross Margin

Average revenue of $12 per pallet trip

• 40 pallets / week per store = $24K / store annually

• 250 Stores = $6M / year

Supplier price is variable based on level of grower integration

Insurance & Transportation access add incremental revenue

Zest Labs Professional Services

Evaluate procedural, product flow and/or structural improvements

Comparative analytics by season, site and variety

SaaS Revenue model based on pallet trips


A Breakthrough AgTech Solution Provider

Public Company

Technology and Innovation Division

Products

Company Information(as of November 21, 2018 market close)

CompanyEcoark Holdings, to be renamed

Zest Technologies

Zest Labs San Jose, CA

Ticker ZEST

Exchange OTCQX

Share price $0.91

Shares Outstanding 52.0M

Market Cap $47.3M


Historical Balance Sheets

$000s (Unaudited)Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,

2018 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016

ASSETS

CURRENT ASSETS

Cash and cash equivalents 2,323 1,748 3,730 2,175 8,316 11,562 8,648 3,140 8,380 11,903 8,848

Accounts receivable, net 1,216 2,014 2,617 1,041 1,032 1,462 1,627 1,008 3,712 3,724 1,421

Other current assets 985 1,295 887 4,382 3,711 4,664 5,672 4,506 1,823 1,827 965

TOTAL CURRENT ASSETS 4,524 5,057 7,234 7,598 13,059 17,688 15,947 8,654 13,915 17,454 11,234

PP&E and intangible assets, net 3,566 3,855 4,164 4,075 4,318 5,172 3,875 4,198 6,516 6,545 1,267

Other noncurrent assets 1,164 1,044 1,049 53 53 53 419 446 51 51 26

TOTAL ASSETS 9,254 9,956 12,447 11,726 17,430 22,913 20,241 13,298 20,482 24,050 12,527

LIABILITIES & STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts Payable and Accrued Liabilities 2,115 3,466 3,473 2,115 2,804 2,405 4,803 5,499 4,999 3,182 2,050

Current portion of LT debt 500 500 600 600 - - 1,685 5,565 5,379 3,742

TOTAL CURRENT LIABILITIES 2,115 3,966 3,973 2,715 3,404 2,405 4,803 7,184 10,564 8,561 5,792

Long-term debt - - 600 600 642 189 236 -

TOTAL LIABILITIES 2,115 3,966 3,973 2,715 3,404 3,005 5,403 7,826 10,753 8,797 5,792

STOCKHOLDERS’ EQUITY

Common Stock and APIC 128,793 123,560 122,473 116,340 110,611 104,323 85,067 67,408 61,042 60,000 45,545

Accumulated Deficit (119,994) (115,929) (112,381) (105,822) (95,805) (83,838) (70,229) (61,936) (51,313) (44,747) (38,810)

Treasury Stock (1,660) (1,641) (1,618) (1,507) (780) (577) - - - - -

STOCKHOLDERS’ EQUITY 7,139 5,990 8,474 9,011 14,026 19,908 14,838 5,472 9,729 15,253 6,735

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

9,254 9,956 12,447 11,726 17,430 22,913 20,241 13,298 20,482 24,050 12,527


Historical Income Statements

$000s (Unaudited, quarter ended)Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,

2018 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016

REVENUES

Revenue from product sales 1 15 94 17 6 1

Revenue from services 286 753 523 14 20 (6)

COST OF REVENUES

Cost of product sales 13 33 349 11

Cost of services 207 430 183 40 20

GROSS PROFIT (LOSS) 79 323 340 (26) (12) (18) (255) 6 6 7

SG&A 2,493 2,091 4,156 7,888 8,530 11,890 5,521 5,896 3,750 4,703 1,370

Depreciation, amortization, and impairment 308 309 333 179 186 120 51 44 44 41 42

R&D 771 870 891 1,406 1,659 1,620 1,235 1,849 2,435 943 752

TOTAL OPERATING EXPENSES 3,572 3,270 5,380 9,473 10,375 13,630 6,807 7,789 6,229 5,687 2,164

Interest income (expense) 4 (11) (19) (10) (11) (15) (438) (312) (48) (58) (77)

Loss on retirement of assets (25)

LOSS FROM CONTINUING OPERATIONS (3,489) (2,958) (5,059) (9,483) (10,386) (13,657) (7,263) (8,356) (6,296) (5,739) (2,234)

Income (loss) from discontinued operations (576) (590) (1,495) (524) (1,574) 48 (1,030) (2,268) (218) (135) 13

Provision for income taxes (5) (10) (7)

NET LOSS (4,065) (3,548) (6,559) (10,017) (11,967) (13,609) (8,293) (10,624) (6,514) (5,874) (2,221)

NET LOSS PER SHARE ($0.08) ($0.07) ($0.12) ($0.22) ($0.27) ($0.32) ($0.21) ($0.29) ($0.18) ($0.17) ($0.08)

©2017 Ecoark Holdings Inc., DBA Zest Technologies | Confidential 24

Freshness Management Solutions

www.zestlabs.com

Investor Relations - ICR Inc.646-277-1254

[email protected]

Customer Inquiries - Zest Labs408-200-6500

[email protected]

Thank you©2018 Ecoark Holdings Inc., to be renamed Zest Technologies

to be renamed - Zest Labs€¦ · Mobile Intelligent Routing Live Dashboards Access ©2018 Ecoark...

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