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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.
2©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
3©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
4©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
6©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
8©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
9©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
$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
10©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
11©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
©2018 Ecoark Holdings Inc., to be renamed Zest Technologies 11
12©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
©2018 Ecoark Holdings Inc., to be renamed Zest Technologies 12
13©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
14©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
15©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
16©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
17©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
18©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
19©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
20©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
21©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
22©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
23©2018 Ecoark Holdings Inc., to be renamed Zest Technologies
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
Customer Inquiries - Zest Labs408-200-6500
Thank you©2018 Ecoark Holdings Inc., to be renamed Zest Technologies