Lokotech Group (LOKO) investor relations material

Business Overview and Strategy

• Operates at the intersection of semiconductor design and cryptocurrency mining services, focusing on efficient ASIC chip development and data center projects in Northern Norway leveraging low-cost renewable energy.

• Product line includes scalable mining hardware based on a single chip, targeting both individual and institutional customers.

• Shifted mining pool business from B2C to B2B, focusing on institutional clients and achieving SOC 2 certification, with SOC 1 expected in Q3 2026.

• Achieved significant market share growth in mining pools, outpacing overall market growth and targeting further expansion through compatibility and institutional partnerships.

• Hosting services in Northern Norway expanded, with pilot programs and enterprise client focus.

Technology and Innovation

• Announced a dual-use ASIC chip for blockchain mining and edge AI, outperforming market leaders in energy efficiency.

• ASIC chip features an onboard microcontroller for enhanced reliability and programmability, enabling use in both mining and AI.

• Utilizes GlobalFoundries 12nm node, allowing future migration to denser nodes and extending product lifecycle.

• Chip supports on-device AI training, a unique feature among edge AI ASICs, addressing privacy and efficiency concerns.

• No direct competition in the edge AI ASIC niche; current GPU and NPU solutions are less efficient and lack on-device learning.

Financials and Growth

• Listed on Euronext Growth Oslo with a market cap of NOK 425 million as of June 2026; cash flow positive with mining pool revenues covering operational costs.

• Stopped pre-selling hardware until physical silicon is available, aiming for precise pricing and cost control.

• Clients typically pay upfront, enabling a negative working capital model as sales scale.

• High conversion of net revenue to profit, with a cost-efficient business model and strong KPIs despite declining crypto prices.

• Framework agreements worth USD 2–13m signed with large market players.