Lokotech Group (LOKO) Investor Presentation summary

Investment highlights

• Fabless semiconductor firm developing energy-efficient chips for blockchain mining and edge AI inferencing, with first chip using ~35% of the energy of closest competitor and unique AI hardware positioning.

• Subsidiaries Powerpool Mining and Arctic Core expected to generate positive cash flow in 2025, covering group fixed costs.

• Technical risks mitigated beyond industry standards; R&D phase completed and commercial production targeted within 12 months.

• Active customer dialogues underway to increase pre-sale volumes; seeking funding for production equipment and working capital.

Company overview and structure

• Established in 2019, listed on Euronext Growth in May 2021 after a reverse merger and NOK 110M capital raise.

• Current market cap NOK 340M; share price NOK 1.9.

• Subsidiaries include hardware, data centers, AI, and mining pool operations.

• Successful chip redesign in 2022; prototype testing and validation ongoing since September 2023.

Product and technology

• Scrypt ASIC achieves 0.077 J/MH, 0.80W power consumption, and 10.4 MH/s per chip; features industry-first on-chip microcontroller.

• Dual-use ASIC for blockchain mining (Litecoin, Dogecoin) and edge AI inferencing/training; 65-80% less energy use than market leaders.

• Supports major AI frameworks; initial simulations show competitive edge.

• Product formats include USB, server, and PCI-e board (Hashblade); flexible business model from chip sales to in-house mining.