SharonAI (SHAZ) investor relations material

Executive summary

• Completed Nasdaq IPO in February 2026, raising $125 million, and sold a 50% stake in Texas Critical Data Centers for approximately $74 million, strengthening liquidity and enabling core AI Cloud business expansion.

• Secured major customer contracts, including a $1.26 billion, five-year agreement with ESDS and a $950 million, five-year contract with a global technology company, raising total contracted value to over $2.2 billion, with revenue from these contracts expected to begin in late 2026.

• Announced expansion of data center capacity from 70 MW to 100 MW by early 2027, reflecting strong demand and an expanded pipeline.

• Appointed James Manning as CEO, expanded the management and technical teams, and launched Australia’s first secure AI Factory with Cisco.

• Expanded operations into New Zealand alongside Australia, targeting accelerated growth in the AI Cloud segment.

Financial highlights

• Q1 2026 revenue was $294,000, down 9.5% year-over-year, with a gross loss of $231,000 and net loss of $19.9 million, driven by higher SG&A, ramp-up costs, and non-cash fair value losses.

• Adjusted EBITDA loss was $2.2 million, reflecting early-stage investment and scaling.

• Realized $65.9 million gain from TCDC sale and $70.2 million non-cash fair value adjustment on convertible notes.

• Cash and cash equivalents increased to $164.3 million as of March 31, 2026.

• Total assets rose to $313.9 million from $133.1 million at year-end 2025.

Outlook and guidance

• Expects continued strong demand for AI Cloud and GPU compute services, with customer demand materially outweighing supply through 2027.

• Data center capacity target increased to 100 MW by early 2027, with further expansion planned and a growing pipeline.

• $350 million convertible note announced in April 2026 to fund GPU and network procurement and further expansion.

• Revenue from major contracts expected to commence in Q3 and Q4 2026.

• Ongoing investments in technical and management talent to support growth.