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    Hubert Mak

    Research Analyst at Cormark Securities

    Hubert Mak's questions to Sphere 3D (ANY) leadership

    Hubert Mak's questions to Sphere 3D (ANY) leadership • Q2 2017

    Question

    Hubert Mak from Cormark Securities inquired about the primary growth drivers for the second half of the year, the strategy to reaccelerate revenue, and the outlook on profitability given the recent increase in expenses and negative adjusted EBITDA.

    Answer

    Chairman and CEO Eric Kelly highlighted the HVE/UCX acquisition as a key growth driver, projecting over 50% growth from it in 2017. Vice Chairman and President Peter Tassiopoulos explained the expense increase was a one-time effect from the first full quarter of integrating the HVE team. CFO Kurt L. Kalbfleisch added that the company expects to continue reducing cash used in operations.

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    Hubert Mak's questions to Sphere 3D (ANY) leadership • Q1 2017

    Question

    Hubert Mak of Cormark Securities inquired about the development of the sales pipeline post-reorganization, the expected timeline to reach positive adjusted EBITDA, and the current status of outstanding debt.

    Answer

    Peter Tassiopoulos (Vice Chairman and President) confirmed the pipeline is building with larger deals, citing a recent $3 million contract as evidence of improved execution capabilities following recent acquisitions. CFO Kurt Kalbfleisch added that achieving positive adjusted EBITDA is a short-term goal and reiterated the outstanding debt figures, which include $18.2 million in third-party debt, a $24.5 million convertible note, and a $1.9 million related-party term loan.

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    Hubert Mak's questions to Sphere 3D (ANY) leadership • Q3 2016

    Question

    Hubert Mak of Cormark Securities inquired about the early evidence of deal conversions, asking for more color on the types of solutions involved and the outlook for Q4 and beyond. He also asked about the strategic use of the new $25 million financing, specifically whether it was intended to repay debt or for working capital.

    Answer

    Chairman and CEO Eric Kelly responded that the deals are across the board, including virtualization, storage, and integrated suites, with customers often expanding their product usage over time. He highlighted a successful proof-of-concept in Europe moving into production. Regarding the financing, both Kelly and CFO Kurt Kalbfleisch confirmed the funds would be used for both repaying existing debt and providing additional working capital for growth initiatives.

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