SURNA OTCQB: SRNA

www.Surna.com KEY COMPANY DATA (04/07/14) Recent $7.39 52-week range $8.73 - $0.17 Average daily volume 20,000 Shares I/O (11/14/12) 99.4 million Recent Market cap $735 million

Surna Inc. Led by Chairman and CEO Tom Bollich, the visionary technologist who co-founded famed gaming company Zynga which ultimately rose to a $10 billion market valuation, Surna’s mission is to develop, produce and sell equipment for the nascent, $2.3 billion legal marijuana industry with a focus on disruptive technology, equipment and related support services. The Company represents a pure play on the cannabis industry, while being agnostic as to the escalating proliferation of regulated, commodity cannabis growers & sellers, winners or losers; Surna’s business model excludes the production or sale of marijuana. Fueled by powerful trends of increasing states’ legislation favoring regulated medical and recreational marijuana markets, and its lucrative tax and jobs revenue, industry analysts conservatively project the highly fragmented $2.3 billion US legal cannabis industry will increase over four-fold to $10.2 billion by 2018. Surna is acquisitive, and aims to dominate the infrastructure, growing and support side of the global cannabis industry by aggregating advanced technologies, IP and scalable operating companies to bring new technology to the cannabis marketplace and contribute to its dramatic growth. The Company recently announced it has acquired the intellectual property portfolio of Safari Resource Group, comprised of a patented “Airstream” reflector and right, title and interest to 14 intellectual property patents currently in development and expected to be ready for market soon. The Company believes the IP portfolio is disruptive with near term application for next-generation commercialization in a variety of cannabis indoor climate control and related systems.

Acquiring Hydro Subsequently, for its first operating company acquisition, on April 1, 2014 Surna announced a definitive agreement to acquire Hydro Innovations (“Hydro”) in the second quarter of 2014 contingent upon a FY-13 audit and independent valuation opinion. Prior to Closing, the Company has exclusively licensed all of Hydro’s technology, IP and product lines, in perpetuity, for commercial sale and distribution for indoor gardening applications. With a solid base of rapidly growing revenue, Boulder, Colorado-based Hydro is a leading designer, manufacturer and distributor of proprietary, state-of-the-art indoor climate control systems such as chillers, lights, reflectors and irrigation systems designed for cannabis and other indoor agriculture markets. Founded in 2007, Hydro offers a complete line of indoor cannabis growing equipment and has become the pre-eminent provider of advanced, water-chilled cooling systems that provide specific cooling and humidity controls for personal and commercial level cannabis cultivation facilities.

INVESTMENT HIGHLIGHTS

Highly fragmented $2.3 billion US cannabis industry projected to increase over four-fold to $10.2 billion by 2018

Led by CEO Tom Bollich, the visionary technologist who co-founded famed gaming company Zynga which ultimately rose to a $10 billion market valuation

Surna signed definitive agreement to acquire industry leader Hydro Innovations

With rapidly growing revenue, Boulder, Colorado-based Hydro is a leading producer of proprietary, state-of-the-art indoor climate control systems for cannabis and other indoor agriculture markets

IP Strategy: With robust R&D, Hydro is established producer of disruptive tech “Banks Chillers”

Best-in-Class Management Team. Surna is distinguished by its Board including Tae Darnell and Doug McKinnon

With a robust R&D capability, Hydro is well established commercially as a producer of disruptive technologies with the successful introduction and sales of its “Banks Chillers.” With cooling being as critical to growing marijuana as the seed itself, Hydro’s Chillers offer a breakthrough product line that: • Can be installed and purchased for 20 to 40 percent less

than the price of conventional HVAC and 65 percent cheaper than traditional water chilled solutions

• Operates with 20 to 30 percent more energy efficiency

than the most sophisticated commercial HVAC systems on the market

Surna is distinguished by its Board of Directors and management: Tom Bollich, Chairman & CEO, began his career as a

Robotics Engineer, working with artificial intelligence. In 2007 he co-founded Zynga (NASDAQ: ZYNG), the online gaming company. Zynga created games such as FarmVille, Draw Something and Words with Friends. There, Tom served as a Studio Head and CTO.

Doug McKinnon, Director, whose 30 years’ professional

experience includes C-level positions in both private and public sectors, including Chairman and CEO of an American Stock Exchange traded company, Vice President of a $12 billion market cap NASDAQ-traded company for which management raised over $2.2 billion and CFO of several publicly held US, Canadian and Australian companies. Mr. McKinnon, currently engaged as the senior financial consultant to Surna, is in discussions about joining the Company as CFO.

Tae Darnell, Director and VP – General Counsel, is one of Colorado’s first full time Cannabis lawyers. His firm has represented over 500 dispensaries, cultivation premises and infused product manufacturing companies in addition to playing a pivotal role in Colorado’s rise from operating under a Constitutional Amendment to outright regulated legalization.

Under the guidance of the veteran Surna management team, Hydro is now focused on expanding its product lines, developing and commercializing new intellectual property and diversifying into other sectors of the indoor agriculture & climate control industries. By transitioning into a publicly traded company, Hydro will benefit from a dramatically lower cost of capital which is expected to enable it to fully finance its aggressive growth strategy.

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Surna CEO Tom Bollich (April 1, 2014):

“Not since I helped co-found Zynga back in

2007, have I seen such an unprecedented

opportunity to quickly capture market share of

an industry still in its infancy yet offering the

promise of explosive value creation.”

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Surna envisions the cannabis industry will expand horizontally and spin off advanced, related and conventionally regulated new sectors such as food products, nutraceuticals, pharmaceuticals, bio tech, remote agricultural monitoring technologies and much more to drive industry growth.

“Silicon Valley for Weed” In Colorado, Surna enjoys being at the epicenter of the marijuana industry, an important advantage that cannot be underestimated. As an intellectual property company, (utilizing a model similar to cellular IP giant Qualcomm), or as a holding company of next-generation equipment manufacturers, Surna is not affected by any marijuana related regulations in Colorado or elsewhere. Yet within the cannabis industry, Colorado is informally known as “Silicon Valley for Weed” for attracting the most educated and qualified experts, management, and capital. Colorado was the first US state to permit medical marijuana through a State Constitutional Amendment in 2000, and is the first to legalize substantial cannabis plant cultivation and recreational use. Accordingly, the “Colorado Model” is routinely studied by states, federal regulators and international observers for adoption elsewhere in the global marijuana market. Existence in the epicenter of the industry gives Surna the applied knowledge and experience to choose its acquisitions wisely and to give its customer base the benefit of the knowledge gained by being a true industry pioneer.

Colorado Catalyst: The 1.6% Solution At 5.3 million people (July 1, 2013) Colorado has only 1.6 percent of the U.S. population. Though currently only about one quarter the (Cannabis) market size of California, the Colorado market is poised to double in 2014 and will equate to 60 percent of the California market. If medical and recreational marijuana laws are enacted in other and more populous states, as is strongly trending and many political analysts’ forecasts confirm, the market potential is extraordinary.

US and Global Market Trending Toward Legal Marijuana While Colorado’s Jan. 1, 2014 implementation of regulated recreational use of cannabis is a catalyst for a major ramp up in industry growth, Hydro’s industry leading equipment has been shipped and installed at commercial gardens spanning the globe from South Africa and UK to Australia and Costa Rica. Nationally and internationally, to lower cannabis law enforcement and incarceration costs as well as to generate substantial incremental tax revenue and jobs, industry analysts agree the national polls and trend strongly favor more states moving toward regulated medical or recreational cannabis use models. The global upside potential is many times greater than the US. Uruguay in December of 2013 enacted legislation for a fully regulated cannabis market.

Industry Leading R&D Following six years of R&D, Hydro deploys advanced proprietary technologies into its growing line of lead products enjoying a clear competitive advantage. Hydro’s climate control “Bank Chillers” enjoy a strong technological lead, priced at 20 to 40 percent less than the competition (primarily conventional home and commercial building heating/ventilation/air conditioning (“HVAC”)) with energy efficiency reducing energy consumption by about 30%. Surna and Hydro plan to increase R&D in new commercial gardening equipment product lines and anticipate adding to its existing patent application pending with near term plans to file many more.

Growth Strategies In addition to its strong competitive advantages, and barriers to entry, the Company’s outlook for outsized industry growth and profitability is supported by its aggressive growth strategy and powerful industry tailwinds:

Exponentially Growing US Marketplace Cannabis industry research firm ArcView conservatively projects the highly fragmented $2.3 billion US cannabis industry will increase 700 percent from 2013’s $1.43 billion to $10.2 billion by 2018; a more than four-fold increase from 2014’s estimated $2.34 billion. New Marketing Campaigns To date, Hydro has done little to no advertising or marketing, relying instead upon growing word of mouth and a social media buzz surrounding its best of class products. The marketing plan calls for stepped up advertising online and in print, reinforced marketing channels such as its ‘affiliate’ reseller program in addition to the blogosphere, video, industry conferences & tradeshows and media relations whose appetite for marijuana industry stories seems insatiable.

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Penetrate Ancillary & Adjacent Markets Surna’s business plan envisions penetrating adjacent markets with its next generation, disruptively lower-cost and more energy-efficient climate control equipment. These markets include:

Indoor and greenhouse agriculture (organic and/or

hydroponic fruits and vegetables) -- a natural extension.

Cloud: Server farms and data centers, experiencing explosive growth worldwide as software and storage migrates to the Cloud. Industry research firm Market Monitor predicts 36 percent compound annual growth in cloud computing from $5.7 billion in 2012 to $20 billion by the end of 2016.

Conventional HVAC for residential and commercial buildings. This initiative, planned for 2015, offers an enormous opportunity and may include capturing niche markets or a capital efficient JV or licensing/royalty model.

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Build Intellectual Property Portfolio Surna is implementing a comprehensive intellectual property strategy that includes acquiring and developing portfolios of patent assets around core commercial opportunities. The Company currently has one patent application pending with near term plans to file many additional patent applications.

Leverage Surna’s Advanced Technology Platform As a forward thinking pioneer of indoor cannabis grow system technologies, Surna’s Hydro is actively developing, and expects to commercialize, new breakthrough climate control equipment in 2014. Its current R&D initiatives include building a service division around new, advanced remote plant monitoring systems whose service fees offer 90% gross margin recurring revenue streams.

Mergers & Acquisitions As a public company with recently announced IP and operating company acquisitions, Surna has valuable market currency and has identified several logical cannabis acquisition candidates for vertical integration or market penetration into its existing or related markets.

HVAC: Wall Street investment banking and research firm Raymond James (Sept. 5, 2013) reports: “America’s 4.8 million commercial buildings and 350,000 industrial facilities account for approximately 51% of the nation’s primary energy consumption, according to the Energy Information Administration (EIA), as compared to 28% for transportation and 21% for residential consumption. In the enterprise sector of the economy, annual energy costs (mainly power and heat) total approximately $200 billion. Looking at this by category, the single biggest line item (31%) is heating, ventilation, and air conditioning (HVAC), followed by lighting at 25%. What’s particularly striking is the EIA’s estimate that 30% of this energy is used “inefficiently or unnecessarily.”

Surna’s Scalable Business Model

Accelerating US trend toward increasing legalization of marijuana

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ArcView Market Research (AMR) conservatively assesses the 2013 US national legal marijuana market to be valued at $1.43 billion. The projected national value for 2014 is $2.38 billion, an annual increase of 64%. This increase represents the fastest growth rate of any U.S. industry AMR could find. Primary growth drivers include new Adult Use markets in Colorado and Washington State, as well as the addition of four new Medical Use states coming online (Massachusetts, Illinois, Connecticut and Vermont) – collectively projected to add $61 million in market value in 2014. On a five-year horizon, AMR sees the national annual market value potential at $10.2 billion by 2018. In the US, this long-term outlook assumes the following key growth factors: 14 new state Adult Use markets Two new state Medical Use markets Organic growth in current legal marijuana states as a

result of growing populations Continued migration of illicit market purchases to legal

market purchases

Annual Retail Sales by Industry

US Beer (2012): $246 billion US Wine (2012): $34.6 billion Vodka (2012): $5.5 billion Legal MJ (2013): $1.43 billion E-Cigarettes (2012): $500 million

The US National Legal Marijuana Growth Rate

Vast, Fast-Growth Marketplace

“For marijuana advocates, the last 12 months have been a period of unprecedented success as Washington and Colorado became the first states to legalize recreational use of marijuana. And now for the first time, a clear majority of Americans (58%) say the drug should be legalized. This is in sharp contrast to the time Gallup first asked the question in 1969, when only 12% favored legalization.”

The national legal marijuana market is comparatively small, compared with markets for beer, wine and vodka. However at a projected 64% annual growth rate, legal marijuana is growing over 30 times more quickly than the mature beer, market, which domestically is increasing at around two percent.

Some estimates of the illicit marijuana markets have been in the $18 billion to $30 billion range. In terms of the value of national legalization of marijuana, Bloomberg Industries estimate the US market potential at $35 billion to $45 billion, which would eclipse the US market for wine. More than one in three Americans live in a state that has legalized some form of marijuana consumption. In addition to Washington D.C., there are presently 20 states with legal marijuana regulation. Not all of the states, however have active markets, which AMR defines as those state markets in which marijuana can be legally purchased at a storefront location (i.e. Medical Use dispensary or Adult Use retailer).

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AMR finds that more than 590,000 consumers legally purchased cannabis from a storefront in 2013. As part of its market estimates, AMR does also does not count grow-your-own consumers or consumers who purchase from caregivers. Active markets presently include 11 states and DC, and this number will expand by another four states in 2014. The following map shows which of the legal state markets represent active and inactive markets (as of December 2013).

Worldwide Global Cannabis Market Poised for Growth As large as the potential US cannabis market is, the markets in Europe and Latin America offer at least as much upside. Similar to the US, global trends toward increasing legalization or regulation are accelerating in Europe and Latin America. Uruguay is an excellent case in point. Uruguay has long been characterized by a level of social tolerance and a policy to minimize risk and reduce harm from drug use. On December 20, 2013, the bill for the regulation of cannabis was approved by both chambers of the Uruguayan Parliament, and President José Mujica enacted Law 19.172. This law regulates the production, marketing and consumption of cannabis, while promoting information, education and prevention of use of this substance. Uruguay has thus become the first country in the world to legalize and regulate cannabis. "As an alternative to prohibitionist policies, the regulation of drug markets offers the state a means to implement more efficient and comprehensive initiatives for supply and demand reduction." Senator Roberto Conde, presenting the majority report in the introductory speech to the debate on the cannabis bill in the Senate - December 10, 2013. July 31, 2013, the House of Representatives passed an executive bill to regulate the production, marketing and consumption of cannabis. In December, 2013, the majority of the Uruguayan Senate voted in favor of the bill to regulate cannabis approved by the lower house. The state would henceforth control the entire chain, from production to consumption. Law 19.172 comes into force in April of 2014. (source: http://www.druglawreform.info/en/country-information/uruguay/item/208-uruguay) http://www.insightcrime.org/news-analysis/after-the-war-on-drugs-drug-policy-reform-in-the-americas

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http://reformdrugpolicy.com/cannabis-map/map/

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This map shows the global potential of various countries transitioning up from red, orange and brown to yellow and green.

Products Surna’s pending acquisition of Hydro Innovations and its industry leading product lines includes proprietary, next generation equipment such as its water chilled cooling system.

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How does Surna produce such high value products? Patent‐pending technology. Off the shelf, high‐quality components by Goodman and Trane.

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Banks Commercial Chillers (2, 3.5, 5, 10 or 25 Ton) This proprietary design is where value and quality collide. We haven't found a chiller with better quality, longevity, output, and overall performance at this price point in any market. Our Banks Chillers are made in the USA and feature only the highest quality components, from the capacitors to the compressors. Each chiller is individually tested for output and if it doesn't exceed its rating, it doesn't ship. Featuring Alfa Laval evaporators, scroll compressors by Bristol or Copeland, and advanced safety features such as a flow switch and anti-freeze protection; you will not find a better chiller for your money. Use them for any chilled water application, but when you pair them with an appropriately sized air handler you will have the simplest, most energy efficient climate control system available!

HydroGEN Pro Water Cooled CO2 Generator Supercharge your garden without adding heat! Supplementing your garden with CO2 is a must for the highest possible yields and boy does this unit deliver—it can produce up to 30 cubic feet per hour of CO2 for your garden while the water cooling feature removes up to 86% of the heat produced by the flame! It features an electronic ignition, advanced safety sensors (oxygen depletion, anti-tip and overheat, just to name a few) and adjustable CO2 output, which makes it suitable for almost any size garden. Comes ready to install with a propane hose and regulator in the box. The CO2 Generator creates CO2 and is believed to be the only water controlled version in the world.

State-Of-The-Art Cannabis Grow and Indoor Agriculture Equipment Hydro Innovations’ market leading products include:

This systems diagram shows how the cooling system works moving the water between the water chillers, reservoir and the air handlers. The reservoir and water chillers help keep the water at a constant temperature needed to cool the room. It always uses the same water, being re-cooled and sent out again.

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Surna Management Team Tom Bollich – Chairman & CEO Tom Bollich began his career as a Robotics Engineer, working with artificial intelligence. In 2007 he co-founded Zynga, the online gaming company. Zynga created games such as FarmVille, Draw Something and Words with Friends. While at Zynga, Tom served as a Studio Head and CTO. After leaving Zynga in 2009 he created HugeMonster Inc., a Toronto-based game company and currently sits on the Board of Directors as the Chairman. Tom is also on the Board of Directors for Fatty Crew, LLC, owners and operators of the multinational Fatty brand restaurants.

Doug McKinnon – Director Doug McKinnon's 30+ year professional career includes advisory and operation experience across a broad spectrum of industry sectors, including oil and gas, technology, and communications. He has served in C-level positions in both private and public sectors, including chairman and CEO of an American Stock Exchange traded company, Vice President of a $12 billion market cap NASDAQ-traded company for which the management team raised over $2.2 billion, CFO of several publicly held US, Canadian and Australian companies, and CEO/CFO of various other private enterprises. As an entrepreneur, Mr. McKinnon has been involved in organizations ranging from start-up companies using venture capital funding to publicly traded institutional investor backed companies. Mr. McKinnon attended Texas Christian University for both his BBA and MBA. He worked for nine years as a CPA in the SEC and the oil and gas practice section of Coopers & Lybrand (now PricewaterhouseCoopers). Additionally, Mr. McKinnon has extensive merger & acquisition and turnaround experience.

Tae Darnell – VP - General Counsel As co-founder of the Cannabis Law Center, Tae Darnell was one of Colorado’s first full time Cannabis lawyers. His firm has represented over 500 dispensaries, cultivation premises and infused product manufacturing companies in addition to playing a pivotal role in Colorado’s rise from operating under a Constitutional Amendment to outright regulated legalization. Tae’s clients represent the definitive leaders in the Cannabis industry and include companies and individuals considered to be the future of the industry. In addition to his experience as a cannabis attorney, Tae has significant executive-level experience and comprehensive expertise in the sports and entertainment industry. Tae has worked or partnered in business with Grammy winners, Emmy winners, Indie winners, NFL and NBA athletes. He is a licensed NFL Agent with active clients in the NFL and also once headed one of the largest independent record labels in the country, releasing over 65 recording projects in a 6 year period, winning 14 Album of the Year awards and securing nomination for over 40. He has facilitated licensing for film and television to companies including: ABC, CBS, PBS, TNT, Time/Life, Hallmark Entertainment, and MTV, and created successful relationships for retailers such as Barnes & Noble, Borders, Tower Records, Virgin Megastores, Wal Mart, Whole Foods, Discovery Channel Stores and many more.

Stephen Keen – Hydro Director of Engineering/Co-founder As the founder of Hydro Innovations, Stephen Keen has been in the marijuana industry for over 15 years. His expertise in cultivation was where he developed his intellectual property. Hydro was formed with a simple concept, providing air cheaper. Hydro currently owns one patent, has a patent pending and has identified multiple new avenues for patents. Stephen is an inventor, engineer and general mad professor of marijuana. He has served as the chief cultivation expert for one of Colorado’s largest MMC operations, while proving that his success yielded the highest yield at its most consistent.

Brandy Keen – Hydro Director of Operations/Co-founder Brandy has served as the director of operations for Hydro since inception. During this time, Brandy has developed a sophisticated knowledge of the marijuana industry while also forming critical relationships that age far beyond those of her peers. During her tenure as director, Hydro has firmly established itself as the premier name in water chilled cooling for the marijuana industry.

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Surna CEO Tom Bollich (April 1, 2014):

“Hydro Innovations has a solid market position,

rapidly growing revenue, its founders’ industry

leading R&D and a powerful technology

platform.

“Combined with our acquisition last week of

Safari’s IP portfolio, Surna today has the

people, technology and market position to

jumpstart our quest to dominate the equipment,

support and services side of the global cannabis

industry.”

Investor Relations Chuck Arnold 310-344-7073 Invrelsvc@gmail.com

At the Company Tae Darnell Director, VP- General Counsel (303) 993-5271 tae@surna.com

This document is being provided by Surna Inc. solely for the information of those persons to whom it is transmitted. No person in any jurisdiction may treat this document as constituting either an offer to sell or solicitation of an offer to buy any securities in the Company. A prospective subscriber must rely solely on the terms of and disclosure of information including important information regarding risks and conflicts of interest contained in the Company's final offering memorandum and related documents, the only basis on which subscriptions may be made.

Safe Harbor Statement This Profile contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as “may,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar expressions. Our actual results, such as the Company’s ability to complete, consolidate and commercialize its acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.