#1an MO TERMI INCORPORATED SEPTEMBER 2022 TM#2ammo INCORPORATED SAFE HARBOR STATEMENT This document contains certain "forward-looking statements". All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies, goals and objectives of management for future operations; any statements concerning proposed new products and services or developments thereof; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing. Forward looking statements may include the words "may," "could," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words, or the negative thereof. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the prospectus included in Annual Reports on Form 10-K, Quarterly Reports on Form 10- Q, and Current Reports filed on Form 8-K. In our filings with the Securities and Exchange Commission, references to "AMMO, Inc.", "AMMO", "the Company", "we," "us," "our" and similar terms refer to AMMO, Inc. and its wholly owned operating subsidiaries. NON-GAAP FINANCIAL MEASURES Non-GAAP financial measures such as Adjusted EBITDA and Adjusted EBITDA Margin as included in this presentation are supplemental measures that are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"). Please see the Supplemental Materials to this presentation for reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA Margin helps investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provides useful information to both management and investors by excluding certain items that may not be indicative of the core operating results and operational strength of our business and helps investors evaluate our ability to service our debt and our profitability relative to our sales. These non-GAAP financial measures have limitations as analytical and comparative tools, and you should consider Adjusted EBITDA and Adjusted EBITDA Margin in addition to, and not as substitutes for, operating income or any other measure of financial performance reported in accordance with GAAP. 2#31. 2. 3. COMPANY OVERVIEW SETUL INCOHPURITER SIGNATURE /stelTH/ STREAK VISUAL AR GUN BROKER.COM $62.5 Action Outdoor Sports (Manufacturing) Engages in the design, production, and marketing of ammunition and ammunition component products Serves a variety of markets, including law enforcement, military, sports shooting, and self-defense Recently opened 185K sq. ft. state-of-the-art manufacturing plant in Manitowoc, WI that is expected to triple the current manufacturing output and provide up to $1M in operational efficiencies • • AMMO, Inc. is a technology-driven ammunition manufacturing and marketplace company • Outdoor Online (Marketplace) GunBroker.com is a marketplace of 6+ million users supporting the lawful sale of firearms, ammunition, and hunting/shooting accessories Deep network of FFL partners and unmatched scale in a large addressable market Proprietary operating platform, market-leading secure transactional technology and robust compliance protocols Net Revenue $305.0 $240.0 il $4.6 $14.8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (Est.) Adjusted EBITDA $8.1 FY 2023 guidance provided 8/15/2022. Data reflects guidance at midpoint of range. Company did not report Adjusted EBITDA prior to FY 2019. Market and total shareholder retum data from FactSet, as of 9/9/22. $75.5 $109.5 -$6.1 -$7.8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (Est.) Sep-19 Three-Year TSR Sep-20 Sep-21 110% Sep-22 Action Outdoor Sports Revenue ($M) $32.2 1Q 2022 $12.3 +37% YoY 1Q 2022 OMMO INCORPORATED Outdoor Online Revenue ($M) $16.5 +34% YoY Nasdaq: PowW Enterprise Value (as of 9/9/22) Market Cap (as of 9/9/22) FY 2022 Net Revenue FY 2022 Adj. EBITDA EV/FY 2022 Adj. EBITDA Employees (as of 6/24/22) $44.3 1Q 2023 1Q 2023 $441.1M $448.0M $240.3M $75.5M 5.8x 359 3#4COMPANY HISTORY AMMO acquires the exclusive license to hybrid luminescence technology used in STREAK ammunition Fred Wagenhals founds AMMO, Inc. December 2016 October 2016 October 2018 September 2017 AMMO consummates a merger and begins trading OTC in February 2017 AMMO closes JMC brass case division acquisition March 2019 AMMO acquires SW Kenetics and armor piercing projectile patented technology March 2020 AMMO establishes sales call center December 2020 April 2020 AMMO awarded U.S. DOD Dev. Contract - Ballistic Match Sniper Ammo The Company expands manufacturing capabilities in Arizona and Wisconsin to meet significant increase in demand from commercial customers Company lists on Nasdaq AMMO acquires GunBroker.com June 2021 C May 2021 ammo INCORPORATED AMMO announces corporate split August 2022 Company breaks ground on 185,000 sqft manufacturing plant in Wisconsin AMMO recently announced the Board's unanimous decision to split the Company through a tax-free spin 4#5THE SPIN WILL CREATE TWO INDUSTRY LEADERS BRANDS INVESTMENT CAPITAL ALLOCATION SALES - FY2023 GUIDANCE LEADERSHIP Gun Genius wwww.gungenius.com OUTDOOR ONLINE GUN BROKER.COM $70 Million -FFL UNLEASHED www.fflunleashed.com forums.gunbroker.com CanBroke.com GUN FORUMS BROKER.COM GunBroker.com is the largest online marketplace dedicated to firearms, hunting, shooting and related outdoor products Majority of capital directed to organic growth and acquisitions to increase premier outdoor sports Marketplace Will be led by Fred Wagenhals as Chairman / CEO ACTION OUTDOOR SPORTS OMMO STREAK BLACKLINE /StelTH/ NCORPORATED VISUAL AMMUNITION PREMIUN DEFENSE AMMUNITION SIGNATURE DISTANSE BIANGS SUPER MATCH AMMUNITION BLUELINE BONOCE LAW ENFORCEMENT AMMUNITION ammu BRASS $230 Million - $240 Million SUBSONIC AMMUNITION High-growth ammunition business, generating attractive cash flow HUNT AMMUNITION Attractive dividend payout ratio and opportunistic share repurchases and acquisitions Will be led by Fred Wagenhals as Chairman ammo INCORPORATED LO 5#6THE SPIN WILL CREATE VALUE FOR OUR SHAREHOLDERS ● ● ● ● ● Different Investor Bases: Outdoor Online ("OO") is a low capital intensity, high margin technology business; Action Outdoor Sports ("AOS") is a manufacturing company with capital intensity, lower margins, strong cash flow and proprietary products; by separating the businesses, each can attract its natural investor base Management Focus: By creating two, focused businesses, the respective management teams can be purpose-built to best support the specific operational needs and growth drivers of each separate company Capital Deployment: Each company will be better positioned to refine and focus its capital allocation strategy, including organic investments (by OO) the return of capital to shareholders (by AOS) Capital Structure: The capital structure (including levels of leverage, for example) can be optimized once the businesses are separated into two separate companies ammo INCORPORATED Enhancement of Brand Strength: Separate public companies should enhance the recognition and growth of each set of brands Expanded Strategic Opportunities: AOS will be able to extend the company's well-established track record as an attractive acquiror 6#7OUTDOOR ONLINE ammo INCORPORATED 7#81. OUTDOOR ONLINE OVERVIEW Profile $80.0 $60.0 $40.0 $20.0 $0.0 Leading online marketplace for the legal sale of firearms, ammunition and accessories with 6+ million registered users 20+ year heritage of innovation Best-in-class secure transactional technology Outdoor Online Net Revenue ($M) $70.0 $67.6 FY 2022 FY 2023 guidance provided 8/15/2022. FY 2023 (Est.) $60.0 $40.0 $20.0 $0.0 Outdoor Online Adj. EBITDA ($M) $48.0 FY 2022 $51.0 FY 2023 (Est.) Investment Highlights 1 2 3 4 5 6 Large base of outdoor-focused customers ammo INCORPORATED Robust infrastructure and technology base that can be leveraged into adjacent end- product marketplaces Strong brand recognition GUN BROKER.COM Competitive moat because of unmatched scale High margins Low capital intensity 8#9LEADING MARKETPLACE PLATFORM Unique Capabilities + Strong Barriers to Entry Proprietary Operating Platform . Authoritative Brand Value GunBroker.com benefits from its reputation as "the" online destination to buy and sell firearms online ● GunBroker.com developed its own proprietary source code upon which the marketplace website operates The system is highly scalable and easily maintained by the Company's lean team of technical engineers ● The GunBroker.com name drives significant traffic and new users to the website to buy, sell and trade firearms and related products Air-Tight Compliance Protocols GunBroker.com has a spotless record with the ATF and FBI, which are the primary regulatory authorities in the firearms marketplace The Company minimizes fraudulent activity through enhanced security measures, such as cell phone verification and additional customer diligence as needed Unmatched Scale GunBroker.com has accumulated a critical mass of users, which allows the business to operate at high levels of profitability ● ammo INCORPORATED • New market entrants will struggle to operate above breakeven levels at lower transaction volumes GUN BROKER.COM Leading Industry Credibility GunBroker.com has earned decades of credibility across the firearms community as the authoritative online auction marketplace with strict compliance to relevant regulatory protocols . ● Deep Network of FFL Partners GunBroker.com has amassed a network of more than 25 thousand FFL partners and has entrenched its service as an integral part of these dealers' marketing platforms Potential competitors would struggle to gain the same level of trust and customer stickiness as an unproven service provider It would take a new market entrant decades to cultivate the depth and breadth of GunBroker.com's relationships across the U.S. 9#1020 O CTION OU SPORTS ACTION OUTDOOR SPORTS 0000 200 20 R ammo INCORPORATED 10#111. ACTION OUTDOOR SPORTS OVERVIEW Profile $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 Leading ammunition and brass casing manufacturer with proprietary products New, state-of-the-art 185,000 sq. ft. ammunition and brass case manufacturing plant in Manitowoc expected to triple current manufacturing output Scaled to support recent industry growth Action Outdoor Sports Net Revenue ($M) $235.0 $62.5 FY 2021 $172.7 FY 2022 FY 2023 (Est.) FY 2023 guidance provided 8/15/2022. Data reflects guidance at midpoint of range. $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 Action Outdoor Sports Adj. EBITDA ($M) $8.1 FY 2021 $35.0 FY 2022 $58.5 FY 2023 (Est.) Investment Highlights 1 2 3 4 5 ammo INCORPORATED Differentiated, patented products backed by leading technology Opportunity for efficiencies and margin improvement from move to Manitowoc facility Consistent growth and attractive cash flow Significant opportunity in the military and law enforcement markets Vertically integrated, scalable model 11#12DIFFERENTIATED AND PATENTED AMMUNITION PRODUCTS AOS vs. COMPETITION AOS 141 Patented / Non-commodity Branded / Licensed Premium 30%+ Target Young, Active, New Users Product Marketing Quality / Price Point Product Margins Target Customer Industry Commoditized Characterized by Use / SKU Value 10-20% Average ammo INCORPORATED Established, Older Generations 12#13STREAK VISUAL AMMUNITION EXCLUSIVE PATENTED TECHNOLOGY Hover pointer for PLAY options ammo INCORPORATED 13#141) INNOVATIVE, PATENTED TECHNOLOGY COMMERCIAL TION AGRES vrye AMAMURRY FT AWARUNITION SPERGER a ape FLUG Whiten AMMUNITION 24 CARTRIDGES AMMO, INC. Signature Line W Superior ball and hollow point ammunition loaded for extreme accuracy and reliability Balanced velocity and recoil with HyperClean powder to shoot more and clean less SIA YOU CAN SEE THE DIFF STREAK NCE VISUAL AMMUNITION YOU CAN SEE THE DIFFERENCE 20 STREAK wwww NOW-INGINDIA SELA E YOUR family/streak-ammunition/ FOUNC STREAK VISUAL AMMUNITIONⓇ Exclusive patented technology allows shooter to see projectile's path¹ Non-incendiary and does not generate heat allowing the rounds to be used in environments where traditional tracers are prohibited (i.e. shooting ranges) STREAK product info and videos: https://ammoinc.com/product-category/product- AMMO has an exclusive license agreement relating to the patent supporting the marketing and sale of STREAK VISUAL AMMUNITION®. /stelTHI ammo /stelTH/ SUBSONIC AMMUNITION 20 LY DESIGNED SPECIFICALLY DES FOR USE WITH SUPPRESSORS /stelTH/Subsonic Ammunition Designed specifically for superior performance in suppressed firearms, reducing decibel levels while improving accuracy and cleanliness Utilizes HyperClean technology with a total metal jacket slowing suppressor corrosion and reducing build-up of lead emissions family/stelth-subsonic-ammuntion/ /stelTH/product info and videos: https://ammoinc.com/product-category/product- RESERVIES BLACKLING 39 amma BLACKLINE 20 ammo INCORPORATED GOREN BLACKLING 20 BLACKLINE AMMO, INC. Signature Blackline Superior hollow point ammunition loaded for extreme accuracy and reliability Balanced velocity and recoil with HyperClean powder to shoot more and clean less Plated Brass for enhanced performance and corrosion resistance STANS 14#15INNOVATIVE, PATENTED TECHNOLOGY DEFENSE Hard Armor Piercing Incendiary (HAPI™) Round ABA Extremely effective accurate alternative to current armor piercing rounds offered by defense contractors - consistently outperform competitor offerings O.W.L. Utilizes the O.W.L. Technology™ Technology T Non-Incendiary Visual in STREAK VISUAL AMMUNITIONⓇ to illuminate the trajectory of the Ammunition projectile Optimized incendiary projectile designed to penetrate and defeat hard targets Leaves visible trace with a non-incendiary round significantly improving accuracy L'I*; Manufactured in America to match grade specs to ensure accuracy and effectiveness ammo INCORPORATED Optimal ammunition for military and law enforcement tactical engagements - trace is only visible in 30-degree window from shooter's point of view, making the round undetectable from flanks and target's viewpoint 15#16MULTI-CHANNEL DISTRIBUTION Current Ammunition distribution channels LUCKY Bass Pro Shops PALMETTO 93 GUNNER STATE ARMORY SCHEELS GEAR. PASSION. SPORTS. AMCHAR WHOLESALE INC. SLWS Online / Retail Cabela's BROWNELLS SPORTSMAN'S GUIDE Fleet FFarm ARMS UNLIMITED ORION WHOLESALE DICK'S DAVIDSON'S SPORTING GOODS Distributors Midway Rural King Rural King BI-MART America's Farm and Home Store TARGET SPORTS USA A Academy SPORTSMAN'S BILL HICKS & CO. LTD OPTICS PLANET.COM RSR GROUP Sports South.c IRON VALLEY - SUPPLY CO. EST. 1923- RANGE USA GUNS-N-GEAR MADISON, MISSISSIPPI Shooting Ranges -H&H STOOLING SPORTS NBS Nation's Best Sports HOOT QUICKSHOT Mid-State DISTRIBUTING CO. FRISCO Sun Club KINGS GI Center Scottsdale Gun Club Wheat BELT Buying Groups PORTS NC. Worldwide ammo INCORPORATED STATE MAGNUM The Independent Retailers Buying Group RANG SHOOTING CENTER Do it Best Corp. 16#17SIGNIFICANT MILITARY OPPORTUNITY Current progress in the global defense market * Next Generation ammunition AP/HAPI™M, O.W.L. Technology TM, Ballistic Matching Sniper and Signature-on-Target (SoT) Ammunition for U.S. Military Awarded contract by Irregular Warfare Technical Support Directorate (IWTSD) to design and manufacture Signature- on-Target (SoT) rounds in support of military operations. Awarded contract by Irregular Warfare Technical Support Directorate (IWTSD) to design and manufacture Ballistically Matched Multi-Purpose Rounds (BM-MPR) rounds in support of military operations. Compliant with current U.S. State Department and Department of Commerce statutes and regulations governing the lawful export of ammunition and munition components ammo INCORPORATED 17#18SIGNIFICANT MILITARY OPPORTUNITY MARKET PENETRATION STRATEGY Launched in 2019 with Mission to Deliver High-Quality, Precision Rounds for Military & Defense Operations Across the World Introduce Proprietary Technologies Strong demand for our patented Armor Piercing (AP) and Hard Armor Piercing Incendiary (HAPI™M) rounds Our patented One-Way Luminescent Technology (O.W.L. Technology ™M) utilized in our STREAK products provides competitive advantage in tactical and defense scenarios Our Ballistic Match Multi-Purpose Round (BM-MPR) is being developed to provide snipers with the ability to switch from standard issue match-grade ammunition without re-zeroing their weapons Our Signature-on-Target (SoT) ammunition is being developed to provide warfighters with the ability to see the impact of rounds fired on a wider variety of targets in both day and night Penetrate and Expand Market Share Prove increased performance through demonstrations of lethality and accuracy 000 Is! ammo INCORPORATED Offer lower-cost, made in America product lines by controlling component manufacturing costs Ability to better meet increased market demands allows AMMO, Inc. to capture sales opportunities Partner with strategic players and weapon manufacturers to expand product lines 18#19FINANCIAL PERFORMANCE ammo INCORPORATED 19#201. 2. FINANCIAL PERFORMANCE Fiscal Year Ended March 31 ($ in millions) $2.6 Net Sales $4.6 $14.8 $62.5 $240.3 FY 2023 guidance provided 6/29/2022. Data reflects guidance at midpoint of range. Company did not report Adjusted EBITDA prior to FY 2019. $305.0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (Est.) Fiscal Year Ended March 31 ($ in millions) -$6.1 Adjusted EBITDA² FY 2019 -$7.8 FY 2020 $8.1 FY 2021 $75.5 FY 2022 $109.5 FY 2023 (Est.) ammo INCORPORATED 20#21FY2023 GUIDANCE FY2023 GUIDANCE Revenues EBITDA Adjusted EBITDA Action Outdoor Sports, Inc. (Manufacturing) $230 million - $240 million $35 million $38 million $57 million - $60 million Outdoor Online, Inc. (Marketplace) $70 million $47 million $51 million ammo INCORPORATED 21#22INVESTMENT HIGHLIGHTS MO® INCORPORATED SIGNATURE 00000 000 O STREAK GUN BROKER.COM® VISUAL AMMUNITION™ stelTH/ SUBSONIC AMMUNITION 000 00:0 1 2 3 4 5 6 Strong record of operational execution, revenue growth, margin expansion and free cash flow generation Successful track record of acquisitions and integration ammo INCORPORATED Large addressable markets with multi-channel, diverse distribution Spin transaction is a likely catalyst for value recognition, improved performance and optimized capital structures Significant market expansion opportunities in both businesses (adjacent products for OO and military for AOS) Experienced management team 22#2320 100 000 10000 20 APPENDIX OO R ammo INCORPORATED 23#24SPIN TRANSACTION DETAILS AMMO anticipates the transaction will be in the form of a dividend distribution to its shareholders of 100% of the stock of AOS, which will become a new, independent publicly traded company The distribution is intended to be tax-free to both companies and their shareholders for U.S. federal income tax purposes Concurrently, AMMO will change its name to Outdoor Online and will operate under a new ticker symbol AMMO reasonably anticipates the transaction will be completed in the 2023 calendar year, subject to final approval by the Company's Board of Directors, a Form 10 registration statement being declared effective by the U.S. Securities and Exchange Commission, regulatory approvals and satisfaction of other standard and necessary terms and conditions ammo INCORPORATED 24#25NON-GAAP FINANCIAL SUMMARY (2022) *SEE RECONCILIATION OF GAAP TO NON-GAAP Net Sales EBITDA Non-GAAP Adjustments Excise Taxes Employee stock awards (1) (1) Stock grants Stock for services Warrants issued for services Other income, net Contingent consideration fair value (2) Adjusted EBITDA Adjusted EBITDA Margin AOS Manufacturing $ 172,708,804 $ 20,335,462 14,646,983 (21,840) 34,960,605 20% Outdoor Online $ $ Marketplace (1) We have included Employee stock awards and Stock grants in Corporate expenses. (2) Represents the change in Contingent Consideration Fair Value related to our acquisition of SW Kenetics, Inc. for the year ended March 31, 2022. 67,560,362 $ 48,020,186 71% Corporate 48,020,186 $ (13,845,353) 5,759,000 252,488 4,200 718,045 (385,750) (7,497,370) $ $ Total 240,269,166 54,510,295 14,646,983 5,759,000 252,488 4,200 718,045 (21,840) (385,750) 75,483,421 31% ammo INCORPORATED 25#26GAAP TO NON-GAAP RECONCILIATION Reconciliation of GAAP net income to Adjusted EBITDA Net Income (Loss) Provision for income taxes Depreciation and amortization Loss on purchase Excise Taxes(1) Interest expense, net Employee stock awards Stock grants Stock for services Warrants issued for services Other income, net Contingent consideration fair value Stock and warrants for promissory note conversion Adjusted EBITDA (1) Excise taxes not included in Adjusted EBITDA calculation prior to Fiscal Year 2021. 31-Mar-22 $ $ 33,247,436 3,285,969 17,339,093 14,646,983 637,797 5,759,000 252,488 4,200 718,045 (21,840) (385,750) 75,483,421 31-Mar-21 For the Year Ended $ (7,812,294) 4,876,756 1,000,000 4,286,258 3,009,094 1,450,359 278,585 1,707,500 (576,785) (119,731) $ 8,099,742 31-Mar-20 $ (14,556,680) 4,455,962 719,187 901,526 534,929 352,300 (190,377) $ (7,783,153) 31-Mar-19 $ (11,709,412) 599,863 2,118,154 610,600 1,172,974 703,030 22,350 358,000 (6,124,441) ammo INCORPORATED 26#27ammo INCORPORATED Important Additional Information and Where to Find It AMMO, Inc. (the "Company") intends to file a proxy statement on Schedule 14A, an accompanying WHITE universal proxy card and other relevant documents with the Securities and Exchange Commission ("SEC") in connection with its solicitation of proxies from the Company's shareholders for the Company's 2022 Annual Meeting of Shareholders (the "Annual Meeting"). BEFORE MAKING ANY VOTING DECISION, SHAREHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE COMPANY'S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors may obtain copies of Company's proxy statement, proxy card, any amendments or supplements thereto and other documents filed by the Company with the SEC when they become available at no charge at the SEC's website at www.sec.gov. Copies will also be available at no charge in the "SEC Filings" section of the Company's Investor Relations website at https://investors.ammoinc.com or by contacting the Company's Investor Relations Department at [email protected] after such materials are electronically filed with, or furnished to, the SEC. Certain Information Regarding Participants to the Solicitation The Company, its directors and certain of its executive officers are participants in the solicitation of proxies from the Company's shareholders in connection with matters to be considered at the Annual Meeting. Information regarding the direct and indirect interests, by security holdings or otherwise, of the Company's directors and executive officers in the Company is included in the Company's Proxy Statement on Schedule 14A for its 2021 Annual Meeting of Shareholders, filed with the SEC on September 13, 2021, the Company's Annual Report on Form 10-K for the year ended March 31, 2022, filed with the SEC on June 29, 2022, and in the Company's Current Reports on Form 8-K filed with the SEC from time to time. Changes to the direct or indirect interests of the Company's directors and executive officers are set forth in SEC filings on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4. These documents are available free of charge as described above. Updated information regarding the identities of potential participants and their direct or indirect interests, by security holdings or otherwise, in the Company will be set forth in the Proxy Statement for the Annual Meeting and other relevant documents to be filed with the SEC, if and when they become available. 27