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This is a unique opportunity to invest in a disruptor in the global renewable energy market versus the current residential, commercial, and industrial solar systems in the marketplace.

The company is the world’s 1^st all-in-one solar energy solution; designed for residential, commercial, and industrial applications.   It can provide energy 30% cheaper than the local utility company, and clients are only billed for energy used in long term (25 years) revenue contracts.  The product can seamlessly connect with 100’s of additional solar panels via smart wireless to bring a fully integrated kilowatt-scale or mega-watt utility scale solution.

Competitive Advantage –   1^st patented fully-integrated nanotech smart solar panel that houses the electronics, batteries, smart transformers, converters, and inverters with distributed energy storage.  The plug and play modules provide users with convenient installation for residential, commercial, and industrial markets.   This company provides the most cost-effective, efficient, easiest to install, and most reliable solution to market.

Value Proposition –   The smart hybrid solar and energy storage technology uses a 100-watt DC system which utilizes proprietary hardware and artificial intelligence software to generate a greater than 88% combined output efficiency which is a 18% increase over comparable solar systems (example: Tesla).   In addition, this product also achieved a 30% decrease in system installation costs due to fewer components and easier to install plug and play modules to achieve a lower price point ($3.25) compared to median industry leading solar panel and power wall battery combined systems ($3.75). 

The company’s fully integrated smart solar panel system is able to achieve greater efficiency, faster install times, and lower costs because each smart solar panel runs independently in parallel and is powered by AI for precise usage data control to optimize output and storage.

The Opportunity 

1) Seeking a strategic JV equity partner for $25MM in equity funding (Equity:  6.25mm shares out of the 53mm shares outstanding ‘A’ voting shares issued at $4; valuing the firm at $212MM 11.79% stake).  The company needs to strong strategic JV equity partner to develop manufacturing lines in multiple countries using a leading outsource manufacturing contractor. 

*There’s also an opportunity to invest in a $25MM Convertible Bond offering at 7.5% conversion price at $4, maturity at 12/31/26

2) Seeking a $100MM debt financing partner to support the monetization and commercialization of its breakthrough solar IP portfolio (42 filed nano-optical electronic technology patents in the solar and utility industries), and to commission a fully automated production line of 1mm unit annual capacity (100 mw per line) to meet existing market demand and expand its market share world-wide.  

Sources and Uses – All growth capital will be used to re-invest and scale growth via manufacturing lines.  Equity investment will be used for working capital and research and development.  Debt financing will be used to scale production, purchase materials and inventory, and business development (SG&A). 

Investment to Date: $9.5MM (includes matching $4M government grant)

Pipeline: $500MM in pre-orders, MOUs, and letter of intent + $200MM binding = $700MM pipeline of pre-orders, LOIs, and pending contracts.

Current Status

The company has proven panel technology and has already designed, assembled, and tested 100 panels the past 2 years.    

*The company has recently acquired a $25MM bank loan to set up the 1^st manufacturing line and will be cash flow positive the 1^st year in operation.   

Financial Projections

Projected five-year revenue: $1.25B   EBIT: $574MM   FCF: $417MM   EV: $951MM

Est. IRR: 176.5%   MOIC: 38x

*Estimated numbers did not include the federal rebates and tax incentive benefits for solar and battery manufacturing

** The company can be cash flow positive in the 1^st year of operation and in year 4 achieve a capacity of 1mm solar panels. 

*1^st year manufacturing line = 100k-250k solar panels = 10%-25% of total capacity

The goal is to create multiple manufacturing lines (15 total production lines) to scale in 5 years to $5B in revenues.

Each manufacturing line costs $16MM-$20MM to set-up

$16MM x 15 lines = $240MM to $20MM x 15 lines = $300MM All-In Cost

Potential Market Opportunities

• Solar Market: $223B (targeting 15% of the total US residential market)

*Solar system provider market share is highly fragmented with the top 10 = less than 40% market share

• Digital Ad Market: $31B
• EV Market: $29B
• Vertical Agriculture Farming: $29B (AI nano grow lighting system, AI photosynthesis, and light sensor control system)

Potential Clients – home owners, home builders, commercial real estate owners, factory owners, and utilities

Revenue Mix – direct sales, whole sale, leasing, licensing, direct energy supply (power purchase agreements- long term revenue and batteries long life (twenty-five years), EV charging stations, emergency and disaster zone power, tax credits to investors, renewable energy credit, manufacturing credit, end user benefit, and carbon credit offsets

U.S. Government Policies Create Favorable Long Term Business Environment for Renewable Energy Investment

In 2018, U.S. placed a 30% tariff on imported solar panels and cells which led to solar companies moving operations and manufacturing solar panels to the US. 

The Inflation Reduction Act 2022 is a mega trend driver for the entire solar industry.  There’s a 30% tax credit for purchasers on demand side and a 40% tax credit for manufacturers on supply side.  The investment tax credit runs to 2032.  There’s also a production tax incentive if production begins before 1/1/2025. 

Oxstones Real Estate, www.Oxstones.com  CRE@Oxstones.com

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