HEWSPlacing wind energy in consumers’ hands

HEWS is the next generation bladeless, high-efficiency wind powered generator for your home, business and community

E : H E W S @ H E W S T E C H . C O M

M E D I A :

W W W . H E W S T E C H . C O M

W W W . C R O W D F U N D E R . C O M / H E W S - T E C H N O L O G I E S - I N C -

W W W . L I N K E D I N . C O M / C O M P A N Y / H E W S - T E C H N O L O G I E S

W W W . F A C E B O O K . C O M / H E W S T E C H

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Business Overview

Sustainable Technology Advantage: Unique process and design, Patent pending

Verifiable: Expert evaluation, built and tested prototypes (Proof of Concept + three performance trials completed)

Strong Team: Deep integration, technology and execution experience + global network opportunity

Market Opportunity: underperforming 1GW distributed (on-site) wind energy market for micro and small wind power plants (below 150KW), and medium plants (150-750KW)

Seeking $275,000 Bridge Funding to achieve intermediate scaling with HEWS Beta (12KW), basis of design for 50-150KW capacity, $25K in-kind committed

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Industry Problem/Opportunity• Problem: Conventional distributed (on-site) wind energy doesn’t yet effectively compete with

utility electricity rates in terms of the Levelized Cost of Energy (LCOE):

• Opportunity: the right balance of sustainable cost, safety and efficiency can offer consumers a real chance to access and utilize on-site wind energy.

a. Consumers can effectively off-set their electricity bill today and hedge against rising utility rates in the future. b. Consumers can reduce reliance on utility electricity.

c. Opportunity Drivers: Consumer Awareness – people are more aware of the environment today than ever before. Consumer Interest – people are interested in reducing their energy cost. General Consensus – consumers, businesses and governments agree that green technologies offer

viable energy alternatives for the future i.e. wind, solar, hydro-power. Technology – strong demand for technologies/products that resolve deployment barriers commonly

associated with distributed wind project economics, such as higher capacity cost, lower operating efficiency and less than perfect wind regimes

that yield unsustainable cost of energy. New Financing mechanisms – equipment leasing can support deployment to consumers

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Value Proposition

HEWS outperforms conventional wind systems in distributed wind environments.

1. High-Efficiency at a Sustainable Cost: HEWS engages both potential and kinetic energy of the wind through a proprietary dual intake system and integrated components to deliver robust power performance at a sustainably competitive cost of energy.

2. Targeted Product: Designed for optimal operating efficiency within on-site (distributed) micro, small and medium scale plants (below 1MW capacity), HEWS effectively places wind energy in the hands of the consumer.

3. Demonstrated performance: HEWS’ ergonomic design characteristics and demonstrated performance in turbulent wind regimes makes HEWS ideally suited for deployment in urban and rural environments, including rooftop installation, for Residential, Commercial, Industrial, Public Facility and Community projects.

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Technology Highlights High-efficiency

up to 75% mechanical efficiency attained in prototyping delivers 1.8x wind power boost and laminar airflow to the turbine to yield

stable power output in turbulent wind regimes yields more than 38% effective wind-to-electrical power efficiency.

Mechanical and Electrical components at ground level easier to operator with lower O&M cost, comparable to micro/small scale

wind turbines

Light construction and installation lighter, more readily components yields lower initial investment and continued

maintenance cost Easier logistics, reduced siting limits, better accessibility to wind resource

Sustainably scalable competitive economies of scale at smaller capacities Utility Scale Capacity cost ($1,700 /KW) attainable at 150KW HEWS Capacity

30%+

Reduction to LCOE

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How it Works

Potential Air Energy to Kinetic Wind Energy

V1

-

ΔP

F

+

P

P

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Prototyping Progression 4 Prototype Trial Completed according to baselined parameters:

Concept proven + negative operating pressure achieved + power density boost achieved + energy produced.

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System Process Output Comparison

Ref: 1.225 Air Density VAWT Venturi HAWT HEWSIntake 1 Wind Speed (m/s) 11 11 11 11Wind Power Density 1 (W/m²) 815 815 815 815Friction Losses N/A 7% N/A 7%Wind (Airflow) Power After Losses (W/m²) 815 758 815 758Airfoil Contribution N/A N/A N/A 10%Net Wind Power Density (W/m²) 815 758 815 834Intake 2 Wind Speed (m/s) N/A N/A N/A 7Wind Power Density 2 (W/m²) N/A N/A N/A 210Pull Force (ΔP) Power Boost (W/m²) N/A N/A N/A 425Net Convertible Wind/Airlfow Power Density (W/m²) 815 758 815 1,469Airflow Power Density Boost (comp. to conventional HAWT) 1x .93x 1x 1.8xEnergy Conversion Efficiency (%) 22% 33% 42% 38%Effective System Energy Ouput (W/m ² ) 179 250 342 558Energy Output Factor (comp. to conventional HAWT) .52x .73x 1x 1.6x

HEWS proprietary process yields a 1.8 x airflow power density boost to the turbine and, with an integrated Francis-type turbine, adds 1.6x energy output over conventional HAWT

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Competitive AnalysisAgainst the backdrop of average utility rates ranging between 12.1¢/kWh and 10.4¢/kwh with conventional distributed wind segment offering LCOE of 28 ¢/kwh and 10 ¢/kw, respectively (before subsidies).

HEWS’ competitive advantage is derived from: 1. HEWS is capable of delivering energy at 4- 6 ¢/kWh for sites with rated average annual wind

speeds between 5 m/s and 7 m/s (common wind regime for the segment).

2. HEWS ergonomic design and low noise factor conforms with rural and urban user based environments and facades.

3. The system provides a rapidly deployable network of intrinsically safe, highly efficient wind power generators requiring minimal maintenance.

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Market

US Distributed Wind

60MW/a

CWAC$6,230/KW

Avg. LCOE

11 ¢/kWh

Market Niche: Distributed Wind

Market Segment: local loads and on-site load (behind meter, remote net-metered or off-grid)

Market Drivers: technology, Capacity –Weighted Average Cost (CWAC) and Levelized Cost of Energy (LCOE)

HEWS Target for <1MW Capacity: CWAC $3,5000/kW

LCOE 4-6 ¢/kWh

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Business Model

Revenue Stream• Direct Sales: Capacity Cost starting at $1,700/kW• Licensing Contracts: starting $50K/C + 1.5% Royalty

Cost Structure• R&D/Product Development/Innovation Center• Buyer/Seller Education; Marketing and Promotion

Key Partners

• National Labs• Licensed Engineers

& Architects • 3rd Party

Developers• Wind Asset Management companies

• Leasing Companiess

Customer Segments

Distributed Wind (<1MW):• Mobile/Military (5-25KW)• Residential/Urban (5-15KW)• Commercial (15-150kW)• Municipal (50-150KW)• Industrial (100-750KW)

Key Activities

• Product Development

• Direct Sales• IP Licensing

Value Proposition

• Sustainable Technology Advanatge

• LCOE competes with utility rates

• Scalable with smaller footprint

• Easy to operate

Key Resources

• IP • Prototypes• Strategic Loacal and Global Network

Channels

• Partner Program• Media• Trade shows• Word of mouth

Customer Relationships

• Educational• Sales drive• Maintenance

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Rollout Plan – Build Phase to Market

Computational Development(completed)

A1 Prototype Proof of ConceptΔP 170Pa / 60RPM at 125V (completed)

A1/2/3/4-ModifiedΔP 210Pa / 240RPM at 250V(completed)

Beta 12KWBuild, test, validate, certify, optimize design to market

9-12 months lead

To-MarketTarget:12-150KW capacity:Residential,Commercial,Industrial,Community,Municipal24 months lead

Our next milestone is Intermediate Scaling with Beta:

Build + Test + Validate + Certify

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Forecast

$1.425MPre-Market Investment

1 MWCapacity Sales by

EOY 3

40% IRREOY 3

Investment Y0 Y 1 Y 2 Y3 Y4 Y5Concept Development $15,000HEWS Prototype Alpha 1 $35,000HEWS Prototype A2, A3, A4 $100,000HEWS Beta $275,000Commericalization $1,000,000Other $75,000Net Investment (pre-market) $1,500,000

Direct Sales Y 1 Y 2 Y3 Y4 Y5Growth rate (%) 0.00% 1.85% 3.00% 3.00% 2.50%Capacity Price ($/kW) $3,500 3,500 3,565 3,672 3,782 3,876Capacity Sales as % of Total (Diect and Licensed) Sales 80% 70% 50% 40% 35%Capacity Sales (kW) 50 250 500 750 1,000Revenue From Direct Sales ('000$) $ 175 891 1,836 2,836 3,876COGS as % of Revenue for Direct Sales 62% 65% 65% 65% 65% 60%COGS ('000$) 114 579 1,193 1,844 2,326Gross Profit ('000$) 61 312 643 993 1,551R&D as % of Gross Profit) 7% 12% 12% 10% 7% 7%R&D ('000$) 7 37 64 69 109Marketing and Promotion as % of Gross Profit 7% 7.0% 7.0% 7.0% 7.0% 7.0%Marketing and Promotion ('000$) 4 22 45 69 109EBITDA from Direct Sales ('000$) 50 253 533 854 1,333

Licensing Price per License ($) $50,000 50,000 50,000 50,000 100,000 100,000Licenses Sales (units) 3 8 10 12 17Cumulative License Contracts 3 11 21 33 50License Contract Revenue. ('000$) 150 400 500 1,200 1,700Royalty Commission as % of Licensed Sale 1.50% 1.50% 1.50% 1.50% 1.75% 1.75%Licenced Royalty Capacity Sales as % from total Yearly Direct Sale 20.00% 30.00% 50.00% 60.00% 65.00%Royalty Revenue ('000$) 1 19 463 1,622 4,409Capacity Sales from Licensed Contracts (KW) 13 107 500 1,125 1,857# of Units sold per Weighted-average size - Licensed Contracts 0 2 7 11 15Marketing and Promotion as % of License Rev. ($) 3% 0 1 14 49 132EBITDA from Licensed Constracts and Direct Sales ('000$) 151 419 963 2,822 6,109

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The Team

◦ .

Investors & AdvisorsEric Darmstaedter – Management ConsultingVictor Timofeev – CIS Business Integration ConsultantAlexander Pichugin – Development Engineering Consultant

Strategic Partners & VendorsIndustrial Air Products (IAP)Innotech Machining

• process theory, concept, product and business development

Alexander G. Kogan (Co-Founder, CTO and CEO)

• Financing, marketing, promotion and fundraising

Filipp Kogan (Co-Founder, CFO and Marketing Director)

• power island design, quality assurance, component sourcing and procurement

Genrikh Kleynerman (Co-Founder, Technical - Electrical Engineering)

25 + years of deep Integration , technology and execution experience

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Rewards and Growth Strategy

Rewards• Beta Investors: $275K Convertible Preferred Note

• Exit/Conversion at Series-A Priced Round or Maturity: 4% p.a./ 20% Discount Rate• Series-A Priced Round: $1M Preferred Stock (Target close by Q2 2018)

• Rewards from Growth Strategy

Growth STRATEGY• Strategic Partnerships: with large wind energy development companies through licensing, joint

development and promotion (GE Power, Vestas, Siemens)• Government (military) contracts: mobile and off-grid application• Licensing/Franchising: commercial and residential (Urbanization of Wind Energy)• Global Product Positioning/Sales and Distribution: leverage 25 years experience, personal and

business network

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Thank You!

Supplemental Slides follow…APPENDIX SECTION

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Appendix 1: HEWS 12KW Budget AllocationHEWS 12KW Budget(March – Dec 2017)

HEWS 12KW Engineering, Production, Delivery, Installation, Commissioning 70K 3rd Party (Intertek) Evaluation, Testing, Validation

25K Travel/Other

20K Marketing/Promotion

10K Legal and Financing Support

10KTotal HEWS 12KW Evaluation Cost:

135K Computational Fluid Dynamics (CFD)

Design Evaluation and Turbine Optimization 40 – 60 K

Certification (Intertek)70 - 100K

Marketing and Promotion 10 - 60K

IP Review and International Patent Filing 10- 20K

Legal and Financing Support10-25K

Development and Promotion Cost140K – 265K

Total Beta, Development and Promotion Cost$ 275 -400K

3rd Party Co-op.,

Intertek, Inc (internationally accredited performance evaluation and certification body)