TRANSFORMING THE WORLD FOR GOOD · © HEAT X, LLC 2020 •All rights reserved • CONFIDENTIAL • GEN I (FLUIDS) ACHIEVEMENTS & PROJECTED TIMELINE KEY FUNDING MILESTONES 2018 July,

© HEAT X, LLC 2020 • All rights reserved • CONFIDENTIAL •

WHO IS HEAT X

HEAT X is aligned with the U.S. Department of Energy Strategy 2030 to create and sustain American leadership in the transition to a global clean and safer energy economy.

HEAT X™ is a technology development and licensing company established in June of 2018 and isheadquartered in Auburn Hills, Mich., USA. HEAT X relentlessly focuses on improving people’s lives,reducing the use of energy and delivering the next generation of clean technologies inmagnetocaloric/magnetic induction heating for air, surfaces and fluids.

Our innovative approach to these technologies enables us also to empower our partners to becomeleaders in solving climate challenges. The result is the development of unique technologies forresidential, commercial, industrial and transportation sectors that creates value for customers, usersand a positive impact in our environment and the world at large.

HEAT X™ possesses one of the largest and proven patent portfolio for magnetocaloric heating technologies in the

United States

TRANSFORMING THE WORLD FOR GOOD

MAGNETOCALORIC/MAGNETIC INDUCTION TECHNOLOGIES

www.heatxtech.com1

EstablishmentJune 2018

Talented & Diverse team

Auburn Hills,Mich., USA

MagnetocaloricMagnetic Induction

Technologies

Licensing Business Model

.

http://heatxtech.com/

https://heatxtech.com/

http://www.heatextech.com/

© HEAT X, LLC 2020 • All rights reserved • CONFIDENTIAL • www.heatxtech.com 2

THE HEAT X DIFFERENCE

RESPECT OF THE ENVIRONMENT AS A KEY DRIVER

• Restrictive regulations on refrigerant gases are increasing• High impact of heating and fuel burning on Climate Change (HFCs, Carbon Footprint).• It is estimated that about three-quarters of greenhouse gas emissions that are

attributed to humans come from burning fossil

SAFETY FOR ALL

• These technologies do not use gases and eliminate any risk of combustion and asphyxiation, then reduce household accidents

• EMF (Electric Magnetic Field) levels (non-ionizing radiation) of our technology are extremely lower (2.2-40 mG at 4”) compared to current domestic appliances like i.e. hair dryer (60-20,000 mG) or a fluorescent lamp (400-4,000 mG)

ONE OF THE LARGEST PORTFOLIO PATENTS IN MAGNETOCALORIC/MAGNETIC INDUCTION TECNOLOGIES

• HEAT X is focused in magnetocaloric technology, the magnetic induction/magnetocaloric technologies and continues adding patents to this caloric technology

• 12 provisional patents and utility patents• UL Certification in progress

ECONOMICAL FACTORS THAT WILL DRIVE IMPLEMENTATION

• Limited efficiency provided by gas standard heating systems• HEAT X™ magnetocaloric technology can deliver heat with substantially less electrical

consumption than currently available electric induction heaters• High costs of gas infrastructure; only in the U.S the estimated cost to replace

unprotected steel pipes is $173.8 Billion USD approximately

TECHNOLOGICAL FACTORS THAT WILL DRIVE IMPLEMENTATION

• No need of contractor’s expertise and license for the maintenance• Decentralization will lead to efficiencies vs centralization that leads to duct losses

from 15-30%• Current installations require a high Total Cost of Ownership TOC due to the lack of

scalability of current solutions

In recent years, several emerging technologies in the domain of solid-state physics have been investigated as serious

alternatives for future refrigeration, heat pumping, air conditioning, or even power generation applications.

Magnetocaloric technology is one of the 3 caloric technologies as seen in the infographic. A magnetic heating/cooling system

applies a magnetic field to a Magnetocaloric Material (MCM). The result of the process is called Magnetocaloric Effect (MCE).

The MCE implies that the temperature of suitable materials increases when they are exposed to a magnetic field and decreases

when they are removed from it, that is, the effect is reversible and almost instantaneous.

MAGNETIC INDUCTION/MAGNETOCALORIC TECHNOLOGIES

Electrical Magnetic Mechanical

Ele

ctro

calo

ric

Ma

gn

eto

calo

ric

Ela

sto

calo

ric

(Th

erm

oe

lasti

c)

THERMAL

Caloric TechnologiesThese technologies bring the possibility for improvements in energy

efficiency, compactness, noise level, as well as a reduction in

environmental impacts, so it seems very probable that they will start to

fill market niches as a replacement for current technologies in the

future.

To put this technology in perspective, the magnetic

heating/refrigeration system does not use any refrigerant gas or CO2

and is not affected by the regulations challenging the use of

refrigerants (F-gas, SNAP policy…). It also has a coefficient of

performance (COPs) proportionally to the magnitude of the caloric

effects and inversely proportionally to the strength of the driving field.





WHY HEAT X TECHNOLOGIES

WELL-POSITIONED HEAT X TECHNOLOGY PORTFOLIO

www.heatxtech.com 3





GEN I (FLUIDS)

ACHIEVEMENTS & PROJECTED TIMELINE

KEY FUNDING MILESTONES

2018July, October -

NovemberCapital Raise

$410K4 patents

3 prototypes

2019March -

NovemberCapital Raise

$925K9 patents

6 prototypes

2020April - August

FINALCapital Raise

$10.4MM14 patents

10 prototypes

2018 2019 2020

GEN I (AIR TO AIR)

PROTOTYPEVALIDATIONCAPITAL RAISEPATENT FILING

$

January – JunePrototype pre-production GEN I -Internal and 3rd party validationPrototype #3 improve efficiency GEN II

Capital Raise #2 – GEN II$

June – DecemberPrototype #1Prototype #2Prototype preproduction GEN I – internal validation

Capital Raise #1

Provisional patent #1Provisional patent #2Provisional patent #3Provisional patent #4

$

July - DecemberPrototype #4 – improved efficiency GEN IIPrototype #5 GEN I Tankless water heaterGEN I 3rd party validationPrototype #6 GEN II Tank fluidPrototype #7 Advanced GEN II

Capital Raise #3

Utility patent international #1Utility patent international #2Provisional patent #5Provisional patent #6Utility patent international #3Utility patent international #4Provisional patent #7Provisional patent #8Provisional patent #9

$

January - SeptemberGEN II 3rd party validation Prototype #6 GEN II Tankless waterPrototype #7 Advanced GEN IIDesigns for GEN III (a)

Final Capital Raise #4 (b)

Provisional patent #10 (c)

Provisional patent #11Provisional patent #12Provisional patent #13 Provisional patent #14

GEN I / GEN II COMMERCIALIZATION

PR/Media CampaignCommercial Partners searchComplete technical teamNew Laboratory

$

GEN III (AIR TO AIR)GEN I (SURFACE)

GEN II (AIR TO AIR)

2020PR/Media Plan

Commercialization Plan

Complete technical team

New laboratory

NEXT STEPSCAPITAL RAISE AND KEY ACHIEVEMENTS

www.heatxtech.com 4

(a) End of April 2020(b) 3rd Qtr. 2020(c) Patent #10-#12 April; Patent #13, #14 Summer 2020





Nuncha MarañónChief Marketing Officer

+1 (248)[email protected]

www.heatxtech.com 5

Future applications of HEAT X technologies will transform all residential and industrial gas appliances (dryers, water boilers, gas ovens, etc.), commercial, industrial heating and transportation safely. 2019 Global AIR Heating Market: $ 126.5 billion.

Additional applications of HEAT X technology will cover/displace electric and gas surface heating equipment eliminating toxic emissions. We have just developed our GEN I surface heating technology. 2019 Global SURFACE Heating Market: $ 108.9 billion in 2019.

We are currently developing our GEN II fluid heating technology (Tankless/Tank) and targeting completed development and validation by end of Q1 2020. 2019 Global FLUID Heating Market: $ 174.2 billion.

WHERE HEAT X TECHNOLOGIES ARE RELEVANT

Our disruptive technologies, targeting large markets, work for anyresidential, commercial, industrial and transportation EV appliancesincluding furnaces, heaters, heat pumps and EVs (Electric Vehicle)heaters.

These transformative technologies bring environmentally friendly

heating and cooling technologies for future generations



INITIAL TARGET APPLICATIONS - HEATERS

ELECTRIC VEHICLES

RAILCAR ELECTRIC

SPACE AIR DUCT

HE

ATE

RS

$1.1 BILLION 2025 $0.6 BILLION 2019 $4.67 BILLION 2019 $4.61 BILLION 2019

FOR FURTHER INFORMATION:

mailto:[email protected]


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TRANSFORMING THE WORLD FOR GOOD · © HEAT X, LLC 2020 •All rights reserved • CONFIDENTIAL • GEN I (FLUIDS) ACHIEVEMENTS & PROJECTED TIMELINE KEY FUNDING MILESTONES 2018 July,