Ann: Quarterly Shareholder Update, page-64

the model has changed a few times over the period.

Originally they wanted to sell the units and have the support. The model has its plus, quick cashflow and ability to scale.

however the company has shifted to 2 models at the moment

the first is an operating lease of the units which means that they still own the unit and can build maintenanc and everything into the price. I think they were talking 5+5 type leases.

The other path they are talking about is where they own the unit, and arbitrage the grid. With access to NEM they can access the second by second price fluctuations. The plan is to buy and store cheap and sell when electricity requirements exceed capacity. If they Time it right there many hundreds of multiples involved in that arbitrage. However it will very much depend on how quickly the unit can release electricity. The Telsa batter was able to release electricity in 0.4 of a second. Therefore it is very quick to exploit. As yet I have not seen 1414s figures. However the company believes it is doable, just not at the same way a battery can react.

Ultimately however, to work they will need to be situated very close to an exchange, or place strategically across the grid. If they are not close enough they will lose too much in transit.

theory is excellent. If they do it in the grids it will allow what’s know as micro grids. These need the grids to be rearchitected, and only has been done Limited scale in the USA, but so far it’s very promising