Ann: Quarterly Shareholder Update, page-65

The following is taken word-for-word from prospectus.

In addition to direct sales (which will include the Company retaining a rightto buy back the TESS device), the Company will generate revenue by:
1. offering lease-purchase plans over a 10 - 20 year term with an option forthe customer to purchase, subject to the Company retaining a right to buyback the TESS device. This structure, known as ‘Hardware-as-a-Service’(HaaS), will have associated long term operating and maintenanceagreements (O&M Agreements) also generating revenue; and
2. incorporating special purpose vehicles (SPVs) that integrate its TESSGRID with renewable generation and industry customers. The Companywould then generate cash flows from sales of its devices to the SPV andfrom ongoing management fees and/or fees under O&M Agreementsentered into with those entities. It will also share in revenues (via itsshareholding it the SPVs) from renewable energy certificates, networkfees, energy trading and heat sales.