Investor Presentaiton

Risk Factors (II/VII) The lack of proper and clearly defined confidentiality and IPR regulations in employment and consultancy agreements, or lack of agreements/regulations at all, may also expose the Company of risks related to breach of confidentiality, IPR and/or weak IPR protection for the Company. Loss of key personnel may also create a risk that such personnel may exploit knowledge, information and know-how to the detriment of the Company, and/or that the Company may face difficulties to operate its technology or business methods as a result of the loss of such personnel. There is also a risk that competitors or other third parties may claim that the Company does not have rights or exclusive rights to the intellectual property it uses, or that such competitors utilize or even obtain rights to, know-how and trade secrets that the Company utilizes. The Company is dependent on external suppliers and is exposed to risks relating to subcontractors The Company's business model is to use external suppliers for, among other things, components in its HeatCube Thermal Battery through a supplier/partner network. The Company's current business model largely relies on components for the HeatCube Thermal Battery being readily available from a host of different suppliers in various markets. Partly for that reason, the Company does not have any material supply or partner agreements. This lack of committing supplier contracts may expose the Company to risks related to delays, cost overruns, a lack of willingness to trade with the Company, errors with products, etc. This risk is enhanced in the current geo-political environment, which has and is expected to continue to have an impact on the Company's access to components from external suppliers. For instance, in November 2021 the Company entered into a battery lease agreement with Aalborg Forsyning in Denmark, pursuant to which the Company will install the HeatCube Thermal Battery at Nordjyllandsværket's power plant outside Aalborg as a commercial demonstration unit. The battery is currently under construction and is expected to start commissioning in January 2023. Due to the current geo-political environment, the Company is experiencing a slight delay in the delivery of equipment to the project. The Company's exposure to risks related to such delays, cost overruns, etc., may have adverse consequences for the product and services to be delivered by the Company, and the Company may not be in a position to claim compensation for loss which may occur in such situations. The profitability of the Company depends on the price fluctuations of solar and wind energy The Company's business model entails that the Company's sales of energy constitute a material share of its future, possible gross profit. For long-term customer contracts, the Company aims to fix the sales price, however, to obtain new customers for such sales of energy and to become profitable, the HeatCube Thermal Battery must represent a solution implying lower costs for its customers. Whether the HeatCube Thermal Battery represents a low cost option for its customers will in turn depend on the extent of price fluctuations of solar and wind energy within a 24-hour period. High fluctuations will enable the customer to use the energy at a point in time where the energy prices are higher than at the time when the energy was produced. Hence, limited fluctuations in the price of energy could materially and adversely affect the Company's business, results of operations, cash flows, financial condition and/or prospects. The Company may not be able to develop new technology that may be required to expand and/or keep up with competitors The Company is with its thermal energy storage solution, targeting a market which is new and or underdeveloped. It is expected that an increased target market and customer base will result in increased competition, which in turn will require the Company to make various efforts to remain successful and profitable. Research and development are expensive, time- consuming, and entails considerable uncertainty with respect to both achieving positive results and, if successful, the ability to commercially sell products and services using such technology. Due to long development processes, changing regulatory requirements, changing market conditions and customer preferences and other factors, new variants of existing technologies or new technologies may take longer and cost more to develop and may be less successful than the Company anticipates. No assurance can be given that any existing or new technologies under research and development will be commercially successful. If the Company is unable to keep up with competitors, develop new technology or have commercial success with its existing or technology under research and development, this could adversely affect the future development of the Company's business, financial condition, results of operations and/or prospects. KYOZO

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