Intellihot - Commercial Tankless Water Heater Environmental Report

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2. TA B L E O F C O N T E N T S MESSAGE FROM INTELLIHOT CEO SRIDHAR DEIVASIGAMANI 3 THE INTELLIHOT PROMISE 4 WHAT OUR CUSTOMERS ARE SAYING: 6 THE OPPORTUNITY AHEAD 7 WHERE WE ARE 8 MORE TO COME 10 I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 2

3. M E S S A G E F R O M I N T E L L I H OT C E O S R I D H A R D E I VA S I G A M A N I When we founded Intellihot in 2009, we wanted to develop technologies to create a more sustainable, reliable, and safe built environment by improving how commercial buildings use water and energy. As our company has grown, so too have our efforts to foster innovation in commercial buildings, which have historically emitted vast amounts of greenhouse gasses (GHG). Over the last decade, I cannot think of a single day when I wasn’t excited about the opportunity to disrupt an industry in dire need of transformation. And when I reflect upon our accomplishments, including creating the only intelligent tankless hot water heaters on the market, I am in awe of our potential to create a more sustainable world. In disrupting legacy industries with significant adverse environmental impact, we do more than just help the planet, although that’s a nice benefit. We are dedicated to industry progress that is data- driven, proven with science, and profitable — and therefore, sustainable in every sense of the word. It is this approach that has allowed us to slash billions of pounds of CO2 emissions with our products, moving us closer to a society in which all businesses — and the buildings in which they operate — benefit the environment. I am proud of our successes over the past year, but I know far more needs to be done. Our goals for this year will be to continue to fight climate change by ensuring our products provide solutions that put us on a path to net zero carbon emissions. We are also rededicating ourselves to being a company that is equitable, fair, and representative of the diverse world in which we co-exist. As we position ourselves for growth in the upcoming year, we will hold true to our core values of equity, diversity, and sustainability. You can depend on Intellihot for an unwavering commitment to our customers, grounded in data and equipped with measurable actions and results Together, we can create a more sustainable world Signature Sridhar Deivasigamani Founder & CEO of Intellihot Inc. I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 3

4. T H E I N T E L L I H OT P R O M I S E Over the past year, we have seen dramatic change take place around the world, including a global public health crisis, the devastating impacts of climate change, and rousing social change, among many other issues. It is amid this atmosphere of dynamic change that we are releasing our first environmental report. It’s time to take a stand — for the future, for the environment, and for us all. As always, the Intellihot team is dedicated to finding smart, creative solutions for environmental and safety issues. That means we have to adapt and change - and we’re dedicated to doing so. R&D + INTELLIHOT FOUNDED, heat exchanger and controls invented, certified, factory setup. 2009–2014 2012-2013: SERIES A + IQ751/1001 LAUNCHED These were the world’s first modular tankless units in a box with autonomous masterless controls and optional connectivity. 2014 + The iQ series was designed to power large applications and replace boilers and storage tanks. LEVI’S STADIUM powered. 2016: SERIES B + IQ1501 LAUNCHED as the largest tankless in the world. Single unit can power a 150- room hotel. Intellihot helped redefine and update plumbing codes to include modular units. Connectivity standard. 2016 + CHICAGO’S TALLEST RESIDENTIAL BUILDING is powered by Intellihot. 2017: SERIES B-1 + IQ2001 AND IQ3001 LAUNCHED They are now the world’s 1st and 2nd largest tankless units. A single iQ3001 can power a 300-room hotel. 2018 + MARRIOTT makes Intellihot the brand standard. + NEURON LAUNCHED as the world’s first drop-in tankless to replace tank heaters — built on all the learning from the commercial iQ units. 2019 + Unit now features CELLULAR CONNECTIVITY as standard offering. + TELLIBOT_AI (radical approach and brings “smarts” to existing systems) launched. 2021 + HOT WATER 365 launched. + IN199 NEURON launched. HIGHLY EFFICIENT USE OF CAPITAL AND ACHIEVED PROFITABILITY WITH $19M RAISED I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 4

5. 20 21 H I G H L I G H T S Intellihot had a paradigm-shifting year in 2021, a testament to the global business mandate for industry to become truly sustainable. Not only did we have our most profitable year on record, but we released new products, formed new partnerships, and positioned the company for rapid growth in the coming years. Here are some of the highlights: 01 02 03 Raised $50 million in growth financing led by investors Aegon Asset Management and Avenue Raised $50 million in growth financing led by investors Aegon Asset Management and Avenue Capital Group Capital Group Expanded into the Chicago area by opening an office with an increased headcount of 50% increased headcount of 50% Launched an industry-leading innovation team led by Nikolay Popov, who will help launch new green Launched an industry-leading innovation team led by Nikolay Popov, who will help launch new green technology products technology products Expanded into the Chicago area by opening an office with an - 06 - 04 05 Distinguished ourselves as a Chicago Innovation Awards Finalist and as a Publicis Sapient Distinguished ourselves as a Chicago Innovation Awards Finalist and as a Publicis Sapient Awards Finalist Awards Finalist Established a scientific advisory board to counsel Intellihot on further applications of its technology Established a scientific advisory board to counsel Intellihot on further applications of its technology in the built environment in the built environment Released the telliBot_ai, the first AI-enabled hot water heater to address energy efficiency, health, and safety — increasing savings by 50% increasing savings by 50% Released the telliBot_ai, the first AI-enabled hot water heater to address energy efficiency, health, and safety — 20 21 A C C O L A D E S 50 Fastest-Growing Companies of the Year Top 10 Intelligent Building Solution Providers Most Innovative Water Heaters Manufacturer Globee® Business Awards THE SILICON REVIEW 2021 GLOBAL EXCELLENCE AWARD 2021 • USA THE GLOBEE® AWARDS 2021 CONSTRUCTION TECH REVIEW 2021 I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2022 5

6. W H AT O U R C U S T O M E R S A R E S AY I N G : We are very happy with our Intellihot hot water system. Over the past six months, the hotel has had 65% GAS SAVINGS — plus uninterrupted hot water. J O H N K E L L I T E S , H I L T O N G E N E R A L M A N A G E R , B U R L I N G A M E , C A We have been very pleased with the installation and performance of the system, and we are proud to be at the forefront of demonstrating an energy-efficiency breakthrough in the building community. Any building that has a domestic hot water boiler capital project in the future SHOULD BE CONSIDERING INTELLIHOT A M Y E I C K H O F F , B U I L D I N G M A N A G E R , 3 4 0 O N T H E P A R K , C H I C A G O We have installed Intellihot tankless waters in some of our restaurants, and they work great. Intellihot has addressed the past reliability issues we had with other tankless water heaters. J I M M O U L A N D , W E S T E R N F A C I L I T I E S M A N A G E R I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 6

7. T H E O P P O R T U N I T Y A H E A D The HVAC industry and built environment faces a major challenge: IT HASN’T INNOVATED IN DECADES In order to move to a more sustainable, less energy-intensive world, we must reinvent the way we do our business Buildings and commercial buildings account for 40% of energy consumption in the U.S. and are a large contributor to carbon dioxide (CO2) emissions. Water heating systems are a large part of these emissions, as they emit a significant amount of CO2. These systems heat water 24/7 instead of just creating hot water on demand, which wastes energy and are ultimately detrimental to the environment. Intellihot saw an opportunity to fix this problem, and we seized it. With our units in the field over the last decade, CO2 emissions have been reduced by 6,564,151,386 pounds or 3 1 billion tons or CO2 — at zero cost We calculate our emissions-saving methodology with factors that include hours of operation, energy output per hour, British thermal units (BTUs), and other variables. With this current data, we believe that Intellihot’s products could save us 2 6 billion tons of CO2 per year by 2025 This problem is made worse by redundant water-heating systems that use large storage tanks, which create pools of stagnant water that are susceptible to legionella bacteria growth and biofilm. These tanks and systems can also require emergency fixes, which are costly and can harm a business’ reputation — and its bottom line. I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 7

8. Intellihot products provide clients with: + LOWER INITIAL COST BY 50% and lower operating costs by 40% due to more efficient use of heat and energy, reducing CO2 emissions + HEALTHIER WATER devoid of bacteria, specifically legionella + An 80% REDUCTION IN SPACE compared to conventional water heating solutions + An INTUITIVE CONNECTION VIA APP that allows clients to monitor their energy and water usage, as well as forecast preventative maintenance + LOWER COSTS AND ENERGY USAGE, reducing overall CO2 emissions. This allows buildings and the built environment to advance toward net zero while aligning with Sustainable Development Goals (SDG), specifically aligning with SDG target 9.1 and target 11.6. – SDG target 9 1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all) – SDG target 11 6: Reduce the adverse per capita environmental impact of cities Intellihot products are designed and manufactured in the U.S., the company’s primary market. We eventually aim to serve the broader North American region, Europe, and China. Protecting the environment is a cornerstone of our mission, and we have created an extensive recycling program so our production process does not result in any significant scrap metal or waste. W H E R E W E A R E 80% LESS less space needed vs. conventional water heating solutions 40% LESS energy consumption vs. conventional heating solutions 8,000+ installations 748 MILLION hours of operation 100+ employees by Q4 2021 50+ issued patents 6.6 BILLION pounds of CO2 reduction EBITDA POSITIVE since 2019 I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 8

9. Since deploying our products in 2011, we can calculate how many hexadecimal (hex) hours to accurately measure how long our water heaters and energy-saving technology have been in operation, and how extensive our products are at mitigating CO2 emissions and providing clean alternatives to conventional water heating technology. 748,051,440 HOURS OF HEX OPERATION 5.61039E+13 TOTAL BTU* USED BY INTELLIHOT vs 1.12208E+14 used by Tradiitonal Equipment 1,122.3 MILLION LIFETIME ENERGY SAVINGS FROM PRODUCTS SOLD IN THERMS 6,564,151,386 LBS OF CO2 SAVED 2021 The amount of energy and CO2 saved from our products has helped to lead the way for decarbonizing the built environment, leading to a substantial impact on the U.S. energy market. To date, Intellihot’s products have helped save emission levels equal to the emissions created by/from: OVER 3B MILES DRIVEN BY AN AVERAGE PASSENGER VEHICLE 310,837 PASSENGER VEHICLES DRIVEN FOR ONE YEAR 160M GALLONS OF CONSUMED GASOLINE OVER 259,000 HOMES’ ELECTRICITY FOR ONE YEAR Comparison data generated by the U.S. Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator using Intellihot data. *For natual gas, 117 lbs Pounds of CO2 is emitted per million British thermal units (Btu) of energy I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2022 9

10. M O R E T O C O M E We seek to always be transparent about our initiatives, and our operational commitments and energy-efficient services are just the beginning of greater work to come. In 2022, our innovation team will foster an educational, collaborative environment for all of our employees. We will merge our creativity with strategy as Sean Debnath brings his expertise as our new CRO, helping us expand into new sectors and allowing us to work toward a more sustainable future. As the company undergoes this growth, we have also expanded our industry team with new additions such as Mike Reardon and Nikolay Popov. Together, these experts will create a team of driven individuals who are passionate about research and development, as well as innovation; ultimately structuring us for expansion. As of today, Intellihot has 50+ issued patents. One of these is a licensed hydrogen burner for NASA, which allows for the commercial units to create zero emissions in places where hydrogen energy is available. We are also developing an all-electric solution that will continue to decrease the reliance on carbon-based fuel and transition to other energy alternatives. Combined, Intellihot’s products have over 748 million hours of operation. This work will position Intellihot as a leader in the industry as we work together to fight climate change I N T E L L I H O T | E N V I R O N M E N TA L R E P O RT 2 0 2 2 1 0

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