The A - Axis Superconductor Technology Leader

1. The A - Axis Superconductor Technology Leader Ambature Confidential

2. Overview Ambature, Inc. is the technology leader in A-axis superconductive materials, processes and the surrounding intellectual property. Our differentiation and barriers to entry are based on: • Producing the thinnest, superconducting A-axis films in the world based on proprietary methods and trade secrets. Most other materials are manufactured along the C-axis. Superconducting current prefers the physical properties of A-axis materials. • Producing materials that increase efficiency where material performance is otherwise impacted by electrical resistance. These materials also hold the promise of superconductivity at Freon/ambient temperatures. • 200 patent applications granted or filed around the world in the largest economies.( Australia, Canada, China, Europe, Hong Kong, India, Israel, Japan, Korea, Russia and USA).Eleven( 11) patents granted in USPTO,one (1) in Russia, and our first in China, Israel and Taiwan in the Fall. The remainder are in active prosecution.

3. Our IP Strategy and Development Engaged several leading experts to review our work and none were aware of any work in the field similar to ours. Created a hierarchical taxonomy of all world-wide patents relating to ELR or superconductive materials and products. 15,000 patents reviewed Taxonomy guided our inventions process No patents that undermine our IP position were discovered Developed a highly-efficient system for creating and protecting our IP assets. Filed patents covering our core ELR materials and methods, as well as ELR-specific product applications Documented additional invention disclosures Acquired the rights to exploit additional patents

4. 100 Year History of High Critical Temperature of Superconductors In the late 80’s over $1 Billion was spent to develop higher temperature superconductors

5. Our Solution Working with a combination of materials that has not previously been developed: • Base materials are readily available and not hazardous to the environment. • A-axis epi-layers are deposited in uniform sheets which allow higher performance electrical conduction through the layers, simpler fabrication, and improved device performance. • By focusing on the A-axis and highly-ordered crystal lattice we create materials that may lead to breakthrough properties. Ambature Confidential • Ambature Materials are harder to make (high barriers to entry) • and much easier to use (higher value for licensing).

6. Our Solution By developing highly-aligned (both in plane and out of plane) A-axis films,  Ambature is characterizing specific material properties of existing High Temperature Superconductors and developing new materials that exhibit differences in CriticalTemperature, Critical Current and Magnetic Properties. • Develop high-quality A-axis films that allow the shifting of complexity burden from processing to the material creation process. • HQ A-axis films mayincrease performance characteristics at cryogenic temperatures, provide enhanced magnetic and etching characteristics. • Higher temperatures or lower resistance levels enhance thebusiness model. • Goal is any combination of properties that can produce a disruptive commercial application. Ambature Confidential

7. A-Axis Growth The Problem: Monolithic integration of multiple high temperature superconducting (“HTS”) devices is hampered by YBCO’s crystal structure • Super-currents flow in preferred directions only (a-b plane) along the copper and oxygen atoms • Fundamental structures (like vertical tri-layer Josephson Junctions (“JJ’s”)) cannot be fabricated without complex IC processing. • System implementation of HTS is greatly limited The Solution: Grow YBCO Differently • Align copper planes normal to the substrate plane. This is “A-axis growth”. • This creates structures that conduct super-current both vertically and horizontally. • This enables circuit complexity built from a simple epi-structure • the critical current density is bigger (in YBCO) • the coherence length is longer in the vertical direction ( in YBCO ) Ambature Confidential

8. Ambature’s A-axis Growth Strategy • A-axis YBCO, grown on large (c. 4” or larger) substrates is difficult • Lattice mismatch calls for buffer layers • Nature prefers C-axis growth because it takes less energy (it is called “kinematically favorable”) • But A-axis growth does enable large scale, low cost manufacturing of high temperature devices(“HTS”) devices • With A-axis grown YBCO on Silicon Carbide (and designs for Silicon and Saphire), vertical tri-layer JJs can be integrated in large numbers, like transistors on an IC • Ambature has chosen Molecular Beam Epitaxy (“MBE“) (a form of atomic layer epitaxy) as the A-axis growth tool. MBE has atomic layer thickness control with high quality single crystal growth (which is critical for high quality JJ’s with A-axis orientation and for critical definition of the insulating layer in the JJ) • A-axis growth simplifies device fabrication, improves system performance and lowers cost • This is a more systems-driven technology development approach Ambature Confidential

9. Ambature Patents • Hierarchical Patent Portfolio provides multiple concurrent licensing opportunities and substantial protection. • Ambature’s200 Patents arefiled with over 3,000 Claims (20% Sensors) • Own more than 50% of the total patents in Superconductivity(1) IP Portfolio Structure Patent Claims Ambature Confidential (1) Source: USTPO, 2013

10. JPL Validation • Validation of results by JPL. • Thin film YBa2Cu3O7 at 212K with milliamps of current. • JPL commitment to partner with Ambature Ambature Confidential

11. Why Focus on Integrated Circuits • A JJ is to a SC circuit as a transistor is to a semi – conductor (546 Claims in IC’s ) (176 Claims in Transistors ) • Now starting to track JJ Count in applications • D-Wave’s new quantum computer uses 128, 000 JJ’s in its architecture • MIT says the JJ architecture can deliver an IC that is 50-100 times more energy efficient and 500 times faster than the current I- Phone 6 IC • Ambature’s materials permit IC’s to be more densely packed as materials can be placed closer together (less heat) Ambature Confidential

12. Why Focus on Imaging • Claims relate to better operating characteristics for magnets, transmitters, receivers and circuitry (84 Claims in MRI) (113 Claims in QUIDS) • JJ is a better sensor or SQUID • Radiology is critical to diagnostic success as 12% of all patient referrals start with imaging (Frost &Sullivan) • Patients also utilize imaging resources along the care pathway, more testing to see if therapy is working • Many FR Coils use 60 year old technology • New 2017 decision support law will be the beginning of evidenced based medicine • More advanced technologies can lead to point of care diagnostics/tele-radiology and disruption of the existing workflow • Leads to better image capture before signal processing • Our materials have held their integrity with no quenching of the magnetic field above 9 Tesla Ambature Confidential

13. Why Focus Cell Phone Base Stations • Base stations act as a sort of traffic cop, permitting certain calls on a given frequency and blocking others (359 Claims in Filters) • JJ is a better sensor so it is a superior filter • CSRIO in Australia just used 20,000 JJ’s in a filter application • 500 B Infrastructure for 5G • Enables more and better bandwidth – more calls, clearer calls, less dropped calls • More video for handheld devices • Enables I of T • Permits easier maintenance of poles as the equipment can be at the bottom of the pole Ambature Confidential

14. Why Focus on Powders • No known way to apply SC materials to large irregular shapes such as a rotating drum • Creates the Meissner Effect on the surface • Applications is SC generators, paints and extruded wires • Josephson Tunneling in the powder/resin composites Ambature Confidential

15. Business Strategy • Partner with universities and laboratories on the development of a superconducting ecosystem where we own/license rights to the IP and control the science. • Collaborate with industrial partners to make products. • Develop and protect new IP both on our own and as a result of both these partnerships. • Cultivate analytics from the work product of these partnerships establishing best practices and cross-industry applications. • Strategic M&A and Investment activity for IP related to the field of superconductivity. • Strategy published by University of Texas at Austin Intellectual Property Journal in 2015 Ambature Confidential

16. Business/Revenue Model Ambature has a very capital-efficient business model that is easily scalable as our product is a license agreement. • Licensing of core materials (i.e., A-axis materials), processes, knowledge and associated IP to customers. • License the know-how and specific IP for a selected set of high-value product applications. • License the data analytics and best practices that results from the above and use it as a continuous feedback loop for more patents and IP. • Delivery is done via direct licensing negotiations with larger players , channel OEM licensing and our e-commerce website. • High margin recurring revenue as much of our SG&A and COGS are passed on to our partners or customers. Ambature Confidential

17. Appendix Ambature Confidential

18. 1. Processors Value created • 3 to 5 x faster at ⅓ the power. • Or 1/20th power for the same performance. • Eliminates skews allowing for unlimited multi-core architecture. • 30% more processing space through elimination of buffers, clock circuitry. Ambature Proprietary & Confidential

19. 2. Medical – Sensors Value created • Portable sensors 100-1000X more sensitive with ATS. • Puts MRI, MCG* & MEG* in the Doctor’s office. • Neural impulse control – the ultimate HID. Ambature Proprietary & Confidential *MagnetoCardioGram, MagnetoEncephaloGram

20. 3. Cell Towers - Infrastructure Value created • Cuts interference in half. • Allows 50% more channels. • Increased coverage= half the dropped calls. • 5X the sensitivity. Ambature Proprietary & Confidential

21. 4. Generators Value created • 60% reduction in power loses. • ⅓ to ½ the weight & size for same rating. • 98% efficiency. • Lower life-cycle costs. • Weight size of Nacelle in wind tower. Ambature Proprietary & Confidential

22. 5. Energy Storage Value created Super Capacitor Storage • Increase lattice alignment • Greater size and power yield SMES (Superconductive Magnetic Energy Storage) • A-axis films enables commercial development Ambature Proprietary & Confidential

23. 5. Battery Storage - continued Ambature Confidential

24. 6. Motors Value created • 60% reduction in power losses. • ½ the size & weight for same rating. • 10x broader operating range at peak efficiency. Market Size – $400B Ambature Proprietary & Confidential

25. 7. DC - Micro grids Value created • Eliminate multiple conversion steps. • 40% reduction on conversion losses. • Solar Cell to Battery to Server architecture possible. Ambature Proprietary & Confidential

26. 8. Power Electronics Value created • Half the system power losses [Less Resistance]. • Saves 275 kW in a typical 5.5 MW data center. • Saves 250 kW in a 5 MW PV micro-inverter array. Market Size – $ 50B Ambature Proprietary & Confidential

27. 9. MEMS Value created • Signal to noise ratio increased 100X. • Power consumption reduced 4X. • Temperature coefficient improved 50X. • Processed real-time measurements. Market Size – $10B Ambature Proprietary & Confidential

28. 10. IC’s - Packaging Value created • 3D integration. • 50% reduction in power losses. • 15% fewer active devices. • Practical mixed technology integration. Market Size – $30B Ambature Proprietary & Confidential

29. 11. Transformers Value created • Half the size and weight of conventional transformers. • Intrinsically overload protected. • Indoor installation – no oil requirement. • 1% efficiency improvement = $M+ over lifetime of transformer. Market size – $36B Ambature Proprietary & Confidential