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Re: bigone post# 34

Saturday, 01/30/2021 11:01:23 AM

Saturday, January 30, 2021 11:01:23 AM

Post# of 156
Good question

They do have some joint ventures in the works already for example this manufacturing one with Vijay electronics. And they are just getting started after being in a research and development phase for years now. I think a lot of doors are going to start opening allowing for more relationships to start building.

Regarding leasing, that could be an option but it definitely complicates things. One reason Photovoltaics companies got into leasing especially on the residential side, is because it allowed average joes to bypass the large upfront costs. But when you’re primarily dealing with commercial customers, it’s much easier to sell them a product and let them deal with the financial aspect of purchasing without having strings attached other than a maintenance contract. In fact even with photovoltaics, the cost has come down enough now where financing the ownership of a system is becoming a better option than leasing.

And the customer that Zinc8 will be dealing with as they take their baby steps into production will be the New York power authority. So this system will be owned and operated by the New York power authority out right (no leasing). And as they gain traction in this market, its these utility companies across the country that will be the target audience for their product. However, now that they are in the New York building code, architects that are designing new projects are going to have to incorporate energy storage into their building designs and these zinc8 batteries will be a purchased item. So in other words, their audience is in the commercial realm where these systems will be purchased out right by the owners of the facility.

That said, as they grow I can definitely see where various commercial buildings may need to be retrofitted with an energy storage device (like Zinc8s battery) and some building owners who are strapped for cash might find a leasing agreement appealing. So to your question, yes perhaps in the future as their customer audience starts expanding I can see this as an option. Additionally for their micro grid business- perhaps some customers would consider a leasing option as well. But these leasing agreements can be complicated and require additional overhead and/or processing that makes things inefficient. It seems to me they would not be considering this in their business model at this time but definitely a good question to ask their investor relations team and please share if you take the initiative to ask them the question.