Executive Summary ADC ENERGY, INC. MISSION STATEMENT Our World is suffering a critical energy crisis. Within the past few months, global agreements were signed to accelerate efforts to find a real answer. Trillions of dollars of private and public funds are being invested into renewable energy and efficiency systems. However, every effort to date suffers from the same core problem – a dilapidated energy grid using 130 year old technology. Every existing energy system, including all renewable energy, suffers the identical problem: wasted energy conversion because AC and DC must convert to be used. ADC Energy is the Answer. ADC Energy’s Breakthrough Technology resolves the entire energy problem with a simple answer : transmission of AC and DC current on the same wire, transmitting DC current over long distances, elimination of conversion waste, utilizing the existing grid. By eliminating wasted AC/DC conversion, and clean transmi ssion of DC current over long distances, end users and utilities alike can realize a potential ”net zero” system. ADC Energy technology is the evolution of the entire world’s energy systems because: ADC unites the AC/DC dichotomy. Page 1 of 13 PROPOSAL ADC Energy is a research and development company that owns several patents covering its revolutionary technology which allows AC and DC current to flow on the same wires without conversion waste. The technology covers many applications including DC transmission over long distances, eliminating AC convertors all together, and energy savings. In its initial already proven its world installations Phase 1 technology to enter the market energy savings applications, ADC has Phase 1 technology through four real focused initially on lighting systems. is already proven, operating and ready immediately. For its Phase 2 technology breakthrough, ADC seeks funding to finalize development of its Energy Core Unit (“ECU”) which will result in upwards of 90% savings in lighting systems. ECU development is near completion as specifications for pre production model are drawn and prototype already successfully tested. Phase 2 includes finalizing ADC’s solar panel attachment, performance of which is expected to operate as a fully “ net zero” system. Phase 3 includes expanding technical applications from lighting systems to heating and air conditioning use (“HVAC”). ADC has already tested its prototype which successfully reflects an initial estimated 20% savings on HVAC costs. ADC reasonably expects similar results in HVAC savings as in already proven lighting systems. ADC Energy seeks $2.5 million to finalize Phase 2 and 3 within estimated 12 months, but likely earlier. CURRENT STATE OF TARGET ENERGY MARKETS Opportunities, funding, and profits for ADC Energy’s technology abound due to the Global Energy Crisis mandating change of our entire energy infrastructure. And, ADC Energy’s competitive edge is ADC technology can seamlessly incorporate into the existing grid, and also work with existing renewable energy technology, including solar. Page 2 of 13 In June 2015, Bloomberg New Energy Finance headlines announced: By 2040, the world’s power-generating capacity mix will have transformed: from today’s system composed of two-thirds fossil fuels to one with 60% from zero emission energy sources. Renewables will command just under 60% of the 9,786GW of new generating capacity and two-thirds of the $12.2 trillion of investment. Bloomberg also projects that over the next 25 years, the global solar energy market (small and large scale) will receive $3.1 Trillion in investments, with $2.2 Trillion focused on smaller rooftop systems. Just the U.S. renewable energy market was estimated by the United Nations and Bloomberg Media at a $257 billion valuation in 2011. Bloomberg projects that over the next couple of decades, $700 Billion will be invested in the U.S. renewable energy sector alone. Energy efficiency investments and financing doubled in 2012 to $15 Billion. In 2012, President Obama signed an executive to support further efficiency advancements to update industrial facilities to modernize their U.S. manufacturing capacity with projected $100 Billion savings. Smart Grid technology investments in the U.S. reached $54.6 Billion between 2012-2015, with estimated $31 Billion in sales through 2015, of grid improvement technologies. ADC Energy can penetrate any market that involves energy transmission, efficiency, and savings. This is because ADC Technology revolutionizes the core AC//DC conversion problem. Each market is in the multiple, if not hundreds of billions in size. ADC TECHNOLOGY END USERS 1. Any consumer, commercial, industrial, public works locations seeking energy savings. ADC is a stand- Page 3 of 13 alone system or can be combined with solar with potential net zero performance. 2. Utilities seeking to improve energy transmission efficiency and save on conversion waste. 3. Governments, especially developing markets, where grid infrastructure is being improved. ADC Energy can improve efficiency without massive infra structure upgrades because the existing infra structure is still being used without change. HOW ADC TECHNOLOGY WORKS ADC Technology can be used as a standalone system resulting in upwards of 50% (proven in current Phase 1 projects), and potential 90% upon Phase 2 completion. More important, ADC Technology can be incorporate d into other renewable energy systems, like solar energy, and result in substantial performance increase , potentially creating a fully net zero system (zero use of AC energy from grid) because the waste from AC conversion is eliminated. ADC performance with lighting systems has already shown near net zero performance. The ADC installation process is a simple one because it utilizes existing wire systems: 1. Installation of the ADC technology into an end user location (home, commercial, industrial); 2. Without any change of existing fuses or wires, using existing AC outlet, AC energy is channeled into the patented ADC Charger Module. Currently each ADC Charger Module utilizes only 480W of electricity. Depending on the quantity of the total load of the location, additional ADC Charger Module may be added. 3. The ADC System, containing ADC’s breakthrough technology, allows AC and DC current to then be Page 4 of 13 4. 5. 6. 7. routed on the same wire into an ADC reservoir battery utilizing the patented ADC Charger Module . The battery stores DC energy. Once the reservoir battery fills to capacity to operate the ADC system, the system’s 480W per unit AC consumption stops, i.e., zero energy use. The stored DC energy is transmitted to the ADC Energy Core Unit (“ECU”) where AC is then transmitted to the patented ADC Booster Unit. The Booster Unit allows clean and efficient DC current to be transmitted over long distances utilizing multiple Booster Units. The stored DC energy is fed directly to electronics such as lighting without any conversion waste. Several coordinated ADC Booster Units then transmit clean, clear DC current throughout the location (regardless of amount of loads or distances) for use in normal applications. Via connection to an alternative energy source like solar panels, the ADC System operates without any AC from the grid, i.e., a fully “net zero” system. ADC ACHIEVEMENTS TO DATE ADC Energy already completed and prove d its Phase 1 technology breakthrough which includes: 7 patents issued; three patents pending; four existing installations reflect ing Phase 1 performance at a 50% savings rate in lighting systems. ADC seeks additional funding to complete its Phase 2 and 3 breakthroughs. Phase 2 breakthrough will realize upwards of 90% savings performance with final installation of ADC’s Energy Core Unit into the system . Specifications are already drawn and prototype tested, awaiting funds to build pre-production model which could occur in 90 days . The ECU will then be installed in existing project. Phase 3 breakthrough combines ADC with solar renewable systems to reach a net zero performance. Phase 2 and 3 development will occur simultaneously. Page 5 of 13 OPERATIONAL GOALS ADC’s goal is to engage a strategic part ner with existing mass manufacturing and marketing structures to produce and distribute ADC technology through out the world. ADC does not seek to become a manufacturer or distributor. Rather, ADC seeks to earn revenues from licensing its technology and/or partial sale to a strategic partner so that ADC can continue its research and development of the technology to expand into more and larger markets. Given the massive support from government programs financing solar panels, ADC technology can enter the solar panel market on a massive scale via strategic partnerships with solar panel manufacturers who simply have to add the ADC system to their existing solar panel products with little to no modifications. The incorporation of ADC Energy technology with solar panel installation is as simple as reflected in the above technology summary. At the same time, ADC’s strategic partner can market ADC products as a standalone system, with or without solar panel connection. However, since the market is already wide open for solar panel installations with government subsidies and support, the easiest entry is via solar. As ADC’s include: development continues, longer term goals ADC installed at power transmission stations to save massive conversion waste; Worldwide grid improvement structure construction; Elimination of AC conversion appliances. Page 6 of 13 without in new infra - all electronics and COMPANY BACKGROUND ADC Energy, Inc. 11075 Knott Ave, Ste C, Cypress, CA 90630 Related Entities: Boltier R&D, Inc. is the original named patent holder, transferred all of its patents to ADC Energy, Inc. which owns 100% of all patents, rights, title and interest to the technology described herein. ADC Energy, Inc. transferred the exclusive rights to use the technology in the U.S. Territories to ADC Energy USA, Inc. 500,000 shares of ADC Energy USA, Inc. are offered for this opportunity. Management Hun Choe, Chairman of the Board, Inventor A seasoned veteran with 30+ years of electronics manufacture and design management, Mr. Choe’s experience includes personally overseeing multiple international projects handling funding upwards of $30 million. He has also built electronics manufacturing plants in Dubai, Jordan, Korea, Mexico, The Philippines and The United States. In S. Kim, CEO Mr. Kim is a former aeronautics engineer whose 30 years of engineering experience includes creating, implementing and operating advanced technologies working on cutting edge advancements like the B-2 Stealth Bomber. Jasper Ji, Secretary Mr. Ji is a retired United States Postal Service carrier who utilizes his 20 years experience to oversee the administrative affairs of the company. Page 7 of 13 Edward Chong, Director Mr. Chong is a business and litigation attorney with 17 years of experience consulting and counseling businesses of varying sizes, including multinational corporations. Mr. Chong is NOT providing any legal advice to the company and only acting in capacity of business consultant. Henry M. Lee, Director Mr. Lee has 25 years of experience as a civil trial attorney and also worked with start-up companies, and also served on the boards of several corporations, including a publicly traded corporation. Mr. Lee is NOT providing any legal advice to the company and only acting in capacity of business consultant. Page 8 of 13 We are the answer! Breakthrough Technology Summary Page 9 of 13 ADC ENERGY, INC. BREAKTHROUGH TECHNOLOGY SUMMARY ADC Energy, Inc.’s breakthrough technology is the genesis of a universal foundation for our planet’s future energy needs. ADC has revolutionized energy transmission and use. Just like airplanes revolutionized travel; smart phones revolutionized communica tions; internet created an entire new universe of human experience. ADC technology creates a new millennium of clean, efficient, green energy by uniting AC and DC current on the same wire and operating on our existing infrastructure. ADC owns multi-patented, universal scale technology that transmits alternating current (“AC”) and direct current (“DC”) electricity simultaneously on the same wire, allowing clean, safe and efficient transmission of DC energy over long distances. By eliminating the energy was ted in the conversion of AC to DC, ADC’s proven technology accelerates electrical efficiency upwards of 50%, with the potential to approach a net zero system when utilized with renewable energy sources such as solar. Our revolutionary development unifies the existing 130 year dilapidated electric grid which only permits the two currents to operate separately. This separation mandates severe waste in the binary conversion from AC to DC. The arcane system in place requires long distance transmission of deadly, high voltage AC from utility plants to end user. However, the existing system requires wasteful conversion of the AC to DC, because DC is the current used in everyday electronic systems. The outdated system requires use of dangerous AC Page 10 of 13 because DC cannot be transmitted more than a few yards. Future applications are abundant, including potentially: long distance transmission of DC current directly from power generators to end user without conversion waste; elimination of all AC convertors in electronics; net zero solar systems; energy storage and emergency back up, and even upgrading the entire electric grid without changing the hardware. HOW ADC TECHNOLOGY WORKS (End user applications) 1. Installation of the ADC technology into an end user location (home, commerci al, industrial); 2. Without any change of existing fuses or wires, using existing AC outlets, AC energy is channeled into the patented ADC Charger Module. Currently each ADC Charger Module utilizes only 480W of electricity. Depending on the quantity of the total load of the location, additional ADC Charger Module s may be added. 3. The ADC System, containing ADC’s breakthrough technology, allows AC and DC current to then be routed on the same wire into an ADC reservoir battery utilizing the patented ADC Charger Module. The battery stores DC energy. (Fig. 1) 4. Once the reservoir battery fills to capacity to operate the ADC system, the system’s 480W per unit AC consumption stops all together. At this point, ADC’s technology is operating on a clo sed circuit without use of AC. 5. The stored DC energy is transmitted to the ADC Energy Core Unit (“ECU”) which powers the patented ADC Booster Unit. The Booster Unit allows clean and efficient DC current to be Page 11 of 13 transmitted over long distances utilizing multi ple Booster Units. The stored DC energy is fed directly to power electronics such as lighting without any conversion waste. (Fig. 2) 6. Several coordinated ADC Booster Units then transmit clean, clear DC current throughout the location (regardless of amount of loads or distances) for use in normal applications. Fig. 1 The Current ADC Energy System at Todd Pipe Supply Page 12 of 13 Fig. 2 The complete ADC Energy System at Todd Pipe Supply to be installed Page 13 of 13