NCNC noco noco Inc

September 19, 2024

Dear Shareholders,

Since our public listing in 2023, we have encountered numerous challenges, notably a declining stock price. I do not believe the trading price of our stock even closely resembles the Company’s actual value. It is evident that, regardless of meeting significant corporate milestones in various technological renovations, stock traders continue to place downward pressure on the stock, causing the price to fall.

While the declining stock price has created significant setbacks in securing fresh financing, we continued to make the most out of our limited resources and are delivering cutting edge breakthroughs in our X-SEPATM technology.

The global landscape for battery technology has also continuously evolved, with increased concerns around battery safety following several safety hazard incidents related to extreme weather conditions. As such, we are confident that our patented battery technology is crucial to the successful electrification efforts of the society. Today, we stand ready to chart a clear path forward with our comprehensive Restart Plan, which we are excited to share with you.

With unwavering hope and determination, we aim to rise above these challenges. Our Restart Plan marks a pivotal step in this journey, as we swiftly undertake bold actions to build a sustainable and energy-efficient future.

Our Mission:

Innovative Technology: Develop and supply high-performance batteries for a wide range of applications.

Redefining Batteries: As we accelerate toward decarbonization, batteries must go beyond just energy storage. We envision a world of smart batteries, whereby they integrate energy, data storage and communication capabilities. By equipping our advanced batteries with these features, we can enable inter-battery and infrastructure communication, achieving ultra-energy efficiency by processing and managing data locally at the edge—without the need for energy-intensive cloud systems.

To support our vision, we are introducing a leasing model designed to maximize battery lifespan, from initial use in mobility solutions to secondary applications in power charging stations and data centers. This model supports a circular economy by ensuring long-term asset value through constant monitoring of battery usage and degradation.

Our Technology

We are pioneers in high-performance lithium-ion batteries (LIB) featuring the cutting edge “X-SEPA™” technology, which significantly extends traditional battery life by up to 5X under high temperature environment. This is achieved through the prevention of dendrite formation - a major cause of LIB degradation and highly viscous electrolyte. This innovation uses a three-layer membrane structure to evenly distribute electric currents, enhancing both battery reliability and longevity. Over the last 12 months, we made further technological breakthroughs with X-SEPA™ - it is now not only adaptable to various battery cell types, through optimizing thickness, porosity, and strength for diverse applications. Its performance remains resilient, even under extreme temperatures or during rapid charging and discharging.

Intellectual Property

As part of the 3DOM Alliance Group, we have secured over 40 battery-related patents globally, including those related to securitization, carbon credit leasing, and degradation billing. We are currently negotiating exclusive rights to deploy these patents in key markets.

Key Milestones for 2024 – 2025

1. Establishing Mass Production Facilities for High-Performance Batteries

We are advancing towards the mass production of high-performance batteries that can withstand extreme temperatures. In partnership with 3DOM Alliance Inc and noco-tech Co., Ltd., we are establishing separator production facilities and strengthening our technology development capabilities with the appointment of a new CTO. Further announcements will be made in the coming weeks.

It is envisaged by late 2025, we will have a robust production system in place, with full scale mass production in 2027. Already, over 30 top leading global battery and automotive manufacturers (both listed and non-listed) have expressed interest in our X-SEPA™ technology, with samples currently under evaluation.

2. Streamlining Operations

In the first half of 2024, we restructured our operations for maximum efficiency, and further sharpened our execution focus. We established 2 Centre of Excellences - Singapore and Japan, each headed by a Country Head. Singapore will lead on finance, legal, and fundraising activities, while Japan will focus on technology development, business development, and sales & marketing, leveraging on the expertise and experienced management team from 3DOM Alliance Inc. The new organisation structure has significantly optimised the company’s cost structure, reducing our operating cash burn to approximately $300,000 per quarter, going into the second half of 2024.

With a superior technology on hand, we are prioritizing investments into business alliances that will generate revenue in the short term. As the company ramps up production next year, further cost reductions is expected to be generated through digitizing development and production processes.

3. Expanding Grid-Scale and Commercial Energy Storage Solutions

The market for grid-scale energy storage is set to grow from 141,323 MWh in 2023 to 682,797 MWh by 2036 (Yano Research Institute). We plan to secure a 1 GWh project in Japan by end of 2024/1st quarter of 2025, aiming for commercial supply by 2027.

For commercial energy storage systems, we will finalize our product lineup with our contract manufacturing partners by October 2024, with supply set to begin in early 2025 (those without X-sepa to gain market).

Beyond the Japan market, we are collaborating Singapore Headquartered B2G Energies Pte Ltd, on the deployment, construction, and implementation of renewable energy projects including energy storage systems across Asia Pacific (excluding Japan). B2G Energies is a leading renewable energy company in Singapore, specializing in Energy Storage Systems and Energy System Integration, dedicated to delivering sustainable and innovative solutions that reduce carbon emissions, being at the forefront of the transition to clean and green energy sources.

4. Securing Financing

In preparing our business plan for the upcoming year we have considered the outlook for the economy, geopolitical uncertainties, and the prospects for the sectors of the economy we service.

On September 18, 2024, the Federal Open Market Committee announced cutting the federal funds rate by 50bps – the first time since 2020, and also signalled another 50bps cut before year end, and another 100bps cut in 2025. These monetary easing policies are positive to our businesses, as financing costs are expected to reduce in the coming months.

We have gained considerable traction in fundraising in recent months. This is obviously very good news for our shareholders and provides a solid backdrop heading into 2025, validating not only the strength of our business model and technology but also investors’ conviction in our team, our ability to execute, and importantly, a powerful endorsement of the company's patented X-SEPATM separator technology and commercialisation roadmap.

Notable fundraises include:

• In July 2024, we concluded a PIPE investment round of approximately $1 million from Future Science Research Inc, an affiliate company of 3DOM Alliance Inc.
• In August 2024, we secured an upsized PIPE investment of $4.6 million from GEE Strategy Revitalise Japan Fund, an exempt GPLP Fund with limited liability incorporated under the laws of British Virgin lslands. The transaction is expected to close before end of September 2024.
• And just last week, we announced the conclusion of a committed equity financing facility of up to $150 million with Arena Business Solutions Global SPC II Ltd. The Equity Line of Financing facility is part of our core strategy to raise funds. With this new financing secured, we have significantly improved the company’s financial flexibility and provided a strong funding engine to propel our progress toward commercialisation of X-SEPATM.

These capital raises will not only significantly strengthen the company's balance sheet, but also allow the company to improve shareholders' equity, reinforcing the company's ongoing efforts to regain and surpass the minimum stockholders’ equity requirement of $2.5 million under The NASDAQ Capital Market Listing Rule 5505.

Strategic Initiatives Beyond 2026

1. Carbon Credit Leasing

We remain optimistic in regard to the carbon credit market opportunities. We plan to secure a licensing agreement with 3DOM Alliance to establish a carbon credit leasing ecosystem, in partnership with Binex Co., Ltd., leveraging on the high-quality soil carbon produced in Australia’s agriculture sector.

2. Developing the Smart Battery

We are expanding our battery assets to develop a Smart Battery system that will manage both energy and data, revolutionizing energy management and paving the way for a sustainable future.

The Board and Executive Leadership Team remain committed to executing the Company’s business plan. noco-noco is committed to becoming a leader in sustainable energy, and through these efforts, we will continue to lead the market toward a more carbon-neutral society.

We appreciate your continued support as we embark on this exciting new chapter.

Sincerely,  Masataka Matsumura  CEO, noco-noco Inc

The information contained in this press release does not constitute an offer to sell or the solicitation of an offer to buy shares of noco-noco common stock.

About noco-noconoco-noco Inc (NASDAQ: NCNC) is a technology solutions provider working to accelerate the global transformation to a decarbonized economy. Building its business on X-SEPA™ — the revolutionary battery separator technology developed in Japan and designed for long-lasting and high heat-resistant performance — noco-noco addresses the need for clean, affordable, and sustainable energy storage solutions.

Read more about noco-noco:https://noco-noco.com/

Safe Harbor Statement:This press release contains forward-looking statements within the meaning of section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and section 21E of the U.S. Securities Exchange Act of 1934 (“Exchange Act”) that are based on beliefs and assumptions and information currently available to noco-noco. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections, or other characterizations of future events or circumstances, the markets in which noco-noco operates as well as any information concerning possible or assumed future results of operations of noco-noco, are also forward-looking statements. These statements involve risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although noco-noco believes that it has a reasonable basis for each forward-looking statement contained in this communication, noco-noco cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. noco-noco cannot assure you that the forward-looking statements in this communication will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the impact of the global pandemic like COVID-19, the outcome of any potential litigation, government or regulatory proceedings, and other risks and uncertainties. There may be additional risks that noco-noco presently does not know or that noco-noco currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by noco-noco and its respective directors, officers or employees or any other person that noco-noco will achieve their objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent the views of noco-noco as of the date of this communication. Subsequent events and developments may cause those views to change. However, while noco-noco may update these forward-looking statements in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of noco-noco as of any date subsequent to the date of this communication.

For media inquiries, please email: investor@noco-noco.com

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