A：In 2025, Quantum State achieved several key milestones including the integration of their breakthrough Cobra process into a cell production baseline, expanding their collaboration and licensing agreement with Powerco, a battery manufacturer of the Volkswagen Group, and adding two major global automotive OEMs to their portfolio of customers. They also issued their first customer billing and added two globally renowned ceramic production experts to their QS ecosystem. Notably, they installed their pilot cell production line, the Eagle Line, and held an inauguration event for it. Additionally, they made headlines with the Dukai V 21 L race bike powered by QSC 5 cell, which was showcased at IAA Mobility in Munich.

A：The four key goals for Quantum State in 2026 include demonstrating scalable production of the Eagle Line to support customer sampling and testing, technology demonstrations, and product integration efforts; advancing automotive commercialization by working with multiple global auto over a.s to tailor product solutions for vehicle programs and implement customer-specific industrialization strategies; expanding into new high value markets; and continuing to push the frontier of battery performance beyond the current QSC 5 platform.

A：Quantum State's solid state battery technology offers a step change improvement over conventional lithium-ion technology. Batteries are becoming a disruptive force across the entire economy and the company sees the opportunity set for advanced energy storage expanding across various applications.

A：Quantum State views the world's challenges around technology and secure supply chain as an opportunity to offer solutions through their mission to revolutionize energy storage. They aim to provide a future-proof technology platform that delivers better performance to industry partners across multiple sectors who need better batteries for demanding applications. The company believes in the potential of their technology to disrupt the market and have a diverse range of customer and application opportunities, a robust partner ecosystem, and a differentiated technology platform that improves with scale.

A：The retirement of Professor Dr. Fritz Prince from the Board of Directors after more than 15 years of service is acknowledged with gratitude by Quantum State. His leadership, guidance, and friendship have been instrumental during a remarkable period in the company's history.

A：For 2026, Quantum State expects a full year adjusted EBITDA loss to be between $225 million and $275 million as they work towards their goals while continuing to drive greater operational efficiency across the company.

A：The company ended 2025 with 970.8 million in liquidity. Going forward, the plan is to remain prudent with the strong balance sheet.

A：The Eagle Line is a key catalyst for technology commercialization goals, enabling pilot production of cells for sampling and serving as a platform to develop future generations of technology. Its primary outcome is to provide a blueprint for production that customers can use to scale up to gigawatt capacity in their factories.

A：The Eagle Line aims to demonstrate the technology by providing a blueprint for scale, quality, and cycle time that customers can deploy into their manufacturing lines, helping them to increase their output of QSC 5 cells and showcasing the technology to licensed partners for scaling up.

A：While maintaining a focus on automotive commercialization, the company is growing interest in applications beyond the automotive sector. The unique capabilities of the company's cells, such as safety, temperature range, power, and energy density, are valuable in sectors like data centers, drones, and other emerging markets.

A：In 2025, the company's performance was characterized as strong. Key achievements included a 10% year-over-year improvement in adjusted EBITDA loss, cost effectiveness across the line, optimization of the real estate footprint, advancing value engineering efforts, and improving capital efficiency.

A：The company plans to systematically drive efficiency gains across the organization through ongoing value engineering, higher equipment uptime and throughput, yield and reliability improvements, and further deployment of machine learning and AI tools. This is expected to lead to increased customer billings in 2026 due to deeper and expanded customer engagements.

A：The QSC 5 cell has certain aspect ratios and provides about 5.6 amp hours and 21 W hours of capacity. It serves as an adaptable baseline from which the platform can be modified to meet the varied needs of different customers.

A：Lithium metal is preferred for its high energy density, high power density, better safety capability, cycle life, and a better cost profile. Its unique properties make it suitable for various markets, including consumer electronics, where companies are exploring its use for its volumetric energy density advantage.

A：Besides the automotive industry, the technology is targeting markets such as consumer electronics due to its volumetric energy density advantage, data centers for their safety requirements, drones and anything that flies for gravimetric savings and power, and grid applications for cost per cycle and major load shifting.

A：The Eagle Line contributes to the company's flexibility by enabling them to make more samples for more customers, which is essential for exploring different markets and testing the technology in various applications.

A：The EBITDA guidance is inclusive of operational help from both OEM partners and e-system partners. The company has factored in significant resources from these partnerships, which are expected to aid in the expansion and deepening of automotive partnerships and in entering new high value markets.

A：The expansion of the development and collaboration agreement with Volkswagen led to an increase in conditional cash inflows from $21 million to $150 million, based on the previous slide referenced. This increase reflects the additional potential development payments tied to the agreement with Volkswagen.

A：The company has added two new large global auto Oems to its portfolio and has announced additional technology development and evaluation agreements. The Volkswagen relationship remains very strong, as evidenced by the ongoing work and customer interest.

A：The company's licensing and capitalized business model is not a single flavor but offers many different ways to achieve the same goal, including contract manufacturing and having partners manufacture for others. The company explores various business models as long as it does not spend capital on building them. The company's preference is to use a license and capitalized business model, but variations are possible even in new markets.

A：The E line is currently operating as a manufacturing prototype pilot line, and the focus is on metrics such as uptime, time between failures, yields, reliability, quality, cycle time, and cast. These metrics will be closely monitored as the line is ramped up, and the company aims to demonstrate scalability to prospective customers.

A：The E line is central to the company's 2026 goals, as it will demonstrate scale and efficiency. It plays a key role in advancing automotive commercialization through prototype and sampling, and it provides the company with the currency to expand into high-value markets. Additionally, the line supports internal development efforts beyond the QSC5 roadmap.

A：The strategy involves systematic, methodical, and iterative improvement of various manufacturing metrics. Employees are aware of this approach and have been informed about the need to work with customers to demonstrate progress in these areas.

A：The company plans to allocate $40 to $40 million in CapEx spending towards scaling the E line and expanding QSCVI technology. This investment is also meant to explore opportunities in other end markets. The decision on sustaining this level of investment beyond 2026 will be based on continued exploration of these opportunities.

A：The goal is to move up the F curve rapidly, improve the performance matrix across all aspects of the QSC 5, and continue to upgrade and demonstrate progress every 18 to 24 months.

A：The company plans to expand its QSC 5 capabilities by making upgrades every 18 to 24 months and by coming up with new upgrades that will be shown to customers and shareholders to move the technology frontier forward.

A：The QSC 5 ecosystem is critical to the company's success as it involves technology change that requires a collective effort from an ecosystem comprising capital equipment, advanced materials, and software and AI systems suppliers.

A：The supply chain is vital for ensuring that suppliers are available and not over-reliant on any one material or location, which helps in securing the company's future by strengthening its value proposition and supporting expansion into new markets and customers.

A：Despite market turbulence and retrenchment, the company believes in the long-term trajectory of electrification and sees continuous growth prospects in the automotive industry, both short, medium, and long-term.

A：The company has outlined four specific quantitative goals for 2026 related to the efficiency and scaling of the Eagle line, expanding partnerships with automotive manufacturers, going beyond the QSC 5 in high value markets, and further development through joint agreements and technology evaluation.

A：The Eagle Line will not require major adjustments for different segments. The company chose a licensing business model to avoid the high capital costs for each unique form factor. Instead, the company offers a scalable blueprint with specific adjustments for individual customers included in the earlier payments and financial arrangements.