ThinSolar, LLC (Sample) Data as of 11/16/2011

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1 ThinSolar, LLC (Sample) Data as of 11/16/2011 Business Analysis BENCHMARKING ANALYSIS Alert Level Alert Location High Weighted average annual projected revenue growth rate is greater than 100% View High Projected business operations may be undercapitalized View *Benchmarks derived from EquityNet's peer business database. INVESTMENT ANALYSIS EA Valuation Estimate EA estimated pre-money value of the enterprise based on competitive cash-flow discounting using the Median IRR of Peer Group. Investor Risk-Adjusted IRR EA estimated annual rate of return for investors after accounting for the Probability of Enterprise Survival. EA estimated Probability of Enterprise Failure is statistically determined for each enterprise by the Risk Quantification System. Risk-Unadjusted IRR EA estimated annual rate of return for investors without accounting for the Probability of Enterprise Survival.

2 EA estimated Probability of Enterprise Survival is statistically determined for each enterprise by the Risk Quantification System. It estimates the probability of enterprise survival to its projected fiscal year of liquidity event or debt maturation. EA estimated Probability of Enterprise Survival is segmented into standardized Risk Categories. A direct comparison is provided between the enterprise and the peer group median. EA estimated Probability of Enterprise Survival is segmented into standardized Risk Categories. A direct comparison is provided between the enterprise and the peer group median. Summary Company Contact Privacy & Confidentiality ThinSolar, LLC (Sample) 190 Travis Suite 300 Austin, TX 78749, United States Sample Enterprise sample@ .com Personal and business information is private and confidential in EquityNet. Such information can only be viewed by an EquityNet member if specifically shared with that EquityNet member. See EquityNet s

3 Privacy Policy for more information. BUSINESS SUMMARY Founded in 2009, we are an Austin-based solar company that has developed a proprietary thin film deposition technology for solar photovoltaic ( PV ) products. We utilize a proprietary one-step sputter deposition process and have manufactured a commercial scale deposition tool to apply high-efficiency copper indium gallium diselenide ( CIGS ) material over plastic substrates in a continuous fashion. This represents a critically differentiated manufacturing process to produce low-cost solar modules that address the large solar PV market. We are seeking $4 million in equity investment to fund the construction of our 5 MW capacity pilot production line and for general operating expenses. Age of Enterprise (years) 3 Legal Structure Limited Liability Company Historical Financial Records Complete Financial Projections Complete Market Assessment Complete Competitive Assessment Incomplete Business Plan Complete MILESTONES Year Milestone 2009 Achieved average thin-film device efficiencies of 9.5% and small area monolithically integrated module efficiencies of over 7.0% 2010 Achieved fabrication of a five meter long CIGS module, the largest monolithically interconnected CIGS module ever produced on polyimide Began limited production of monolithically integrated flexible CIGS modules on our FAB1 production line Complete construction of the 5MW capacity FAB1 (pilot) production line and began production of PV modules Complete construction of the 25MW capacity FAB2 production line and began production of PV modules Achieve $35 million in PV module sales and cash flow breakeven for the Company Achieve $70 million in PV module sales for the Company. Model BUSINESS MODEL Our business model is predicated on our ability to innovate processing methodologies that create enhanced solar product characteristics. We intend to develop processes for layers in the cell stack that may lead to higher conversion efficiency and lower manufacturing costs. Our manufacturing technology development roadmap focuses on reducing the cost per watt by reducing the number of steps in manufacturing the modules and by optimizing the materials and processes used in the non-cigs layers. We have identified development programs for reducing the number of scribing steps needed in the module formation and that require lower capital and processing costs. We intend to continue to scale up our proprietary deposition tool to enable production of larger modules with better material usage. STRUCTURE Enterprise Industry Sector Peer Group Industry Sector Photovoltaic & Other Solar Alternative & Renewable Energy Number of Board of Directors /Members 5 Number of Board of Advisors 3 Number of Contracted Supplier Relationships 3 Number of Uncontracted Supplier Relationships 1 Number of Contracted Buyer Relationships 2 Number of Uncontracted Buyer Relationships 2 Number of Contracted Strategic Relationships 1 Number of Uncontracted Strategic Relationships 3 Key Supply-Chain Partners Ameresco Solar, Johns Manville, HelioVolt Corporation, Würth Solar GmbH & Co Key Strategic Partners Defense Advanced Research Projects Agency, Norsk Hydro, JA Solar Holdings Co., Ltd Product / Service GENERAL SUMMARY

4 Product / Service ThinSolar PV Industry Sector Photovoltaic & Other Solar Availability General Description 2012 We have developed a proprietary thin film deposition technology for our ThinSolar photovoltaic ( PV ) product. We utilize a proprietary one-step sputter deposition process and have manufactured a commercial scale deposition tool to apply highefficiency copper indium gallium diselenide ( CIGS ) material on glass substrates in a continuous fashion. We intend to integrate this tool with commercially available thin film manufacturing equipment, which will provide us with a critically differentiated manufacturing process to produce low-cost monolithically integrated, CIGS-on-glass modules. Key Performance Attributes Our proprietary deposition process will enable us to achieve a total module manufacturing cost of less than $1.00 per watt. This cost would be competitive with the lowest in the solar PV industry. We have achieved greater than 14% cell efficiencies over large areas on CIGS PV devices, and we believe that this approach will enable us to reach module efficiencies greater than 13%. Distribution Channel(s) Direct Sales, Value Added Reseller, Partnership, 2 Distributor, Reseller, Systems Integrator Number of Customers RISK FACTORS Q: Does your enterprise have any unresolved regulatory, rate or pricing, or environmental impact issues? This enterprise reports that it has no significant unresolved regulatory, rate or pricing, or environmental impact issues. No further response required. Q: Many government entities worldwide are considering or have already implemented various forms of subsidies for alternative and renewable energy industries to facilitate adoption of such technologies. Is your enterprise in a position to potentially benefit from governmental subsidies (such as Renewable Portfolio Standards) currently being implemented? The enterprise indicates that it is in a position to potentially benefit from governmental subsidies and describes how its product(s) or service(s) or both may benefit in the following narrative: States seeking to secure cleaner energy sources and greater energy independence are setting renewable portfolio standards that require utilities to provide a certain amount of their electricity from renewable sources such as solar PV. There are currently 28 states and the District of Columbia that have instituted RPS mandates. While we do expect government subsidies to decrease over time as solar PV achieves grid parity in cost, existing market subsidies will continue in the near term to benefit early market adoption of solar PV. Given the relatively low cost of Thin-Film Solar's CIGS PV material, we expect to have a cost-competitive product even after government subsidies cease. Q: What is the potential impact of emerging new competitive/alternative PV fabrication technologies (both in PV active and base material) on project risk, and how are such risks to be identified and ultimately contained? How does the long-term potential for the enterprise s fundamental technology compare and contrast to other PV materials and fabrication technologies? The enterprise comments as follows on the potential impact of emerging new competitive/alternative PV fabrication technologies (both in PV active and base material) on project risk and on how such risks are to be identified and ultimately contained: Our proprietary manufacturing process deposits multiple layers of materials, including a thin-film of highly efficient copper-indium-gallium-diselenide (CIGS) semiconductor material, on a flexible, lightweight, plastic substrate and then laser patterns the layers to create interconnected PV cells, or PV modules, in a process known as monolithic integration. We believe that our technology and manufacturing process provides us with significant advantages over both the crystalline silicon (c-si) based PV manufacturers that currently lead the PV market, as well as other thin-film PV manufacturers that use rigid and/or heavier substrate materials such as glass, stainless steel or other metals. Intellectual Property PORTFOLIO Status U.S. Patents International Patents Trademarks Copyrights Pending Granted PATENTS Patent Product/Service Relation Method and Apparatus for Forming a Thin- Film Solar Cell using a Continuous Process Thermal Process for Creation of an In-Situ Junction Layer in CIGS Methods and Apparatus for Treating a Work Piece with a Vaporous Element Status Pending in U.S. Pending in U.S. Pending in U.S. Remaining Life (Years) 17 Own 4 17 Own 2 18 Own 2 Own or Independent Abstract Summary License Claims The present invention relates to new methods for manufacturing photovoltaic devices and an apparatus for practicing those methods of manufacture. The present invention employs a transfer-through system for advancing work piece substrates through an integrated apparatus of multiple treatment chambers that control each of the manufacturing processes. The present invention relates generally to the field of photovoltaics and more specifically to manufacturing thin-film solar cells using a thermal process. Specifically, a method is disclosed to manufacture a CIGS solar cell by an insitu junction formation process. Methods and apparatus for controlling and delivering a vaporous element or compound, for example, selenium or sulfur, from a solid source to a work piece are provided. The methods and apparatus may be used in photovoltaic cell manufacturing. The chamber may include an inner enclosure, an outer enclosure, and heating sources capable of independent thermal control in compliance with a predetermined heating schedule. The methods and apparatus may be adapted to control metalloid vapor delivery in photovoltaic cell processing, for example, the processing of CIGS and CIGSS photovoltaic cells. A low-hydrogen photovoltaic cell is disclosed. The photovoltaic cell may contain less than 5% hydrogen. In one aspect, the photovoltaic cell may

5 Low-Hydrogen Photovoltaic Cell Pressure Control System in a Photovoltaic Substrate Deposition Apparatus Pending in U.S. Pending in U.S. 18 Own 1 18 Own 3 contain substantially no hydrogen, that is, the photovoltaic cell may be substantially hydrogen free. The photovoltaic cell includes a substrate and an absorber deposited on to the substrate. The absorber may typically include elements from group 11, group 12, and group 13 of the Periodic Table, for example, copper, indium, and gallium. The absorber may be treated with selenium and/or sulfur to produce a CIGS or CIGSS-type photovoltaic cell. This invention comprises an apparatus for the deposition of thin layers upon a substrate for the production of photovoltaic cells wherein the individual reaction chambers are separated from each other by low pressure isolation zones which prevent cross contamination of adjacent reaction chambers and control pressure levels in each reaction chamber while, at the same time, allowing the uninterrupted transfer of a substrate from one reaction chamber to the next without any mechanical obstruction. ANCILLARY INTELLECTUAL PROPERTY Product / Service Reliance on Ancillary Intellectual Property Enterprise has nonexclusive contracted rights to ancillary IP Enterprise's Planned Protection of Future Intellectual Property: Patents, Trade Secrets, Trademarks Markets Market Centralized Utility Commercial Rooftop Residential Rooftop Year Of General Market Description Drivers for Adoption Barriers to Adoption Introduction PV modules are increasingly being used in large centralized installations with the solar generated electricity being sold directly to the local utility grid for distribution and resale, similar to other fossil fuel power plants. In these applications, the cost of the energy generated in dollars per kilowatt-hour ( $/ kw-hr ) is a more important market driver than other PV technology attributes, such as efficiency, shape, size and weight, or aesthetics. Solar PV systems are being installed on the roofs of commercial buildings to offset peak power requirements and lower electricity costs. By using otherwise vacant roof surfaces, businesses can sell their solar power during the day, coincident with typical high time-of-use utility rates. Both system economics ($/kw-hr) and system performance such as module efficiency are important solar PV product attributes in expanding this market. Individual homeowners form one of the largest markets for grid-connected PV sales. In addition to system economics ($/kw-hr), the aesthetics of the products can play a role in a homeowner s choice of product. The solar PV market has experienced growth of more than 40% per year over the past five years, but remains in its infancy, with just under 0.1% of the world s sources of electricity coming from the sun. The high growth is largely driven by government policies, so the largest markets are located in Germany, Spain, Japan, United States, and Italy where the incentives are most favorable. As the industry develops, costs should decline so that solar electricity becomes competitive with conventional electricity sources. Achieving this grid parity opens up a much larger market opportunity. The solar PV market has experienced growth of more than 40% per year over the past five years, but remains in its infancy, with just under 0.1% of the world s sources of electricity coming from the sun. Thin film PV modules can be configured into a number of different form factors to enable a variety of market applications. In particular, flexible thin film modules could enable a new range of products for unique building integrated photovoltaics (BIPV) applications. The solar PV market has experienced growth of more than 40% per year over the past five years, but remains in its infancy, with just under 0.1% of the world s sources of electricity coming from the sun. Thin film PV modules can be configured into a number of different form factors to enable a variety of market applications. In particular, flexible thin film modules could enable a new range of products for unique building integrated photovoltaics (BIPV) applications. Limited operating history has inhibited market acceptance of several types of thin film products. Most thin film PV modules have not been fielded for the average warranty period of typical c-si modules. Limited operating history has inhibited market acceptance of several types of thin film products. Most thin film PV modules have not been fielded for the average warranty period of typical c-si modules. Limited operating history has inhibited market acceptance of several types of thin film products. Most thin film PV modules have not been fielded for the average warranty period of typical c-si modules. Thin film PV technologies are generally less efficient than modules made with c-si. This attribute can potentially limit their use in areaconstrained applications.

6 MARKET SIZE Fiscal Year : Centralized Utility $2,777,777,778 $3,333,333,333 $4,000,000,000 $4,800,000,000 $5,760,000,000 $6,912,000,000 $8,294,400,000 $9,953,280,000 Commercial Rooftop $1,280,000,000 $1,600,000,000 $2,000,000,000 $2,500,000,000 $3,125,000,000 $3,906,250,000 $4,882,812,500 $6,103,515,625 Residential Rooftop $960,000,000 $1,200,000,000 $1,500,000,000 $1,875,000,000 $2,343,750,000 $2,929,687,500 $3,662,109,375 $4,577,636,719 Total $5,017,777,778 $6,133,333,333 $7,500,000,000 $9,175,000,000 $11,228,750,000 $13,747,937,500 $16,839,321,875 $20,634,432,344 Market Centralized Utility Commercial Rooftop Residential Rooftop Source of Market Estimates External Industry Research External Industry Research External Industry Research MARKET DEVELOPMENT STRATEGY Marketing Plan: Our goal is to be a leading supplier of solar PV modules by becoming one of the lowest cost-per-watt commercial-scale solar manufacturers. We intend to pursue the following strategies to achieve this goal: 1) Address the existing solar PV market using monolithic CIGS-on-plastic, 2) Pursue strategic partnerships, 3) Pursue customer relationships, 4) Expand production capacity using replicable production facilities, 5) Continue to reduce costs, 6) Leverage management s expertise in direct deposition manufacturing lines. Sales Plan: We have an agreement with Blitzstrom GmbH through 2011, which requires Blitzstrom to purchase 50% of the solar PV modules we produce based upon our estimated production through Blitzstrom may also purchase up to 50% of any additional quantities of solar PV modules that exceed these production estimates. The price paid by Blitzstrom through 2009 will be based on a five percent discount from the fair market wholesale value for comparable commercially available solar PV modules. We will negotiate further pricing with Blitzstrom for 2010 and We have also signed a Letter of Intent with juwi Solar, who is interested in purchasing up to 25% of our production through Competition Centralized Utility Competitor Suntech Q-Cells SunPower First Solar Name of Product/Service Competitor Description Coventional Silicon PV Provide the lowest cost PV material (per watt) through design improvements and high volume production. Coventional Silicon PV Provide the lowest cost PV material (per watt) through design improvements and high volume production. Coventional Silicon PV Thin Film Cadmium Telluride PV Competitor Strengths Cadmium telluride has a higher conversion efficiency than amorphous silicon and has demonstrated the lowest manufacturing costs to date, but is only produced in rigid and glass flat plate modules, which has made it most suitable for market segment applications to larger commercial and utility project market segments. Commercial Rooftop Competitor Name of Product/Service Partner with or purchase large solar distribution and installation companies to obtain exclusively, their relatively large existing pipelines of solar projects and contracts. Provide the lowest cost PV material (per watt) through continuous processing techniques and the lower raw material requirements of cadmium telluride technology. Competitor Description Competitor Weaknesses The production of conventional silicon PV requires substantially more raw semiconductor materials, and therefore cost, than does the production of thin film PV. The result of less raw materials combined with inexpensive substrates and scalable manufacturing techniques have resulted in some thin film technologies achieving costs less than conventional silicon at $1.00 per watt. Suntech Coventional Silicon PV Provide the lowest cost PV material (per watt) through design improvements and high volume production. Uni-Solar Thin Film Amorphous Silicon PV Provide the lowest cost PV material (per watt) through continuous processing techniques and the lower raw material requirements of amorphous silicon technology.

7 First Solar Thin Film Cadmium Telluride PV Provide the lowest cost PV material (per watt) through continuous processing techniques and the lower raw material requirements of cadmium telluride technology. Competitor Strengths Cadmium telluride has a higher conversion efficiency than amorphous silicon and has demonstrated the lowest manufacturing costs to date, but is only produced in rigid and glass flat plate modules, which has made it most suitable for market segment applications to larger commercial and utility project market segments. Residential Rooftop Competitor Suntech SunPower Uni-Solar Ascent Solar Name of Product/Service Coventional Silicon PV Coventional Silicon PV Thin Film Amorphous Silicon PV Thin Film CIGS PV Competitor Description Competitor Weaknesses The production of conventional silicon PV requires substantially more raw semiconductor materials, and therefore cost, than does the production of thin film PV. The result of less raw materials combined with inexpensive substrates and scalable manufacturing techniques have resulted in some thin film technologies achieving costs less than conventional silicon at $1.00 per watt. Provide the lowest cost PV material (per watt) through design improvements and high volume production. Partner with or purchase large solar distribution and installation companies. Provide the lowest cost PV material (per watt) through continuous processing techniques and the lower raw material requirements of amorphous silicon technology. Produce flexible PV modules that can be uniquely customized into various shapes and sizes and therefore, integrated into residential building materials of various shapes and sizes. Competitor Strengths Conventional silicon solar PV modules have average conversion efficiencies of around 14% whereas thin film solar modules have average conversion efficiencies that ranged from 6% to 10%. The lower efficiency of thin film solar modules can potentially limit their use in area-constrained applications. Competitor Weaknesses The production of conventional silicon PV requires substantially more raw semiconductor materials, and therefore cost, than does the production of thin film PV. The result of less raw materials combined with inexpensive substrates and scalable manufacturing techniques have resulted in some thin film technologies achieving costs less than conventional silicon at $1.00 per watt. Unpenetrated - The portion of the total market revenue opportunity that is not penetrated (i.e., captured) by the enterprise or any other competitor. COMPETITIVE PROTECTION STRATEGY Strategy: We expect our primary competition will continue to be from conventional silicon-based solar PV products. Silicon-based solar PV manufacturers

8 dominate the market and will create the most competition for our products. In addition, a variety of thin film solar PV technologies are being developed by a number of established and emerging companies. Our success depends, in part, on our ability to maintain and protect our proprietary technology and to conduct our business without infringing on the proprietary rights of others. We rely primarily on a combination of patents, trademarks, copyrights and trade secrets, as well as employee and third party confidentiality agreements. Our intellectual property consists of our proprietary deposition process and our related tool set designs. Management EXISTING MANAGEMENT Position Name Employed Age Undergraduate Discipline Graduate Discipline Chief Executive Officer Robert Stephens Full-Time 48 Engineering: Industrial/Mechanical Business: Management/Information Systems Chief Science/Scientist Michael Vanderjack Full-Time 49 Engineering: Electrical Engineering: Electrical Vice President Finance Donald Dougherty Full-Time 39 Business: Accounting/Finance Business: Management/Information Systems Vice President Engineering Steven Appelbaum Full-Time 54 Sciences: Natural Sciences: Natural Vice President Operations Michael Tetterman Full-Time 51 Engineering: Chemical Business: Management/Information Systems Position Name Biographical Information Special Skills

9 Chief Executive Officer Robert Stephens Chief Michael Science/Scientist Vanderjack Vice President Finance Vice President Engineering Vice President Operations Donald Dougherty Steven Appelbaum Michael Tetterman From 2005 to 2008, Mr. Stephens served as Vice President of Engineering and Technology of Solyndra, Inc, a startup company engaged in the development of high efficiency photovoltaics technology. From 2002 to 2005, Mr. Stephens served as President and Chief Executive Officer at Blue29, a wafer processing startup Company in semiconductor capital equipment industry that was successfully acquired by KLA-Tencor in late From 1995 to 2002 Mr. Stephens held several executive positions at Applied Materials including Vice President and General Manager of a business division where he led the development and commercialization of new 300mm wafer processing systems. Between 1989 and 1995 Mr. Stephens was responsible for the development of new MRI systems at Elscint Medical Imaging. Mr. Vanderjack has served as our Chief Scientist since May From 1992 to 2008, Mr. Vanderjack was with Intevac, Inc., a supplier of thin film deposition manufacturing equipment, most recently serving as Chief Technology Officer, where he led hardware and process development teams in commercializing tools used in the production of plasma and polysilicon displays, hard disks, and low light cameras. Mr. Dougherty joined us in June 2008 and serves as our Vice President of Finance. From April 2006 until June 2008, Mr. Dougherty was Chief Financial Officer, Senior Vice President and Treasurer at Norwood Promotional Products, a leading supplier of imprinted promotional products. Before Norwood, Mr. Dougherty was with Lambda Power (a division of Invensys plc), a global manufacturer of power supplies, power filtering and power protection equipment, where he was President from 2003 to 2005 and CFO from 2001 to Mr. Appelbaum has served as our Vice President of Engineering since November From 1990 to 2003, Mr. Appelbaum served as Chief Executive Officer and Chairman of the Board of Directors of Princeton Video Image, Inc., a company he founded in From 1988 to 1990, Mr. Appelbaum was an independent consultant to venture capital firms. Dr. Williams has also held several research and managerial positions at RCA Laboratories from 1982 to Mr. Stephens holds a Master of Science degree in Mechanical Engineering from Princeton University and completed his studies in Business Management at the University of Texas. Mr. Vanderjack has a Ph.D. in Electrical Engineering from Rice University. While at Rice, he researched and developed new methods for the deposition of thin layers upon various substrates. Mr. Dougherty earned his Bachelor of Science in industrial management at Iowa State University, and his M.B.A. from Western Illinois University. He is also a Certified Public Accountant. Mr. Appelbaum received his M.A. and A.B. degrees in Physics from the University of California Riverside and was both a University of California Regents Fellow and a National Science Foundation Fellow. Mr. Tetterman served as an independent consultant to OEM s and contract manufacturing companies from 2006 to He served as an operations consultant at Teradyne, Inc., a manufacturer of Mr. Tetterman received a semiconductor test equipment, from 2004 to From 2002 to 2005, he served as vice president of BS in Chemical technology and business development at NYPRO, a plastic injection molding company. Prior to joining Engineering from the NYPRO, Mr. Tetterman served as Executive Vice President of Manufacturers Services Limited from University of Puerto Rico 1997 to 2002, and Vice President of Manufacturers Services Limited from 1995 to He also and an MBA from New served as a Director of Mid-Range Service Products at Hewlett-Packard/Digital Equipment York University. Corporation from 1983 to ANTICIPATED MANAGEMENT Position Undergraduate Discipline Graduate Discipline Duration Until Needed Senior Vice President Sales & Marketing Business: Marketing/Logistics Business: Marketing/Logistics 4 Months Vice President Business Development Business: Management/Information Systems None 6 Months Vice President Human Resources Humanities None 12 Months Financial FINANCIAL CHARTS Black lines represent historical values provided by the enterprise. Blue lines represent values projected by the enterprise.

10 Black lines represent historical values provided by the enterprise. Blue or other colored lines represent values projected provided by the enterprise. Black lines represent historical values provided by the enterprise. Blue or other colored lines represent values projected provided by the enterprise. Black lines represent historical values provided by the enterprise. Blue or other colored lines represent projected values provided by the enterprise. INCOME & CASH FLOW (nominal) Fiscal Year Revenue: $0 $0 $0 $0 $3,000,000 $10,000,000 $35,000,000 $70,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $3,000,000 $10,000,000 $35,000,000 $70,000,000 Number of Units: Average Revenue per Unit: $0 $0 $0 $0 $1,000 $909 $833 $778 Cost of Revenue:

11 $0 $0 $0 $130,000 $1,500,000 $5,000,000 $15,500,000 $30,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $130,000 $1,500,000 $5,000,000 $15,500,000 $30,000,000 Gross Profit: $0 $0 $0 ($130,000) $1,500,000 $5,000,000 $19,500,000 $40,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 ($130,000) $1,500,000 $5,000,000 $19,500,000 $40,000,000 Operating Expenses: S&M $0 $0 $0 $200,000 $400,000 $2,000,000 $7,000,000 $10,000,000 G&A $0 $65,450 $254,640 $500,000 $600,000 $1,500,000 $4,500,000 $7,000,000 R&D $0 $158,950 $525,150 $800,000 $1,000,000 $2,500,000 $2,500,000 $4,000,000 Depreciation & Amortization $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $224,400 $779,790 $1,500,000 $2,000,000 $6,000,000 $14,000,000 $21,000,000 Operating Income $0 ($224,400) ($779,790) ($1,630,000) ($500,000) ($1,000,000) $5,500,000 $19,000,000 Other Income $0 $0 $0 $0 $0 $0 $0 $0 Interest Expense $0 $0 $0 $0 $185,000 $290,000 $290,000 $290,000 Income Tax / Member Tax Payout $0 $0 $0 $0 $0 $0 $0 $920,000 Net Income $0 ($224,400) ($779,790) ($1,630,000) ($685,000) ($1,290,000) $5,210,000 $17,790,000 Cash Flows: Net Change in Working Capital $0 $8,000 $9,000 $10,000 $500,000 $500,000 $500,000 $500,000 Operating Cash Flow $0 ($232,400) ($788,790) ($1,640,000) ($1,185,000) ($1,790,000) $4,710,000 $17,290,000 Capital Expenditures $0 $64,900 $235,010 $535,000 $3,500,000 $4,000,000 $1,500,000 $1,500,000 Free Cash Flow $0 ($297,300) ($1,023,800) ($2,175,000) ($4,685,000) ($5,790,000) $3,210,000 $15,790,000 Capitalization: New Equity Investment $0 $2,000,000 $0 $4,000,000 $2,000,000 $0 $0 $0 Grant Capital $0 $0 $0 $0 $0 $0 $0 $0 New Debt Borrowing $0 $0 $0 $0 $5,000,000 $0 $0 $0 Debt Principal Repayments $0 $0 $0 $0 $0 $0 $0 $0 Total Net Capitalization $0 $2,000,000 $0 $4,000,000 $7,000,000 $0 $0 $0 Cash Liquidity Balance $695,810 $2,520,810 $4,835,810 ($954,190) $2,255,810 $18,045,810 INCOME & CASH FLOW (relative) Fiscal Year Market Share: 0.00 % 0.00 % 0.00 % 0.00 % 0.03 % 0.07 % 0.21 % 0.34 % Annual Growth Rate in Revenue: 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % % % % Other 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Total 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % % % % Gross Profit Margin: 0.0 % 0.0 % 0.0 % 0.0 % 50.0 % 50.0 % 55.7 % 57.1 % Other 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Total 0.0 % 0.0 % 0.0 % 0.0 % 50.0 % 50.0 % 55.7 % 57.1 % Operating Expenses as a % of Revenue: S&M 0.0 % 0.0 % 0.0 % 0.0 % 13.3 % 20.0 % 20.0 % 14.3 % G&A 0.0 % 0.0 % 0.0 % 0.0 % 20.0 % 15.0 % 12.9 % 10.0 % R&D 0.0 % 0.0 % 0.0 % 0.0 % 33.3 % 25.0 % 7.1 % 5.7 % Total Profit Margins: Operating Profit Margin 0.0 % 0.0 % 0.0 % 0.0 % % % 15.7 % 27.1 % Net Profit Margin 0.0 % 0.0 % 0.0 % 0.0 % % % 14.9 % 25.4 % BALANCE SHEET Fiscal Year 12/31/2010 Current Assets: Cash & Short-Term Investments $695,810 Accounts Receivable $0 Inventory $53,000

12 Other Current Assets $15,568 Total Current Assets $764,378 Long-Term Assets: Tangible Capital Assets $1,504,540 Intangible Capital Assets $0 Accumulated Depreciation $156,200 Total Long-Term Assets $1,348,340 Total Assets $2,112,718 Current Liabilities: Accounts Payable $56,892 Short-Term Debt $0 Other Current Liabilities $0 Total Current Liabilities $56,892 Long-Term Liabilities $0 Total Liabilities $56,892 Equity & Capital: Paid-In Capital $515,002 Retained Earnings $654,641 Interest in Non-Consolidated Enterprise(s) $0 Total Equity & Capital (Net Worth) $1,169,643 Total Equity, Capital, & Liabilities $1,226,535 PROJECTION METHODS Revenue Projection Method Operational Cost Projection Method Based on Based on an Assumed Market Assumed Portion of Shares Revenue Underlying Projection Assumptions The Company's financial projections assume that adequate and timely capitalization will enable ThinSolar to complete construction of both the FAB1 and FAB2 production lines and to quickly ramp up its production of thin-film solar modules. Capitalization CURRENT CAPITALIZATION Capital Offering: $4,000,000 Offering Type: Equity Future Capital Enterprise s estimate of future capital needs post investment. Undercapitalization EA estimated risk capital that is unaccounted for by enterprise. Post-Money Ownership Equity share of the enterprise after accounting for the dilution of the current offering. (based on the enterprise s estimated valuation)

13 S&M Sales & Marketing G&A General & Administrative R&D Research & Development Asset Acq. Asset Acquisition Area of Use Specific Use Amount Research & Development Complete construction of the 5MW capacity FAB1 (pilot) production line. $665,000 Sales & Marketing Addition of sales and business development staff for pre-production market development. $400,000 Enterprise Asset Acquisition Procurement of capital equipment for cconstruction of the FAB1 (pilot) production line. $485,000 General & Administrative Working capital to cover general overhead. $450,000 PAST CAPITALIZATION Name Relationship Capital Type Contributed Capital Energy Capital Partners Investment Firm Preferred Equity $2,000,000 EQUITY EXIT STRATEGIES / DEBT TYPE & DURATION Ranking Equity Exit Strategy / Debt Type Desired Year Name of Potential Acquirers or Merger Partners Most Likely IPO 2015 Likely Acquisition 2014 SunPower, First Solar, Suntech Least Likely Merger 2015