Bimergen Energy Corporation Investor update

Hello, this is Craig Brelsford with RedChip Companies. Thank you for joining today's event with Bimergen Energy Corporation, which trades on the NYSE American under the ticker BESS. With us today, we have Robert J. Brilon, Director, CFO, and Co-CEO of Bimergen, and Cole Johnson, Co-CEO. We will begin with a presentation in a moment, and then we will answer your questions. Welcome to everyone joining us today on X, YouTube, LinkedIn, and other social media platforms. To submit your question, we invite you to join us on Zoom. Use the link provided. Once in Zoom, click the Q&A button at the bottom of your window and type your question into the text box. Before we begin, please allow me to read the safe harbor statement. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

All statements pertaining to future financial and/or operating results, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties. Bob and Cole, if you're ready, please go right ahead.

Thank you. Appreciate it. Good afternoon, everyone. It's great to be with you, if you've been here before, and if you're here for the first time. Again, this is Bimergen, and it is ticker symbol BESS, standing for Battery Energy Storage Systems, and that is on the NYSE American. Going to start off today. I'm actually going to flip through some slides here real quickly because I want to get to one that everybody's interested in, and that's kind of an update on our financial just Q2 earnings that just got announced. We're really thrilled with what we were able to bring to bear Q2 earnings and the balance sheet revenues we reported of $7.9 million. That was our first revenues that we've ever reported. That brought EBITDA in at $3.9 million of earnings, so in the net income of 1.6.

Again, we have some stock comp and intangible amortization that make up that difference. Balance sheet, we have the cash and current assets at $14.6 million, again, up from our first quarter. Total assets of $38 million. That includes $22 million, or actually now it's $23 million, in our intangible assets for the projects that we purchased back in April 2024. One thing we've talked about in the past, those $22 million worth of projects that we purchased are actually have a fair market value of around $150 million, if you look at what we can sell those into a joint venture for as we're going forward into operations. Again, very little in accounts payable. We have a little deferred revenue there that you'll see come in during 2026. Just also just while we're here, again, our cap table, again, still the same.

Very simple, very clean, nothing toxic. No convertible debt. We have 7.1 million common shares outstanding, 300,000 prepaid warrants. Again, that's just because we had one investor in our offering that hit the limit of 4.9%, and they've left themselves that money they've already given us, and they'll change those into common stock as it makes sense. But they're still 100% in our deal, and they've done a 13G filing to prove that. Let's go backwards here, and we will get back to the beginning. Bimergen Energy is battery farms. We are building battery farms throughout the U.S., but we are focused in Texas. The majority of our development projects are in Texas. One of those projects that we came to bear is called Redbird, and it's one that we worked on with Frontier Power USA Cerberus using Eos batteries.

They're moving forward with that project, with two other projects that we actually bought and sold to them. We also talk about another 8 projects, which are small projects, 10 megawatts, so it's 80 megawatts that we're working with RelyEZ. We'll talk about how those come into play and why RelyEZ would do this with us. Again, RelyEZ is one of our capital commitments. They have $50 million they've committed of this junior mezzanine debt. They do this very strategically. They get about 12% on their money as it's in there for about a year during construction, and then they get paid out during the investment tax credit time period. Investment tax credits are very important to us because we get up to 50%. As I didn't mention yet, but each of these projects, 100-megawatt project, costs about $125 million.

Everybody says, "Well, $125 million, you only raised $13 million. How are you going to do this?" We'll show you how we're going to do this. The other thing between is also having the key partnerships in place, and this 100% of our projects is done through project equity, excuse me, project debt financing. Then we'll talk about how an offtake tolling agreement really helps all this work for the banks. Why can't anybody do this if we're using other people's money? It's because you need all the pieces to the puzzle. In fact, since we've gone public and done this uplisting, we've had other developers come to us with projects saying, "Hey, you seem to have all the pieces of the puzzle.

You've got the deal flow with your development projects, but you also have the junior and the permanent debt guys that you're working with, the ITC monetization partners, the EPC, meaning the engineering, the procurement, and the construction relationships, and also the offtake hedge guarantee agreements." Again, we've talked about those type agreements. What that is that's a guarantee of revenues. When a bank comes in and says, "Hey, I want to write you a $100 million check, but I need guaranteed payback of my debt and my debt service," then you bring in a group, and it's a group like a Goldman Sachs, and let me show you the numbers on that. Here, as I mentioned, we're using other people's money. The other important part is the very last sentence down here in red. Each project is financed on its own assets and operations.

Very important. No recourse back to Bimergen. Each project is its own silo. When you take a project to a bank, you say, "Here's this project, it's 100 megawatts. This is what it's going to throw off." As you can see here, it throws off about $20 million a year in the arbitrage revenues. These are not just fake revenues. These are revenues of buying electricity and selling electricity daily. You are buying it low when there's low peak, then you sell it back when there's high peak demand. Again, it's important for location, location. Where do you put your project? You put it where there's alternative energy, where you have plenty of energy during certain times of day and not enough during other times of day. We are there balancing the grid.

We are being very capitalistic in doing it, but it does help everybody along the way. We are making sure that all of our partners are getting their piece of the pie. As you can see, the piece of the pie, it's a very big pie. When you have $20 million, you have an offtake guarantee agreement here of $6.5 million. That is what you get, like a Goldman would get there, and it shows the calculations below. They are getting half of your profit above their guarantee. If they guarantee 7 and you do 20, they get half of the 13, so they get $6.5 million. It's a big chunk, but it also de-risks it for everybody. They are taking the risk in that sense. Also, because this project does not take a lot to run, there are no people on site, it's an asset.

You are buying and selling energy all day long, powering up your batteries, discharging your batteries, and you are doing that remotely. We actually hire a firm that does this throughout the nation. They own about 60% of the Texas market, and it's called Tenaska. These are groups of guys that use AI as well as historical and predictive modeling to actually know when to buy, when to sell the energy, and make us the best profits doing that. Again, they get a small piece of the pie for doing their piece of the action. As you can see here, as we talked about, a 100-megawatt project is $125,000. Again, we do the ITC tax monetization. We get back down to $65 million after you pay off $60 million. With that $60 million, you are paying off your upfront mezzanine debt. Now we are owning 100% of that project going forward.

As you can see, our EBITDA on that project is $11 million. That's when we are using a Goldman-type company to actually be our hedge agreement. If we were not using a Goldman into the process or once the debt is actually paid off, that of course jumps up significantly up to $17.5 million of annual cash flows. Here, I want to show you. We have 23 projects we bought from Cole Johnson and his group back in April of 2024. Cole's our other Co-CEO. He owns about 25% of the company today because of that merger that we did. Again, I have red, green, and yellow because that's the one we have sold the majority of that project to Frontier Cerberus with Eos being the battery supplier.

We will end up having 7.5% of that project going forward, as well as the other projects that we've sold in that transaction. I'll talk more about that in a little bit. As you can see here, though, we are very heavily weighted in Texas, and that's because Texas has a need, and we have the solution in putting those battery farms in areas where there's plenty of alternative energy. In fact, there's times when the power companies call and say, "Hey, you need to shut down. I can't take it. There's a traffic jam. I can't take any more energy." That's just wasted energy that we're taking advantage of and really helping balance that grid. The recent developments, again, on August 17th, we announced our quarter. Again, like I just went through, it was a great quarter for us with $7.9 million in revenues.

These are the first revenues we've ever reported. We're off to a great start. Again, very cash flow positive on the quarter. Also had great EBITDA and net income. We talked about the projects that we sold back in May 21st. That's what helped bring these August numbers to bear. We talked about the BESS development process and the progress. Again, Redbird is the one that has gone now and through the financing and is headed for construction. The development process is going through the feasibility studies and getting the legal formation done, going through the engineering, interconnection, et cetera. This is what we bought from Cole and his group back in August of 2024. As I mentioned, these are worth between $5 million and $8 million for each one of these, and we have 23 of them.