A Message from the CEO

Dear Flex customer,

Thank you again for your patience and loyalty. We frankly had no idea we’d face this many challenges in bringing the Flex Modular System to market. You have stuck with us through them, and we are grateful for you.

We are disappointed to announce a further delay in the delivery of the Flex.There will be those who say we should have known about this sooner; that there are alternatives available that could have been had earlier. The most difficult part of these statements is this: they’re right. There were mistakes made in this project that did cause delays, and there are things we could have done better. There were also real difficulties that COVID-19 brought that no one could have anticipated. Our factories were shut down for months due to COVID-19 outbreaks.

Our COVID-19 Outbreak + The Lunar New Year

COVID-19 also spread through our entire engineering team, effectively shutting work down for almost four weeks in November and December. This time period proved to be absolutely critical to the completion of all pre-manufacturing steps before the start of the Lunar New Year, a major holiday celebrated throughout Asia that effectively shuts down manufacturing for the entire month of February.

This outbreak effectively crippled us at the worst possible time. Fortunately, all members of our team, as well as our families, recovered. Despite working every waking moment of the day to pull this together so we could complete manufacturing before the Lunar New Year holiday, we simply missed the date.

Understandably, this news will raise several tough questions. Let’s answer them directly.

1. When will the flex start shipping?
2. Am I ever going to get my product?
3. Did I lose my money?
4. Are you going out of business?
5. Why did you wait until now to announce this delay?
6. What are you going to do to make this right?

When will the Flex start shipping?

A small number of orders will ship to our very first backers 2-3 weeks later than promised (in early February), in the order they were received. The remaining orders will be manufactured after the Lunar New Year holiday and shipped to us in late March through early April. These shipments will arrive at our warehouse in early May, and we will ship them to you immediately after.

Am I ever going to get my product?

Yes! The Flex modular system is our fifth pre-sale or crowd-funded product launch. In fact, both the Kodiak and Apex power stations were pre-sales with over 10,000 units shipped nationally. Manufacturing will begin as soon as the Lunar New Year holiday is over and our factory opens again.

Did I lose my money?

Absolutely not. You can request a full refund of your deposit at any time before we ship your order. We will not require payment of your remaining balance until your product is manufactured.

Are you going out of business?

No. We are a strong company with 7+ years of product innovation with a history of successfully engineering, manufacturing, selling, and fulfilling industry-leading products. We have also completed several humanitarian projects in countries ravaged by natural disasters. We will weather this storm and come out of it stronger and better able to serve you.

Why did you wait until now to announce this delay?

Even with the difficulties caused by our COVID-19 outbreak, we still had strong reason to believe we could manufacture and ship your pre-order before the Lunar New Year. Last week we learned from our component manufacturers that this would be impossible; we had just missed the date.

Also, last week we learned that for the foreseeable future, international shipping, whether air or ocean freight, is plagued with major delays, both at the origin and the destination. These shipping realities also come at the absolute worst time for us. Now that we know about them, we can give you an accurate estimate of arrival.

What are you going to do to make this right?

While these challenges are indeed difficult, we cannot expect you, our customers, to pay the price for them. That’s simply not how we do business. Talk is cheap, so we are putting our money where our mouth is and providing you an additional discount on every pre-ordered Flex module. As compensation for this delay and effective immediately, we will offer you an additional discountof $40 on every Flex power console and $60 for every Flex battery.

Upgrades

In addition to the discounts and as further compensation for multiple delays, we have added several upgrades that were not included in the original presale offer. You will pay nothing for these bonus features:

• Increased Regulated DC Output on the Flex DC

The Flex DC will now have up to 60 amps (a 50% increase) of regulated DC output at 13.8V. The 60A will be split between a 20A dedicated PowerPole output and the remaining 40A shared between the other DC and USB ports. This is the highest regulated DC output in its class.

• Near-Silent Operation Whenever Possible, Even When Using AC Power

We added smart fan control to reduce noise and maintain near-silent operation whenever possible, especially below 300 watts of total output.

• Bluetooth and WiFi Expansion Bay

We have added an expansion bay to the Flex 1500 and the Flex DC. This expansion bay allows us to create accessories, such as WiFi or Bluetooth connectivity, diagnostics, software and feature updates, and other unique upgrades.

Transparency is everything. If you want to go behind the scenes to see a detailed timeline of the development and manufacturing of the Flex Modular System, please check out our development blog.We will update this timeline regularly as we go forward.

Please accept our apologies for this delay. We are grateful for you. You are the reason we get up every day, and you are the reason we will get through these challenges. I ask you to stick with us a little longer. I promise it will be worth the wait.

Warm regards,

Sean Luangrath

CEO

Inergy