Dear AquiPor Investors,

I'm pleased to share with you our quarterly update as we come out of the Summer months with a lot of momentum. We continue to wring the technical risks out of our concrete technology as we prepare for commercialization, while quietly developing the markets for our products and I'm excited to share some of these details with you in this update.

Product Development:

On the product development front, we've made a key improvement to our porous concrete technology that makes it much easier to manufacture at scale, resulting in what we believe to be our most adoption-ready version of the technology to date.

By blending the best performance aspects of our Catalytic concrete with the ease-of-production offered by traditional concrete technology, AquiPor's technology is now fully compatible with current paver and precast manufacturing practices.

Over the next several weeks we'll be finalizing project-ready mix designs for both pavers and precast panels. We are currently conducting performance testing for strength, durability, permeability (mass flow), and filtration. In addition to its improved manufacturability, our initial performance data suggests that this mix outperforms earlier versions of our technology in terms of strength and durability as well

AquiPor's porous concrete technology now blends the best attributes of our chemically bonded, metal-based concrete with the best attributes of traditional concrete mixes, making it easy to produce and improving its performance. In the pictures above, the exposed aggregate finish is another aesthetic improvement we've recently made.

Cast-In-Place version is now Under Development:

While still very much under development, we are also advancing a pour-in-place version of our porous concrete technology (for e.g. light vehicular roadway shoulders, runways, parking lots, etc.). A question that we're often asked is whether AquiPor can be used to pour high-volume surfaces such as roadways. This development gets us one step closer to that objective and we believe demonstrates the versatility and inherent innovation with this technology.

Due to patenting considerations, there isn't much technical detail that we can lend yet. What I can say is this mix also batches and pours almost identically to ready-mix, pour-in-place concrete. The big difference between this version of our technology and traditional pervious concrete is that we can densify the mix to eliminate large voids (which are prone to clogging), and filter stormwater without clogging the system.

We believe that a pour-in-place version of the technology greatly expands the use cases of our porous concrete, especially for larger surfacing projects. We will continue to develop this version of the technology by taking it through the appropriate engineering paces and performance testing for cast-in-place paving over the next several months.

This small demonstration shows the cast-in-place version of our technology. We simulate the accumulation of dirt and debris (e.g. from a construction site) in an attempt to clog the installation. We then use a power washer to maintain the surface, helping return the material to full permeability. 

Scaling Up Material Supply:

We've begun working with a key supplier to develop a three phase plan for scaling up material supply of our Catalytic concrete materials over the next 3 years. We're developing the plan to support our initial project opportunities in the near term, but also with an eye toward meeting our project growth objectives longer term, and continually lowering our material costs as we grow.

As part of this plan, our supplier intends to conduct a professional feasibility study to determine the viability of vertically integrating the production and sizing of our raw concrete materials, which will also help determine our unit economics at a much larger scale.

I am already encouraged by the initial unit economics for our products as we prepare to go to market, and this strategic plan by our supplier should lower our material input costs and lead to more robust margins as we grow.

Market Development:

We are discussing a project partnership that would facilitate the financing and construction of up to 1 mile of AquiPor’s permeable sidewalk system as a demonstration project. This pilot would be a first of its kind permeable sidewalk infrastructure project, with the target location in Southern California. We are in the very early stages of planning and will announce more as these plans come together.

There are also a handful of smaller pilots we are also looking at as early as this year and into 2025, including a small commercial retrofit for which we've obtained a non-binding Letter of Intent. Even though these opportunities are smaller in scope, we're determining the feasibility of each opportunity based on the timing of each project coinciding with material supply availability and manufacturing capabilities, as well as project financing considerations.

In addition to private sector market opportunities, we are regularly monitoring and applying for relevant grant and project opportunities from U.S. federal agencies, including the EPA, NSF, USDA, and DOE. We are becoming more comfortable with the process and due to the time commitment required for these opportunities, we see the value in adding a project manager with a grant writing and public policy background as we expand our headcount and grow.

Quarterly Sales and Expenses:

Thus far in 2024, our effort remained focused on technology and market development, with no notable sales and no notable expenses reported. We are maintaining a conservative burn rate, averaging $45k per month, with cash inflows averaging $53k per month through August.

Industry Updates:

1. The U.S. stormwater infrastructure market continues to see significant growth driven by increased investment in climate resiliency. We're keeping an eye on these developments and couldn't help but notice New York City recently allocate $32 Million to install porous pavement throughout 7 miles of road infrastructure in Brooklyn, NY. This signals the market growth and expedited acceptance of permeable paving and green infrastructure in cities.

2. Additionally, with Senate Bill 596 and companion Bill 778, California has become the first state to require specific emissions reductions from the cement industry. Concrete is now included in California's Buy Clean program, requiring contractors to use low-carbon building materials for state contracts. This could be a tailwind for AquiPor as we introduce our products to the market.

3. Boston's Water and Sewer Commission recently implemented a stormwater charge that applies to all properties with more than 400 square feet of impervious surface area. Several U.S. cities have imposed similar stormwater fees to raise funds for water infrastructure improvements. Because charges are based on the impervious surface cover of the property, we anticipate greater demand for permeable pavement and green infrastructure among property developers.

Future Plans:

Through the remainder of 2024 we'll continue to focus on the technical readiness of our porous concrete technology as we push closer to commercialization. We're also working toward supply and manufacturing partnerships, in-ground demos, and securing pilot projects.

In terms of financing the next leg of company growth, we are strongly considering a new capital raise toward the end of the year to maintain our momentum and achieve our Company milestones. We will share details as we're able to, per SEC regulations.

In closing, we appreciate your support and appreciate the insights and opportunities you continue to bring to us! If you know of any future projects or significant opportunities, please let us know. Thank you from the entire AquiPor team!

Looking forward to the journey ahead,

Greg Johnson

AquiPor Technologies, Inc.

CEO