July 12 2022

LPI Investor Update - July 2022

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Dear LiquidPiston Investor,

BLUF: We are off to an amazing start in 2022, with >$20M in DoD contracts signed in the last year (details will be announced in the coming months). We are also excited to announce that we plan to execute an additional capital raise - you can reserve your shares here!

We mentioned in previous updates that we had significant contracts brewing with the DoD. We’re happy to announce that we recently executed a second large Army development contract! This one is for an ultra-compact and portable generator - to be powered by the same new rotary engine being supported by another, equally sizable Army development contract.

To date, our DoD customer development contract bookings stand at:

Over $10M in contract value booked in 2021
With the Army contract just signed, we expect to book over $10M in 2022 as well.

These continued and increasing investments by the DoD in our engine technology represent significant milestones for the company, and are the reflection of the dedication of our team and commitment to consistently deliver and exceed customer expectations with our programs. Our primary focus as a company is on the successful execution of these programs over the next 2-3 years. We have been rather stealth, to-date, on the above contracts and on the new core engine under development – but, expect to see a stream of press release announcements soon with much more detail.

Upcoming Capital Raise

To continue with R&D and other initiatives not funded by the DoD contracts - such as Hydrogen as a future fuel for commercial applications, unmanned aerial vehicles, and auxiliary power for airplanes - we plan to execute an additional capital raise. We are pleased to invite you to reserve your shares now. You can reserve your shares here, and receive up to 15% bonus shares depending on the size of your potential investment.

Product Development

As mentioned above, LiquidPiston is focusing on a new engine platform that will be the basis for our first generator product, developed to run on heavy fuel and representing the latest generation of X-Engine technology development. More to come on this in future updates.

***Ready to take on the burgeoning Hydrogen economy***

Company Building

Management is also keenly focused on our company-building needs, especially recruiting, with a goal of doubling the size of the company over the next couple of years. We have embarked on a targeted recruitment marketing campaign to support this effort, so you may notice digital/social networking ads and news tidbits associated with this campaign.

We’re looking for great candidates interested in joining a company aiming to change the world! We have openings and are hiring engineers and technicians for various roles - expanding our testing, modeling, CAD / CAE / FEA, and electrical engineering capabilities. We are looking to add about 15 engineers to our team in 2022. If you know great engineers, please send them our way! We will pay a $5,000 referral fee when we hire one of them. Just ask them to mention your name and email address as the referrer. Please direct them to send a cover letter and resume to hiring@liquidpiston.com.

Aligned with our recruiting effort, we have also leased an additional 4,000 sq. ft. of office/lab space in an adjacent building at our Bloomfield, CT facility, bringing our total area to 16,000 sq ft. We are in the process of designing the build-out and procuring additional test cell, lab, and machine shop equipment.

Housekeeping:

We’ve enacted a stock split! On March 09, 2022, LPI effected a ten-for-one (10:1) forward “stock split.” As a result of this split, each share of the Company’s Common Stock was split into ten (10) shares of Common Stock. Note: This change has not yet been reflected in your KoreConX account. KoreConX (our transfer agent) is currently working to implement the stock split on the ledger, which means that your number of common stock shares will increase by 10x once the change is completed. You will receive an official communication from KoreConX when the change is complete. Please note, this is a record-keeping change - everyone’s shares are automatically split as of the effective date above.

This 10:1 stock split means that effectively the share price is reduced by 10x (while the number of shares is increased by 10x). Therefore, if you paid $54 per share in the last reg A campaign, this means that post-split, you will hold 10x more shares, but at an effective share price of $5.40 per share.

Keep in Touch:

If you have any follow-up questions, please reach out to us at invest@liquidpiston.com. Please remember that we do not have an investor relations department - it's just a few of us at LPI answering this mailbox as time allows between our day jobs :-)

For any issues related to your shares, the stock split, or our transfer agent in general, please reach out to KoreConX, our registered transfer agent, at Support@koreconx.com. If you have not already registered with KoreConX, they will send you a registration email. Going forward, all investor updates will reach you via KoreConX, so please ensure that you are registered. Note to our friends that invested through Wefunder - you must sign your notice of conversion prior to registering with KoreConX. If you have not signed this agreement, please send us an email with your full name, address, email address used to make your investment.

Thank you again for your support as LiquidPiston continues to innovate and grow.

Sincerely,

Alec Shkolnik, PhD
President and CEO

LiquidPiston

NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND. AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE PRELIMINARY OFFERING CIRCULAR IS NOT YET QUALIFIED BY THE SEC. YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT AT: LiquidPiston, Inc. Preliminary Offering Circular, dated May 25, 2022

Play Investor Video

Old 35 hp

New 40 hp

The X Engine is the 5th generation engine from LiquidPiston. It uses an optimized thermodynamic cycle with a higher compression ratio, constant volume combustion and over expansion to create the world’s most advanced rotary engine.

Traditional engines are incredibly inefficient. We asked ourselves why?

$20M in DoD, DARPA, and Army contracts already

Actively being evaluated for military applications

Drones, UAV

Successfully flew a 55lb UAV powered by our X-Mini Engine using jet fuel for the Army

Gensets

11 LiquidPiston 30kW Gensets per pallet vs. 2 bulky 30kW Gensets per pallet would be a game changer for the military

LiquidPiston is tackling the $400B internal combustion market.

$11B*

Military & Aerospace

Whether it’s a drone that can fly farther or the ability to fit 11 generators on a pallet instead of two, our small, versatile engines are solving some of the biggest problems for the military. No wonder the Department of Defense has awarded us over $10M to date.

$75B*

Automotive

Demand for electric vehicles is off the charts, with an expected growth of 380% more EVs on the road by 2030. That’s creating a problem. The demand for EVs is causing a shortage in precious metals like lithium. By using our engine we can make hybrid electric cars with 90% smaller batteries.

$5.5B*

Urban Air Mobility (UAM)

Planes are typically painted white because it weighs less than darker colors. If the color of the paint matters this much, imagine how important the weight of the engine is. By getting the same power with up to a 10X smaller engine, we’re opening up possibilities for air taxis.

$6B*

Drones (UAS)

One of the key features of our 55 lb hybrid electric drones is the ability to turn the engine on and off mid-flight. Not only does that save fuel, but lets the drone quietly move into sensitive areas. The innovation made us a finalist in the US Army xTechSearch 3.0 competition.

$5.8B*

Industrial Power Generation

A legacy diesel generator weighs an average of 900 pounds. You can imagine the difficulties of replacing a failing one at a hospital or bringing them to a city recovering from a natural disaster. With the same power and 10X less weight, ours are light enough to be carried by hand.

*market size projections for 2030

We Broke the Mold

Our revolutionary engine can’t be copied by imitators. We have 77 patents issued and pending, covering everything from out thermodynamic cycle to the manufacturing process.

Electric vehicles use big, expensive batteries. By integrating LiquidPiston’s X Engine, they can reduce the amount of battery needed, decreasing the production cost and weight of the vehicle.

We Make the Cars of the Future Possible

Hybrid Electrification

Battery-powered electric vehicles have challenges on the path to a renewable future. A typical electric battery weighs over 1,000 pounds and the amount of lithium, cobalt, and nickel currently needed to make them is unsustainable. Our small, efficient engines in a hybrid-electric car can make it possible for the battery to be 10X smaller.

36lbs of fuel can displace 1,000 pounds of battery

LPI Hybrid Power System eliminates 90% of battery pack

LPI engines allow more range for an electric vehicle by using smaller, lighter, more cost effective batteries

LPI's technology could be critical in addressing a possible lithium shortage

Hydrogen

Hydrogen is the sixth fuel variation that has been proven to power the X Engine along with gasoline, propane, kerosene, diesel, and jet A fuel.

The only emission the X Engine produces from running on hydrogen fuel is water, making it a zero-emission, green engine

Our engine can run on green fuel sources like hydrogen.

X Engine vs.
Wankel

A lot of people are familiar with the Wankel engine. We turned the traditional wankel inside out. Traditional Wankels have a triangle rotor in a peanut shaped housing. We have a peanut shaped rotor in a tri lobed shaped housing. By turning it inside out we solved all of the challenges of the old rotary including sealing, cooling, lubrication, emissions, and efficiency.

X-Engine architecture solves sealing, cooling, lubrication, emissions and efficiency challenges

Lightweight & Compact

Up to 80% smaller and lighter than the traditional piston Diesel engines.

Simplicity

Only two primary moving parts, optimally balanced.

High-Efficiency and Lower Fuel Consumption

The optimized thermodynamic cycle has the potential to decrease fuel consumption by 30%, thereby lowering CO2 emissions and the cost of running an engine

Quiet and Near-Zero Vibration

With lower pressure exhaust and just two moving components that are optimally balanced, the engine is inherently quiet, and offers exceptionally low vibration.