Applied Energetics, Inc. · OTC:AERG

Applied Energetics — Investor Presentation (July 2023)

18 slides from Applied Energetics's investor presentation, Jul 20, 2023

1. Slide 1: Summer 2023 Company Presentation

   1 SUMMER 2023 Company Presentation Copyright © 2023 Applied Energetics, Inc. All rights reserved. Trademarks are the property of their respective owners.

2. Slide 2: Safe Harbor Statement

   2 This document is not, and nothing in it should be construed as, an offer, invitation, or recommendation in respect of the sec uri ties of Applied Energetics, Inc. or a solicitation of an offer to buy such securities in any jurisdiction. Neither this presentation nor anything in it shall form the b

3. Slide 3: Applied Energetics

   3 Applied Energetics Innovative Directed Energy (DE) solutions, ultrashort pulse lasers, and related technologies for national security, medical technology, and advanced manufacturing markets Corporate Capabilities ▪ UltraShort Pulse Lasers (USPL) ▪ Laser Guided Energy (LGE ® ) ▪ Laser Induced Plasm

4. Slide 4: Why Invest in Applied Energetics?

   4 Why Invest in Applied Energetics? Accelerating Addressable Market Global directed energy weapons market expected to grow at 19% CAGR to $17.8 billion by 2028; Counter - Unmanned Aerial Systems market expected to grow at 17% CAGR to $6.8 billion by 2030 Emerging Drone Threats Ideally Countered by U

5. Slide 5: Applied Energetics Is a Leader in Ultrashort Pulse Lasers

   5 Applied Energetics Is a Leader in Ultrashort Pulse Lasers Strong IP Portfolio Over $50M of public and privately funded IP with a portfolio of 26 patents, 11 applications held under government secrecy orders, and 10 additional patents pending. ▪ Ultrashort Pulse Lasers (USPL) ▪ Laser Filamentation

6. Slide 6: Why Directed Energy in Defense?

   6 Why Directed Energy in Defense? Engage at the speed of light with increased magazine depth and decreased shot cost ▪ Providing attack at the speed of light ▪ Precise targeting ▪ Rapid engagement of multiple targets ▪ Adjustable damage capacity Because of its distinct advantages over traditional we

7. Slide 7: Growing Addressable Market

   7 Growing Addressable Market Directed energy in early stages of development and adoption AE is well positioned to be a catalyst to “bend” the adoption curve of directed energy 1. (Directed Energy Weapons Market, Research and Markets, January 2023, https://www.researchandm arkets.com/reports/573245 4

8. Slide 8: Emerging Intelligence, Surveillance, Reconnaissance (ISR) Threats

   8 Emerging Intelligence, Surveillance, Reconnaissance (ISR) Threats Unmanned semi - and fully - autonomous asymmetric threats are dramatically increasing in number and capability The proliferation of commercial - off - the - shelf sensors and unmanned aerial systems are providing both traditional an

9. Slide 9: Drone Swarms: The Rising Threat

   9 Drone Swarms: The Rising Threat Drone Swarms • Dwell time per target becomes a highly critical parameter as the number of drones increases • At a given detection range, a countermeasure with a multiple - second dwell time will only be able to defeat a limited number of drones Total Engagement Time

10. Slide 10: Applied Energetics Approach

    10 Applied Energetics Approach Applied Energetics’ USPL approach can rapidly disable or destroy optical sensors in a light, mobile, and non - kinetic counter - electro - optic (C - EO) package as part of a layered counter - UAS defense strategy. Eye - safe USP lasers are uniquely capable of creating

11. Slide 11: Why Ultrashort Pulse Lasers?

    11 Why Ultrashort Pulse Lasers? High peak power and energy scalable architectures Wavelength agile from near - infrared to long - wave infrared Simultaneous multi - wavelength generation for enhanced effects Efficient, compact, and ruggedized optical fiber - based architectures Common underlying arc

12. Slide 12: Three Effect Mechanisms for UltraShort Pulse Lasers

    12 Three Effect Mechanisms for UltraShort Pulse Lasers Material Ablation Sensor Blinding Electronic Interference

13. Slide 13: USP Lasers Complement Continuous Wave (CW) Capabilities

    13 USP Lasers Compliment Continuous Wave (CW) Capabilities USPL offers Size, Weight, and Power ( SWaP ) attributes that enable compelling mobile solutions • Stationary laser engagement • Limited duration operation before recharge • Extensive laser system component footprint • Not air mobile • Peak L

14. Slide 14: USPL Offer Size Weight and Power – Cost (SWaP–C) Advantage

    14 USPL Offer Size Weight and Power – Cost ( SWaP – C) Advantage USPL offers Size, Weight, and Power ( SWaP ) attributes that enable compelling mobile solutions ​ ▪ Lighter, smaller, more portable, and provides diversified lethality ▪ ​ SWaP - C reductions by multiple orders of magnitude​ Early - St

15. Slide 15: Applied Energetics Leadership

    15 Applied Energetics Leadership Dr. Greg Quarles – President and CEO ▪ Over 30 years of executive experience in lasers and defense ▪ Established strategic priorities leading to award of multiple programs of record ▪ Recognized expert by Congress and senior leaders at the Pentagon ▪ Leading innovato

16. Slide 16: Our Facilities

    16 Our Facilities Applied Energetics’ corporate headquarters is in the University of Arizona Tech Park. ▪ Shop assembly area (outside of cleanroom) ▪ Dedicated inventory, shipping and receiving areas ▪ ITAR, DCSA, and NIST compliant Facility Characteristics ▪ 21,300 sq ft. facility ▪ 4,830 sq ft. Cl

17. Slide 17: Summary

    17 Summary Accelerating Addressable Market Global directed energy weapons market expected to grow at 19% CAGR to $17.8 billion by 2028; Counter - Unmanned Aerial Systems market expected to grow at 17% CAGR to $6.8 billion by 2030 Emerging Drone Threats Ideally Countered by Ultrashort Pulse Lasers Ul

18. Slide 18: Thank you. Investor Relations Contact

    18 Thank you. Investor Relations Contact Cameron Associates Kevin McGrath (646) 418 - 7002

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