SHAREHOLDER COMMUNICATION

MARCH 1, 2021

POWER 1 ENERGY COMPANY

CHICAGO, ILLINOIS

March has been a powerful clean up time across America as we dig out from unprecedented climate surges around the country in February.  From Southern Texas to the New England states, the cold weather and snow caused energy grid failures resulting in days and in some cases weeks of power loss.  Freezing temperatures also sent a usage spike throughout America as we dealt with unusually cold weather in regions of the country that were not prepared for such unprecedented weather.  This situation also sent power prices soaring which was further complicated by many of the Texas refineries shutting down due to the cold weather and lack of power to operate.  In these times, we realize how fragile our infrastructure really is and how fast it can affect our individual lives and livelihoods.

There is also good news however in that it appears, for the time being, that we have addressed the COVID-19 crisis and as more and more people have the opportunity to receive the vaccination, the country seems to be slowly opening up.  At P1EC we are getting excited about the possibility of going back to work, together, as well as opening up additional sales channels that have been dormant since the pandemic squeezed us to the sidelines in March of 2020; one full year.

Although I speak with many of you on a weekly or monthly basis,  I feel it is important to spend a bit more time on the financial position we currently find ourselves in.  Before I do that, I want to explain a small bit about myself.

As those of you who have reached out to me to talk can attest to, I do not sugarcoat, nor do I damn the way things are.  Rather, I consider it my job to navigate around the challenges I encounter.  These same folks can attest to the fact that there are no gate keepers or answering services screening my calls; I answer my own phone.  Every day, seven days a week.  I do not take my phone into the gym in the morning, and my wife says “enough” typically around 9 pm Eastern Time.  My direct line is 530-902-4341 and I currently reside at my home in Georgia where I have been holed up since the pandemic hit.  I do not live rich because I’m not.  I work for a living every day just like most of you.

As for the financial condition of P1EC, we hurt every day.  I am not a “money” guy in that I am not a fund raiser. I am an Operator and I feel like I do a pretty good job at that.  Now I find myself in the unenviable and thankless job of fund raising. We have survived, paid off some unsympathetic debt, cleaned up the company from a control and procedure standpoint, raised a little money, and even tripled the number of accounts we have in the past six months that we have been up and operating/selling again.  We have done this without any formal funding other than mainly from our Directors who are a constant source of encouragement and guidance.  We have a tight team of six who every day roll out wondering if they are going to have a job tomorrow; they are all working right now at less than half pay when any one of them could go out and get a job this afternoon; they are that good.

Our monthly expenses right now run around $100,000.  This keeps the lights on, pays most of the bills, and allows us to add approximately 250 new accounts a month.  If we do not maintain some marginal account growth each month, we have no way of keeping our team in place and current with the marketplace.  We still are forced to sell off three times as many accounts as we keep.  Today is March 4 and we started today with a zero bank account balance and $60,000 worth of bills due now and another $40,000 by months end.  This is how we have started every month for the past six months.

It is important for every investor to understand that we operate our finances with complete transparency and our full Board of Directors reviews and approves our accounts payable twice monthly to insure they know where every dollar that comes in is spent and what it is spent on.

Our financial short-term strategy is finding current investors who are willing to help us with additional equity positions.  If you are a current PRHL or Power One investor, our current P1EC offer of 4 shares for $1.00 can really help balance out your position.  This is an internal round only available to current investors and gets you shares in the new company P1EC.  I would like to immediately raise $250,000 so that I can keep adding accounts and sharpening up our controls and procedures internally.  If I had more I could do more but I feel that $250K would help us by giving us time to try and land the larger funding we need. This is not an offer to purchase any securities which may only be made pursuant to a subscription agreement and other offering documents. If you have interest, please reach out to me.

Our long-term financial direction is to accomplish one of three goals; first, we are seeking a bridge loan of $2.5 million which would allow us to scale up while we take the course of either an S-1 filing to become a public company, OR, find a large private placement investor of the full $9 million that would allow us to run for the roses.  We are in discussions with several individuals who have the potential to be private placement candidates.  We are already under the supervision of corporate counsel that is working on the S-1 and helping us to become legally compliant with SEC regulations so that we are prepared for whatever outcome is in the company’s best interest.  In addition, we have started an audit with a firm that specializes in auditing financial statements to be submitted to the SEC.  However, I am currently unable to fund the completion of that audit.  Our counsel who like our auditors has been involved in countless public and private offerings has been not only helpful but is waiting patiently for our funding before he asks for payment and he continues to help us every day.

Every goal and every piece of strategy we have deployed is for one common purpose of creating a world class organization of great value, that will ultimately create the kind of exit position that makes everyone happy.  Sooner rather than later.

I am asking each of you to take a hard look at where we are going.  Are we the kind of entity that you would invest in if you were not tainted by the historical legacy I have inherited?  If the answer is yes, we could use your help in the form of an additional direct investment in P1EC in the current round.  It is simple and fast and immediately documented with P1EC share certificates.

Secondly, many of you have contacts in the various funding arenas such as Investment Bankers, Venture Capital Partners or Private Equity professionals.  I would ask that you speak with your contacts and advise them that we are seeking a partner who can help us accomplish our long-term funding goals.  If you can refer them to me, my pledge is that I will personally return every call, provide them with complete information and more importantly, you will not be embarrassed by the introduction.  We are at present, in conversations with several possible candidates however it is our goal to expand this effort and broaden our opportunities.

My final thought for all of our investors through the various entities is this.  At the end of the day there are no guarantees, no promises, no sureties in this deal or any other deal you might find.  People ask us for money and investments every day selling solutions looking for a problem.   At P1EC our culture is one of Uncompromising Integrity and it is the cornerstone of every internal meeting, conference call, ZOOM or conversation we have.  It is the screen and filter of our decisions and makes the direction we are going in clear to us.  We can not promise success but we can promise you that we will work as hard as we can to make this right for you and we will conduct ourselves on that journey with Uncompromising Integrity.  Please help us.

Cheers,

Ed Jenks, CEO

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