# EDGAR Filing Document

**Accession Number:** 0001926086
**File Stem:** 0001926086-23-000002
**Filing Date:** 2023-3
**Character Count:** 136688
**Document Hash:** 63be54cd358505ae9862f38473d35bb6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001926086-23-000002.hdr.sgml**: 20230302

**ACCESSION NUMBER**: 0001926086-23-000002

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** esc Aerospace US, Inc.
- **CENTRAL INDEX KEY:** 0001926086
- **IRS NUMBER:** 830932971
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-30091
- **FILM NUMBER:** 23698446

**BUSINESS ADDRESS:**
- **STREET 1:** 3259 PROGRESS DR. #106
- **CITY:** ORLANDO
- **STATE:** FL
- **ZIP:** 32826
- **BUSINESS PHONE:** 407-965-9679

**MAIL ADDRESS:**
- **STREET 1:** 3259 PROGRESS DR. #106
- **CITY:** ORLANDO
- **STATE:** FL
- **ZIP:** 32826

### Attached PDF Documents

**Attachment 1:** `formcafinal1.pdf`

# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

| OMB APPROVAL |  |
| --- | --- |
| OMB Number: | 3235-0716 |
| Expires: | August 31, 2022 |
| Estimated average burden hours per response ... 48.9697 |  |

# FORM C UNDER THE SECURITIES ACT OF 1933

(Mark one.)

☐ Form C: Offering Statement
☐ Form C-U: Progress Update:
☑ Form C/A: Amendment to Offering Statement: Reduce minimum investment amount

☑ Check box if Amendment is material and investors must reconfirm within five business days.

☐ Form C-AR: Annual Report
☐ Form C-AR/A: Amendment to Annual Report
☐ Form C-TR: Termination of Reporting

Name of issuer: esc Aerospace US, Inc.

Legal status of issuer:

Form: corporation

Jurisdiction of Incorporation/Organization: Florida

Date of organization): June 13, 2018

Physical address of issuer: 3259 Progress Dr. #106 / Orlando, Florida 32826

Website of issuer: https://www.esc-aerospace.us

Name of intermediary through which the offering will be conducted: Silicon Prairie Online, LLC

CIK number of intermediary: 0001711770

SEC file number of intermediary: 007-00123

CRD number, if applicable, of intermediary: 289746

Amount of compensation to be paid to the intermediary, whether as a dollar amount or a percentage of the offering amount, or a good faith estimate if the exact amount is not available at the time of the filing, for conducting the offering, including the amount of referral and any other fees associated with the offering:

5% Cash on First 1M, 4% on Second, 3% up to 10M, then 1% thereafter

Any other direct or indirect interest in the issuer held by the intermediary, or any arrangement for the intermediary to acquire such an interest:

N/A

Type of security offered: Convertible Promissory Notes

Target number of securities to be offered: 618,000

Price (or method for determining price): face value

Target offering amount: 618,000

Oversubscriptions accepted: ☑ Yes ☐ No

If yes, disclose how oversubscriptions will be allocated: ☐ Pro-rata basis ☑ First-come, first-served basis

☐ Other - provide a description:

Maximum offering amount (if different from target offering amount): 618,000

Deadline to reach the target offering amount: August 31, 2023

SEC 2930 (4/17) Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

1

NOTE: If the sum of the investment commitments does not equal or exceed the target offering amount at the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

Current number of employees: 10

| Total Assets: | Most recent fiscal year-end: $270,239.18 | Prior fiscal year-end: $168,228.43 |
| --- | --- | --- |
| Cash & Cash Equivalents: | Most recent fiscal year-end: $75,273.69 | Prior fiscal year-end: 0 |
| Accounts Receivable: | Most recent fiscal year-end: $193,374.40 | Prior fiscal year-end: $137,503.44 |
| Short-term Debt: | Most recent fiscal year-end: $227,705.46 | Prior fiscal year-end: $94,004.70 |
| Long-term Debt: | Most recent fiscal year-end: 0 | Prior fiscal year-end: 0 |
| Revenues/Sales | Most recent fiscal year-end: $592,710.58 | Prior fiscal year-end: $767,501.99 |
| Cost of Goods Sold: | Most recent fiscal year-end: $325,263.46 | Prior fiscal year-end: $542,183.95 |
| Taxes Paid: | Most recent fiscal year-end: TBD | Prior fiscal year-end: 0 |
| Net Income: | Most recent fiscal year-end: ($32,435.65) | Prior fiscal year-end: $63,964.15 |

Using the list below, select the jurisdictions in which the issuer intends to offer the securities:

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, BS, GU, PR, VI, IV

### SIGNATURE

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (Ag 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

esc Aerospace US, Inc.

(Issuer)

By

/s/ Lars Weimer President

(Signature and Title)

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (Ag 227.100 et seq.), this Form C has been signed by the following persons in the capacities and on the dates indicated.

/s/ Lars Weimer

(Signature)

President

(Title)

March 2nd, 2023

(Date)

2

# THE COMPANY

1. Name of issuer: esc Aerospace US, Inc.

# ELIGIBILITY

2. ☑ Check this box to certify that all of the following statements are true for the issuer:

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding. (For more information about these disqualifications, see Question 30 of this Question and Answer format).
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

INSTRUCTION TO QUESTION 2: If any of these statements is not true, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding? ☐ Yes ☑ No

Explain:

3

# PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Lars Weimer | Common Stock | 30% % |
| Danny Stirtz | Common Stock | 30% % |
| esc Holding GmbH (Mathias Krueger) | Common Stock | 40% % |
|  |  | % |

INSTRUCTION TO QUESTION 6: The above information must be provided as of a date that is no more than 120 days prior to the date of filing of this offering statement.

4

# DIRECTORS OF THE COMPANY

4. Provide the following information about each manager (and any persons occupying a similar status or performing a similar function) of the issuer:

Name: Lars Weimer Dates of Board Service: June 13, 2018

Principal Occupation: President & CEO

Employer: esc Aerospace US, Inc. Dates of Service: June 13, 2018 - Present

Employer's principal business: GPS navigation systems, positioning, navigation and timing systems

List all positions and offices with the issuer held and the period of time in which the director served in the position or office:

Position: President & CEO; Director Dates of Service: June 13, 2018 - Present

Business Experience: List the employers, titles and dates of positions held during past three years with an indication of job responsibilities: leading sales/marketing efforts, product and process development, and business management.

Employer: esc Aerospace US, Inc.

Employer's principal business: GPS navigation systems, positioning, navigation and timing systems

Title: President & CEO Dates of Service: June 13, 2018 - Present

Responsibilities: business management, strategy, finances, human resources, IT

Name: Danny Stirtz Dates of Board Service: June 13, 2018 - Present

Principal Occupation: Executive Vice President

Employer: esc Aerospace US, Inc. Dates of Service: June 13, 2018 - Present

Employer's principal business: GPS navigation systems, positioning, navigation and timing systems

List all positions and offices with the issuer held and the period in which the director served in the position or office:

Position: Executive Vice President Dates of Service: June 13, 2018 - Present

Business Experience: List the employers, titles and dates of positions held during past three years with an indication of job responsibilities: innovation and risk management, and product quality assurance.

Employer: esc Aerospace US, Inc.

Employer's principal business: GPS navigation systems, positioning, navigation and timing systems

Title: President & CEO Dates of Service: June 13, 2018 - Present

Responsibilities: business development, sales, marketing

# OFFICERS OF THE COMPANY

INSTRUCTION TO QUESTION 5: For purposes of this Question 5, the term officer means a president, vice president, secretary, treasurer or principal financial officer, comptroller or principal accounting officer, and any person routinely performing similar functions.

5. Provide the following information about each officer (and any persons occupying a similar status or performing a similar function) of the issuer:

Name: Lars Weimer

Title: President & CEO Dates of Service: June 13, 2018 - Present

Responsibilities: business management, strategy, finances, human resources, IT

List any prior positions and offices with the issuer and the period of time in which the officer served in the position or office:

Business Experience: List any other employers, titles and dates of positions held during past three years with an indication of job responsibilities: N/A

Name: Danny Stirtz

Title: Executive Vice President Dates of Service: June 13, 2018 - Present

Responsibilities: business development, sales, marketing

List any prior positions and offices with the issuer and the period of time in which the officer served in the position or office:

Business Experience: List any other employers, titles and dates of positions held during past three years with an indication of job responsibilities: N/A

# BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer.

7

Business Plan

esc Aerospace US, Inc.

February 15, 2023

esc Aerospace US, Inc.

# Business Plan

February 15, 2023

![img-0.jpeg](img-0.jpeg)

esc Aerospace US, Inc

esc Aerospace US, Inc.

3259 Progress Drive

Orlando, FL 32826

www.esc-aerospace.us

# Contacts

Lars Weimer

President and CEO

(407) 965-9679

lars.weimer@esc-aerospace.us

Danny Stirtz

Executive Vice President

(407) 579-5869

danny.stirtz@esc-aerospace.us

Page 1

Business Plan

esc Aerospace US, Inc.

February 15, 2023

# Table of Contents

1.0 OUR CUSTOMER'S NEED...4
2.0 ESC AEROSPACE US, INC...5

2.1 Legal Structure ...5
2.2 Key Personnel...6
2.3 Ownership and Management...7
2.4 History and Major Milestones ...7

3.0 MARKETS AND BUSINESS STRATEGY...7

3.1 Market Size ...8

4.0 PRODUCT STRATEGY ...9
5.0 OUR CURRENT PRODUCTS...10

5.1 NavXTM ...10
5.2 escULP-TCTM...13

6.0 EXAMPLE RELATIONSHIPS - CUSTOMERS, STAKEHOLDERS, USERS...14
7.0 INTELLECTUAL PROPERTY...15
8.0 COMPETITION ...16
9.0 SALES AND FINANCIAL STRATEGY...16
10.0 POTENTIAL CAPITAL RAISE AND USE OF FUNDS...17
11.0 EXIT STRATEGY ...19
12.0 NOTES...19

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# NOTE REGARDING FORWARD LOOKING STATEMENTS

- THE INFORMATION SET FORTH HEREIN CONTAINS "FORWARD-LOOKING INFORMATION", INCLUDING "FUTURE-ORIENTED FINANCIAL INFORMATION" AND "FINANCIAL OUTLOOK", UNDER APPLICABLE SECURITIES LAWS (COLLECTIVELY REFERRED TO HEREIN AS FORWARD-LOOKING STATEMENTS). EXCEPT FOR STATEMENTS OF HISTORICAL FACT, THE INFORMATION CONTAINED HEREIN CONSTITUTES FORWARD-LOOKING STATEMENTS AND INCLUDES, BUT IS NOT LIMITED TO, THE (I) PROJECTED FINANCIAL PERFORMANCE OF THE COMPANY; (II) COMPLETION OF, AND THE USE OF PROCEEDS FROM, THE SALE OF THE SHARES BEING OFFERED HEREUNDER; (III) THE EXPECTED DEVELOPMENT OF THE COMPANY'S BUSINESS, PROJECTS, AND JOINT VENTURES; (IV) EXECUTION OF THE COMPANY'S VISION AND GROWTH STRATEGY, INCLUDING WITH RESPECT TO FUTURE M&A ACTIVITY AND GLOBAL GROWTH; (V) SOURCES AND AVAILABILITY OF THIRD-PARTY FINANCING FOR THE COMPANY'S PROJECTS; (VI) COMPLETION OF THE COMPANY'S PROJECTS THAT ARE CURRENTLY UNDERWAY, IN DEVELOPMENT OR OTHERWISE UNDER CONSIDERATION; (VII) RENEWAL OF THE COMPANY'S CURRENT CUSTOMER, SUPPLIER AND OTHER MATERIAL AGREEMENTS; AND (VIII) FUTURE LIQUIDITY, WORKING CAPITAL, AND CAPITAL REQUIREMENTS. FORWARD-LOOKING STATEMENTS ARE PROVIDED TO ALLOW POTENTIAL INVESTORS THE OPPORTUNITY TO UNDERSTAND MANAGEMENT'S BELIEFS AND OPINIONS IN RESPECT OF THE FUTURE SO THAT THEY MAY USE SUCH BELIEFS AND OPINIONS AS ONE FACTOR IN EVALUATING AN INVESTMENT.
- THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND UNDUE RELIANCE SHOULD NOT BE PLACED ON THEM. SUCH FORWARD-LOOKING STATEMENTS NECESSARILY INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES, WHICH MAY CAUSE ACTUAL PERFORMANCE AND FINANCIAL RESULTS IN FUTURE PERIODS TO DIFFER MATERIALLY FROM ANY PROJECTIONS OF FUTURE PERFORMANCE OR RESULT EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.
- ALTHOUGH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION ARE BASED UPON WHAT MANAGEMENT OF THE COMPANY BELIEVES ARE REASONABLE ASSUMPTIONS, THERE CAN BE NO ASSURANCE THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF CIRCUMSTANCES OR MANAGEMENT'S ESTIMATES OR OPINIONS SHOULD CHANGE EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LAWS. THE READER IS CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.

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### 1.0 Our Customer's Need

Advances in technology have become such an integral part of day-to-day life that we can hardly imagine a world without them. We are truly living in the day of the Jetson's.

![img-0.jpeg](img-0.jpeg)

It would be unbearable not have access to any of our technologies (such as the Internet, and smart phones, etc.). However, there is one technology which is just as omnipresent as the Internet and that most of us do not even realize how dependent we are on it ... GPS.

![img-1.jpeg](img-1.jpeg)

Over fifty years ago, who knew how pervasive GPS would become? When we think of GPS, most of us think of our smart phone or car navigation system. However, GPS is the world standard for

Positioning, Navigation, and Timing (PNT). From natural interferences to growing terrorist threats, our total dependence on GPS is problematic. There is hardly a system today (military or commercial) that is not totally dependent on GPS for position and/or time. Without it, financial systems may fail,

autonomous vehicles might crash, military missions could fail, and lives could be lost.

Having an alternative solution is crucial.

Our solution is critical to meeting US National Defense needs

Section 1618 of the 2017 National Defense Authorization Act (NDAA), "Backup and Complementary Positioning, Navigation and Timing Capabilities of Global Positioning System (GPS)".

To meet ever-growing threats of both, natural and man-made environments, and evolving adversary countermeasures, there is a need to PNT solutions that are not completely reliant on GPS.

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Accurate and reliable positioning and timing is critical to a variety of applications.

A few months ago, during GPS satellite maintenance, an incorrect time was accidentally uploaded to several GPS satellites, making them "out of sync" by the fractions of sections of seconds.

The minute error disrupted GPS-dependent timing equipment around the world for more than 12 hours. In parts of the U.S and Canada, police, fire, and EMS radio equipment stopped functioning. BBC digital radio was out for two days in many areas, and the anomaly was even detected in electrical power grids.

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

As another example, in 2018, a joint forces unit was on a mission against a high-value target when they were ambushed and pinned down. When interviewed, the Joint Terminal Attack Controller (JTAC) said, "Because of the tree cover, the aircraft overhead couldn't see me or the target. I had to continually leave the protection of cover in order adjust the rounds." Eventually the airstrikes were called in, allowing the unit to withdraw.

These are just a couple examples of where our solution for a more reliable Positioning, Navigation, and Timing (PNT) system NavXTM

(formerly escPNTTM) is highly beneficial and leads to increased mission success and save lives!!

## 2.0 esc Aerospace US, Inc.

esc Aerospace US, Inc. is a small product developer and systems integrator, with the depth of experience of a large corporation. Our size, low overhead, extensive solution partnerships and global reach enable us to meet the highest complexity technological challenges and meet our clients need with best value solutions.

We are focused on development of autonomous systems, applications for Artificial Intelligence (AI) and Machine Learning (ML), and delivery of highly accurate and resilient Positioning, Navigation, and Timing (PNT) solutions without dependency on GPS.

![img-4.jpeg](img-4.jpeg)

esc Aerospace US, Inc. has successfully delivered solutions across the US Department of Defense and commercial customers like Ford Motor Company. Our revenue comes from direct product sales, licensing, and services.

Our team has more than 60 years of experience across military and commercial markets and decades of experience with product development.

## 2.1 Legal Structure

esc Aerospace US, Inc. is a Florida C-Corporation and is a registered US Small Business Administration "US Owned and Controlled" small business. We are located in the UCF Business Incubator at Research Park in Orlando Florida. Located near the University of Central Florida campus, as well as key technology industry clusters, the Central Florida Research Park incubator predominantly serves emerging high-tech companies. This 48,000-square-foot facility features Class A office space with flexible leases, meeting and conference rooms, shared office equipment, plus space suitable for laboratories and early-stage manufacturing.

The owners of esc Aerospace US, Inc. are invested in two esc Aerospace companies in Europe (esc Aerospace GmbH and esc Aerospace sro). However, these companies are not affiliated with esc Aerospace US, Inc. We only share the brand name and collaborate through subcontract agreements.

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EIN: 83-0932971

DUNS: 081266985

CAGE: 85SC5

SBC: 001596547

## 2.2 Key Personnel

The esc Aerospace US, Inc. team has the experience, dedication and passion to meet and exceed growth objectives. Strong business and technology acumen coupled with an extensive network of potential customers, suppliers, and partners minimize risk and enable success.

Lars Weimer - President & Chief Executive Officer

Lars has the German degree Dipl.-Ing. (equivalent to Master of Science) in Aviation and Aerospace Engineering. He is a highly experienced and dynamic

aerospace manager, with vast background of skills and experience in research and leading technical and non-technical teams. He has driven the successful start and early growth phase of tech companies in the US and Europe. His professional experience includes UAS research and development projects with several commercial entities as well as the European Space Agency (ESA), USAF AFRL and US Army. Lars has more than 20 years of demonstrated achievements in all space and aviation system life cycle phases.

Danny Stirtz - Executive Vice President

Danny Stirtz has over 40 years of experience in systems development and commercialization. He has successfully launched a number of small businesses as well as worked at all levels of large and small organizations from individual contributor/programmer to senior staff positions at companies like Lockheed Martin, Hughes Aircraft Company, Northrop Electronics, GE Aerospace, and Beckman Instruments. He spent over 28 years at Lockheed Martin. His development experience has included Astro-Inertial Navigation Systems (SR-71), GPS space and ground segments, MILSTAR ground segment, Second TDRSS Ground Station (STGT), visualization/mapping systems (classified), and other related technology areas. Danny was awarded a BS in Computer Science from California State University of Fullerton in 1981.

Cantwell Carson - Senior System Engineer

Dr. Carson has worked on over 20 government-funded research and development projects in academia, national labs, and the private sector. His Ph.D. in Materials Science & Engineering was awarded from Georgia Institute of Technology in 2009. Cantwell was Principal Investigator for the AF182-002 "Satellite ID, Tracking, and Health for Position Navigation and Timing" contract where he developed a method of determining positions of LEO satellites for PNT. As Technical Lead of AF 1917 Small Business Innovation Research (SBIR) "Satellite Identification, Tracking, and Health" he developed a low cost, passive satellite tracking system based on RF signal time-of-flight, and Doppler shift.

Edward Seger - Senior FPGA Development Lead

Mr. Seger is a highly capable and experienced developer with over 20 years of experience in FPGA and hardware development. His experience includes development of the radio front-end/FPGA for the NavXTM LEO SOOP project with the Air Force. His experience design and development of next generation analog acquisition hardware, signal processing applications using FPGAs and microprocessors, multiplatform system test software suite development. His experience ranges across multiple recognized commercial developers as well as the NSA where he optimized signal processing software and invented a disk sanitizer capability to declassify disk drives for use outside the agency (received the Directors Productivity Improvement Award). Mr. Seger has a BS-EE from Capitol College, Laurel MD.

![img-5.jpeg](img-5.jpeg)

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### 2.3 Ownership and Management

esc Aerospace US, Inc. was founded June 13th, 2018, by its three current shareholders. Their voting shares currently represent 80% of the total 10,000,000 shares of stock. The remaining 20% non-voting shares have been reserved for employee incentives and/or small investment. To date, ~1% of the reserved non-voting shares have been allocated for employee incentive.

| Shareholders | % Voting | # Voting Shares | % Non-Voting | # Non-Voting Shares | Total Shares | % Total |
| --- | --- | --- | --- | --- | --- | --- |
| Mathias Krueger | 40% | 3,200,000 | 0% | - | 3,200,000 | 32.00% |
| Lars Weimer | 30% | 2,400,000 | 0% | - | 2,400,000 | 24.00% |
| Danny Stirtz | 30% | 2,400,000 | 0% | - | 2,400,000 | 24.00% |
| Reserve | 0% | - | 96% | 1,928,000 | 1,928,000 | 19.28% |
| Employees/Investors | 0% | - | 4% | 72,000 | 72,000 | 0.72% |
| Total | 100% | 8,000,000 | 100% | 2,000,000 | 10,000,000 | 100% |

Board of Directors: Mathias Krueger, Lars Weimer, Danny Stirtz

Corporate Officers: (day to day operations): Lars Weimer, Danny Stirtz

Full resumes/CVs and corporate documents are available upon request.

### 2.4 History and Major Milestones

We have accomplished a lot in a short time. Established in 2018, we have leveraged our founder's relationships to establish a strong network of customers, partners, and suppliers. We have won contracts across DOD services (Air Force, Army, SOCOM, Navy) and established relationships with major potential partners/customers (i.e. Lockheed Martin, Cubic, CACI, Ford Motor Company, etc.). These relationships position us for potential new business as well as support our exit strategy.

![img-6.jpeg](img-6.jpeg)

### 3.0 Markets and Business Strategy

esc Aerospace US, Inc. is a product developer and systems integrator. We strive to understand our client's complex needs and integrate/deliver solutions to meet those needs. To maximize our success, we focus on the following strategies:

1) Technology Focus: We constantly evaluate technologies and markets for opportunities. Because of the existing market size and continued high growth potential (see Market and Commercialization section) we have strategically focused on Unmanned Systems (Autonomous Systems), applied AI/ML and specifically on Guidance, Navigation, Control (GNC) and Positioning, Navigation, Timing (PNT) solutions.

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2) Customer/Market Focus: Although we sell to both commercial and defense markets, we have strategically focused on defense. Although the defense markets traditionally yield lower margins, the US Department of Defense (DOD) provides significant opportunity. Traditionally the DOD supports small businesses through set-asides, significant investment through SBIR and other programs, as well as small business objectives for larger prime contractors. Additionally, the National Defense Strategy specifically recognizes the importance of new technologies, e.g. autonomous systems, and encourages "increase agility, speed, and resiliency ... and deployment ... in order to stand ready to fight and win the next conflict." The goal is

![img-7.jpeg](img-7.jpeg)

What application would not benefit from reliable and accurate PNT in GPS denial?

to make the military more "lethal, agile, and resilient." (the National Defense Strategy is classified, but the 10-page unclassified summary of this strategic guidance document is available on request).

### 3.1 Market Size

As part of the esc Aerospace Business Development process, we conducted a market analysis to analyze the market potential prior to investment of esc Aerospace Internal Research and Development funds. Additionally, as part of our first Department of Defense contract with the US Air Force AFRL (AF182-002 Innovative Position Navigation and Timing), an independent consultant was tasked by AFRL to develop a detailed market analysis. This analysis/report (report available on request) validated the market analysis already conducted by esc Aerospace.

In summary, all analysis shows tremendous growth potential and multibillion dollar market (i.e. "The global location-based services market was valued at: USD 20.53 billion and is expected to reach USD 133.08 billion by 2023...").

We have conducted analysis of the number of platforms in the US DOD only (excluding potential commercial and global defense markets). This analysis shows greater than 800,000 platforms that may benefit from an NavXTM system. This number is consistent with the published data regarding the Joint Tactical Radio System (JTRS) program that eventually

| Platforms |  |  |
| --- | --- | --- |
| Army Active Duty | 500,000 |  |
| Infantry | 15% | 75,000 |
| Other field support | 10% | 50,000 |
| SOCOM | 70,000 |  |
| Tactical/support | 50% | 35,000 |
| Ground Vehicles |  | 500,000 |
| Small UAS |  | 11,000 |
| Aircraft |  | 15,000 |
| Ships |  | 10,000 |
|  |  | 696,000 |
| Spares | 20% | 139,200 |
| Total |  | 835,200 |

will deploy over 750,000 tactical radios. The same platforms (and others) that would utilize a tactical radio would also benefit from an NavXTM device. The program is budgeted ~$6.8 billion to produce 180,000 (initial wave) radios, an average cost per radio of $37,700. Grand View Research valued the global artificial intelligence market size at USD 93.5 billion in 2021 and projected it to expand at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030.

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# 4.0 Product Strategy

NavXTM is our current brand for our solution to resilient/accurate PNT in GPS challenged and denied environments. We are aggressively pursuing contracts to fund enhancement and accelerate market entry. Our overall strategy:

- Focus on multi-sensor data fusion that enables us to leverage any/all sources of positioning/timing information.
- No subscription required - zero dependence on signal content and service providers.
- Provide very low Size, Weight, Power and Cost (SWaP-C) product to enable market reach.
- Applications of AI/ML for increased accuracy and expanded capability.
- Advanced visual sensor technologies and applications of AI/ML provide additional PNT resiliency and expand

product/solution reach to Intelligence, surveillance, and reconnaissance (ISR) markets.

![img-8.jpeg](img-8.jpeg)

Low SWaP-C enables us to meet growing market demand in markets that are currently very underserved, including sense and avoid for autonomous rovers (ground, air), construction site inspection, surveillance, military (dismounted, small UAS, precision weapons), autonomous ground vehicles as well as larger ground vehicles, aircraft, maritime applications, space applications, mission planning, search and rescue, border protection, pipeline/powerline inspection. Our go to market strategy is to start with those markets that would benefit most from low SWaP-C (i.e. small UAS and dismounted soldier) and grow into other markets (i.e. manned aircraft, maritime, etc.).

# What applications/systems would NOT benefit from accurate position and time in GPS denial?

The low size, weight, power, and cost of our solution, combined with our unique technical features, discriminates our solution, and enables us to reach huge and growing markets.

Our go-to market strategy includes:

- Direct sales of product
- Software/technology licensing
- Integration services

Software/Technology product licensing to channel partners will accelerate access to commercial markets and grow returns.

We continue to leverage DOD and other government agency small business initiatives to fund product development and have successfully delivered prototype systems to the Air Force and Army under SBIR contracts. Transition from these prototypes to operational systems requires additional investment but will yield exponential sales growth.

Our competitors (legacy military navigation, companies, and new market entrants for PNT in GPS denial) typically focus on a single technology - like vision systems, inertial systems, terrestrial transmitters, and others - to solve the problem of GPS denial. This tends to limit their utility across various use cases. esc Aerospace US, Inc. focuses on integration of multiple sensors and technologies for applicability across a much larger set of uses. At the same time our solutions are low SWaP-C (Size, Weight, Power, Cost) and do not require any subscriptions or proprietary receiver hardware. Additionally, our product is intended to be a “sub-system” to other systems and as such, will open other integration opportunities.

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## 5.0 Our current products

Our robust NavXTM Product Roadmap has been designed to continuously add reliability, accuracy, and robustness for **PNT in TOTAL GPS denial** for our existing customers and to reach additional commercial and government markets.

![img-9.jpeg](img-9.jpeg)

We currently offer two primary products:

1. **NavXTM** - low SWaP-C (Size, Weight, Power, Cost) device that provides reliability, accuracy, and robustness for PNT in **TOTAL GPS denial**
2. **escULP-TCTM** - chip size Ultra-Low Power (ULP) Timing Circuit that bridges the gap between low-cost commercial oscillators (XO) and very high cost and power Chip Scale Atomic Clocks (CSAC).

## 5.1 NavXTM

NavXTM is based on a commercially available GPS product with layers of capabilities added to provide resiliency and accuracy when GPS signals are unavailable or unreliable. Many competitive products tend to focus on one technology. This limits their ability to address application across a wide variety of applications.

We offer NavXTM as a standalone device, or as an embedded board. Some of the technology layers may also be licensed as software components.

![img-10.jpeg](img-10.jpeg)

Layers of capability add resiliency, accuracy and ability to function in an extensive variety of applications

![img-11.jpeg](img-11.jpeg)

The small size makes

NavXTM applicable to large and growing markets, such as small Unmanned Aircraft Systems (UAS).

Our escULP-TCTM product is a component of NavXTM and enables our solution to provide continuous/accurate PNT when other solutions would fail over time.

![img-12.jpeg](img-12.jpeg)

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### 5.1.1 GPS/RTK

The foundation of NavXTM is a commercially available product that provides a low SWaP-C solution for accurate position/time in GPS challenged environments. Low SWaP-C enable us to meet growing market demand in markets that are currently very underserved including small UAS, personal (tactical-level airmen), small ground autonomous vehicles, precision weapons, and many more. Our solution is also applicable to other markets that currently utilize much larger, heavier, greater power consumption and expensive devices such as larger manned aircraft and maritime application (commercial and military). At the core of

![img-13.jpeg](img-13.jpeg)

NavXTM is our tightly coupled sensor fusion algorithm that fuses a wide variety of information to produce an accurate and reliable position. This includes 3 Global Navigation Satellite System (GNSS) receivers, Inertial Measurement Unit, crystal dock, barometer, and temperature sensor. Multiple standard interfaces enable access to other sensors and sources of information.

By utilizing multiple sources of information, we provide a resilient centimeter accurate PNT in GPS/GNSS "challenged" environments (where GPS and other GNSS satellite signals may be unreliable due to weather conditions, RF signal noise, signal reflections off buildings, obstructed by trees/buildings, etc.) for some short time (1-5 minutes).

Real-time kinematic (RTK) corrections are applied to enable positional accuracy to 2 centimeters!!

### 5.1.2 Low Earth Orbit (LEO) Signals of Opportunity (SoOP)

The airways are full of Radio Frequency (RF) signals that were not necessarily intended for positioning. Our solution has been designed and developed to be flexible/configurable to leverage many of these RF "Signals of Opportunity" (SoOP) as positioning information.

In September 2020 we successfully delivered a proof-of-concept operational prototype to US Air Force Lifecycle Management Center (AFLCMC). This prototype added the use of signals from non-positioning Low Earth Orbit (LEO) satellite as a source of positioning. We were able to calculate position data based on LEO satellite signals only and visualize the position on military systems (Android Team Awareness Kit - ATAK). Our customer declared our proof-of-concept "very successful." A 100 sec video may be viewed at:

![img-14.jpeg](img-14.jpeg)

https://youtu.be/RNqhAtszjsl

Being at a much lower orbit than GPS satellites, LEO satellite signals are much stronger and reliable. There are currently hundreds of LEO satellites broadcasting over a much wider spectrum of frequencies which makes them far more difficult to spoof or jam. In the next few years, it is anticipated that mega-constellations such as Space-X's Starlink will be launched, making thousands

![img-15.jpeg](img-15.jpeg)

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of new satellites available for positioning information.

By adding the use of other signal sources, like LEO satellite signals, we can literally assure signal availability and PNT in GPS denied environments. Unlike other competitive products, our solution does NOT rely on signal content and is NOT reliant on costly receivers/services (i.e. GlobalStar, Iridium).

Patent Pending: "A SYSTEM AND METHOD FOR DETERMINING A RECEIVER GROUND POSITION" - (PCT/US2021/037443).

### 5.1.3 Visual Aided PNT

esc Aerospace successfully completed an SBIR Phase 1 contract for adding Visual and Visual Inertial Data to our NavXTM. This provides enhancements to our current NavXTM, to enable Enhanced Visual Odometry for accurate PNT in GPS denial as well as utilization of AI/ML applied to visual imagery enhanced situational awareness (Real-Time 3D terrain mapping, AI for object ID, etc.).

![img-16.jpeg](img-16.jpeg)

### 5.1.4 Network Assisted PNT

Unlike prior research that focused on a "base-station," our approach that was developed in an US Army SBIR Phase 1 project, is based on the concept that each node in the network of nodes (for example a group of warfighters) has the ability to act a "base-station." That is, at least one node in the network will have a "trusted" PNT (accurate and reliable) time/position. All other nodes in the network will be "synchronized" to that Trusted Node with the help of our in-house Remote Synchronization Protocol (RSP), thereby enabling all nodes in the network to maintain accurate position/time in TOTAL GPS denial.

### 5.1.5 Event Based Sensor Assisted PNT (example future enhancement)

Traditional camera sensors are limited in dynamic movement environments resulting in motion blur and high latency. There is an evolving new sensor technology available, Event-Based Cameras. These cameras capture changes in pixel brightness only (compared whole frame). They output - timestamp, spatial coordinate, and brightness changes only which results in a significant reduction in data gathered, high temporal resolution,

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sub-millisecond latency and a higher dynamic range. Use of Event-Based Cameras as an alternate source of visual data, our Visual Enhanced PNT opens our solution up to applications where traditional image technologies struggle (i.e. low light/nigh time, tracking of fast-moving objects, etc.).

### 5.2 escULP-TCTM

It is sometimes forgotten that the "T" in PNT stands for "TIME" and many systems rely on GPS for accurate time. Current PNT solutions leverage internal clocks/oscillators to maintain time when GPS signals are unavailable. However, the lower SWaP-C clocks/oscillators tend to "drift" over short periods of time (minutes). This is acceptable when GPS is "challenged"/spotty due to obstructions (urban canyons, tree cover, etc.) but is totally unacceptable when GPS is denied for hours or days. One solution to this

![img-17.jpeg](img-17.jpeg)

ULP-TC Performance in Perspective

|  | escULP-TC\( ^{TM} \) | EPSON | EPSON | Q-tech | Microsemi | Orola |
| --- | --- | --- | --- | --- | --- | --- |
| Technology | Low power compensated XO | XO | TCXO | OCXO | CSAC | Rubidium CSAC |
| Part/Model | In Development | TG-3541CE | TG20165MN | QT410 | SA-45s | mRO-50 |
| Power Consumption | <1 uW, <.001 mW | 9 uW, .009 mW | 4500 uW, 4.5 mW | 2700000 uW, 2700 mW | 120000 uW, 120 mW | 450000 uW, 450 mW |
| Supply Voltage | 0.9 to 1.2 V | 3 to 5 V | 1.8 to 3.3 V | 3.3 to 15 V | 3.3 V | 3.3 V or 5 V |
| Stability - Short term /1000N | <1 ppb | Not provided | Not provided | Not provided | 0.01 ppb | Not provided |
| Stability - Long term /day | <0.1 ppb | 27 ppb | 1.3 ppb | 1 ppb | <0.03 ppb | 0.005 ppb |
| Hold-over time drift | ~10 us/hour | Not Applicable | Not Applicable | Not Applicable | Not Applicable | 1 us/hour |
| Temperature Range | -20 to 85 C | -40 to 105 C | -40 to 85 C | -20 to 70 C | -10 to 70 C | -10 to 65 C |
| Stability over temp. range | <0.1 ppm | 16 ppm | 1 ppm | 0.2 ppm | 1 ppb | 1 ppb |
| Warm-up/Start-up Time | <1 s | 3 s | 2 ms | 10 min. | 180 s | 30 s |
| Size | 3.2 x 2.5 x 1.0 mm | 3.2 x 2.5 x 1.0 mm | 2.0 x 1.6 x 0.73 mm | 45.8 x 64.8 x 39.4 mm | 40 x 35.3 x 11.43 mm | 50.8 x 50.8 x 19.5mm |
| Weight | .024 g | .024 g | Not provided | 175 g | 35 g | Not provided |

Notation to normal frequency

escULP-TCTM bridges the gap between XO and CSAC

- Increased power consumption has a DIRECT impact on battery powered applications
- CSAC in support of mobile platforms (sUAS, dismounted, precision weapons, etc.) drives significant additional battery weight
- Current low power XO not sufficient for many mobile applications (i.e. PNT)
• Time errors have direct correlation to positional error in PNT application
- With current oscillators (10 ppm), unacceptable positional error in <10 min
• Analysis shows 0.1 ppm could extend positional accuracy in total GPS denial to > 24 hr

![img-18.jpeg](img-18.jpeg)

problem is use of Chip Scale Atomic Clocks (CSAC). The problem is current technology CSACs are high power consumers. For mobile applications (i.e. small UAS, precision weapons, handheld radios, etc.), this drives the need for additional power/batteries.

esc Aerospace has partnered with researchers at Northeastern University to create an affordable Ultra-Low Power (ULP) Timing Circuit (escULP-TCTM) that bridges the gap between low SWaP-C commercial oscillators (XO) and very high SWaP-C CSACs. Our new escULP-TCTM will enable significant positional accuracy

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### Ultra-Low Power Timing Circuit (escULP-TCTM)

![img-0.jpeg](img-0.jpeg)

- Timing circuits ubiquitous
  - time maintenance "in-between" GPS signals (a few sec.)
- Many systems will fail when GPS absent for > a few seconds/minutes
- Current higher performance timing devices

- expensive
- consume large amounts of power

- ULP-TC target spec

- .1 ppm performance
- .1-1 μW power

- Used in escPNTTM and sold as separate product

- Positional accuracy maintained over >24 hr in total GPS denial

escULP-TCTM bridges the gap between low cost/power timing circuits (crystal oscillators - XO) and high-performance timing circuits (i.e. Chip Scale Atomic Clocks - CSAC)

improvements of our NavXTM and enable utilization in total GPS denial without positional/time "drift." The market potential for escULP-TCTM by itself is significant, especially in the emerging field of the Internet-of-Things (IoT). The first batch of chips exceeded our expectation already, while currently a second batch, improved batch of chips is in manufacturing. We are currently under Air Force contract to study the integration of our ULP-TCTM into Air Force systems.

### 6.0 Example Relationships - Customers, Stakeholders, Users

The following are some examples of "Champions" for our company/technology:

- Ray Heath, Lead Special Warfare Requirements, US Air Force AFSOC, HQ A5-8-9/A5K - supported our SBIR Phase 2 LEO PNT project by signing a Memorandum of Understanding (a prerequisite for contract award).
- Paul Olson, Chief Engineer - US Army Combat Capabilities Development Command (CCDC), Army Futures Command, Positioning, Navigation and Timing Division, Command, Power & Integration Directorate - Direct customer for Network Assisted PNT. Paul continues to be an esc Aerospace "champion" and has provided numerous Letters of Support (LoS) for our SBIR proposals. He also signed our Air Force MoU for our Visual Aided PNT Phase II SBIR.
- Sanford (Luke) Steelman III, US Navy Naval Surface Warfare Center VA (USA) - is currently working with us to obtain funding for our SOOP capability. Luke and his team have been working on a SOOP PNT solution for years. He has reviewed our solution and believes we have a unique approach that will enable field configuration of our PNT device to utilize a wide spectrum of RF SOOP without hardware/software field upgrades. This will provide significant cost savings and reduced technical risk. We are currently working with him to define 2022 scope/budget for a sole-source award project.
- Paul Fleitz, Air Launched Off-Board Operations (ALOBO) Team Lead US Air Force, AFRL/RQQC - actively supports our Visual Aided PNT activities and provided a signed MOU in support of our Visual Aided PNT and Ultra-Low Power Timing Circuit (ULP-TC) Phase II proposals. Paul is US Air Force Customer and End User in our on-going ULP-TC Phase 2 contract.
- Mark Smearcheck, Senior Electronics Engineer, Navigation and Communication Branch, Air Force Research Laboratory, Sensors Directorate - Mark is the Air Force representative to PM-PNT

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(cross services organization intended to share information/technologies relative to PNT). He has been a significant champion and has provided multiple LoS and introductions throughout the DOD.

- Dr. Stephen J. Lee, Ph.D., Chief Scientist (SES-ST) - US Army, U.S. Army Research Laboratory (ARL), U.S. Army Research Office, Office of the Director - The laboratory will support NavXTM PoC testing support. Actively supporting identification of potential funding opportunities.
- Michael Sedillo, BATMAN PM - USAF Sensory System's branch, 711th Human Performance Wing - Provide test/exercise support in several use cases. We will work closely with the BATMAN to identify other applications/use cases. The team is also actively supporting potential funding for an SBIR Phase II Enhancement Project.
- Maj. John Beilstein, Chief of Test - USAF AFMC 661 AESS/WIJ-661 AESS - Provide subject matter expertise and extensive operational and testing lessons learned will be provided.
- Bon Strout, SERE - Air Force, AFSOC - Technical Point of Contact (TPOC) for our project "Smart Streamer".
- Richard J. Benney, Director - Army Combat Capabilities Development Command - Soldier Center (CCDC-SC), Aerial Delivery Directorate - CCDC-SC will provide an airdrop vehicle upon which our enhanced system may be tested to characterize its response to the cargo airdrop environment. CCDC-SC will utilize existing GPS sensors during system flight and compare with data measured by the enhanced NavXTM product, to ascertain its accuracy and utility for air drop application.
Benjamin Johns, PM, Personnel Recovery - U.S. Special Operations Command Central (SOCCENT) - Mr. Johns has been actively supporting esc Aerospace since 2018 when he interviewed as part of our Customer Discovery process for our AFRL "Special Topic" SBIR AF182-002 Innovative Position Navigation and Timing. For our Phase 2 project he provided advice and actively supported identification of potential funding for a Phase 2 Enhancement project.

A sample of our industry partnerships include:

- Lockheed Martin RMS - LM Rotary and Mission Systems (RMS) - Provided numerous LoS, included esc Aerospace as teammate on US DOT PNT opportunity. esc Aerospace included LM RMS as teammate on C5 OTA Soldier Integrated PNT proposal. LM RMS is also actively supporting sponsorship of esc Aerospace Secret Facility Clearance.
- Cubic - Cubic has agreed to allow esc Aerospace to utilize their facility in Orlando as needed to support our PNT efforts (SECRET facility clearance). We continue to investigate the potential of integration of NavXTM with Cubic products and to build our strategic relationship.
- Aironge - Design and manufacturing of automatically navigated and flown manned and unmanned airplanes designed for dirty, dull and dangerous aerial missions - Integration of NavXTM with Aironge avionics/autopilot with test/evaluation in actual flight. Aironge will also analyze NavXTM for flight certification efforts to be proposed in subsequent projects.

# 7.0 Intellectual Property

We consider the design/implementation of our NavXTM product line to be a Trade Secret. All esc Aerospace staff, partners and subcontractor/suppliers have and will sign Non-Disclosure Agreements (NDA). All intellectual property is rigorously controlled and labeled.

A patent related to our unique method of using LEO satellite signals for PNT has been filed: "A SYSTEM AND METHOD FOR DETERMINING A RECEIVER GROUND POSITION" - (PCT/US2021/037443).

We have trademarked the brand, NavXTM (not registered). Before significant production begins, we plan to conduct a more rigorous branding strategy and potentially select a different brand.

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# 8.0 Competition

esc Aerospace's competitive landscape includes:

Small GPS receiver companies:

Product: low cost, low accuracy, product that does NOT function well in GPS challenged environments and does NOT work at all in GPS denied environments

Example: Garmin, TomTom, Here, etc.

Competitive risk (LOW): Will not meet need for accurate PNT in GPS challenged/denied environment. Small overlap in addressable market

Legacy military navigation companies:

Product: Heavy, large, high power and expensive devices typically for large vehicles (aircraft, ground vehicles, maritime)

Example: Northrop, Lockheed Martin, Rockwell

Competitive risk (Moderate): Will tend to continue to focus on adding resiliency for GPS denial to existing product. May reduce SWaP but will probably continue to address the larger vehicle markets. They are a potential "partner" if we can find a way to integrate/license our technology to them, re-brand or resell our product.

Newer technology GPS/Navigation companies:

Product: Low SWaP products. Market segment overlap. Ability to meet accuracy needs in GPS "challenged" environments. Similar approach utilizing multi-sensor fusion.

Example: Novatel, Trimble, etc.

Competitive risk (High): Currently NOT addressing need to PNT in total denial or offering vendor specific solutions. Products are 2X larger/heavier, and 50% higher price.

New market entrants for PNT in GPS denial utilizing LEO

Product: Mid SWaP. Moderate price PNT solution. Each product utilizes a single LEO satellite constellation

Example: GlobalStar/Echoridge (uses GlobalStar), "AltPNT" (classified), Satelles/Iridium

Competitive risk (High): Seem to be addressing larger vehicle and/or dismounted/hand-held markets. Advertised accuracy 10-30 meters. Lower SWaP, lower price, better performance and constellation/vendor agnostic yields NavXTM a competitive advantage.

# 9.0 Sales and Financial Strategy

![img-1.jpeg](img-1.jpeg)

Our growth strategy is to grow "organically" and be open to "opportunistic" investment to accelerate growth. Investment revenue could accelerate growth.

Implementation of this strategy is through DOD contracts, primarily SBIR projects. Other sources of revenue are product sales and commercial contract work (i.e. Ford Motor Company Proof of Concept, etc.) and IR&D.

Our strategy for product sales is anticipated to come from:

1) Leverage of SBIR projects for non-dilutive funding of product development
2) Product sales
3) Software licensing
4) Annual product support/maintenance fees
5) Integration services

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Our sales strategy is both direct and indirect. We are pursuing direct sales to government and commercial customers. However, since our product is an "embedded system" we are also pursuing sales to "platform" manufacturers (i.e. small UAS, autonomous vehicle manufacturers, etc.), service providers (i.e. mapping/survey, disaster recovery, insurance/claims, inspections/maintenance, etc.), channel partners (i.e. systems integrators (like Lockheed Martin), etc.).

Our customer pipeline has over 400 current potential customers in all these areas and growing. We anticipate year over year growth as markets mature, and early adopter customers roll out NavXTM through various applications/platforms.

The company was formed with a very small loan from the current shareholders and has grown organically since. Operations/development inception-to-date have been funded through contract/product sales. Our revenue objectives are shown below.

| Cash Flow and Profit | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | $767,502 | $592,711 | $689,590 | $3,723,571 | $7,131,524 | $16,132,800 | $62,743,020 | $149,329,056 |
| Cost | $703,538 | $625,156 | $719,928 | $5,868,520 | $12,013,007 | $15,045,000 | $27,023,111 | $45,286,813 |
| EBIT / "Net Income" | $63,964 | $(32,445) | $(30,338) | $(2,144,949) | $(4,881,483) | $1,087,800 | $35,719,909 | $104,042,243 |
| Shareholder loans (annual) | $81,927 | $(107,709) | $(75,000) | $(71,782) |  |  |  |  |
| Investment | $- | $- |  | $2,000,000 | $5,000,000 |  | Series A |  |
| Total cash | $(17,963) | $75,264 | $44,662 | $(73,167) | $118,517 | $1,087,800 | $35,719,909 | $104,042,243 |
| Reserve | $0 | $75,264 | $119,925 | $46,759 | $165,276 | $1,253,076 | $36,972,985 | $141,015,228 |
| Liabilities | $63,280 | $146,782 | $71,782 | $- | $- | $- | $- | $- |

The revenue projections are based: on a market analysis and conservative assumptions for our share of the market; potential product sales, maintenance fees and integration services; analysis of DOD projects and probability of win.

$7M ask may be funded incrementally. The projections above are based on anticipated funding over 2 years. "Series A" in 2026 is a projection of the next potential funding event.

Detailed financial analysis is available on request (reviewed financials through 2021).

### 10.0 Potential Capital Raise and Use of Funds

Securities: Convertible Promissory Notes

Amount: up to $7,000,000

Purchase Price: Face Value

Interest Rate: Annual interest rate of 7%, payable at maturity

Minimum Investment: $10,000.00

Maturity Date: Four (4) years

Discount Rate (Upon Conversion):

- Less than $100,000: 10%
- $100,000 up to $1,000,000: 20%
- $1,000,000 or more: 25%

Our current capital raise is governed under SEC filing and is available on request.

Visit the esc Aerospace Investment Portal for more detail and to potentially invest.

Future funding rounds are anticipated.

See NOTE regarding forward looking statement.

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In general, a capital raise would be used to accelerate our grow. Funds would be used in these areas:

- Staffing: our revenue flow from the DOD is sensitive to DOD notoriously slow procurement cycles and payments making cash flow management problematic and limiting our ability to hire key full-time staff. We manage our cash flow diligently. One mechanism we utilize is use of part-time contract labor. With additional capital, we could add additional full-time employees, accelerate our IR&D efforts, and pursuit and win more business. Potential staff includes: Lead engineers, Business Development, Hardware and Software engineers.
- Accelerated product Development: Acceleration of product development will enable us to win more business in DOD markets as well as enable us to accelerate sales to commercial markets.
- Marketing/Product Management: Sales into the commercial market will require the development and execution of a robust Product Plan that will include marketing/branding, go-to-market strategy development, channel development/management, product support, etc.

Ability to multiply investment - Supplemental Funding Pilot Program (TACFI and STRATFI)

The DOD has provided us with a unique opportunity to leverage external investment through the Supplemental Funding Pilot Program (TACFI and STRATFI). The purpose of this pilot program is to catalyze the relationships between Air Force and Space Force end-users and acquisition professionals, private-sector innovators, and the investment community and to bridge the capability gap between current SBIR/STTR Phase II efforts and Phase III scaling efforts, facilitating delivery of strategic capabilities for the Department of the Air Force.

The pilot program provides "matching" SBIR funds to other "investments" (from investment community and/or any other government entity). The maximum funding levels are:

TACFI: $375,000 to $1,700,000 (Air Force Matching)

- 1:1 Matching
- For every $1 of investment, AF matches $1 up to $1.7M
- Minimum investment $375K

STRATFI: $3,000,000 to $15,000,000 (Air Force Matching)

- 1:2 Matching
- For every $1 of investment, AF matches $.5 up to $15M
- Minimum investment $6M

Examples:

TACFI "Minimum" Example

- Investment: $375K
- Match: $375K
- Total: $750K

STRATFI "Minimum" Example:

- Investment: $6M
- Match: $3M
- Total: $9M

This is a competitive program with solicitation once per calendar year, typically starting in January. External funds need to be committed prior to award.

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# **Ability to multiply investment** - Air Force Ventures Commercial Solutions Opening (CSO)

The Air Force (through AF Ventures) has implemented a special version of the Small Business Innovation Research (SBIR) program. We have been successful in winning a number of these projects specifically aimed at building the Defense Industrial Base (DIB) and promoting the growth of small business.

As part of the evaluation of an award the AF evaluates the offeror's "Commercialization Strategy." To ensure success of the small business, the DOD seeks to invest in companies/technologies that exhibit compelling demand signals. This may be evidenced through a strong Commercialization Strategy description, but the highest evaluation comes from other organizations that are willing to "invest" alongside the SBIR funding. This investment may come from other DOD program funding or external investment. A typical award is $750K.

### 11.0 Exit Strategy

- Time frame for exit: The current owners of esc Aerospace US, Inc. plan to exit in approximately 5 years (2028).
- Form of exit: It is anticipated that the exit may be in the form of majority or complete ownership sale, and/or sale of specific technology like NavXTM and/or ULP-TC. The current Corporate Officers are open to potential on-going employment in support of the new ownership.
- Potential Buyers: We anticipate potential buyers to be:

- Other larger product companies in the Guidance Navigation and Control (GNC) space (e.g. NOVATEL, Trimble, etc.)

- Large government contractors (e.g. Northrop Grumman, Lockheed Martin, etc.)

- Portfolio investment companies (potentially as "add-on" to existing company)

We have already been building relationships with many potential buyers as teaming partners, and suppliers.

### 12.0 Notes

From today's consumer perspective, unreliable GPS is an inconvenience. From a critical infrastructure, military application, and evolving autonomous systems, an alternative to GPS is CRITICAL

- Executive Order 13905, Strengthening National Resilience through Responsible Use of Position, Navigation, and Timing Services, 12 February 2020.
- Presidential Policy Directive 21 (PPD-21), titled Critical Infrastructure Security and Resilience, identifies 16 critical infrastructure sectors that are so vital to the United States that their incapacity or destruction would have a debilitating effect on national security, the economy, public health or safety, or any combination thereof.
- https://www.whitehouse.gov/presidential-actions/memorandum-space-policy-directive-7
- https://www.congress.gov/bill/115th-congress/house-bill/2810
- Included in the Frank LoBiondo Coast Guard Authorization Act of 2018, https://www.congress.gov/bill/115th-congress/senate-bill/140
- https://www.federalregister.gov/documents/2020/02/18/2020-03337/strengthening-national-resilencethrough-responsible-use-of-positioning-navigation-and-timing
- 2017 National Defense Authorization Act (NDAA), Section 1618: requires "Backup and Complementary Positioning, Navigation and Timing Capabilities of the Global Positioning System (GPS).
- 2018 National Timing Resilience and Security Act: requires DOT to establish a terrestrial timing system to backup GPS
- 2019, Congress appropriated money for a GPS Backup Technology Demonstration
- 2020 NDAA Requires Air Force to develop a prototype multi-GNSS receiver as part of its resiliency efforts
- 2021 NDAA, Section 1601: SASC has ordered the Pentagon to provide Combatant Commander's alternate PNT within 2 yr

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# In the news

- Truck driver has GPS jammer, accidentally jams Newark airport

- https://www.cnet.com/culture/truck-driver-has-gps-jammer-accidentally-jams-newark-airport/

- GPS interference caused the FAA to reroute Texas air traffic. Experts stumped

- https://arstechnica.com/information-technology/2022/10/cause-is-unknown-for-mysterious-gps-outage-that-rerouted-texas-air-traffic/

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# RISK FACTORS

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

8. Discuss the material factors that make an investment in the issuer speculative or risky:

28

AN INVESTMENT IN THE SECURITIES OFFERED HEREBY IS SPECULATIVE IN NATURE, INVOLVES A HIGH DEGREE OF RISK AND SHOULD NOT BE MADE BY ANY INVESTOR WHO CANNOT AFFORD THE LOSS OF HIS ENTIRE INVESTMENT. EACH PROSPECTIVE PURCHASER SHOULD CAREFULLY CONSIDER THE FOLLOWING RISKS AND SPECULATIVE FACTORS ASSOCIATED WITH THIS OFFERING, AS WELL AS OTHERS DESCRIBED ELSEWHERE IN THE AGREEMENT, BEFORE MAKING ANY INVESTMENT. THE AGREEMENT CONTAINS CERTAIN STATEMENTS RELATING TO FUTURE EVENTS OR THE FUTURE FINANCIAL PERFORMANCE OF OUR COMPANY. PROSPECTIVE INVESTORS ARE CAUTIONED THAT SUCH STATEMENTS ARE ONLY PREDICTIONS, INVOLVE RISKS AND UNCERTAINTIES, AND THAT ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY. IN EVALUATING SUCH STATEMENTS, PROSPECTIVE INVESTORS SHOULD SPECIFICALLY CONSIDER THE VARIOUS FACTORS IDENTIFIED IN THE AGREEMENT, INCLUDING THE MATTERS SET FORTH BELOW, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS.

## Risks Related to the Company's Business and Financial Condition

### Limited History

The Company was organized on June 13, 2018, and has limited data and history that you can use to evaluate our business strategies and prospects. Our business model is evolving and is distinct from other companies in our industry and it may not be successful. As a result of these factors, the future revenue and income potential of our business is uncertain. Any evaluation of our business and prospects must be considered in light of these factors and the risks and uncertainties often encountered by companies in the early stage of development. Some of these risks and uncertainties relate to our ability to:

- raise adequate financing
- respond effectively to competition, and
- attract and retain qualified employees

There can be no assurance that the Company will ever generate sufficient revenues to achieve or sustain profitability or generate positive cash flow. There can be no assurance that the Company will be successful in implementing its business plan.

### Key Personnel

The Company is highly dependent on its key management. The loss of these individuals could have a material adverse effect on the Company. The Company does not presently maintain key person life insurance on any of these individuals.

# Risks Associated with this Offering and the Notes

This Offering is being made in reliance on an exemption from registration requirements and there is no guarantee the Offering will comply with the requirements for such exemption.

This Offering will not be registered with the Securities and Exchange Commission ("SEC") under the Securities Act or with the securities agency of any state. The securities are being offered in reliance on an exemption from the registration provisions of the Securities Act and state securities laws applicable to offers and sales to investors meeting the investor suitability requirements set forth herein. If this Offering should fail to comply with the requirements of such exemption, investors may have the right to rescind their investment. This might also occur under applicable state securities or "blue sky" laws and regulations in states where the securities will be offered without registration or qualification pursuant to a private offering or other exemption.

The Offering has not been reviewed by Securities Agencies.

The sale of the securities offered hereby has not been approved or disapproved by the SEC or any state regulatory agencies, and no regulatory body has passed upon or endorsed the accuracy, adequacy, or completeness of this document. Accordingly, prospective investors must rely on their own examination of the document, including, without limitation, the merits of, and risks involved in, acquiring the securities.

There are significant restrictions on the transferability of the securities.

The securities are restricted securities under the Securities Act and cannot be resold or otherwise transferred unless they are registered under the Securities Act and any applicable state securities laws or are transferred in a transaction exempt from such registration.

Consequently, each investor's ability to control the timing of the liquidation of his or her investment in the Company may be restricted. Investors should be prepared to hold their securities for an indefinite period of time.

There is no market, and there may never be a market, for the Notes, which may make it difficult for you to sell your Notes.

The Company is a private company and there is no trading market for any of the Company's securities. Accordingly, there can be no assurance as to the liquidity of any markets that may develop for the Notes, the ability of holders of the Notes to sell the same, or the prices at which holders may be able to sell such Notes.

# Risks Related to Tax Issues

EACH PROSPECTIVE MEMBER SHOULD CONSULT HIS, HER OR ITS OWN TAX ADVISOR CONCERNING THE IMPACT THAT HIS, HER OR ITS PARTICIPATION IN THE COMPANY MAY HAVE ON HIS, HER OR ITS FEDERAL INCOME TAX LIABILITY AND

THE APPLICATION OF STATE AND LOCAL INCOME AND OTHER TAX LAWS TO HIS, HER OR ITS PARTICIPATION IN THE OFFERING.

*The IRS may classify your investment as a passive activity, resulting in your inability to deduct losses associated with your investment.*

If you are not involved in our operations on a regular, continuing and substantial basis, it is likely that the IRS will classify your interest in the Company as a passive activity. The passive activity rules could restrict an investor's ability to currently deduct any of the Company's losses that are passed through to such investor.

*Income allocations assigned to an investor's Note(s) may result in taxable income in excess of cash distributions, which means you may have to pay income tax on your investment with personal funds.*

Investors will pay tax on their allocated Notes of our taxable income. An investor may receive allocations of taxable income that result in a tax liability that is in excess of any cash distributions the Company may make to the investor. Accordingly, investors may be required to pay some or all of the income tax on their allocated Notes of the Company's taxable income with personal funds.

*An IRS audit could result in adjustment to the Company's allocations of income, gain, loss and deduction causing additional tax liability to the Company's Members.*

The IRS may audit the Company's income tax returns and may challenge positions taken for tax purposes and allocations of income, gain, loss and deduction to investors. If the IRS were successful in its challenge, an investor may have additional tax liabilities.

IN ADDITION TO THE ABOVE RISKS, BUSINESSES ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING THIS AGREEMENT, POTENTIAL INVESTORS SHOULD KEEP IN MIND OTHER POSSIBLE RISKS THAT COULD BE IMPORTANT.

# THE OFFERING

9. What is the purpose of this offering?

The company will use the funds to expand its business by investing in marketing, hiring, and product development, as described more fully in the USE OF FUNDS section.

10. How does the issuer intend to use the proceeds of this offering?

32

# USE OF FUNDS

The company will use the funds to expand their business by investing in marketing, hiring, and product development.

The funds will be used as follows:

|  | If Minimum Funding Goal is Met | If Maximum Funding Goal is Met |
| --- | --- | --- |
| FUNDING GOALS | $10,000 | $618,000 |
| Marketing/Sales | - | $123,600 |
| Hiring/Product Development | $9,500 | $453,200 |
| Equipment | - | $10,300 |
| Silicon Prairie Online Listing Fee (5%) | $500 | $30,900 |

The amounts listed are estimates and may change due to strategic and/or economic factors.

11. How will the issuer complete the transaction and deliver securities to the investors?

Signed Subscription Agreements will be collected through the funding portal.

12. How can an investor cancel an investment commitment?

NOTE: Investors may cancel an investment commitment until 48 hours prior to the deadline identified in these offering materials.

The intermediary will notify investors when the target offering amount has been met.

If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment).

If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.

If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

34

## **OWNERSHIP AND CAPITAL STRUCTURE**

### **The Offering**

13. Describe the terms of the securities being offered.

35

# esc Aerospace US, Inc. Offering Synopsis

Securities: Convertible Promissory Notes

Amount: up to $618,000

Purchase Price: Face Value

Interest Rate: Annual interest rate of 7%, payable at maturity

Minimum Investment: $1,500

Maturity Date: Four (4) years

Discount Rate (Upon Conversion):

Less than $100,000: 10%

$100,000 up to $618,000: 20%

# Automatic Conversion Upon Qualified Financing, Change of Control or IPO

Finance event of equity financing with an aggregate of $1,500,000 or greater ("Qualified Financing"). Notes will convert with principal and interest to a price per share equal to the price per share paid by other investors in the Qualified Financing, multiplied by the applicable discount rate described herein. See Paragraph 4 of the Note.

Upon a change of control or an IPO, the Notes will be convertible into common stock at a conversion price equal to the sale price (in the CASE of a change of control) or the price per share (in the case of an IPO), multiplied by the applicable discount rate described herein. See Paragraph 4 of the Note. Upon a change of control, the Note holder will have the option to have the Note instead be repaid with interest.

# Voluntary Conversion

If the Company consummates an equity financing round that does not qualify as Qualified Financing on or before the Maturity Date, the Company may elect (at the Company's sole discretion) to:

(i) not convert, or
(ii) repay the Notes in full (principal and interest), or
(iii) convert the Notes with principal and interest, to Company's non-voting common stock at a price per share equal to the price per share paid by other investors multiplied by the applicable discount rate described herein. See Paragraph 4 of the Note.

# Maturity

At the Maturity Date, the Company may elect (at the Company's sole discretion) to repay the Notes in full (principal and interest) or convert the Notes with principal and interest to Company's non-voting common stock at a price per share per share multiplied by the applicable discount rate described herein. See Paragraph 4 of the Note.

The conversion price shall be based upon the greater of:

(i) $15,000,000 pre-money valuation; or
(ii) the valuation of the Company as of the Maturity Date, which valuation shall be conducted by a qualified independent business valuation expert, with such per share price multiplied by the applicable discount specified herein.

# Subordination

The Notes will be subordinated to all the Company's indebtedness for borrowed money, whether or not such indebtedness for borrowed money is secured.

# Other

Upon the Company receiving subscriptions for $10,000.00, funds shall be released to the Company; provided, however, that Company may, at its option, continue this offering until the maximum amount is raised.

This Summary of Terms is intended as an outline of certain of the material terms of the Notes and does not purport to summarize all the conditions, covenants, representations, warranties, and other provisions that would be contained in definitive documentation for the Note.

14. Do the securities offered have voting rights? ☐ Yes ☑ No
15. Are there any limitations on any voting or other rights identified above? ☑ Yes ☐ No
Explain: See Risk Factors
16. How may the terms of the securities being offered be modified?

Any material changes to this offering will be communicated through the Funding Portal giving unsubscribed investors an opportunity to positively accept the modifications, reject them, or have their investment commitment automatically refunded.

### Restrictions on Transfer of the Securities Being Offered

The securities being offered may not be transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred:

(1) to the issuer;
(2) to an accredited investor;
(3) as part of an offering registered with the U.S. Securities and Exchange Commission; or
(4) to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

NOTE: The term “accredited investor” means any person who comes within any of the categories set forth in Rule 501(a) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

The term “member of the family of the purchaser or the equivalent” includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term “spousal equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.

38

# Description of Issuer's Securities

17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.

39

esc Aerospace US, Inc. Capitalization as of 12.31.2022

| Shareholders | % Voting Common | # Voting Shares | % Non-Voting Common | # Non-Voting Shares | Total Shares | % Total |
| --- | --- | --- | --- | --- | --- | --- |
| Mathias Krueger (esc Holding GmbH) | 40% | 3,200,000 | 0% | - | 3,200,000 | 32.00% |
| Lars Weimer | 30% | 2,400,000 | 0% | - | 2,400,000 | 24.00% |
| Danny Stirtz | 30% | 2,400,000 | 0% | - | 2,400,000 | 24.00% |
| Reserve | 0% | - | 99% | 1,978,000 | 1,978,000 | 19.78% |
| Employees/Investors | 0% | - | 1% | 22,000 | 22,000 | 0.22% |
| Total | 100% | 8,000,000 | 100% | 2,000,000 | 10,000,000 | 100% |

her pro rata share (or a portion thereof) of any shares of Stock the Corporation did not elect to purchase; provided, however, that only Shareholders owning Voting Stock shall be entitled to purchase any shares of Voting Stock of the Disabled Shareholder and only to the extent of such Shareholder's pro rata share of such Voting Stock (with his or her pro rata share determined based on the number of shares of Voting Stock he or she holds relative to the number of shares of Voting Stock held by all Shareholders desiring to exercise the purchase option under this Section C) and provided further, that if the remaining Shareholders owning Voting Stock do not elect to purchase the remaining Voting Stock of the Disabled Shareholder, or, if there are no other Shareholders owning Voting Stock, then the shares of Voting Stock of the Disabled Shareholder may be purchased by the Shareholders owning Non-Voting Stock but only to the extent of such Shareholder's pro rata share of such Non-Voting Stock, (with such pro rata share determined based on the number of shares of Non-Voting Stock he or she holds relative to the number of shares of Non-Voting Stock held by all Shareholders owning Non-Voting Stock desiring to exercise a purchase option on the Voting Stock under this Section C). Any shares of Non-Voting Stock of the Disabled Shareholder that are not purchased by the Corporation shall be offered for purchase to all remaining Shareholders, regardless of whether the Stock is Voting or Non-Voting Stock, based on such Shareholder's pro rata share of total shares of Stock of the Corporation. Each Shareholder other than the Disabled Shareholder shall give Written Notice to the Disabled Shareholder or to his or her Representative, if applicable, and to the Corporation within thirty (30) days after receipt of the notice from the Corporation of his or her intent to exercise such option, which notice shall set forth the number of shares of Voting and/or Non-Voting Stock, if any, such Shareholder elects to purchase.

D. Option not Exercised with Respect to all Stock. In the event the Corporation and the remaining Shareholders fail to exercise their respective options within their respective option periods as set forth in this Article, then the Disabled Shareholder may retain all of such unpurchased Voting Stock and/or Non-Voting Stock and if the event creating the purchase option occurred as a result of the death of the Disabled Shareholder, then the personal representative of the estate of the Disabled Shareholder shall have the right to transfer the Stock owned by the Disabled Shareholder in accordance with the Last Will and Testament of the Disabled Shareholder, provided that such transfer is made within ninety (90) days of the Notice Date and provided further that all Shareholders have consented in writing to such transfer.

# E. Closing.

1. Time. The closing of any purchase arising from the Corporation's or any Shareholder's election to exercise the purchase option provided by this Article (the "Closing") shall take place at the Corporation's principal office, at such date and time as the Corporation shall determine, but not later than the date which is thirty (30) days after the date of mailing of the Written Notice by the purchasing Corporation or Shareholder under this Article.

2. Procedure; Payment of Purchase Price. At the Closing, the Disabled Shareholder shall provide any reasonable documentation requested by the Corporation or the Shareholders who are acquiring his or her shares of Stock to document the transfer of these shares. Unless otherwise agreed by the parties, and if subparagraph 3 below does not apply, the Corporation and/or each Shareholder acquiring these shares of Stock shall pay its, his or her share of the aggregate purchase price of at least ten percent (10%) in cash at the Closing (payable by

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esc Aerospace US, Inc.

check, which clears in the ordinary course), and the balance of the purchase price shall be paid in accordance with the terms of a purchase money promissory note in the principal amount equal to the balance of the purchase price. The principal amount of such note shall be payable in sixty (60) equal monthly installments of principal, together with interest determined at the applicable federal rate as defined in Section 1274(d) of the Code on the date of closing. Such note shall also provide for the right of prepayment at any time without premium or penalty. The shares of Stock being purchased and sold pursuant to this Article shall be pledged to secure payment of the note.

3. Terms if Life Insurance is Available. If life insurance proceeds are payable to the Corporation or to any Shareholder (other than the Disabled Shareholder) due to the death of a Shareholder, the Corporation and the Shareholders (other than the Disabled Shareholder) hereby covenant and agree to pay the purchase price of the shares of Stock purchased and sold pursuant to this Article in cash at the Closing to the extent of such life insurance proceeds. The balance of the purchase price, if any, shall be paid in accordance with subparagraphs 1 and 2 immediately above.

F. Definition of Disabling Event. For purposes of this Agreement, "Disabling Event" shall mean the occurrence of any of the following events with respect to any Shareholder:

1. Death. The Shareholder's death, if an individual (or if a revocable trust where death is deemed under Article II, Section C, subparagraph 2), but if a person other than an individual, then the Shareholder's dissolution or termination.

2. Disability. The Shareholder's mental condition caused by an injury or sickness which, in the opinion of not less than two independent, Florida licensed medical doctors selected and consulted by the Corporation, renders a Shareholder unable to substantially perform his duties and responsibilities as a shareholder of the Corporation and there has been no court appointed guardian for such Shareholder who would qualify as a permitted transferee under Article II.C.

G. Definition of Disabled Shareholder. For purposes of this Agreement, "Disabled Shareholder" shall mean a Shareholder with respect to whom a Disabling Event has occurred.

### ARTICLE V.
PURCHASE OF STOCK TRANSFERRED
IN VIOLATION OF AGREEMENT

F. Remedy for Violation.

1. Corporation's Option. Any sale, gift, transfer, pledge, encumbrance or other disposition of any shares of Voting or Non-Voting Stock of the Corporation in violation of any of the provisions of this Agreement, including without limitation, an event whereby the Corporation is required by law or by order of court to recognize that any person or entity has acquired one or more outstanding shares of Stock or that a person or entity has obtained a judgment against one or more outstanding shares of Stock, shall be deemed null and void. In the event of any such sale or other disposition or other encumbrance, the Corporation shall, and it is hereby expressly given the right to, within ninety (90) days after the discovery by it of such sale or other

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disposition or encumbrance made in violation of this Agreement, redeem and purchase (on a date, selected by the Corporation, within such ninety (90) day period) any part or all of such Stock from the holder thereof either (1) by delivery at closing of an unsecured purchase money promissory note in the amount equal to the product of the total number of shares of Stock disposed of in violation of this Agreement multiplied by the Per Share Price (determined under Article VI hereof), and payable in one hundred twenty (120) equal monthly installments of principal (without the payment of any interest on the outstanding balance of the promissory note), or, (2) at the option of the Corporation, if such shares of Stock were transferred by a sale or exchange (as opposed to a gratuitous transfer), the price and terms shall be the same price per share and terms for which such shares of Stock were sold in violation of this Agreement.

2. Exercise of Option for Non-Voting Stock. In the event the Corporation fails or refuses to exercise its obligation to purchase the shares of Non-Voting Stock transferred in violation of this Agreement under subparagraph 1 above, the Shareholders owning Voting or Non-Voting Stock, or any of them, shall have the same options as the Corporation for a ninety (90) day period commencing upon expiration of the ninety (90) day period provided in subparagraph 1 above; provided, however, that if more than one Shareholder elects to purchase such shares of Non-Voting Stock, then each Shareholder who elects to purchase such shares, shall purchase that portion of such shares which the number of shares of Stock owned by such Shareholder (whether Voting or Non-Voting Stock) bears to the number of shares of Stock (whether Voting or Non-Voting Stock) owned by all Shareholders who exercise their right to purchase such shares of Non-Voting Stock.

3. Exercise of Option for Voting Stock by Shareholders Owning Voting Stock. In the event the Corporation fails or refuses to exercise its obligation to purchase the shares of Voting Stock transferred in violation of this Agreement under subparagraph 1 above, the Shareholders owning Voting Stock, shall have the same option as the Corporation for a ninety (90) day period commencing upon expiration of the ninety (90) day period provided in subparagraph 1 above; provided, however, that if more than one Shareholder elects to purchase such shares of Voting Stock, then each Shareholder owning Voting Stock who elects to purchase such shares, shall purchase that portion of such shares which the number of shares of Voting Stock owned by such Shareholder bears to the number of shares of Voting Stock owned by all Shareholders who exercise their right to purchase such shares of Voting Stock.

G. Specific Performance. The Stock of the Corporation cannot be readily purchased or sold in the open market, and for that reason, among others, the parties hereto will be irreparably damaged in the event that this Agreement is not specifically enforced. Should any dispute arise concerning the sale, encumbrance or disposition of the Stock of the Corporation, an injunction may be issued restraining any sale, encumbrance or disposition pending the determination of such controversy. In the event of any controversy concerning the right or obligation to purchase or sell any of the shares of Stock of the Corporation, such right or obligation shall be enforced in a court of competent jurisdiction by a decree of specific performance. Such remedy shall, however, be cumulative and not exclusive and shall be in addition to any other remedy which the parties may have. If any party hereto, or the personal representative of any selling Shareholder, shall institute any action or proceeding to enforce the provisions hereof, that person against whom such action or proceeding is brought hereby waives the claim or defense therein that such person has an

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Amended and Restated Shareholders' Agreement of
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adequate remedy at law, and such person shall not urge in any such action or proceeding the claim or defense that such remedy at law exists.

## ARTICLE VI.
## THE PER SHARE PRICE

A. Computation of Per Share Price. Under Articles III, IV, and V of this Agreement, the Per Share Price of a share of the Stock must be considered in determining the purchase price of shares of the Stock in certain transactions. For purposes of this Agreement, the "Per Share Price" of a share of the Stock shall equal the fair market value of such share of Stock determined as of the Valuation Date (as defined below).

B. Determination of Per Share Price. The Per Share Price shall be determined by an Appraiser (as defined below) selected with the consent of the Corporation and the selling Shareholder determined as of the "Valuation Date" (as defined below). In the event the parties are unable to agree on an Appraiser, then each will select an Appraiser and those two Appraisers shall select a third Appraiser to appraise the shares. All expenses of such Appraiser shall be borne by the parties receiving the proceeds of the sale of the shares of the Stock, provided, however, that in the event of a disagreement on the selection of the Appraiser, the Corporation shall pay any costs of the Appraiser selected by it to then choose the third Appraiser. The Appraiser shall determine the value of one share of the selling Shareholder's Stock, taking into effect any applicable discounts to reflect the fact that the shares of Stock of the selling Shareholder represent a minority interest in the Corporation, the lack of a market for such shares of Stock and the lack of control, if applicable and shall provide his determination of the value to the Corporation and the selling Shareholder in writing. The Appraiser's determination of the value of the Stock of the selling Shareholder shall be conclusive. The aggregate purchase price for the Stock owned by the selling Shareholder shall be calculated by multiplying the appraised value of one share of the selling Shareholder's Stock by the number of shares of Stock owned by the selling Shareholder.

C. Valuation Date. The "Valuation Date" shall be the last day of the fiscal quarter that immediately precedes the date thirty (30) days prior to the last date upon which the closing may occur under this Agreement for the transaction with respect to which the Per Share Price must be considered in determining the purchase price of shares of Stock.

D. Appraiser. An "Appraiser" is an independent third party professional appraiser qualified for appraising a similar business who (i) is not presently or formerly engaged in any form by the Shareholders or the Corporation (or any affiliate of the Shareholders or the Corporation), (ii) has no material business, social or philanthropic relationship or experience with the Shareholders or the Corporation (or any affiliate of the Shareholders or the Corporation), and (iii) possesses reasonable credentials and experience in appraising companies.

## ARTICLE VII.
## CORPORATION'S EXERCISE OF RIGHTS UNDER THIS AGREEMENT

Any decision by the Corporation regarding its requirement to purchase hereunder or regarding the price, terms of purchase, closing date or any other decision hereunder, including but not limited to, decisions regarding whether to enforce the provisions of this Agreement by the

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Amended and Restated Shareholders' Agreement of
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bringing of an action or proceeding, shall be made by vote of the holders of a majority of the issued and outstanding shares of Voting Stock of the Corporation, except for all decisions that require at least seventy percent (70%) Shareholder approval pursuant to Article I Section C above; provided, however, that any Shareholder (or the personal representative of such selling Shareholder's estate) whose shares of Stock are the subject of the purchase or decision shall not have a vote in such decision and such shares of Stock shall not be included in determining the number of outstanding shares for purposes of such determination.

## ARTICLE VIII.
## MISCELLANEOUS

A. Notices. Any and all notices, requests, or other communications that are required to be provided under this Agreement shall be so provided if given in writing and sent by hand delivery or by registered or certified mail, return receipt requested, with first-class postage prepaid; and such notices shall be addressed: (i) if to the Corporation, to the principal office of the Corporation; and (ii) if to a Shareholder, to the address of the Shareholder as reflected in the stock records of the Corporation, unless notice of change of address is furnished to all parties in the manner provided in this section. Any notice that is required to be made within a stated period of time shall be considered timely if given in writing and hand delivered or mailed via registered or certified mail before midnight of the last day of such period. A notice given in compliance with this section shall be deemed a "Written Notice."

B. Invalid or Unenforceable Provisions. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.

C. Delivery of Stock and Documents. Upon the closing of any purchase of any shares of Stock pursuant to this Agreement, the seller shall deliver to the purchaser the following: The certificate or certificates representing the shares of Stock being sold, duly endorsed for transfer and bearing such documentary stamps, if any, as are necessary, and such assignments, certificates or authority, tax releases, consents to transfer, instruments, and evidences of title of the seller and of his or her compliance with this Agreement as may be reasonably required by the purchaser or by counsel for the purchaser.

D. Benefit and Burden. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their legatees, distributees, estates, executors, administrators, personal representatives, successors and assigns, and other legal representatives.

E. Gender. The use of any gender herein shall be deemed to be or include the other genders and the use of the singular herein shall be deemed to be or include the plural, and vice versa, wherever appropriate.

F. Amendment: Waiver. No amendment or modification of this Agreement shall be valid unless the same is in writing and signed by holders of at least seventy percent (70%) of the shares of Voting Stock then outstanding. No waiver of any provision of this Agreement shall be valid unless in writing and signed by the person against whom it is sought to be enforced. The

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Amended and Restated Shareholders' Agreement of
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failure of any party at any time to insist upon strict performance of any condition, promise, agreement, or understanding set forth herein shall not be construed as a waiver or relinquishment of the right to insist upon strict performance of the same or any other condition, promise, agreement, or understanding at a future time.

G. Entire Agreement. This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties, and representations among the parties hereto and with respect to the shares of Stock owned by the Shareholders and any other matters set forth herein, and there are no promises agreements, conditions, understandings, warranties, or representations, oral or written, express or implied, among them with respect to such shares or such other matters except as set forth herein. Any and all prior agreements among the parties hereto with respect to the shares of Stock owned by the Shareholders are hereby revoked.

H. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Florida.

I. Venue. Venue for all suits arising out of this Agreement shall lie exclusively in the courts situated in Orange County, Florida. By execution and/or adoption of this Agreement, each party hereby submits to the in personam jurisdiction of all courts of Orange County, Florida.

J. Headings. The headings, subheadings, and other captions in this Agreement are for convenience and reference only and shall not be used in interpreting, construing, or enforcing any of the provisions of this Agreement.

K. Term of Agreement. This Agreement shall commence as of the date hereof, and shall continue in full force and effect until terminated by the mutual agreement of the parties hereto or the cessation of the Corporation's business, or by the bankruptcy, receivership or dissolution of the Corporation. Upon termination of this Agreement, the Shareholders shall surrender to the Corporation the certificates for their shares of Stock and the Corporation shall issue to them in lieu thereof new certificates for an equal number of shares of stock without the endorsement set forth herein.

L. Survive Closing. The terms, conditions, obligations and covenants in this Agreement shall survive (a) its execution by the parties hereto, (b) the closing of any transactions contemplated herein, and (c) the execution of all contracts hereafter entered into between them, except to the extent that such transactions and contracts may be inconsistent with this Agreement.

M. Attorneys' Fees. If any Shareholder hereto or the Corporation institutes any action or proceeding to enforce this Agreement, the prevailing party shall be entitled to collect from the non-prevailing parties (which may include a transferee with notice of this Agreement) reasonable attorneys' fees and costs and expenses of such action whether at settlement, trial or appeal, including but not limited to attorneys' fees incurred in related bankruptcy proceedings.

N. Representation. This Agreement was drafted by the law firm of Shuffield, Lowman & Wilson, P.A. at the request of the Corporation and with the consent of the Corporation. Each of the Shareholders hereby acknowledges that:

Amended and Restated Shareholders' Agreement of
esc Aerospace US, Inc.

16

1. The Corporation and the Shareholders understand that the Corporation and the Shareholders may have conflicting interests with respect to this Agreement;
2. The Corporation and the Shareholders understand that the Corporation and the Shareholders individually may have tax consequences resulting from this Agreement; and
3. Each of the Shareholders has been advised to seek independent counsel to review this Agreement on his or her behalf.

**IN WITNESS WHEREOF**, the undersigned have executed this Agreement as of the day and year first above written and the Corporation has caused this Agreement to be executed by its duly authorized officers on the same day.

WITNESSES:

"CORPORATION"

**ESC AEROSPACE US, INC.,**
a Florida corporation

By: Lars Weimer, President & CEO

"SHAREHOLDERS"

**ESC HOLDING GMBH**

By: Name: Mathias Krueger
Its: PRESIDENT

DANNY STIRTZ

LARS WEIMER

Amended and Restated Shareholders' Agreement of
esc Aerospace US, Inc.

17

### SCHEDULE A TO
SHAREHOLDERS' AGREEMENT
OF
ESC AEROSPACE US, INC.,
A Florida Corporation

Authorized Shares: 8,000,000, Class A Voting Common Stock, $0.01 Par Value
2,000,000, Class B Non-Voting Common Stock, $0.01 Par Value

| Shareholder | Voting Common Shares | Non-Voting Common Shares | Percentage Ownership Total Shares |
| --- | --- | --- | --- |
| ESC Holding GmbH | 3,200,000 | - | 32% |
| Danny Stirtz | 2,400,000 | - | 24% |
| Lars Weimer | 2,400,000 | - | 24% |
| Totals | 8,000,000 | 2,000,000 | 100% |

Amended and Restated Shareholders' Agreement of
esc Aerospace US, Inc.

18

THIS CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH ACTS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED, EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACTS; OR (II) UPON THE ISSUANCE TO THE ISSUER OF AN OPINION OF COUNSEL, OR THE SUBMISSION TO THE ISSUER OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO THE COMPANY, THAT SUCH PROPOSED SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION WILL NOT BE IN VIOLATION OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACTS.

# CONVERTIBLE PROMISSORY NOTE

(the "Note")

$

Issue Date: 2023

For value received ESC AEROSPACE US, INC., a Florida corporation (the "Company") promises to pay to (together with its successors and assigns, the "Holder"), at the address listed below, or at such other address as the holder hereof may from time to time designate in writing, the principal sum of $ , or such lesser amount as shall be equal to the outstanding principal amount hereof (the "Principal Amount"), together with all accrued and unpaid interest thereon, upon the terms and conditions specified below.

So long as any portion of this Note remains outstanding and unpaid, the Company will comply with the following provisions to which this Note is subject and by which it is governed:

1. Interest. Interest shall accrue on the principal outstanding from time to time, commencing from the Issue Date of this Note and continuing until repayment of this Note in full, at a rate equal to seven percent (7%) per annum. Upon an Event of Default (as defined below), this Note will bear interest at a default rate of interest equal to the sum of the interest rate set forth in the immediately preceding sentence plus an additional two percent (2%) per annum (collectively, "Default Interest"). Interest shall be payable on the Conversion Date or Maturity Date (as defined below), provided that Default Interest shall be payable on demand. Interest shall accrue on the basis of actual days elapsed in a year consisting of 360 days. Notwithstanding anything herein to the contrary, if during any period for which interest is computed under this Note, the amount of interest computed on the basis provided for in this Note, together with all fees, charges and other payments which are treated as interest under applicable law, would exceed the amount of such interest computed on the basis of the Highest Lawful Rate (as defined below), the Company's obligations hereunder shall, automatically and retroactively, be deemed reduced to the Highest Lawful Rate, and during any such period the interest payable under this Note shall be computed on the basis of the Highest Lawful Rate. In the event the Holder receives as interest an amount which would exceed the Highest Lawful Rate, then the amount of any excess interest shall not be applied to the payment of interest hereunder, but shall be applied to the reduction of the unpaid principal balance due hereunder. As used herein, "Highest Lawful Rate" means the maximum nonusurious rate of interest, as in effect from time to time, which may be lawfully charged, contracted for, reserved, received or collected by the Holder in connection with this Note under applicable law.
2. Principal. All unpaid principal, together with any then unpaid and accrued interest and any other amounts payable hereunder, shall be due and payable on the earlier of (a) the Maturity Date (as defined below) or (b) when, upon the occurrence of an Event of Default, such amounts are declared due and payable by the Holder or made automatically due and payable, in each case, in accordance with the terms thereof. The "Maturity Date" shall mean the earlier of (i) the fourth \((4^{\text{th}})\) anniversary of the Issue Date or (ii) a Change in Control or Initial Public Offering ("IPO").
3. Payment Terms. Unless earlier converted, all payments of principal and interest shall be in lawful money of the United States of America. Payments under this Note shall be applied first to the payment of all accrued and unpaid interest and then to the payment of principal. Prepayment of the principal amount of this Note, together with all accrued and unpaid interest on the portion of principal so prepaid, may be made in whole or in part at any time without penalty.

# 4. Conversion.

(a) If the Company at any time prior to earlier of (i) this Note being paid in full sells equity securities (other than a Change in Control or IPO), or debt with equity features in an aggregate amount of $1,500,000.00 (a "Qualified Financing"), the Company shall have the option to convert all principal and accrued interest into the class of equity being offered at a conversion price equal to (a) 90% of the price per unit paid by other investors for investments of less than $100,000, (b) 80% of the price per unit paid by other investors for investments of $100,000 up to $1,000,000; (c) 75% of the price per unit paid by other investors for investments of $1,000,000 or greater (the "Conversion Price").
(b) Upon a change of control or an IPO, this Note will be convertible into non-voting common stock at a conversion price equal to the applicable price per share, multiplied by the applicable discount rate described herein at Section 4(a).
(c) If the Company consumes an equity financing that does not constitute a Qualified Financing, the Company shall have the option to convert all principal and accrued interest into the non-voting common stock issued in the financing at a conversion price equal to the price per share paid by the other investors in the financing, multiplied by the applicable discount rate described herein at Section 4(a). If the Company does not consume a Qualified Financing, Change of Control or IPO on or prior to the Maturity Date, and the Company does not elect to repay all principal and accrued interest on such Maturity Date, then this Note will be convertible into non-voting common stock, with the per share conversion price based upon the greater of (i) $15,000,000 pre-money valuation; or (ii) the valuation of the Company as of the Maturity Date, which valuation shall be conducted by a qualified independent business valuation expert, with such per share price multiplied by the applicable discount specified within Section 4(a) herein.

# 5. Mechanics of Conversion.

(a) Upon conversion of this Note, the Holder shall surrender this Note, duly endorsed, at the principal offices of the Company (or a notice to the effect that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Company whereby the Holder agrees to indemnify the Company from any loss incurred by it in connection with this Note). The Company shall, as soon as practicable thereafter, cause to be issued and delivered to the Holder a certificate or certificates for the number of shares to which the Holder shall be entitled upon such conversion, including a check payable to the Holder for any cash amounts payable as described in Section 5(b).
(b) No fractional shares shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder an amount equal to the product obtained by multiplying the Conversion Price by the fraction of a share not issued pursuant to the previous sentence. Upon conversion of this Note in full and the payment of the amounts specified in this Section 5, Company shall be forever released from all its obligations and liabilities under this Note and this Note shall be deemed of no further force or effect, whether or not the original of this Note has been delivered to the Company for cancellation.

# 6. Representations and Warranties of Company. The Company warrants and represents to the Holder as follows:

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has the corporate power and authority and the legal right to own and operate its properties and to conduct the business in which it is currently engaged.
(b) The Company has the power and authority and the legal right to execute and deliver, and to perform its obligations under, this Note and has taken all necessary corporate action to authorize such execution, delivery and performance.
(c) This Note constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).
(d) The execution, delivery and performance of this Note will not (i) violate any provision of any law, statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently in effect having applicability to the Company, (ii) violate

or contravene any provision of the Certificate of Incorporation or bylaws of the Company, or (iii) result in a breach of or constitute a default under any indenture, loan or credit agreement or any other agreement, lease or instrument to which the Company is a party or by which it or any of its properties may be bound or result in the creation of any Lien thereunder. The Company is not in default under or in violation of any such law, statute, rule or regulation, order, writ, judgment, injunction, decree, determination or award or any such indenture, loan or credit agreement or other agreement, lease or instrument in any case in which the consequences of such default or violation could have a material adverse effect on the business, operations, properties, assets or condition (financial or otherwise) of the Company.

(e) No order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by, any governmental or public body or authority is required on the part of the Company to authorize, or is required in connection with the execution, delivery and performance of, or the legality, validity, binding effect or enforceability of, this Note, except for filings pursuant to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, and applicable state securities laws.

(f) There are no actions, suits or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its properties before any court or arbitrator, or any governmental department, board, agency or other instrumentality which, if determined adversely to the Company, would have a material adverse effect on the business, operations, property or condition (financial or otherwise) of the Company or on the ability of the Company to perform its obligations hereunder.

(g) The Company is not obligated on any indebtedness or contingent obligation.

7. Representations and Warranties of Holder. The Holder represents and warrants to the Company that:

(a) The Note and the shares of Common Stock of the Company (collectively the "Securities") are and will be acquired by Holder for Holder's own account for purposes of investment, not as a nominee or agent, and not with a view to or in connection with the distribution or resale of all or any part thereof, and that Holder does not have any (i) present intention of selling, transferring granting any participation in, or otherwise distributing the same, or (ii) contract, undertaking, agreement or arrangement with any individual, company, corporation, partnership, association, trust, estate or partnership (each, a "Person") to sell, transfer, grant any participation in or otherwise distribute all or any part of the Securities;

(b) The Holder understands that the Securities will not be registered under the Securities Act or applicable state securities laws prior to the Merger, by reason of specific exemptions therefrom, which exemptions depend upon, among other things, Holder's representations set forth herein and Holder understands that no public market now exists for the Securities and that the Company has made no assurances that a public market will ever exist for the Securities;

(c) The Holder (i) has sufficient knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of its investment in the Securities; (ii) is an investor in securities of companies in the development stage such as the Company; (iii) is able to protect its interests and fend for itself in the transactions contemplated by this Note; and (iv) has the ability to bear the economic risks of its investment;

(d) The Holder is an "accredited investor" as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act;

(e) The Holder understands that the Securities are characterized as "restricted" under the federal securities laws in as much as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such Securities prior to the Merger may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, Holder represents that it is familiar with Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act;

(f) The Holder has satisfied itself as to the full observance by it of the laws of its jurisdiction in connection with the purchase of the Securities including the tax consequences, if any, which may be relevant to the acquisition, holding, conversion, sale or transfer of the Securities;

(g) The Holder has all requisite power and authority to enter into this Note to perform its obligations hereunder, and this Note constitutes a valid and binding obligation of Holder enforceable against Holder in

accordance with their terms, subject as to enforcement of remedies to applicable bankruptcy, insolvency, reorganization or similar laws affecting generally the enforcement of creditors' rights and subject to a court's discretionary authority with respect to the granting of a decree ordering specific performance or other equitable remedies; and

(h) The Holder represents that the Holder has had an opportunity to ask questions and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities. The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 6 of this Note or the right of the Holder to rely thereon. With respect to tax considerations involved in the investment, the Holder is not relying on the Company.

# 8. Further Limitations on Disposition.

(a) Without in any way limiting the representations set forth in Section 7 hereof, Holder hereby further agrees not to make any sale, transfer or other disposition of all or any portion of the Securities unless and until:

(i) There is then in effect a registration statement under the 1933 Act covering such proposed sale, transfer or other disposition and such sale, transfer or other disposition is made in accordance with such registration statement;

(ii) (A) The Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and (B) if requested by the Company, Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such sale, transfer or other disposition will not require registration of such shares under the Securities Act, provided, however, that the Company will not require such an opinion of counsel for transactions made pursuant to Rule 144, as currently in existence, except in unusual circumstances; or

(iii) The submission to the Company of such other evidence, as may be satisfactory to the Company, that such proposed sale, transfer or other disposition will not be in violation of the Securities Act and any applicable state securities laws or regulations.

(b) Notwithstanding the provisions of subsection (a) immediately above, no such registration statement or opinion of counsel shall be required for a transfer to (i) any affiliate of Holder as defined under Rule 144 of the Securities Act; (ii) Holder's partners, stockholders, members or other equity holders; (iii) any immediate family member of a Holder; (iv) Holder's executors or legal representatives; or (v) trustees of an inter-vivos trust or testamentary trust for the benefit of members of a Holder's immediate family, provided that, in the case of the foregoing clauses (i) through (v), the transferee makes in writing the representations and warranties in favor of the Company contained in, and agrees in writing to the terms of, Sections 7, 8, 9, 10 and 11 hereof as if such transferee were the original Holder hereunder, all in form and substance reasonably satisfactory to the Company.

(c) Holder understands and agrees that any sale, transfer or other disposition of all or any portion of the Securities in violation of the provisions of this Section 8 shall be null and void and prohibited, and that the Company shall not be required to recognize the same on its books and records any such purported sale, transfer or other disposition.

9. Legends. It is understood that the certificates evidencing the Securities may bear the following legends, as applicable:

(a) THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH ACTS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED, EXCEPT (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACTS; OR (ii) UPON THE ISSUANCE TO THE COMPANY OF AN OPINION OF COUNSEL, OR THE SUBMISSION TO THE COMPANY OF SUCH

OTHER EVIDENCE, AS MAY BE SATISFACTORY TO THE COMPANY, THAT SUCH PROPOSED SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION WILL NOT BE IN VIOLATION OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACTS.

THE COMPANY IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OR SERIES OF STOCK. UPON WRITTEN REQUEST, THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS AND DESIGNATIONS, AND THE RELATIVE PREFERENCES AND RIGHTS, OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE RELATIVE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.

(b) Any other legend required by the securities laws of states or other jurisdictions to the extent such laws are applicable to the securities represented by the instrument so legended.

10. Brokerage. There are no claims for and no Person is entitled to any brokerage commissions, finder's fees or similar compensation from Holder or based on any arrangement or agreement made by or on behalf of Holder in connection with the transactions contemplated by this Note.

11. Residence. If the Holder is an individual, then the Holder resides in the state or province identified in the address of the Holder set forth on the signature page hereto; if the Holder is a partnership, corporation, limited liability company or other entity, then the office or offices of the Holder in which its principal place of business is located at the address or addresses of the Holder set forth on the signature page hereto.

12. Events of Acceleration. Upon the occurrence of any Event of Default and so long as any Event of Default is continuing, the Holder may, with the written consent of Investors (as defined below), inclusive of the Holder, holding more than the higher of (i) 66 2/3% of the aggregate outstanding principal amount of the Notes, declare the entire unpaid balance of this Note, together with all accrued and unpaid interest on this Note, to be immediately due and payable prior to the Maturity Date (in the case of any occurrence of any of the events described in paragraphs (c) and (d) below, this Note shall become automatically due and payable, including unpaid interest accrued hereon, without notice or demand). In the event the Company fails to make any payment of principal or accrued interest on this Note to Holder when due after demand is made in accordance herewith, Holder will be entitled to exercise all rights and remedies available to it without the consent or approval of any other party and the Company will reimburse Holder for its reasonable costs and expenses, including attorneys' fees, incurred in connection with the enforcement of its rights under this Note. In addition to any other rights Holder may have under applicable laws, during an Event of Default, Holder shall have the right to set off the indebtedness evidenced by this Note against any other indebtedness of the Holder to the Company. For purposes of this Section 7, each of the following events will constitute an "Event of Default":

(a) Failure to Pay. The Company shall fail to pay (i) when due any principal payment on the due date hereunder or (ii) any interest payment or other payment required under the terms of this Note or the Security Agreement (as defined below) on the date due and such payment shall not have been made within five (5) days following the date when due.
(b) Failure to Comply. The Company shall fail to comply in any material respect with the terms, conditions and covenants of this Note including, without limitation, any representation or warranty provided herein is untrue or incorrect in any material respect as to Company.
(c) Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) admit in writing its inability to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vi) take any action for the purpose of effecting any of the foregoing.
(d) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company, or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with

respect to the Company, if any, or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within 90 days of commencement.

(e) Cross Default. A default (however denominated or defined) shall occur under any other indebtedness for borrowed money (not covered hereunder) of the Company, which shall not have been cured within applicable notice and grace periods and the holders thereof shall have accelerated payment of such indebtedness.

(f) Judgments. A final nonappealable judgment or order for the payment of money in excess of One Hundred Thousand dollars ($100,000) shall be rendered against the Company and the same shall remain undischarged for a period of 30 days during which execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar process shall be issued or levied against a substantial part of the Company's property, if any and such judgment, writ, or similar process shall not be released, stayed, vacated or otherwise dismissed within 30 days after issue or levy.

13. Change in Control: Closing Payment. For the purposes of this Note, a "Change in Control" shall be deemed to occur upon (i) the sale, lease, license or transfer, in a single transaction or a series of transactions, of all or substantially all of the Company's assets; (ii) the sale or transfer, in a single transaction or a series of transactions, of 50% or more of the presently outstanding shares of capital stock of the Company, or (iii) the issuance by the Company of stock, whether in one or more transactions, which individually or in the aggregate results in the ownership, following such transaction or transactions, by the present stockholders of the Company of less than 50% of the issued and outstanding shares of voting stock of the Company. In the event of a Change in Control prior to the consummation of the Merger, the Company shall pay to the Holder the outstanding principal balance under the Note and all accrued and unpaid interest hereunder, which payments shall be paid to the Holder on or before the closing of such Change in Control. Notwithstanding the foregoing, in no event shall a Change of Control result from a debt or equity financing where the purpose of such transaction is raising capital for the Company.

14. No Stockholder Rights. This Note, as such, shall not entitle the Holder to any rights as a stockholder of the Company.

15. Pari Passu Notes. The Holder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Secured Convertible Promissory Notes issued by the Company as provided in the Subscription Agreement (collectively with this Note, the "Notes" and the holders of all Notes, the "Investors"). In the event the Holder receives payments in excess of its pro rata share of the Company's payments to the Investors, then the Holder shall hold in trust all such excess payments for the benefit of the other Investors and shall pay such amounts held in trust to such other Investors upon demand by such Investors.

# 16. Miscellaneous.

(a) Waivers. The Company hereby waives demand for payment, notice of dishonor, presentment, protest and notice of protest. No failure or delay on the part of the holder of this Note in exercising any power or right under this Note shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof of the exercise of any other power or right. No notice to or demand on the Company in any case shall entitle the Company to any notice or demand in similar or other circumstances.
(b) Amendment. This Note may not be amended or modified; nor may any of its terms be waived, except by written instruments signed by the Company and the Requisite Investors, and then only to the extent set forth therein. "Requisite Investors" shall mean Investors holding a majority of the principal indebtedness represented by the outstanding Notes (defined in Section 16).
(c) Binding: Successors and Assigns. If any provision of this Note is determined to be invalid, illegal or unenforceable, in whole or in part, the validity, legality and enforceability of any of the remaining provisions or portions of this Note shall not in any way be affected or impaired thereby, and this Note shall nevertheless be binding between the Company and the Holder. This Note shall be binding upon, inure to the benefit of and be enforceable by the Company, the Holder and their respective successors and assigns.

(d) Governing Law; Venue. The terms of this Note shall be construed and governed in all respects by the laws of the State of Florida, without regard to principles of conflict of laws. Any and all disputes arising out of or related to this Note or the Security Agreement shall be adjudicated exclusively in the state or federal courts located in Florida. Each of the parties hereto submits itself to the jurisdiction of the courts of the State of Florida and the Federal courts of the United States located in such state in respect of all actions arising out of or in connection with the interpretation or enforcement of the Note, waives any argument that venue in such forums is not convenient and agrees that any actions initiated by either party hereto shall be appropriately venued in such forums.

(e) Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified; (ii) when sent by confirmed facsimile if sent during the normal business hours of the recipient, if not, then on the next business day; (iii) one (1) business day after deposit with a nationally recognized overnight courier designating next business day delivery; or (iv) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid. All notices and other communications shall be sent to the address or facsimile number as set forth on the signature page hereof or at such other address as such party may designate by ten (10) days' advance written notice to the other parties.

(f) Time of the Essence; Remedies. Time is of the essence of this Note. The rights and remedies under this Note are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to the Holder.

(g) Severability. If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note, the balance of the Note shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms, and the parties shall use good faith to negotiate a substitute, valid and enforceable provision that replaces the excluded provision and that most nearly effects the parties' intent in entering into this Note.

(h) Entire Note. This Note constitutes the full and entire understanding, promise and agreement between the Company and the Holder with respect to the subject matter hereof and thereof, and supersede, merge and render void every other prior written and/or oral understanding, promise or agreement between the Company and the Holder with respect to the subject matter hereof and thereof.

(i) Headings. Section headings are inserted herein for convenience only and do not form a part of this Note.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties have executed this CONVERTIBLE PROMISSORY NOTE as of the date first written above.

ESC AEROSPACE US, INC.

By:

Name:

Title:

Agreed to and Accepted:

Name:

Address:

Email:

Phone:

[Signature page to Convertible Promissory Note]

# ONGOING REPORTING

The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its website, no later than:

(120 days after the end of each fiscal year covered by the report)

Once posted, the annual report may be found on the issuer's website at:

https://www.esc-aerospace.us

The issuer must continue to comply with the ongoing reporting requirements until:

(1) the issuer is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
(2) The issuer has filed, since its most recent sale of securities pursuant to this part, at least one annual report pursuant to this section and has fewer than 300 holders of record;
(3) The issuer has filed, since its most recent sale of securities pursuant to this part, the annual reports required pursuant to this section for at least the three most recent years and has total assets that do not exceed $10,000,000;
(4) the issuer or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) the issuer liquidates or dissolves its business in accordance with state law.

87

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Is this an amendment?** Yes

**Nature of Amendment:** Reduce minimum investment amount

**Name of Issuer:** esc Aerospace US, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** FL

**Date of Organization:** 06-13-2018

**Physical Address:** 3259 PROGRESS DR. #106, ORLANDO, FL, 32826

**Issuer Website:** https://www.esc-aerospace.us

**Is there a Co-Issuer?:** No

**Intermediary Name:** Silicon Prairie Online LLC

**Intermediary CIK:** 0001711770

**Intermediary File Number:** 007-00123

**Intermediary CRD Number:** 289746

### Offering Information

**Compensation to Intermediary:** 5% Cash on First 1M, 4% on Second, 3% up to 10M, then 1% thereafter

**Financial Interest in Issuer:** N/A

**Type of Security Offered:** Other

**Other Description of Security:** Convertible Promissory Notes

**Number of Securities Offered:** 618000

**Price per Security:** $1.00

**Method for Determining Price:** Face Value

**Target Offering Amount:** $618,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $618,000.00

**Deadline to Reach Target Amount:** 08-31-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 10.00

**Total Assets (Most Recent Fiscal Year):** $270,239.18

**Total Assets (Prior Fiscal Year):** $168,228.43

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $75,273.69

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $193,374.40

**Accounts Receivable (Prior Fiscal Year):** $137,503.44

**Short-Term Debt (Most Recent Fiscal Year):** $227,705.46

**Short-Term Debt (Prior Fiscal Year):** $94,004.70

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $592,710.58

**Revenues/Sales (Prior Fiscal Year):** $767,501.99

**Cost of Goods Sold (Most Recent Fiscal Year):** $352,263.46

**Cost of Goods Sold (Prior Fiscal Year):** $542,183.95

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-32,435.65

**Net Income (Prior Fiscal Year):** $63,964.15

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** esc Aerospace US, Inc.

**Signature:** /s/ Lars Weimer

**Title:** President

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**Signature:** /s/ Lars Weimer

**Title:** President

**Date:** 03-02-2023