Glass to Power S p A : G2P – Report of the CEO to the BoD at 06.30.22

Report of the CEO

to the Board of Directors and the Board of Statutory Auditors

on management performance as of June 30, 2022

pursuant to Article 2381, co. 5, C.c.

Milan, 27 September 2022

to the Board of Directors

to the Board of Statutory Auditors of GLASS TO POWER S.p.A.

1. The Financial Statements at 30.06.2022

Description	30.06.2022 30.06.2021 30.06.2020

Balance sheet

Assets

A)	Accounts receivable from shareholders	0	0	15.292
in respect of unpaid share capital
B)	Fixed assets	3.080.720	3.193.950	3.035.105
I -	Intangibles assets	2.455.245	2.645.610	2.543.454
II -	Tangibles assets	625.475	508.340	461.651
III -	Financial assets	0	40.000	30.000
C)	Current assets	858.934	2.450.778	1.794.117
I -	Stock	36.215	31.000
II -	Account receivable	636.786	436.756	791.899
IV -	Cash-in-hand,cash-at-bank and cash	185.933	1.983.022	1.002.218
	equivalents
D)	Accrued income and Prepayments	1.049	0	0
	Total assets	3.940.703	5.644.728	4.844.514

Glass to Power S.p.A.	Sede operativa e laboratori	Sede legale
Capitale sociale € 528.812,00 i.v.	c/o Dipartimento di Scienze dei Materiali,	via Fortunato Zeni, 8
Codice fiscale - partita IVA - n. iscr.	Università degli Studi di Milano Bicocca	38068 - Rovereto (TN)
Reg. Imprese di Trento: 09640920964	Via Roberto Cozzi, 55
REA TN - 230875	20125 - Milano
Web site: www.glasstopower.com	 ([phone]
Email: [e-mail]	PEC: [e-mail]

	Description	30.06.2022	30.06.2021	30.06.2020
	Liabilities
A)	Shareholders' equity	2.059.379	3.955.220	3.228.794
I -	Share capital	528.812	528.812	475.397
II -	Share premium reserve	2.524.943	5.177.477	3.478.674
VIII	Retained earnings (loss carryovers)	-994.376	-1.034.486	-187.853
-
IX -	Profit or loss for the year	-994.376	-716.583	-537.424
B)	Provisions for contingent liabilities	40.000	30.000	20.000
and charges
C)	Employees' leaving indemnity	26.742	28.969	20.680
D)	Accounts Payables	1.664.834	1.630.539	1.852.227
E)	Accrued liabilities and deferred	149.748	0	0
income
	Total shareholders' equity and	3.940.703	5.644.728	4.844.514
	liabilities

Profit and loss account

1. Revenues
2. 1. Sales and services

1. 1. Other revenues and proceeds
2. Expenses

6)	Raw	materials,	subsidiary materials,
consumables and goods
7)	Services
8)	Rent/lease
9)	Personnel costs
10)	ammortamenti e svalutazioni
11)	variazioni delle rimanenze di materie
prime, sussidiarie, di consumo e merci

1. oneri diversi di gestione

17.618	13.510	6.794
0	7.282	567
17.618	6.228	6.227
1.005.408	717.764	536.408
37.903	37.853	16.291
215.814	148.079	69.716
68.336	50.731	30.000
243.904	244.961	182.161
425.572	228.349	208.420
-5.634	1.194	28.690
19.513	6.597	1.130

Gross Operating Margin (A - B)	-987.790	-704.254	-529.614

Glass to Power S.p.A.	Sede operativa e laboratori	Sede legale
Capitale sociale € 528.812,00 i.v.	c/o Dipartimento di Scienze dei Materiali,	via Fortunato Zeni, 8
Codice fiscale - partita IVA - n. iscr.	Università degli Studi di Milano Bicocca	38068 - Rovereto (TN)
Reg. Imprese di Trento: 09640920964	Via Roberto Cozzi, 55
REA TN - 230875	20125 - Milano
Web site: www.glasstopower.com	 ([phone]
Email: [e-mail]	PEC: [e-mail]

	Description	30.06.2022	30.06.2021	30.06.2020
C)	Financial income and expenses	-6.586	-12.329	-7.808
16)	interest and other financial income	865	0	0
17)	interest and other financial charges	-7.451	-12.313	-7.936
17-bis	gains and losses on foreign exchange	0	-16	128
	Result before taxes (A - B ±C ±D)	-994.376	-716.583	-537.422
21)	Profit (loss) for the year	-994.376	-716.583	-537.424

2. Update of the main operating events in the half year 01.01 - 30.06.2022

Projects in progressNanoFarm

The project ended in November 2021, as well as its reporting, while the renegotiation of some constraints provided for by the negotiating agreement is in progress. The disbursement of the contribution should be expected in the months of October / November 2022.

Product certification

In January, the certification for electrical safety and classification regarding fire resistance was obtained.

Market Situation

The extension of the 110% Ecobonus tax relief to the whole of 2022/2023 polarized the renewables market for most of the first half of 2022. The attention of professionals and operators such as integrated design firms, thermotechnicians, architects and engineers is was channeled to the private building segment. They were overwhelmed by an unexpected demand that almost completely absorbed

Glass to Power S.p.A.	Sede operativa e laboratori	Sede legale
Capitale sociale € 528.812,00 i.v.	c/o Dipartimento di Scienze dei Materiali,	via Fortunato Zeni, 8
Codice fiscale - partita IVA - n. iscr.	Università degli Studi di Milano Bicocca	38068 - Rovereto (TN)
Reg. Imprese di Trento: 09640920964	Via Roberto Cozzi, 55
REA TN - 230875	20125 - Milano
Web site: www.glasstopower.com	 ([phone]
Email: [e-mail]	PEC: [e-mail]

them, forcing them to direct their resources towards the recovery of the existing residential building stock.

The main factors that have made the proposal of transparent photovoltaic glass more complex are, on the one hand, the fact that the Ecobonus interprets photovoltaics as a "driven element" and not a "driving element", on the other the need for a technical / architectural design specific integration of curtain walls and photovoltaics in architecture.

In this historical moment and immersed in a very fluctuating market, there is no time to compare the characteristics of an innovative product with a mature product.

The BiPV market is a huge market segmented by industrial, civil, tertiary construction, and the recovery of architectural and landscape heritage: this complexity leads us to carefully evaluate the inclusion of Glass to Power in the various segments, weighing the opportunities for direct sales towards the most promising markets.

The outbreak of the war in Ukraine and the increase in energy costs were the cold shower that awakened - brutally - the attention of all markets: even the production of a few watts begins to have weight, even more so if the product itself combines thermal, acoustic insulation and visual comfort.

Offer portfolio

There is an increase in interest in our product.

Amount of bids issued as of 06/30/2022 € 2,490,000, with an inviting prospect of requests for the second semester.

3. Foreseeable evolution of operations in the second half of 2022

In the second half of the year, the preparatory activities for the market entry of our photovoltaic windows are being completed. In particular, the production process is being implemented, consequently adapting equipment and infrastructures, to increase yield and contain costs. At the same time, the necessary certification is

Glass to Power S.p.A.	Sede operativa e laboratori	Sede legale
Capitale sociale € 528.812,00 i.v.	c/o Dipartimento di Scienze dei Materiali,	via Fortunato Zeni, 8
Codice fiscale - partita IVA - n. iscr.	Università degli Studi di Milano Bicocca	38068 - Rovereto (TN)
Reg. Imprese di Trento: 09640920964	Via Roberto Cozzi, 55
REA TN - 230875	20125 - Milano
Web site: www.glasstopower.com	 ([phone]
Email: [e-mail]	PEC: [e-mail]

being obtained to install our photovoltaic windows in stand-alone systems and the program is being defined to also obtain the one that will allow their use without restrictions. In addition, pending significant turnover, it is applying to various European and national calls to obtain public grants and has already obtained funding of over 600 KEuros for a project that will start in January 2023.

Finally, a Business Developer Manager is being recruited to implement our business strategies.

In original signed:

Glass to Power S.p.A.

the Chief Executive Officer

(Francesco Meinardi)

Glass to Power S.p.A.	Sede operativa e laboratori	Sede legale
Capitale sociale € 528.812,00 i.v.	c/o Dipartimento di Scienze dei Materiali,	via Fortunato Zeni, 8
Codice fiscale - partita IVA - n. iscr.	Università degli Studi di Milano Bicocca	38068 - Rovereto (TN)
Reg. Imprese di Trento: 09640920964	Via Roberto Cozzi, 55
REA TN - 230875	20125 - Milano
Web site: www.glasstopower.com	 ([phone]
Email: [e-mail]	PEC: [e-mail]