Energy Focus Partners with Meihodo and Euka Power on Fukuoka Energy Storage Plant

Energy Focus announced a joint investment with Japan's Meihodo and Euka Power Japan in an energy storage power plant located in Asakura, Fukuoka, Japan. Holding a 35% stake, EFOI will play a lead role in battery procurement and related energy management functions, positioning the Company to participate in the power regulation market, one of the most valuable segments in the global energy industry. The project has already received a grid application response from Kyushu Electric Power and is expected to reach Commercial Operation Date in the second half of 2026. This milestone will translate into visible revenue and cash flow, serving as the launchpad for EFOI's "energy platform" strategy. Financial Targets: With a total project investment of approximately 500M JPY, of which the Company's 35% share represents approximately 175M JPY, the project aims for an Internal Rate of Return exceeding 35%. Revenue Streams: By leveraging Japan's balancing market, capacity market, and real-time arbitrage mechanisms, the project is designed to generate revenue from multiple power market participation opportunities. Business Pivot: This highly replicable and scalable model facilitates EFOI's transition from a traditional energy products company into an asset-and-data-driven "Energy-as-a-Service" platform. EFOI intends to use this project as a springboard to accelerate expansion across Japan and the broader Asia-Pacific region. Over the next five years, the company is targeting over 1GW in energy storage and energy product sales opportunities, subject to market conditions and successful project execution, tapping into a potential multi-hundred-million-dollar market. As asset scale and profitability rise, EFOI is poised to reshape its valuation logic, emerging as a high-growth energy technology platform of significant interest to capital markets.