CAPABILITIES BRIEFING. K2 Solutions, Inc. Proprietary Information - For Authorized Use Only

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1 CAPABILITIES BRIEFING

2 Company Profile Large enough to do the work, small enough to care Owned, Led, and Managed by Operational Subject Matter Experts (SME) Service-Disabled Veteran-Owned Small Business 40% Employee-Owned Over 200 classified and unclassified contracts awarded to date: First contracts were focused on Government Research and Development and Counter-Improvised Explosive Device Detection 50% of awarded contracts have been in the area of Research, Development, Testing & Evaluation Top Secret Facility Clearance with Superior Rating from Defense Security Service Inspections Proven track record in strategic, tactical, and practical application of scientific research, development, testing, and evaluation (RDT&E) focused on Operational Application

3 Explosive Detection Canine Services Increase Venue Security It provides pre-event / behind the scenes BEST explosive detection capability It extends your security perimeter in front of your bag check / magnetometer position (PB Only) It provides a deterrent, and reduces the likelihood that an attacker will choose your venue in the first place It invokes behaviors in an attacker that the entire security team could possibly detect (PB Better) It provides the BEST explosive detection technology available for screening incoming personnel (PB Only) It dramatically increases the likelihood that an attacker would pre-maturely execute his attack (PB Better) Before reaching the intended target location Likely reducing casualties

4 K2 Manufactures, Imprints, & Detects Homemade Explosives (HME) Conundrum: Minimal overlap between commonly imprinted odors and those that are high-threat. Law Enforcement certifying agencies only require detection of conventional explosives (C4, TNT, etc.) Conventional Explosives COMMONLY IMPRINTED Homemade Explosives HIGH THREAT Attacks 2017: TATP - Manchester attack 2016: TATP - explosion in Central Park, NYC 2016: TATP reagents in Orlando, FL 2016: TATP - Brussels bombing 2015: Perchlorates - San Bernardino, CA 2015: TATP - Paris Attacks 2013: Boston Marathon: Chlorates & Perchlorates 1995: NH 4 NO 3 - Federal Bldg. bombing Oklahoma City

5 What is a Person-Borne Explosive Detection Dog? Explosive Detection Canines (EDC; Traditional): detects explosive odor placed in a static location Stand-Off Detection Dogs (SODD): conducts EDC tasks autonomously allowing the handler safe separation from a found device Person-Borne Explosive Detection Dogs (PB-EDD): EDCs trained to detect and follow a chemical scent trail from a moving person to its source Teams are 3 rd -Party Certified through the International Police Work Dog Association (IPWDA) Canines must also work both on-and-off leash Canines maintain the Single-Purpose (traditional) explosives detection capability Typically a Labrador or sporting breed

6 PB-EDD Applications PB-EDD teams are always visible and normally moving Teams can be a stand alone layer of security Teams can also be used as a force multiplier Optimal when teamed with Law Enforcement or Security Officers Also when paired with Human Behavioral Training Upon positive alert, the canine is pulled away from the target to allow security contact team to conduct a Terry Stop * Several options for deployment: Option 1: Two contact team members Option 2: One contact team member Option 3: Handler call-in (radio) K2 s PB-EDD are also traditional Explosive Detection Canines (EDC) with the Single-Purpose (static) search capability *A "Terry Stop" is a stop of a person by law enforcement officers based upon "reasonable suspicion" that a person may have been engaged in criminal activity, whereas an arrest requires "probable cause" that a suspect committed a criminal offense. The name comes from the standards established in a 1968 case, Terry v. Ohio

7 K2 TRAINING CENTER 125 Acres Admin & Support Buildings 2 - RDT&E Building 3 - Kennel Buildings (5 total) 4 - Roadway 5 - Explosives Storage Facility 6 - Imprinting Building

8 Training Center Capabilities 125-acre five-kennel facility responsible for: 320 canine capacity Canine and handler training Contact team training and evaluation Patrol and tracking Explosives or Narcotics Detection Research, Development, Testing, & Evaluation: Home-Made Explosives Imprinting Physiology Lab Canine Imprint and Testing Building Full-Time Veterinarian Olfaction, Nutrition, Conditioning (treadmill), Cognition, Training Techniques and Tools Environmental Chamber Temperature extremes (-20 to 120F) as needed for RDT&E/studies 3 x 12 variable speed treadmill specially designed for conducting exercise studies under varied environmental conditions. Physiology Lab Environmental Reactivity Room designed to observe canine stress-related (fear) responses to new objects or experiences. Allows the development of training protocols and mitigation techniques to increase canine environmental stability. Canine Imprint and Testing Building 2,400 sq. ft., two story building Climate and lighting controlled, all-weather, and a configurable space that provides many options for R&D efforts Odor clean room

9 Licenses, Logistics, & Explosives Department of Homeland Security SAFETY Act Designation for Person- Borne Explosive Detection Dog Technology International Code of Conduct Association (ICoCA) Member, 2017 Defense Contract Management Agency (DCMA) compliant for explosives storage Support for embarkation and distribution management at client specified locations Ammunition Management for inspecting, forecasting, handling, transporting, and storing ammunition, explosives, missiles, toxic chemicals and other HAZMAT material Top Secret Facility Clearance Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Licenses Type 1: Dealer in Firearms other than Destructive Devices Type 9: Dealer in Destructive Devices Type 10: Manufacturer of Destructive Devices Type 20: Manufacturer of Explosives U.S. DOT Registration No for interstate commerce DOT Hazmat: Y DEA License No. RK for narcotics possession Third-Party Certification through the International Police Work Dog Association (IPWDA)

10 Procurement and Training K2 selects canines by using a proven Assessment and Selection process used to procure Explosive Detection Dogs for the USMC 647 dog contract: Purchase canines from across the U.S. and overseas Utilize an Emotional Reactivity Test (ERT) that was developed by K2 and North Carolina State University (NCSU)* Canines go through an extensive medical evaluation done by K2 s onsite Veterinarian* CREATING A K2 DOG video K2 has a stringent training regiment conducted at K2 s Training facility in North Carolina: Canine Handlers complete an eight week training course conducted by professional trainers* Canines receive environmental training on relevant noises associated with the scope of work:* Active airport Crowds of people Buildings and associated scenarios Vehicle traffic Stadiums * SAFETY Act Designation Approved

11 Professional and Qualified Handlers K2 s hiring and training plan for handlers ensures we continually place professional and qualified handlers with clients We hire from across the country using a proprietary assessment process* Handlers go through basic human behavior training All handlers must attend and pass K2 s Handler Course conducted at our Training Center to ensure they understand K2 s core values and conduct themselves in accordance with our standards* All handlers receive explosives handling courses* K2 employees are part-owners of K2 Solutions, Inc. under our Employee Stock Ownership Plan (ESOP) All handlers and canines must pass a third-party certification before being placed with a client* * SAFETY Act Designation Approved

12 Customers and Past Performance Current relevant contracts: Provide green canines to TSA for training Provide fully-trained Personnel Screening Canines (PSC) to TSA Conduct Red Team evaluations of TSA PSC teams Provide Specialized Search Dogs (SSD) to Lackland Air Force Base Provide Home-Made Explosive (HME) training for federal, state, and local law enforcement DHS Science & Technology Research and Development for Provided PB-EDD Handler Teams to: Canine Odor Recognition Major League Baseball: CO Rockies, Pittsburgh Pirates Masters International Golf Tournament Delta Air Lines Cedar Fair Parks (3) VIP events such as Church of Latter Day Saints Mall of America during heightened threat over holidays Kentucky Derby at the request of the FBI after the Boston Bombing NHL- Carolina Hurricanes, Pittsburgh Penguins Trained and sold PB-EDDs to: Metro Police, Washington D.C. Capitol Police, Washington D.C. Los Angeles Police Department Maryland State Police Maryland Transportation Authority New York Police Department Philadelphia Police Department Bomb Squad

13 Summary We are a Service-Disabled Veteran-Owned business located in North Carolina and deployable worldwide The PB-EDD Technology was developed in conjunction with DHS S&T and top universities Our Handler Teams are Third-Party certified versus an inhouse certification, which removes potential for bias The PB-EDD Technology was DHS SAFETY Act DT&E Designated in 2016 and we are the only company with any SAFETY Act Award (Designation or Certification) for this capability

14 Questions? Please direct all questions to: Lane Kjellsen, Chairman / CEO K2 Solutions, Inc. lkjellsen@k2si.com

15 Appendix I: DHS SAFETY Act Comparison

16 Appendix II: PB-EDD: Developed with Top Universities & DHS SAFETY Act Designated Department of Homeland Security Science & Technology (DHS S&T) approached K2 to develop a canine capability to detect explosives on a moving person K2 worked with Johns Hopkins Applied Physics Lab and the University of Maryland to produce a canine with the following requirements: Canine must also have the Single-Purpose (traditional) capability Canine had to work on-and-off leash PB-EDD teams must be third-party certified DHS SAFETY Act Designated in 2016 for the PB-EDD Capability

17 Appendix III: Technology That Could Save Lives What is the Department of Homeland Security SAFETY Act Designation? As part of the Homeland Security Act of 2002, Public Law , Congress enacted the SAFETY Act. The SAFETY Act provides incentives for the development and deployment of anti-terrorism technologies by creating a system of risk management and a system of litigation management. The purpose of the Act is to ensure that the threat of liability does not deter potential manufacturers or sellers of anti-terrorism technologies from developing, deploying, and commercializing technologies that could save lives. The Act thus creates certain liability limitations for claims arising out of, relating to, or resulting from an act of terrorism where qualified anti-terrorism technologies have been deployed. SAFETY Act Protections Extend to Buyers (whether Designation or Certification) Such cause of action may be brought only against the Seller* of the QATT (Qualified Anti Terrorism Technology) and may not be brought against the buyers, the buyers contractors, downstream users of the Qualified Anti-Terrorism Technology, the Seller s suppliers or contractors, or any other person or entity Preamble to Final Rule, 6 CFR Part 25, at 33150

18 Appendix IV: Rigorous Approval Process Our PB-EDD processes have been scrutinized and validated in the following areas: Hiring of Canine Handlers Procurement of canines Training of canines Training of Handlers and Canine Teams Third-Party Certification from the International Police Work Dog Association (IPWDA) K2 will always meet a customer s certification requirement PB-EDD capability to detect explosives Client success rates Explosives handling and storage Record keeping of canine training Quality Control (QC) on training, records keeping, research and development of the PB-EDD technology