Alignment of Defense Contractors Innovation Strategies With US DOD RDT&E Plans: The Winners and Losers.

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1 Aignment of Defense Contractors Innovation Strategies With US DOD RDT&E Pans: The Winners and Losers. A new anaysis by Vector Anaytics based on the FY19 budget request.

2 2 This new report from Vector Anaytics provides defense contractors with an assessment of how we their innovation and patenting strategy (and those of their competitors) matches the US Department of Defense s 5-year Research and Deveopment pan. Use this insight to reaign your R&D strategies with the DOD s objectives, optimize your technoogy deveopment investments, and understand if your competitors are outinvesting you in key DOD research areas. We utiize natura anguage processing techniques and machine earning modes to disti R&D topics from the FY19 RDT&E budget request. We wi then search for those R&D topics in the patent portfoios of eading defense contractors. Vector Anaytics, previousy known as Vector Strategy, has been pubishing reports vaued by the US DOD and its suppy chain for miitary body armor and armored ground vehices since We are now offering our insight to a broader audience within the DOD suppy chain and we are using big data, data science, and machine earning modes to deveop that insight. Objective of This Prospectus This type of anaysis has never been pubished before, not by Vector Anaytics and not by other firms. We d ike to give cients the opportunity to shape our anaysis and the deiverabe we provide. Thus, Vector Anaytics wishes to engage Eary Research Investors in this project. These organizations wi commit to purchasing our report in advance for a 25% discount off the fu retai price and wi receive other benefits as an Eary Research Investor that wi not be provided to organizations that purchase the report after pubication. For exampe, you wi be abe to add defense contractors to the ist of those we wi cover in the report and you may request custom dridowns into the resuts of our anaysis.

3 3 Methodoogy We use the US DOD s FY19 RDT&E budget justification books to define future technoogies and R&D topics that the US DOD is investing in over the next five years. We use a natura anguage processing technique caed topic modeing to mine or discover those US DOD R&D topic areas. There are over 1,000 program eements (budget ines) in the US DOD s RDT&E budget; these program eements can be reorganized or categorized into approximatey 100 topics. This project discovers those 100 topics, then measures how we your company s patent portfoio addresses those 100 topics. We wi aso measure how we your competitors patent portfoio addresses those 100 topics. This anaysis uses a company s patent portfoio as a proxy for their innovation (i.e. R&D) initiatives. Many studies have documented the use of patent portfoios as empirica evidence of a company s innovation activity and the use of patent information to monitor competitors. We convert PDF documents to text, cean and pre-process that text, then use machine earning modes to buid statistics about the words, phrases, and technoogy concepts used within the origina PDF documents. Other machine earning and artificia inteigence modes use those statistics to mine atent topics from the origina documents and to compare sets of documents (such as the DOD budget) to other documents sets (such as a company s patents). Bottom Line Up-Front: Vector Anaytics methodoogy aows you to quantify how we your innovation and R&D initiatives address US DOD R&D priorities. Data Sources The RDT&E budget justification books associated with the FY19 DOD budget request. These are approximatey 20 individua voumes of PDF documents with each having a page count of between 350 and 1,500. In tota, we wi parse through 400MG to 500MG of PDF fies. Granted patents and ungranted patent appications for each defense contractor, with fiing dates of 2013 to 2017 incusive (i.e. 5 years of patent documents for each contractor). We anticipate using each patent s tite, abstract, and caims in our anaysis. Questions Answered in This Report Which defense contractors are investing in research topics important to the US DOD? Are there research topics important to the U.S. DOD that a defense contractor is not investing in? How are defense contractors comparativey stacking up against each other? I.e. who is eading the competitive pack in each DOD research topic? If US DOD funding amounts are indicative of the DOD s priorities, is your company addressing the DOD s most important research topics? How we does your company s innovation strategy match that of the US Army, the US Navy, or the US Air Force? Which US miitary service branch is driving investment in particuar research areas? Are there opportunities for your company to work with other service branches who are aso investing in technoogies you have under deveopment?

4 4 Defense Contractors Covered In This Report* Lockheed Martin L3 Technoogies Boeing United Technoogies BAE Systems Huntington Ingas Industries Raytheon Company Textron Northrop Grumman Harris Corporation Genera Dynamics GE Aviation Airbus SAIC *We wi incude 10 to 15 defense contractors in the fina report. The fina ist of contractors that Vector Anaytics incudes in the anaysis wi be based on the requests of our Eary Research Investors; i.e. the fina ist wi be shaped with cient input. DOD Agencies Whose RDT&E Budgets We Wi Incude** US Army US Navy US Marine Corps US Air Force DARPA Missie Defence Agency **We pan to incude the budgets from these six agencies in our report. Eary Research Investors may request other agencies for consideration.

5 5 The Benefits You Receive as an Eary Research Investor As an Eary Research Investor and pre-purchaser of this report, your company wi receive the foowing benefits and advantages over organizations that purchase the report after its pubication date. The opportunity to choose which defense contractors are incuded in the anaysis. A 25% discount off the fu retai price of the report; and the abiity to spit the report cost over two payments. A preiminary briefing (or white paper) wi be provided ate March 2018 which presents the 100 research topics mined from the aggregated voumes of the FY19 DOD RDT&E budget. Funding trends, service branch trends, and the program eements within each topic wi be discussed. Eary Research Investors wi have access to this information at east 45 days before other report purchasers. Access to Vector Anaytics' subject matter experts and senior anaysts during the research process and after report pubication for discussion of research trends and report concusions. The option to engage Vector Anaytics in a debrief of the fina report. This may be competed either face-to-face (Vector Anaytics' trave expenses wi be reimbursed in addition to report cost) or via teephone conference ca(s). We anticipate that after you review the fina report, there wi be some dri-down into the resuts that we did not provide, a different way you d ike to see the resuts presented, or you d ike more detai on a topic or a competitor than we presented in the fina report. We wi fufi any request you have, as ong as it requires no more than 8 hours to compete. To receive the above benefits, Eary Research Investors must commit to purchasing the report by returning a signed report purchase agreement (ast page of this prospectus). At that time payment of the deposit woud aso be initiated with terms of 30 days. "We benchmark a company s patent portfoio against a set of documents that define the future direction of an industry sector based on words, phrases, and technoogy descriptions. Our competitors just assess a company s patent portfoio against other companies portfoios based on technoogy codes assigned by the US Patent and Trademark Office. The intent of those technoogy codes is to define the uniqueness of patent caims; they were not designed to buid technoogy taxonomies or quantify the technoogy focus areas of a patent portfoio. Thus, our method based on natura anguage processing yieds more meaningfu insight." Marcia Price Chief Anayst and CEO Vector Anaytics, Inc.

6 6 Report Tabe of Contents 1. Abstract and Objectives 2. Methodoogy and Assumptions 3. Data Sources 4. Executive Summary 5. Research Topics Mined From the FY19 DOD RDT&E Budget Justification Books 5.1. Tite and Description of Topic 5.2. Taxonomy of Research Topics (i.e. Organization of simiar topics into broader categories of research) Importance of Each Topic Based on Topic Proportion Found in DOD Budget 5.4. Importance of Each Topic Based on Funding Associated with Topic 5.5. Discussion of Why Importance Based on Topic Proportion May Not Match Importance Based on Funding 5.6. Program Eements (Budget Lines) Associated with Topic 5.7. Service Branch / Agency Representation Within Each Topic (Based on Funding Contributed By Each Service Branch or Agency) 6. Discussion of the Patent Portfoios of Leading Defense Contractors 6.1. Patenting Trends Over Time 6.2. Technoogica Diversity of Patent Portfoios (Unique Vector Anaytics Metric) 6.3. Citation and Inventor Characteristics 7. Benchmarking of Defense Contractors Portfoios Against DOD and Service Branch Research Topics 7.1. Discussion of Contractors that Overa Best Match DOD and Individua Service Branch (USA, USN/USMC, USAF, etc.) Research Initiatives and Those Who Least Match 7.2. In-depth Discussion of the 20 Research Topics Most Important to the DOD and the Contractors Who Are Best Addressing Each of These 20 Research Topics 7.3. Identification of Research Topics That Are Important to the DOD But Are Experiencing Under Investment by Defense Contractors The Above Metrics/Discussion Wi Be Provided Both at the Overa DOD Leve and For Each Major Service Branch As We (USA, USAF, USN/USMC, DARPA, MDA). 8. Appendix A Description of A Research Topics Mined from the FY19 DOD RDT&E Budget Justification Books 9. Appendix B Profie of Each Defense Contractors Patent Portfoio, Incuding Strengths and Weakness as Measured Against A DOD and Service Branch Research Topics. Wi Aso Incude Presentation of A Vector Anaytics Unique Patent and Innovation Metrics. 10. Appendix C Nerdy Machine Learning and Data Science Resuts: 10.1 Visua Presentation of Research Topics in a 2-dimensiona Space to Understand Which Topics Are Cosey Reated and May Jointy Leverage R&D Investment Visua Exporation of the Technoogy Phrases and Concepts that Define Each Research Topic.

7 7 Sampe Charts Topic 20 Topic 19 Topic 18 Topic 17 Topic 16 Topic 15 Topic 14 Topic 13 Topic 12 Topic 11 Topic 10 Topic 9 Topic 8 Topic 7 Topic 6 Topic 5 Topic 4 Topic 3 Topic 2 Topic 1 R&D Topic Importance (Comparison of DOD RDT&E Budget to Company InnovaHon PorJoio) Rea%ve Topic Importance DOD Company A Company B Company C Company D Company E Insight that can be drawn from this chart: Topics 6 and 17 are very important to the DOD, but no companies are innovating in these topic areas. Company E is eading innovation on Topics 8 and 9, two topics important to the DOD. Most companies are investing in Topics 1, 19 and 20; but these topics appear not important to the DOD. Are the companies misaigning their innovation strategies? Insight that can be drawn from this chart: Topic 5 and 9 wi experience strong expansions in funding post FY18 (companies shoud seek to participate in these programs). Topic 8 enjoyed strong DOD RDT&E investment in FY17 to FY19, but funding dries up post FY20, perhaps as this topic transitions to production. Companies shoud investigate Topic 1 and make sure they are innovating in this area. Though not strongy funded today, funding picks up steam post FY19. Funding ($ miions) DOD RDT&E Funding Trends By R&D Topic FY17 FY18 FY19 FY20 FY21 FY22 FY23 Fisca Year Topic 10 Topic 9 Topic 8 Topic 7 Topic 6 Topic 5 Topic 4 Topic 3 Topic 2 Topic 1

8 8 About Vector Anaytics Vector Anaytics (previousy known as Vector Strategy) uses data science and big data to deveop predictive innovation anaytics for organizations in the advanced materias, aerospace and defense, and high tech industries. We provide soutions that aow end users to aign their R&D, product, and technoogy deveopment strategies with future trends and quantify their technoogy and product portfoios. Vector Anaytics has a unique abiity to succincty communicate anaytics and market research resuts to executive management at major corporations. Hewett Packard, Epson, 3M, Acoa, Avery Dennison, Honeywe, BAE Systems, DuPont, Owens Corning, and the US Department of Defense are among the organizations that have repeatedy turned to Vector Anaytics for insight. Our software engines everage machine earning modes and natura anguage processing (NLP) techniques assembed in proprietary agorithmic pipeines to mine insight from arge, unconnected sources of text and structured data. Our modes and NLP techniques are disruptive because they are buit upon the eading-edge inteectua property of our co-founders and the schoary work of the University of North Caroina Charotte s Text Anaytics Lab. Timeine for Project Deadine for Eary Research Investor Commitment. February 28, 2018 Eary Research Investors provide feedback on Contractors to be incuded in anaysis. March 15, 2018 Vector Anaytics mines FY19 budget documents for research topics. February 2018 Vector Anaytics provides briefing that discusses research topics found across a services FY19 RDT&E budgets and funding trends by program eement associated with each topic. Vector Anaytics anayzes contractor patent portfoios for research topics. Vector Anaytics provides fina report that presents fu anaysis as described in this prospectus. March 30, 2018 March and Apri 2018 Apri 30, 2018 Debriefing sessions with Eary Research Investors (via teephone or face-to-face). May 2018 Eary Research Investors deveop criteria for and request custom dri-down into the resuts. May 2018 Vector Anaytics provides Eary Research Investors with their custom dri-down. June 2018 Who Shoud Buy This Report This report is essentia for business executives and anaysts responsibe for the management of technoogy deveopment, R&D, product deveopment, innovation, and strategy deveopment. The report provides inteigence needed to prioritize R&D investment strategies, manage patent portfoios, strategize technoogy deveopment strategies, and focus your company s innovation and R&D deveopment on activities that wi aign your company with US DOD R&D goas. Report Pricing The fu retai price of Vector Anaytics report tited Aignment of Defense Contractors Innovation Strategies with US DOD RDT&E Pans: Winners and Losers is $9,950. Eary Research Investors receive a 25% discount off this price and other benefits outined on page 5 of this prospectus.

9 9 Purchasing Agreement for Eary Research Investors By signing this agreement, your company is making a commitment to be an Eary Research Investor in Vector Anaytics report tited Aignment of Defense Contractors Innovation Strategies with US DOD RDT&E Pans: Winners and Losers. The contents of this report are described in this prospectus. As an Eary Research Investor, your company wi be entited to the benefits described on page 5 of this prospectus. Eary Research Investors must commit to purchasing the report by returning this signed report purchase agreement. The fu price of this report is $9,950. Eary Research Investors receive a 25% discount off the fu price; thus the price for Eary Research Investors is $7,462. Payment of a 50% deposit or $3,731 wi be initiated upon signature of this agreement (payment terms are 30 days). The remaining 50% of the purchase price or $3,731 wi be invoiced upon pubication and eectronic deivery of the fina report. That invoice wi aso have payment terms of 30 days. Purchases may be made via check, credit card, wire transfer, or EFT. Invoices or quotations wi be provided upon receipt of a signed agreement. Pease contact our office at for more information. Eary Research Investor Information: FIRST NAME: LAST NAME: COMPANY: JOB TITLE: PHONE NUMBER: ADDRESS: CITY: STATE: POSTAL CODE SIGNATURE DATE Pease Te Us What You Need Next: Quote to generate PO Invoice Likey Method of Payment: Credit card Eectronic funds transfer Paper check Unknown at this time Vector Anaytics Phone: Emai: mprice@vector-anaytics.com 1800 Camden Road, Suite Charotte, NC