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Rapton and his fellow Claws of Imperium and Imperium Droids are attempting to subdue a lightning dragon in the Crossroads junkyard when the Ninja arrive. They succeed in defeating the Imperium forces, until Rapton activates a device that produces a gigantic wolf-like monster. Kai initially mistakes the construct for a hologram, but Sora recognizes it as something different: a Photac. The virtually indestructible artificial being happens to be something that Sora herself created while still living in Imperium.
In a flashback, the young Sora-then known as Ana-developed the original Photac as a science fair project. Though impressed, her teacher Mr. Koenig felt that it deviated from Empress Beatrix's mandated curriculum. However, Ana was less concerned with the Empress' decrees than with her own idol, Dr. LaRow of Imperium's Advanced Systems Lab. Eager to impress her hero, Ana continues working on the Photac, with version 2.0 being capable of producing a hard light projection of an animal.
Unfortunately, a return to the present day showcases just how much Sora's original vision of an artificial companion has been perverted since her departure from Imperium. The savage creature so occupies the Ninja that Rapton and his forces are able to escape with the dragon, and Sora thus resolves to return to her former home and destroy it. Back in the past, Ana'sparents-utterly devoted to the Empress-discuss Sora's achievement with her. Despite their passion for the Empress, Ana herself was more interested in doing as she believes Dr. LaRow does: helping Imperium's citizens. Dr. LaRow then came to see Ana, and offered her the chance to work at the Advanced Systems Lab.
In the present, Arin insists on accompanying Sora to Imperium, and despite his initial misgivings Lloyd is persuaded to accompany them while Kai remains behind at the Monastery of Spinjitzu. In the past, Ana visits the Advanced Systems Lab and finds a dragon dubbed "Sora", the ancient Imperium word for "orphan", in confinement. To her horror, LaRow drains the dragon of energy, a process that clearly causes the creature pain, and uses it to increase the power of her Photac device. The result is the monstrous wolf the Ninja encountered in the present, with LaRow noting that an army of such creatures will allow Imperium to maintain its power by capturing dragons to extract their energy.
Utterly horrified, Ana rejects Dr. LaRow's proposal and sabotages the Photac before fleeing the Advanced Systems Lab, to which she refuses to return. Tragically, her parents and classmates alike shun her for what they see as a lack of devotion to Imperium and the Empress, and her parents even take away her home workbench. In the present, Sora discusses the problem of getting into Imperium with Arin and Lloyd, noting that they are undoubtedly regarded as criminals due to fighting with the dragon hunters. Arin proposes bypassing security by making their way in through the sewers, which Sora agrees is a brilliant plan.
Though the sewers prove more dangerous than Sora anticipated, as they do in fact have security measures in place, the three and Riyu are able to make their way into Imperium. Sora then uses a machine to forge fake ID badges for them, and they steal uniforms in order to blend in. Unfortunately, while the IDs are convincing enough for the first guard they encounter, their failure to adhere to the requirement for citizens to wear shoulder pads on weekdays gets them sentenced to public shaming. This is potentially disastrous, as all of Imperium-including their enemies and Sora's parents-will view the display in a live broadcast.
Fortunately, Riyu manages to provide a distraction so his friends can escape, and Sora takes off for the Advanced Systems Lab. Lloyd ends up in a cell block, and sees a prisoner shooting fire at the guards. Believing that Kai followed them against orders, he opens the cell from which the fire emerged-only to discover that it apparently isn't Kai inside. In a final flashback, Ana-disgusted by the truth about her "hero" and by her parents' rejection-receives an unexpected opportunity for a new life as the Merge occurs. Ana then leaves Imperium for the Crossroads; back in the present, Sora enters the Advanced Systems Lab and finds the Photac device, but is recognized by Dr. LaRow.
