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Here are explanations to the storyline along with some additional
information the movie didn't reveal. Note that this page will contain SPOILERS. So watching the movie before reading the story is highly recommended!
The main action takes place in 'not too distant future'. Way before those times when fashion changes so much, that people
start looking like aliens to the people of 2000s, but a while after AI gets
developed enough to perfectly simulate the functions of human brain.
Although robots made to date were primitive in their nature. Their main
purpose was to serve performing very simple tasks.
Simon Edwards was a brilliant inventor who developed a brand new way of AI functioning.
Luckily, his project got
sponsored at IRBC - Institute of Robotics and BioCybernetics.
The work on his creation completely absorbed him, he was almost obsessed
and everything around him had stopped existing. This was especially hard to
handle for his girlfriend Jesse, the one he lived with back then. One day, they
had a fight after which Simon left her house. He couldn't stand being distracted and he always hoped that once he's finished with his project, Jesse will
take him back and things will go back to normal again. That's why he
continued work on the robot along with the team of IRBC scientists...

They called the project E.T.H.A.N.
Ethan was an android of a new generation.
As his functioning was based on entirely new/experimental system, he was
nothing like chip-based bots which had just one 'correct' response to a stimulus. Ethan
had a complex personality which allowed him choose between 'right and wrong' just like any other human being does.
Therefore, his behavior could be very
unpredictable and even dangerous.

That is why he had to undergo an extensive series of tests (Yep, that part is not in the movie. The movie fast forwards 6 months later, but here's what was going on in between) He was
kept in a small room completely isolated from the outside world. Any
input would be carefully analyzed before it would be considered 'safe'
for the next generation EAI - emotional artificial intelligence to comprehend.
However he had failed some of the tests and the results were alarming
enough to start looking for the reasons which might have caused them...
One day, Simon was making some recalculations and finally found a mistake or an
'oversight', which had something to do with free will and
which cleared up the reason why Ethan's behavior was so unpredictable. A
meeting was held and they have decided to build a new, better and improved model.
Since some of the parts Ethan was made of cost hundreds thousands of dollars,
they decided to disassemble Ethan and build the new robot using
these parts.
And this is what Ethan's psychologist is saying to him in the scene. if
you listen to the song, there are two clue lines. "see the lives that
he took" and "when he's done with the innocent".
Upon hearing the news, Ethan has some sort of a breakdown and Simon is shocked seeing how
human Ethan's reactions are.

To save himself, Ethan knocks one of the workers out, steals the gun and runs away.
When he gets out of the underground, he finds himself in a downtown
amazed by all the new things and surroundings he had never seen before. Then he notices the
IRCB truck which is out looking for him and his first impulse is of course to run.

As a huge coincidence, he gets hit by
Jesse's(Simon's ex-girlfriend) car. In shock she gets out of the car and runs over to him to see if he is still alive (as she didn't know anything about Simon's project).
Ethan gets up pointing the gun at her. He shoots, however with an
intention to break the
tires of the IRBC truck and then he switches back to Jesse and tells her to get into the car. They take off sooner than security guards are able to reach them by running.

There was also a deleted scene which didn't make it into the movie.
Ethan drags Jesse outta the car, while she was trying to resist him. When
she pushes him away and manages to release herself, Ethan is about to
punch her very hard, but he changes his mind at the very last moment.
At the same time Jesse notices a rip on
his wrist with the wires showing through. That's how she learns about him being a
robot. Ethan then grabs her arm again and tells her to get into the
house.
Ethan ties Jesse down to the chair and leaves her in the room which was formerly
Simon's workplace.
Simon had moved the most of his things from there, at least those
things
he needed, but he seemed to forget about the sheet of paper where some Ethan's
prototype designs were drawn. Jesse notices it hanging on the wall and that's how she learns
about her ex boyfriend's project she was never actually interested
in..
Meanwhile we see the flashback to those days when everything was only about Jesse for
Simon. They were having a good time in the park when Jesse felt a mild
push... She saw a working toy robot next to her foot and in a moment she saw a little
boy who it belonged to. The picture of a boy holding a robot
didn't leave Simon's mind for days and that's what gave him the whole idea of making
a robot who would be almost human in his nature.
Jesse notices a scalpel on the table and somehow manages to
cut the rope and release herself. Now as she knows that Ethan has
at least some affiliation with Simon, she has to call
him to find out what is this all about and let him know that Ethan's holding her as a hostage here.

She didn't have enough time to tell him much, as Ethan heard her
talking and stepped out of the kitchen. Jesse dropped the phone, rushed up the stairs and hid in
the closet.

There was a folding staircase leading to the attic, so she
went upstairs hoping that Ethan wouldn't notice the folded staircase.
But he certainly did, so when she saw him coming up the stairs, she realized she could
get down by the ladder and run towards the car if she only could make
a few feet across the roof. Completely desperate not knowing who/what she
was dealing with, she decides to take this risk...

When she sees Ethan coming after her, she slips and falls

He however manages
to rescue her, which makes Jesse reestimate him completely. They get downstairs and
have a small conversation when Ethan shares his story with Jesse.

Soon they both hear a noise coming from downstairs. Jesse sees IRBC
security running into the house, so she tells Ethan to run downstairs hoping
to escape through the back entrance.

..But they both see Simon coming up the
stairs they had planned to use. A moment later he points a special gun which is used for instant decharging of
robots at Ethan. Jesse pushes Simon when he was about to hit the release button and they
manage to
get away. They run into Jesse's bedroom and she locks the door.
Jesse gives
Ethan her car keys knowing that it's his last chance to escape. He
gets the keys and jumps out of the 2nd floor
balcony.

At the same time the commander orders to knock the door down, but when
they enter the room, they find no one...

...which reveals that
Jesse had decided to
run after Ethan and help him hide from IRBC. They both get away in the car, which
Simon could see fading away in the distance...

Is that it?
No. The movie is supposed to have a continuation/sequel which would be more focused on a relationship between Jesse and Ethan. But I can't promise it will ever be released.
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