Q2 2021 GreenPower Motor Company Inc Earnings Call
Good day and welcome to the Green Power Motor Company second quarter earnings call. All participants will be in a listen only mode should you need need assistance. Please signal a conference specialist by pressing Star then zero. After todays presentation, there will be an opportunity to ask questions to ask a question. You May Press Star then one on a touchtone phone to withdraw your question.
Just press Star then two please note. This event is being recorded I would like now to turn the conference over to Michael Seaford Chief Financial Officer. Please go ahead.
Thank you. This is Michael Siebert, Chief Financial Officer of Green Power Motor Company I would like to welcome everyone to our call to discuss Green power second quarter financial results.
As for the period ended September Thirtyth 2020, I am here today, with our Chief Executive Officer, Frazer occupancy, our president Brett our President Brendan Riley and our vice President of sales and marketing Ryan Shetterly.
During today's call, we may make comments or statements about our future expectations plans and prospects, which may constitute forward look.
Looking statements for the purposes of the Safe Harbor provision under the private Securities Litigation Reform Act of 1995 and applicable Canadian Securities laws actual results may differ materially from those indicated by these forward looking statements as a result of various important factors, including those discussed in our quarterly interim results and Mdna.
On SEDAR and on hiker.
In addition, these forward looking statements relate to the date on which they are made we anticipate subs subsequent events and developments may cause the company's views to change green power disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information.
Future events or otherwise also during the course of today's call. We may refer to certain non high FRS financial measures reconciliation of these non IRS financial measures can be found in our Mdna filed on SEDAR and on that curve and it's also located on our website at www Dot green power by stock comp.
I'll now pass the call over to Green power CEO Frazer.
Thank you Michael.
During the quarter Green power achieved a significant milestone with the uplisting of the company's shares on the NASDAQ capital market under the symbol GP.
And completion of our us initial public offering.
For gross proceeds of 37.2 million.
We plan on using the majority of the proceeds from the offering for the production of our all electric vehicles, including various models on our Estar platform fees.
Feast school by Us and our E. The Twofifty local our transit stop us.
Since listing on NASDAQ and with our significantly improved financial position prospect of customers that we had previously conducted demonstrations of our vehicles have reengaged with green power.
One of the many benefits that we saw from listing on NASDAQ and completing our finance.
Saying already coming to fruition.
In the past we produced vehicles per sales from specific customer orders now we can accelerate production shorten timelines for deliveries improved cost and terms from suppliers to support larger purchase orders, which will be driver.
Nash for Green power to attain profitability.
Our eastern platform offers various models per passengers as well as cargo in Delevering Green.
Green power is pursuing relationships that can drive a repeat orders and each of these categories and since the listing we have entered into production for more than 20.
Easterners per month, we anticipate these vehicles will start to deliver in two quarters time and this level of production represents potential revenue of over $8 million on a quarterly basis.
We also see tremendous growth opportunities next year with our all.
Average direct purpose built school bus the Beast, which Ryan Chatterley, we'll be speaking about in more detail.
And further on in this call as these vehicles take longer to build Weve commenced an additional production plan for 100 Beast School buses for current orders and the anticipated.
The lack of demand.
Which will be available for delivery in the middle of next year. Our initial production rate of five per month represents potential quarterly sales of over $5 million.
Michael Seaford, well speak to our financial results shortly but I wanted to highlight that our cash expenditures for.
For the quarter were $1.7 million. This includes our general and administrative selling and marketing product development costs cash costs per interest.
Everything all included before sales are the gross profit derived from sales.
We will continue to manage our operators.
Data operations in a fiscally responsible fashion and we see with the increased growth.
I have a much more measured core loan.
Lower increase in this particular line item with funds in the bank and low cash operational expenses, we are well positioned.
And for significant growth I'll now pass the call to Vical safer Green power CFO.
Thank you Frazer.
For the three month period ended September Thirtyth 2020, Green power recorded revenues of over $2.8 million cost of revenues of 1.95 million.
Generating gross profit of over 883000 or 31.2%.
Revenue generated from the sale of 20, EDI stars for which the company provided lease financing and which were accounted for as finance leases from the sales of one all electric school bus to create a bus sales, which will be used for sales demonstrate.
Patients.
From the sale of spare parts to attract the customer as well as revenue from existing finance and operating leases for.
For the six month period ended September Thirtyth 2020.
Green power recorded revenues of over $5.1 million in cost of revenues of approximately 3.6 million generating a gross profit of 1.5.
5 million or 29.4% of revenue revenue was generated from the sales of 30, Estars for which the company provided lease financing and which were accounted for as finance leases from the sales of one all electric school bus to create a bus sales from the sales of spare parts to a transit customer as well as revenue from existing finance and operate.
Operating leases, we finished the quarter with finished goods inventory of approximately one and a half million comprised of Threepi stars to restart cabin chassis. One all electric school bus one easy threefifty and charging stations or work in process inventory was $4.1 million, including 10 CKD units eight estar.
Five TV to Fiftys and production payments for the 100, TV star projects as well as parts inventory.
After completing the NASDAQ uplisting and raising gross proceeds of $37.7 million in a common share offering were approximately 34.8 million net of fees and expenses, we began planning for it.
Production of movie stars and B School buses, while continuing to progress our existing production of BV stars CV to Fiftys and CKD CKD units for by America production.
Since the quarter end, we have increased work in process inventory by approximately $2 million as production continues to move forward.
We received a significant number of warrant exercise notices both during and subsequent to the second quarter. During the quarter ended September Thirtyth, we received over 3 million from the exercise of warrants and subsequent to quarter end. We received an additional an additional 200000. These funds combined with proceeds from the Capex.
Section of trade receivables was used to repay loans to related parties in.
In addition, during the quarter over Canadian $1.25 million of our convertible debentures were converted into equity further reducing leverage and interest expense during the quarter. We provided the remaining convertible debenture holders with notice that we intend.
To repay the debentures by December 15, 2020, and we anticipate that the remaining convertible debentures will be converted into equity prior to this date.
This reduction in leverage combined with the current Neil balance in our operating line of credit we will reduce our leverage and cash interest expense in the quarter ended December 31, 2020 and.
Fourth quarter results will reflect a full quarter of significantly reduced interest expense.
Cash costs during the quarter were approximately $1.7 million, which is returned back to levels. We experienced prior to the cost reductions that were made during the first quarter in response to COVID-19 going.
Going forward, we continue to.
Employees and resources to prepare for anticipated sales and production growth. We anticipate the cash costs will increase over time as we continue to build out the business.
I'll now pass the call over to Ryan Shetterly Green powers, Vice President of sales and marketing to discuss our recent activity in these areas.
Good afternoon.
Your new and every but.
Buddy and thank you being on the call.
Despite the cobot 90 backdrop. It has been an extremely busy period with respect to on site sales demonstration and ongoing customer negotiations I think.
I think that it's somewhat of a sign in the sense of urgency reflected by both end users annual Oems to prepare for the broad transition to electric vehicles.
I will take a few minutes to summarize the in person demonstrations. The green power sales team has undertaken in the last few months along with their end use case to give you an idea of what we are seeing on the front lines.
In early in mid July we participated multiple demonstration that a REIT drive event hosted transit properties.
From across the Plains States. This included seven transit property seven transit agencies, who are looking to connect rural counties with more metropolitan area.
The purpose built you'd be star shined that meet demonstrations.
And that shows that the Midwest is looking for ways to bolster their shared mobility efforts with their zero emission vehicles, we had an additional.
We had additional demonstration in early August the transit properties in Northern California that are also seek to seeking to comply with state regulation increased share mobility and drive them operational costs.
In mid August and again in late September we conducted conducted extensive demonstrations in northern California for our Beast all of.
Patrick School bus, we're all aware of the short term uncertainties arising from the pandemic with the school bus market, but the reality is that the market is ripe with opportunity as aggressive stimulus and political mandates drive adoption President elect Biden has stated on its platform website. The campaign pledge to convert 480000 domestic school buses to zero and missed.
By 2030, while we applaud the commitment GE and aggressive ambition.
That would be an extremely optimistic timeline. Nonetheless, I think you will see substantial.
Substantial support both the federal and state level for a transition to electric school buses with regard to our competitive position in the school bus.
Space quite simply there is nothing else remotely close to the value proposition that the green power base All electric school bus provide as Frazier. Michael described we have state we have started to invest the capital from our recent financing to build five school buses per month, which we expect to start delivering by the middle of next year. We believe we are perfectly positioned to take advantage.
Mission of this opportunity and should enjoy significant first mover position as the only purpose built pipe unit on the market.
I expect we will see school bus orders over the coming months as a result of these demonstrations and that this demand will grow as we get into calendar 2021.
As we hurt as we hit early in mid October we had a sales.
Series of leased our demonstration.
That we are really excited about what some of very high with some very high profile corporations in northern California. These companies are seeking new transportation services for their corporate campuses and the MSR is a perfect fit not only operationally by financially due to reduced fuel cost and lower via.
Annual maintenance over time, while the pandemic has made the sales process somewhat lumpy. We're doing we're doing demonstrations performing follow ups and have several deals in the pipeline I am really excited about the prospects because we have some customer names that would be tremendous validators for the green power brand.
While we are working hard to further the green power name within.
In the transit and school bus markets. We also are making considerable progress with potential OEM partners seeking an easy cabin chassis unit. They can up fit to their specific needs quite simply these OEM opportunities are massive we performed onsite demonstrations last month and have and green power cabin chassis unit onsite.
At perspective OEM customers today.
With our respective technical teams working through the logistics and integration.
While customers are still not moving at present that exceeds their most definitely moving forward and that pace seems to be accelerating subsequent to quarter end in October we undertook our first.
First demo of the new TV star cargo plus to our perspective customer in California. The potential of this unit is exceptionally large given the increasing demand for the last mile transport of goods and services, which we expect to accelerate in the quarters and years to come we expect a remarkably busy demo period with this unit in the very near future as well before recent count.
But always customers often showed interest that expressed caution getting our limited balance sheet. We are now seeing this and we are now seeing these interested parties come back to the table and revisit the conversation there has never been a doubt about green power, there's never been a doubt that green power has built a great product at a competitive price point, but now that we have the capital to take full advantage.
We are positioned for success in closing we continue to make tremendous progress with our sales pipeline. We are building a foundation of multiple small to medium size orders. We also are establishing our presence with major Oems and other customers that could prove to be transformative.
Finally, we have added a seasoned sales force to several key areas, including the sales.
HM East and southwest territories with a proven track record in fleet sales of zero emission knowledge, we look to expand our brand awareness across the country. These territory managers will work hand in hand on managing sales with APC bus and creative bus sales within their respective regions. At this point I would like to pass this call over to Brendon Riley President of Green power modes.
Motor company to discuss Green Power's operational highlights.
Thank you Brian and thank you all right are here on the call today.
As excited as I am about the progress of sales team is making I'm equally excited about the substantial progress were making driving costs out of our simple.
Supply chain.
I can't overemphasize, how much of a priority and this has been for us.
On the back of our recently completed financing.
We've made incredible.
Progress.
In the last 75 days.
I learn very early on in my days at the Y D.
It's imperative to build compelling product at a compelling price independent of incentives.
Subsidies are great.
And we are critical to our access early on.
And of course, we'll continue to leverage them.
At every opportunity and moving into the future.
That being said it's critical.
But we stand on their own two feet.
And we are rapidly nearing the point.
That we can do that as a company for those who have been following Tesla and a follow Tesla since it's early days, we saw the exact same thing with some of their models.
The model three for example, initial sales were dependent.
On incentives.
While costs were driven by supply chain.
The end result was self sustaining enterprise delivering a compelling product at a compelling price and that's exactly where we're coming.
Here at Green power.
So the model three was originally dependent on a 7500 dollar.
Tax credit people were taking advantage of when that tax credit went away. The Tesla had developed their supply chain. So to such an extent that they were able to remove that.
That cost from the vehicle after that incentive went away.
The reality is we have a significant competitive advantage.
Outage regarding both price and performance.
Similar vehicles to Green power as are being offered by retrofit or is at about a 50% higher costs that don't match, our purpose built vehicles range, our payload or independently proven reliability.
They can't math, Matt they can't match our performance.
Or really any of the products performance.
Because they are confined to the limitations of the retrofit vehicle.
That they're using to actually retrofit the electric components into.
Our vehicle is a purpose built from scratch vehicle that has been years in the mail.
Okay.
Even with substantial resources.
This is a recognized consistently by both customers and Oems and recent demo tours and as a result, we are seeing considerable growth in our sales pipeline.
With that I'd like to turn this over to our operator for questions and answers.
Well.
Well now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question. That's been addressed and you would like to withdraw. Your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Our first question comes from Christopher Souther with B. Riley. Please go ahead.
Hey, guys. Thanks for taking my question here first one I wanted to ask about the Green commuter hundred unit follow on our where they expected to utilize the each 50.
Your program and then.
More broadly.
The program looks to open open back up curious are you in customer spread on approaching what looks like much less funding you get a sense that in California customers, making holding off until that program open back up before placing orders and now they're completely might come from.
Forward with or without vouchers, or if you could just kind of talk about that a good mix.
<unk>.
Hey, Brandon I Didnt I can take that this is the right shetterly Vice president of sales and marketing so the green commuter deal well leverage some vouchers. However, there are several other programs that green can leader as the able to take advantage.
In order to further increase their fleet size over time that the clean mobility program through the California Air Resource Board, which just closed last week will be a multiple rounds of funding.
Thats just one of the the the additional programs that green.
You will be able to leverage so there will be some matrix vouchers, but it will be a healthy blend of up multiple programs throughout the state.
Hi, Chris This is Len and this is Brendan speaking, yes, there there have been some customers that are waiting.
A trip and are basically in the queue ready to place their orders right away, we hope to services many of those as possible before a trip funds.
Limited funds run out.
But yes that is typically what happens with incentives that people do wait around for them to become available often to purchase vehicles.
Understood and on the.
Commercial vehicle side can you talk about how the customer testing processes are going well on that and maybe it and any initial feedback that you're getting from well fitters or other customers over there.
Okay great.
So I'll, let Brian.
Answer this after.
After my quick comment my comments again speaking with customers is that they never seen vehicles like ours before they've only seen retrofit vehicles with our capability and capacity.
So it's.
We're very optimistic we will see is or how many orders are placed in which one's place orders.
Others.
But the initial responses that I've seen with customers meeting with him personally with the vehicles has been incredibly positive and we are very optimistic that we're going to get some subsequent orders and Ryan you are in the throes of sales maybe you could put some color on this call.
Yeah.
Certainly thank you Brendan so one of the the statements that was made to us on one of myself and Brendans several trips to the Midwest was.
We understand that we're going to pay a premium for an electric vehicle.
What we don't understand and we can't justify is paying a premium for DTE electric vehicle.
A reduced carrying capacity.
That resonated a lot with Brendan in myself, it essentially validates where our position is that in the market. We bring a vehicle at a very competitive price point with the carrying capacity that allows for maximum flexibility in terms of how many passengers or how many will possess.
With wheelchair positions well how much cargo can be carried.
Our chassis.
That's one aspect of it so financially this pencils for some of the the much larger builders out there.
When you start talking to the engineering team, which you know they're not necessarily concerned with the dollars they are concerned.
And with houses vehicle going to integrate with our fleet and how are we going to be able to load. This up to capture the same success in that same market segments that we have been successful in so far.
When they start talking about being able to carry forward of 5000 pound range there.
Their ears perk up they've never seen anything like it and they ask where we were at a year and a half.
Well go.
Well that's good to hear and then just the last one before I pass it along.
Did the quarter with three these stars and too easy Star cabin chassis in the inventory as you look to build out the production over the next couple of months here or is that a good ratio to think about where you see.
Half the sales pipeline developing as well here.
Did you talk about just kind of the mix that you're you're seeing from an interest.
Well, Chris we don't give guidance right now, but currently were built.
Building 20 east hours a month.
And we have a run rate of fives.
The school buses per month.
And we anticipate that at the very minimum as our run rate. So that's where we are right now at production.
We currently have some low floor transit.
Products that are coming they're going to be delivered here very shortly.
And we don't have a run rate that we.
I talked about those but as far as easy stars in school buses, we anticipate at a minimum a standard run rate right now of 20 a month.
Plus five bcf per month.
[noise] and this is Mike see for you or Chris just to add to Brian's comments in terms of timing of those twin.
20 stores per month, we anticipate that those are going to begin delivering in two quarters time.
And for the five B school buses that run rate of five per month, we anticipate that's going to begin in mid 2021. So just to give you a sense of time.
Okay, well that's helpful, but just the mix between.
Transit versus cabin chassis, not something you can kind of give at this point, though of that 20 month. They are building out.
I think I think what what we do have within our supply chain is actually a lot of flexibility such that you know in terms of the E. B stars.
You know that there is the.
Flexibility to move between different categories, but no we have not provided that sort of granular detail and as you know overtime as you start to see announced.
Announcements in terms of deliveries.
At that time, we can certainly start to provide more guidance in terms of where we see that mix going.
Understood. Thanks, guys.
Our next question comes from Greg Lewis with B T. G. Please go ahead.
Yes, Thank you and good afternoon I guess my first question is around.
You know the Congress.
Patients are having clearly you guys are out.
Now trying to drive.
Drive incremental orders and the company you touched on each bit, but as I think about.
The customer mix you're looking at.
Realizing that everybody likes and incentive and everybody is interested in paying less if they can through a.
Instrument subsidy.
How much of how much of the customer base that you're looking at or are more or less sensitive to yeah.
The government subsidy I'd, they're looking at a move into more environmentally friendly vehicles, they're doing a total cost of ownership analysis and they simply.
I would want to do this regardless of subsidies any kind of color around that.
Yes. So this is this is Ryan speaking one of the one of our key team members Lisa Mcgee, who.
Who oversees and really puts out a lot of our data analytics has produced a Doug.
Leaving or so route and fleet evaluations for customers all across the country. Once we show these customers, what they're able to save as far as operational cost when it comes to charging and no transmission no oil changes.
They begin to see that this starts to pencil with or without subsidies.
That's having key members on the team were able to have that fleet knowledge and truly understand at a very granular level granular level level.
It really helps us start building a case for some of these major fleets are looking to transition to zero emissions, but just don't really understand.
And what the benefit is going to be for them.
Yeah, and Chris subs this is actually Chris Craig.
This is Brendan speaking.
Subsidies, we talk about subsidies being a trip and other things, but there's also federal funding, which is in a way a form of the subsidy.
Transit.
Is it properties here in the U.S. most of them that leverage federal funding, which is most of them to buy their buses.
They get typically 80% of their bus purchase price paid for.
So we see.
That market continually being driven.
[music].
The feds will pay for 80% of an electric bus or diesel bus.
And we're we're seeing that there is interest in that space you know without the.
Without the agent and other programs.
There is also additional programs sprouting out in other parts of the world including.
In Canada, which is a big market for us and we anticipate a lot of us Frazier alluded to we expect a lot of traction in that market, but.
I would say from my humble experience and personal experience anecdotally that.
I about half of the customers we talk.
Two.
Our.
Not.
Only going to buy because of the subsidy theres about a 50% customer base out there right now of customers that I have at least engaged with saying whether incentives come or not they're going to be buying any b because they see as Ryan.
Welcome to the savings in operations and some just feel it's their ethical and moral responsibility to the environment.
Not to drive polluting vehicles.
Okay, Great that was that was super helpful. And then just one more quick one for me.
Just as it seems like we're seeing.
Re acceleration in Cove it in potential Lockdowns.
At least in North America.
As we think about.
Hey, <unk>.
We're planning to ramp up to the 20 vehicles 20 stocks TV stars and the five Beast you know over the next.
I guess six months.
Just in thinking about.
Supply chain is there any issue is there any risk about that like if we start to see some locked down to shutdown in terms of your guys develop in terms of the company's ability to kind of hit those numbers I'd.
And any kind.
They have concerns around that.
Craig Thats another really good question. So we're not planning to ramp up we are at a rate of 20 units per.
Per month, right now production again, Theres a latency because you have to start production takes a while to build those things.
But were underway in production.
For.
That number of vehicles at that run rate and yesterday the risk with coal that we don't you know were not so we don't rose colored glasses on and we're not telling people don't believe you're you're lying eyes.
There is coded, possibly coming and a there's a risk to.
Some of our supply chain and all of our production capabilities.
This is not something we can really plan for right now we do have.
Mary I would say robust supply chain that does hedge us against any single place for.
Or any single location geographically that could be.
Okay.
He though impacted by coded.
And we do a very international a broad base of suppliers that we can pull from.
And even secondary and tertiary suppliers for the same product on the same type of product.
But at the end of the day, there is no way to prepare.
Really for a shutdown shutdown is a shutdown, but thanks for that.
That question, that's a very good question.
All right. Thank you very much for the time and everybody have a great day.
Our next question comes from Craig Irwin with Roth Capital Partners. Please go ahead.
Greg Your line might be muted are you able to hear us.
Okay. Thank you.
Good evening and thanks for taking my questions.
So the federal money out there is really the good news right now right and.
No.
That money is basically in a lockbox ready.
For many of these Peter customers to spend.
And.
The mechanics of that or what become pretty pretty important. So can you maybe talk us through the.
The process and procedures for individual customers to spend there.
We need that they are awarded under.
No no, but you must facilities and other major ft eight programs and you know how this can potentially end up being purchases for you what the timeline ends up being and you know how this impacts calling the one business with these these cuts.
Customers.
Well, Craig I think.
Question for Ray.
Yeah, absolutely. So the the this year Oh I'll start with the low no and on all dissect this down a bit.
Hello, No program was announced a pretty much right.
Before everything.
Everything shut down.
Weve you know Weve had some indications that there you know that there are there would be some engagement with some transit properties.
And then of course everything of course everything happened. So typically a process like that takes a few months the first question.
That has to be addressed is did the transit property right Green power Motor company into the grant and if they did not that we'll have to go through an RFP process, sometimes transportation authority boards right. So a trend that property board may not allow to single source a product as they want to kick.
Keep the competitive landscape.
Running at an optimal level so.
In our case, we have not made any announcements regarding any low no.
Success and are all a a I'll leave it at that we will continue to support any transit properties to have received.
Funds, who may be interested in.
In our product.
Okay excellent and then.
I guess you know several tech companies have even.
Postponed back in the office work until June of next year. Some even later.
But.
The good news I guess is your.
Your school bus product is.
Ideally situated or what's probably a nice uptick in in longer term spending.
So you know given that the kids show much lower negative response to cobot and the importance of actually having children in classroom one would think that these buses.
See some pretty pretty nice demand over the next couple of years.
Can you maybe talk about the breadth of interactions you're having.
Either through your sales partners or directly with individual school districts.
How much of the overall bye.
In.
Robustness in the next year do you expect to be.
Electric, particularly in California and is there anything specific about your product that you think makes it more competitive.
Some of these other offerings right now.
That might have us be optimistic on on the sales outlook.
Yes.
Yes, absolutely.
And like sorry, Craig.
Apologize if I interrupted the last part of your question there.
But I'll start with that.
Sort of a context or or overview.
And this is somewhat ties back to the theme on some of the earlier questions on our call.
Is that.
One of the things that we found through the pandemic is that parents.
Parents are.
We are taking on a much stronger role as advocates for that and then send their household and in particular the children.
So, whereas a year or two years ago.
Oh, there is a a.
A much lower level of awareness in terms of harmful effects on children with diesel admitting school buses, whether its diesel or gasoline powered school buses.
These parents over the past six to nine months have a much better appreciation.
Of how to harmful effects on the development of their children's lungs, and they're starting to speak out and they're starting to to push for change and one of the drivers of that changes that there are funds sprinkled across the U.S. and various states with the VW.
You too.
Mitigation trust funds, which have been very slow to be released in the market, but the one area that we've seen a constant on is that most states have an approach or a plan to disperse funds around zero mission school buses.
So we think there will be a combination.
Sure enough, what Brian was referring to earlier in terms of.
One of the Biden stated objectives on his website is the is to convert the school buses to zero emissions combined with funding that can be accessed are available and that between the two.
We see that as drivers for the uptick in demand that we are starting to build for now so it's important to note that.
When we undertook this going after a lot of discussions internally in terms of the timing do we do we wait do we wait until everybody is back in their classrooms.
Okay, and then start building per do we build now based on the demand that Ryan is seeing in particular with these.
The these extensive onsite ride and drive a demonstration cities done in so many different jurisdictions.
With that as a framework is we're not building.
For this fall or winter that given the timeline that it takes to build the product.
We are building for deliveries.
Starting into the middle of next year before the next school.
School season starts next September.
Thats sort of our strategy.
Gee, if you will and then ill, let ryan sort of speak to.
Let's turn to the the.
Engagement at the street level in terms of his ride and drives studies conducted.
Yes, absolutely. Thank you Frazier.
So Craig to talk a little bit about the differences our product and how.
Aldi engagement has been with the market.
Earlier it will later the later part of September we actually did 10 demonstrations.
Up to three per day typically it was one in the morning and one of the afternoon typically within the same region and what we're seeing is.
Lord members and superintendents show up to these and they want to know how our product compares to the market.
The Beast is truly unlike anything else, it's got about a 10% carrying capacity in terms of pupil capacity higher it's.
Got a 194.5 gigawatt hour battery pack, which is about 20%.
Over everybody else is standard pass through storage air disc brakes Air rights suspension I can go on and on and on when I tell the trend that profit I'm sorry, the school districts that Hey, we're not going to sell you a Cadillac and then bring you a Honda we're going to do what we are showing you. What we're representing you is what we're going.
To deliver that.
It really resonates you'd seen some other companies come in and try to capitalize on grant dollars by proposing a bare bones bus and winning their category and by the time The school district realizes that they need to get this vehicle up to their standards as far as air conditioning and some of the other amenities at school district.
Districts in California are used to having and they compare that spec to the green power Motor company be spec Theres, absolutely zero question.
We've seen significant response from some of our recent some of our recent demonstrations and we look forward to capitalizing on those opportunities several.
For the school district that we've worked with that we did do a press release.
On on the ride and drives so several of the districts that we've worked with have already been awarded money and now they are just in the decision making process is the beast going to stack up to the lion product or the bluebird product and I am very confident.
And what we're bringing to the table as we we look forward to some favorable responses here in the in the near term.
Great. Thanks, again for taking my questions.
Okay.
Our next question comes from Tate Sullivan with Maxim Group. Please.
Yes go ahead.
Hi, Thank you and following up that last comment it sounds like very busy with demos to school districts like is it a scale of magnitude greater in terms of the frequency of demos excuse to central school bus customers to delivery customers versus shuttle customers or or is it about even across those three markets.
You just comment on that please.
Yeah, but the beauty of what we bring to the table from a market perspective, you have something for you.
Got something for everybody at the school bus market slowed down we've got to delivery vehicle the delivery vehicle sales down we've got passenger transportation.
Theres something essentially for.
So everybody in the fluidity of the easy Star chassis is really what gives us that flexibility in terms of addressing different markets. What we're doing right. Now is we're selling seats are getting in front of the right people were getting front of the top levels of the organization organizations that were working.
Through the contacts of Brendan Riley.
I myself and some of the other team members on the team and we're showing them what we've got it's not vaporware. It's a it's a it's there in some cases. These vehicles have been left on property as I said in my my opening comments and we're getting extraordinarily positive FY.
Feedback so we look to exploit each market as a and exploit it may not be the right word, but we look to explore each.
Each each market place and we will go where the business is that but in any case, we've got something to show.
Whether its school districts the livery paratransit my.
Our transit a regular transit properties you name it we we've got something.
Hi, and thank you and sort of tail and some of the other questions on the call as it is right now in this current environment is the push back from customers that they want to see it specs from other companies are that they're waiting for funding or can you just generalize.
Like some of the pushback, you're getting from customers to finalize an order. Please.
If possible some of some of the some of the things that Weve I mean really it's just a matter of timing right. You know the converters a we're doing demos you know a year and a half ago or two years ago, and that's kind of what I elaborated a little bit on.
My responses earlier in the call I. Some you know some Oems have a dip their toe in the water with people who are converting converting Ford products right and they convert those board products. They put their body on it and they realize Oh no I've only got 1000 pounds, the carrying capacity I get.
It only fit eight people and as bus, whereas on the Green power, but there is no there, they're not giving up any passenger carrying capacity capacity at all and.
So it's more of a matter of timing and then you know of course, you'll hear Oh, well covered just really set us back a little bit.
But the uptick in demonstration activity and the uptick for a request for quotes and the uptick in questions that you know start showing some of these deals together.
Have exponentially grown over the last couple of months. Despite despite the uptick in coated we were at a San Francisco.
Or a silicon Valley campus yesterday, and their director of transportation that it was the first time he'd been on campus since March and that's Super encouraging the guy came to see our vehicle and tested and validated and do really needed to do and they're they're they're moving forward. So they're planning on opening back.
Of course, all of the personal protection equipment, and you know you be light a treatment that would run through the H. HVAC system.
Thats all going to be a additional equipment that we havent had to install in the past, but we can do now and we've taken our precautions, we vetted out our customers they know what they're looking for and.
And it's time to get back to work.
Good. Thank you for all that context, I will address the night.
This concludes our question and answer session I'd like to turn the conference back over to Frazer Atkinson CEO for any closing remarks.
Thank you everyone for.
Listening to our second quarter earnings call as you hopefully can take away we are we've.
Really undertaken a massive step forward in terms of taking advantage of our production capacity that we worked on building up over the past a year to.
Two years.
And have increased our sales activity, despite the pandemic and despite the challenges with having to deal with the pandemic. So we're certainly very excited in terms of what we're going to accomplish.
Between now and our next call.
In the meantime, I would encourage you to given that theres.
A number of manufacturers and startups and so on that are populating our.
Our overall.
System is I would encourage you to have a look at.
Short video that we.
Hosted on <unk> under the Investor Center, Tony about a minute and a half long and if you haven't seen it before it highlights and features pretty much most if not all of our different products or product categories and really gives you a sense of our vehicles actually operating in the environment.
Permanent that they're intended to so.
I'd encourage you to have a look at that and.
Once again, thanks for your time, if you have any follow up questions feel free to reach out to any team member and we look forward to talking to you in the near future.
The conference has now.
We concluded. Thank you for attending today's presentation you may now disconnect.
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