Q4 2020 Blink Charging Co Earnings Call
Hey, everyone and welcome.
And as well.
Fourth quarter and year end conference call.
At this time all participants are in a listen only mode.
And you will have the opportunity to ask questions.
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Maybe the and recorded it is now my pleasure to turn today's program over to Don.
Of I M S Investor Relations.
Good afternoon, everyone and welcome to Blink charging fourth quarter and year end 2020 investor call on the call today, we have Michael <unk> founder and CEO, Brent of Jones, President and Michael Rama Chief Financial Officer, I'd like to take a moment to read the Safe Harbor statement. This conference call contains forward looking statements as defined within section.
27, a of the Securities Act of 1933 as amended and section 21 E of Securities Exchange Act of 1934 as amended these forward looking statements and terms such as anticipate expect intend may will should or other comparable terms involve risks and uncertainties because they relate to events independent.
Circumstances that will occur and the future. Those statements include statements regarding the intent belief the current expectations of blank and members of its management as well as the assumption of which such statements are based and protect prospective investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the blanks periodic.
<unk> filed with the SEC and the actual results may differ materially from those contemplated by such forward looking statements, except as required by federal Securities Law, Blink undertakes no obligation to update or revise forward looking statements to reflect changed conditions. Okay. I'll now turn the call over to Michael <unk>, Chief Executive Officer charging and go ahead Mike.
Yeah.
Good afternoon, everyone. Thank you for joining us.
We closed out 2020 with the very strong fourth quarter revenue grew over 250% and we made tremendous progress expanding our footprint.
As we move through 2020, one we remain focused on executing our aggressive rollout of charges to a wide variety of partners and locations, including health care networks hotels multifamily residences and municipalities.
As a pioneer and EV charging and we've watched what was the gradual transition to EV.
And the massive traction in 2020. The EV industry is experiencing tremendous momentum fueled by a combination of environmental concerns coupled with the legislative initiatives on both of the local and federal levels that of more and more drivers, making the switch the DS.
And it follows that more ease of use that are on the road the more demand and there will be for fast and accessible and of the LIBOR charging stations. The power of these vehicles with that and mind, we've been pursuing new exclusive partnerships and locations for the placement of our charging units.
While each of these compromise a relatively small portion of vehicles today.
Represent the rapidly growing segment of the transportation sector, and we're focused on positioning of our Chargers and density traffic areas to capitalize on what we believe will be a substantial shifts the evs over the coming years.
It is important to note that many of our own and operate models exclusive agreements allow us to deploy chargers today, and the edge Chargers to contracted locations as necessary to meet demand and.
That's throughout the duration of our long term exclusive agreements.
We are aggressively deploying our chargers using a variety of the business models, but emphasizing our own and operate model. The Blink one model is a key competitive advantage for us because with this model, we realize and economic benefit each time. The vehicle is a charge of one of our own charges.
As EV adoption continues to accelerate and charging and utilization increases we expect our owned and operated units will represent a growing revenue stream for many years to come.
We believe the opportunity in front of US is enormous with few company is better positioned than blink to benefit from the anticipated growth and demand for EV infrastructure and.
As we have pointed out previously Bloomberg any of the electric vehicle outlook 2020, which looks at the global EV market noted the passenger EV sales increased from 450000, and 2015 to $2 1.002 million 19.
And are expected to reach over 15 million and 2040 Bloom.
Bloomberg and he has also expects net more than 50 per cent of the new car sales will be eased by 2040 50 per cent of the new car sales and projects and projects that we need many many more charging stations and that your top of over 290 million by 2040 with the value of.
<unk> $500 billion worldwide.
And the EV Revolution is underway and.
And Blink is strongly positioned for significant growth as we to continue to play a leadership role and laying the groundwork for this transition.
To support our growth and January 2021 we completed a successful equity raise of 221 and a half million dollars, it's significantly strengthened our balance sheet.
Now with the stronger capital structure, we're better positioned to expand the blink on charging at the structure improve internal systems and improve operations increased our technology and to prepare for anticipated exponential growth. It also allows us to secure new partnerships.
And new locations and the seek amazing strategic acquisition opportunities.
We have been adding new positions and people to improve our operational strength across the organization with additions to our sales staff I T customer service departments and bottom line.
The greatest achievement of brink has made over the last year is not our stock price is not the money that we've raised but it's the team that we've built every one of the like all our employees of this company and it has allowed us to grow this business and of all completely dedicated.
And just after the fourth close of the close of the fourth quarter, and we announced the purchase of a 10000 square foot office condominium and Miami and that's the how much of our corporate headquarters and to support our current and future growth. Additionally, following the close of the quarter, we opened a new Phoenix location, which has already begun making meaningful contributions to our operations.
This is an extremely exciting time for our industry and specifically for brake Blink, we begun 2021 and a solid position and we plan to capitalize on the many opportunities we're seeing to provide the accessible fast and reliable easy and infrastructure that meets traveling with evs, but attractive and valuable.
Now I will turn the call over to Michael Rama, our CFO to run through some of the specific financial results of the quarter following that and Brendan Jones, our president will provide details around some of our recent progress before we go to the Q&A.
And Michael.
Thank you Michael and good afternoon, everyone with our fourth quarter performance, we delivered a strong close to the challenging here.
As Michael noted despite the broad economic uncertainty that the COVID-19 pandemic created we remain intent on driving growth and progress and our financial results demonstrated that focus.
Our solid fourth quarter results continued the momentum of our second and third quarters as represented by total revenue growth of 250% to $2 $5 million and.
This growth was driven by increased product sales as well as increased network fees product revenues grew more than a thousand per cent and the fourth quarter related to robust demand for our commercial and residential Chargers and network fees grew 67% related to the increase in charges within our network.
The growth in these areas of our business was offset slightly by a decrease in revenues from charging services for the quarter, primarily related to less EV travel because of the pandemic. Additionally, fourth quarter 2020 revenues were favorably impacted by the timing of certain orders that pushed from third quarter.
2020 to fourth quarter, 2020.
Fourth quarter net loss was $7 $9 million of 24 cents per share compared to net loss of $2 $9 million or <unk> 11 per share for the fourth quarter of 2019.
For the fourth quarter net loss included increases in compensation and operating expenses related to the Onboarding of new employees, primarily in our sales of IP and customer service areas.
Specifically operating expenses for the.
The quarter increased $8 $3 million from $2 $9 million, primarily driven by increased operational expenses and this includes significant scaling of our infrastructure and operations as we continue to scale the business the prepare for anticipated demand for our products and services as E B use gross.
Looking at full year, 'twenty, and 'twenty revenues increased 121% of $6 $2 million compared to $2 $8 million for the full year of 2019 per.
Product sales grew more than fourfold to $4 $4 million for the full year and network fees improved 14 per cent.
Charging service fees decreased 43 per cent for the full year 2020 related to the stay at home orders that kept the drivers largely off the road for a majority of the year as the COVID-19 taxation vaccination efforts continue and the economy reopens, we expect to see usage increase as drivers returned to more of.
Regularly travel behaviors.
Over the medium to longer term, we expect to see growth and the charging service revenue from our owned and operated stations as more electric vehicles take to the road as we continue our aggressive expansion of the Blink Chargers of now.
Network of Chargers.
Net loss for the $17 $8 million from 59 per share compared to a net loss of $9 $7 million or <unk> 37 per share for the full year 2019.
Net loss for the full year 2020 include increases as previously described.
Now I'll provide charging station stats as of December 31, 2020 as of December 31st 2020, we deployed and 16616 charging stations of which 7062, where are the plaintiff network, which consisted of 4340 level too publicly accessible charging.
Commercial charging and that's 1404 level, two private commercial and charging units, what her and 'twenty DC fast charging EV publicly accessible Chargers 14 D C fast.
Charging EV private Chargers, and 1176 residential level to Blink EV charging units the remaining our non network on other networks or international sales or deployments, which consists of 228 level two commercial charging units 8000 and 773.
Residential level to EV charging station.
521 sold internationally and 33 day quite internationally.
And now a few comments on our cash and liquidity at December 31, 2020 cash and marketable.
Cash and marketable securities were $22 3 million compared to $7 1 million at December 31, 2019.
Following the close of 2020, we completed the first of all equity raised resulting in net proceeds of 220.
$1 $5 million now I'll send it to Brendan for some additional remarks.
Thanks, Michael.
And I'm sure. We can all agree 2020 was quite the ride from an economic and public health standpoint, we are proud of our company's ability to stay focused and execute.
An aggressive rollout of EV charging infrastructure, both domestically and internationally. Despite a mirrored of challenges throughout the year, including shut down and travel bans and the advent of virtual only sales calls and pitches.
We will review some highlights which will illustrate the brand recognition and momentum we're experiencing.
We're seeing tremendous interest and many opportunities and the marketplace with the private partners and as part of grant structures being used by local governments at both the state city level for the establishment of convenient and accessible EV charging to support the increasing number of the B driver.
On the road.
Likewise, we're seeing heightened interest from international and partners also working to develop the infrastructure necessary to encourage the transition to evs.
We had many notable developments during the fourth quarter and have made substantial progress to date. This year. So I'll highlight a few that characterize our growth strategies for the expansion of our charging presence.
Establishing new locations is the linchpin of our strategy and we are literally adding the new locations almost every week among our recently announced additions we acquired Yugo stations incorporated and its portfolio of 44, DC fast charging locations.
And as well as multiple grants Hugo was awarded for the development of up to 45 additional charging stations. We also signed agreements with the J S. C management of large Burger King franchisee for the deployment of Blink, one charging station and key locations.
Across the northeast United States now.
And now internationally, we continue to have success deploying our chargers through partnerships and joint ventures, Our recently announced international opportunities include the sale of 45 dual port Blink charging stations for deployment cross, Greece by Blink charging Hello.
And our joint venture entity with units Energy group and a follow on order from intra energy from an additional 150 fast charging stations to be deployed and the Dominican Republic. Additionally, we received an initial order from inter energy for 15 and charging stations.
And it expands the ever go network in Panama.
Switching gears health care facilities, which operate 24 seven are typically highly trafficked by a mix of medical professionals patients and visitors are natural locations for our charging stations and an important element of our focused growth strategy.
We announced agreements with several health care networks during the fourth quarter, including the Lehigh Valley Health network for Blink owned charging stations across their extensive portfolio of health care facilities in Pennsylvania the.
Further deployment of Blink go and charging stations at the St. Lukes University Health care facilities also in Pennsylvania.
And then exclusive contract to provide Blink IQ200 units at several blessing health system locations, and Quincy, Illinois and <unk>.
Neat resale partners are also and important extension of our sales efforts and we expanded our reseller portfolio.
Include several in this quarter the line electric company, a leading manufacturer of zero emission buses and trucks will now offer the Blink IQ200, and charging station to school systems and fleets, they work with and Ballantyne strong well offer Blink full line.
Of charging stations to the extensive customer base of cinema operators theme parks and other entertainment and leisure related locations and finally, we are seeing continued success when we compete for grants and from participation and the subs and dyes rollout of the.
The infrastructure by States and cities. Some recent highlights include our award after a competitive bidding process to provide EV charging infrastructure for the city of San Antonio and E. V. S Day program. The award initially calls for us to deploy up to 100.
And 40, Blink owned charging stations throughout the city.
We also on the announced two agreement that will expand our presence in the northeast region of the U S. We have our first deployment and new Hampshire, and the resort town of Waterville Valley, where our Blink owned units are the only charters within 30 miles and we announced a collaboration with the <unk>.
State of Vermont to deploy 22 D C fast Chargers and 22 L. Two chargers at 11 sites across the state and the new next two years at five of these locations, we will deploy high speed charging of 175 kilowatts for DC fast Chargers and he lists.
To say, we have a very full and growing docket of deployment, we continue to execute against our goals of expanding the EV charging infrastructure to support and promote the increasing adoption of Evs, we are super energized by the opportunities recently afforded to us by the recent cash.
<unk> raised to support our rollout of EV charging infrastructure. We are proud of the progress of our sales team has made and energized about our potential as we move through 2020, one and with that we'll now open up call for questions. Thank you very much.
At this time, if you would like to ask.
The question.
And the one on your Touchtone phone.
Yeah.
And so from the queue.
Hi, Chris.
Once again.
And one assets.
Okay.
So a lot of questions.
Okay.
We will take our first question from.
Yeah.
Please go ahead.
Okay.
Thank you good afternoon, everyone.
You mentioned and COVID-19, obviously had the big impact on the business and 2020.
Maybe you know and whether or not it was it could have been some supply chain issues for some for some other folks and the sector or is it simply less deployment and gives them much driving unless.
Charging revenue as you mentioned.
But now the you know kind of vaccinations are accelerating.
Accelerating here could you just give us a sense of what type of visibility you have into orders of our deployments for.
For 2021, and what do you think this could do to both the top line revenue and also our capex requirements.
I'll jump and part of that this is Michael Rama.
Nice talking to you again, so we're expanding there.
One.
And we're expecting out of Q1 'twenty.
The 21 revenues to be strong compared to.
Q1, 2020.
We're on track to of a very good 2021, we're seeing a lot of orders come in and we're seeing activity from a lot of the different property owners and partners.
And so we're expecting a strong 2020 one.
Okay and this is Michael <unk>.
I'll add my dad.
There's been obviously I don't think the across the board.
And even as we're seeing a lot more of course hit and the bucket now than ever before and from mainstream and.
And the factors like Volkswagen and especially in a very big way.
Obviously, the more cars on the road and you know today, we have low single digit.
EV sales as a percentage of total group sales and it has.
That increases that'll directly we believe impact our of revenues and the charging stations that we sold the others as well as the own and operate.
In addition of lot of people now or business owners property owners and work.
Cognizant of what's going on with Tvs, and they're taking the initiatives, which they haven't been in the past so that should also and you know of.
Getting to the deployment numbers and the very big way.
Got it. Thanks. Thanks, guys. That's helpful. And then I guess just as a follow up cause maybe just talk a little bit about the margin profile as we progressed throughout 'twenty, one and again I know 2020, maybe a little bit of a kind of funky just given COVID-19, but particularly on charging revenue or is there anything you can say on on how the margin on that.
Line item and an opportunity a progressive throughout 'twenty, one and so should we expect it to to improve the utilization kind of increases and just curious about how that trends.
We've been working on getting our costs down and our average cost of electricity. Today is now of about 12 cents per kilowatt hour.
And so so we're working on opportunities of being able to bring that cost down.
The average sale price is a little bit north of 39 cents and.
So what we would like to do is be able to save on the electricity and be able.
It's a really dedicated green energy as possible and then bring down the cost to our customers accordingly.
But there are very nice margins and our business both on the sale of the fuel and in addition, the there was very nice margin on the hardware itself.
As well as the network and services and processing fees and so on.
Thanks, Michael and then just one last one.
A lot of G&A you guys, obviously mentioned getting it getting the the staff of bulked up to support the growth initiative. The head I guess just curious of.
Should expect further increases in the DNA on more hiring or do you think is the kind of all staff now for the opportunity ahead and the near term.
And we see a lot of growth ahead of us.
And you know, we're we're roughly about 100 bodies today.
And this business is growing at an exponential rate I think everyone's takeaway from here should be very clear women and the discrete today, where there's roughly 300000 of show viable charging stations that are out and the field.
From estimates, we're looking at anywhere between 12 to 14 million, maybe higher on by 2030 and the U S alone.
And that's going to take steps to build it's all about having the right team.
Being able to really get into all of those different index.
And use of the of the real estate space and knowing what the owners.
Owners operators and managers and so on and.
And be able to really service them and then.
Take care of any of the hardware and grow our hardware base and it's gonna take money to invest in our team and so we're expecting that to increase a little bit.
Great. Thank you so much guys.
And welcome.
We'll take our next question from Craig Irwin with Roth Capital. Your line is open.
Good evening, and and first I should say congratulations on the strong revenue and the quarter.
Thank you.
Thank you.
Yeah.
It seems you know from Europe from your disclosures around the international deployments that you guys are starting to get some some nice early traction there can.
Can you maybe give us a little bit more color on where these units are being deployed where where are you seeing the greatest success.
And would you expect this to be a material contribution over the course of 2021.
And any color you can give us on how we should think about the relative contribution.
Okay.
Europe is the tremendous market the international market is huge as well on the of certain areas of the world, where there is a lot and more utilization.
And then there is and the U S today and our.
All of our role and responsibility is to deploy of hardware and areas, where we will get the best utilization of their own and operate model and and our hardware sales model.
And it's a rule to go out there and show as much hardwoods weekend, and we have and amazing piece of equipment for the for the European market.
And as we did for the U S market and having our level two charging station Max out capacity of the standard.
Did the same for our European and hardware, which we now have on a per port basis.
Roughly 44 kilowatts of output.
It's a very fast level, two small footprint charging station and again and we believe that'll be very impactful, it's very very economically price.
So again, we believe as a company with global aspirations.
And all of these expanding where we are today and Israel and in Greece.
And in the Dominican Republic, and in Panama, and and other areas.
And we need to go where there you know people want to buy of hardware and are happy with the hardware and we need to go into areas, where we own and operate where there's.
The massive utilization and that's.
As of today, and that's not necessarily in the future.
I believe the and this.
This year, we of some very interesting.
The interesting moves that would make the and the European market, especially with the new hardware and.
And I believe the and everyone would be excited about what we do and outside of the U S and the coming years.
Excellent excellent. So then a follow on question and there is obviously you know this is a greenfield opportunity for you to have to invest can you maybe talk about the the relative contribution to the increase and not and SG&A and salaries and comp and you know it.
And this really primarily staffing up for Europe or are you staffing up for other opportunities in the U S and internationally also at the same time.
And it is just the of wholesale growth of our business across the board.
So those are some of those resources focused on our expansion and in Europe, Yes, they are and as well as in the middle East and in South Latin American the Caribbean, Yes. So we do have some of our staff the them that's focused on that and as we grow more so we will do but we're.
We're an American company and.
And we still have a lot to do here and we're looking forward to introducing our next generation of DC fast Chargers and do them for the level two and the D. C market, what we did at the level two with a blink of I Q2 hundred.
So we are focused on the U S space and.
And we're here and we have amazing relationships, but there's there are tremendous opportunities globally and.
And Blink is focused on interim nationalizing our network.
Having.
And the ability of of the multi lingual multi currency and.
And we have some amazing things that we're gonna be a launching in the in the near future and then.
And once that's in and full order of whether were operating the unit and.
And from Miami, that's in mean ore and Oregon.
And theres, not really different than operating and managing the unit that's in Paris.
Paris, or London, or and hauling some of them. So.
On the network as has the ability of of managing the.
Charging stations globally, and that's where we're gonna be and very short order and once that happens and we're going to really be able to expand and in any area, where even stroke EV infrastructure is needed and where we have an interest and customer that wants to work with Blake will have the hardware solution for each area and have the appropriate solution because again the hardware is different based upon the grids that the operator.
And having the back end processing systems payment systems mobile applications.
And we're literally the.
<unk> seen portal is used globally February the charging station and no matter, where you are.
And that allows us to extend them wherever we see activity.
Great.
So Michael one of one of your most exciting wins this past couple of months with with the San Antonio and City Council, there held and open RFP anywhere you are the winner and.
And the competition can you maybe talk about you know what they found a most interesting the most compelling about your product and whether or not this translates to other open RFP processes out there and your competitiveness and.
Given given the it's just been a pretty thorough process.
Yes, it was actually a very very thorough process and and again, we came out of the head and it's been we've been really been doing pretty well at these open the competition is as of late.
And it's really about our offerings of our services and I would say of the customer so that was really and being there for these municipalities being there for our customers, providing and amazing service and one of the main advantages that we have over a lot of our competitors as we have and obsolescence proof from.
A piece of equipment and a level two charging stations.
Almost all of our competitors.
The one third one of has at most of the <unk>.
Output that we have and our IQ2 hundreds when you have sustainability groups and you have municipalities and looked at this long term and you can easily conveyed the message Hey, if you don't buy something that has really answered it out but.
And youre buying obsolescence, why because more and more cars are coming out with that capacity and.
Do you are you going to go to a charge of that has one third or one of the half the capacity of just down the block and visit.
And there's a charge of that goes and you know faster that works according to schedule.
And then the charges for electricity at a fairly.
Obviously, the new go to something that's a little bit quicker. That's obviously, the Holy Grail, and there's a lot of charging and obviously theres level, two and Theres D C and in different locations are appropriate for different hardware and whats available you know power if theres locations.
And you know, but ultimately our hardware of really one of the day, it's just the better piece of equipment.
The big difference between us and of our competitors when it comes to the building hardware. They can build at the cell into a third party there is no other.
The company that designs its own equipment, and hazard and manufactured and granted by zone and does what we do.
And there's also and the owned and operated stations.
And we learned a lot about.
Where things of weak the chain breached and its weakest link right. So when you own and operate the charging stations you're involved in the site acquisition side of evaluation process and installation maintaining those units operating them and then dealing with the the.
And the driver and most of the other and none of the other manufacturers really are involved and that process. So there's a lot of insight and experience that we've been doing that for many years before we developed the IQ200.
And and we learned a lot of things we learned of hey, let's try to figure out the way to get the unit in the ground as fast as possible because we pay the electricians and that benefits of anyone who buys our hardware how do you figure out the way to maintain these units better how do we make sure they last longer so that the.
And that again is an owner and operator, we want them to be in the field as long as possible. So I think I think all of those factors.
And then also really just taking care of the customer, especially the weekend and showing them moving over then the that you know we're coming up here and can work with you and.
And in addition, we have multiple deployment methodologies, which really allow them.
Municipalities to work with us because of the different relationships they have a different locations and so there's multiple reasons, but I think one and one of the Linchpins was definitely of our hard work.
Great that that definitely makes sense. Thank you. So last question if I may I'm line of electric that that that's a pretty nice customer wins I should say congratulations for that and they have a and exciting trajectory over the next number of years.
And there they're doing some amazing fleets the.
And the one contract they have but I I guess many people find incredibly interesting is the $1 billion purchase order from the from Amazon.
Can you talk about you know where you might expect to participate with line and do you expect the broad participation over there or would it be on the project by project basis. Yeah can we translate these other purchases purchase orders that they have into a potential purchase orders for blink.
And assuming everything goes well over the next over the next year or two.
Well from.
I think when you look at what we provide to them and.
And what our competitors can provide to them I believe we have a much much more viable solution and that's why they decided to work with US now the typically sell.
All of the bus and the charger and as a combination.
And you know I, usually and posted on Facebook and I think it was on Instagram.
And our whole depot of buses with Blink Chargers and each bus pausing and after they do the runs at the end of the day and they plug and they're ready to go.
One thing about our charging stations and I said before it and yes, we are the fastest and.
And you can't get any faster from level two charging stations after that and you've got the DC fast Chargers.
The other thing the battery charging stations as the also backwards.
Backwards compatible.
So if you only have.
You know the 12 amps or 20 amps or whatever it may be you can connect our charge of the lowered the the charging stations and through software and then as the.
And you know more capacity is available and at the location of which again some of the stuff. The Baidu was talking about the over the last couple of days.
Trillion dollar package part of that is updating our grid. So when the Greens get update and which is going to happen and there's more probable of available power available.
And instead of having to go and take another charger and buy it and then through these and the garbage because they were slower with the own charging stations and all you have to do the student mobile App to software upgrade of when you have the power available and it's something where we're future proofing deployments. So we believe that as things progress.
And you know we're seeing the fruits of all of our labor today and some of these deployments. We believe that will be one of the largest the vendors of the hardware for those buses because we have of superior piece of equipment the charge those buses.
Thank you congratulations on the progress and.
I appreciate you taking my questions. Thank you.
Yeah.
Yeah.
And we'll take our final question.
From the Samir.
But the.
Please go ahead.
Thanks, Thanks for taking my questions.
The first question is about the you have mentioned it in your press release, but I didn't hear it and the commentary about a year and involvement with the carbon offset credit program with the connected to the Green Bank can you.
Help us understand how that program works for you and are you planning.
And to do similar programs with other parties.
Michael do you want to go into the to the just maybe a little bit on the on the program and then I'll go into you know where things are going with the granting of yeah. We we generate.
All of low carbon fuel credits from the state of California, Oregon, and we are you know we generate them on the kilowatt basis every quarter are.
We monetize them a continuous basis and we pair.
Per them up actually with the <unk>.
12 of the renewable credits as well so the weight of bundle them and some of those big package. So so yeah, we look at them and that does as the utilization and and usage increases we'll see the those credits continuously coming in.
Yeah.
In addition, I'm again, I'm and I'm going to talk about where things are going with the by the administration.
And they're talking about of a trillion dollars and that they're spending on.
And different areas of the infrastructure and transportation.
And and Oh, we're going to see a tremendous amount of spending.
I'm on the EV infrastructure and the body and government. They have said clearly that they want us to the 500000 charging stations and build throughout the country and it's very important to understand when they talk charging stations, we talked of charging ports and be charging station, we put in the ground and that's of charging the court and the reason why we do that is because when we put more of.
And charging station and the location that we own and operate.
The entire location as ours as part of the contract not when we sell the hardware, but we own and operate we don't just starting the agreement to put more and charging station of infection. The agreement for the entire location.
But when the government's referring to of charging station.
Think of a gas station with many gas pumps.
That's what the referred to as a charging station so when you're looking at the number of 500000, you could easily multiply that by easily five or six or maybe even more charging stations, which are the pumps. The plugs that you're actually plug and so the administration is talking about you.
You talked almost two and a half 3 million charging ports and that.
That's a substantial amount and and we believe that.
With the grants that are given out and if they were given out as they have and the past and we believe there's nothing of any much of a change.
And we'll be able to receive a substantial amount of both funding and.
Typically those those programs are 80% and.
Funding you you pay for the deployment.
You prove the disappointment was done you present and your bills you wait some time and you get roughly 80 cents on the dollar of reimbursed that's how it was done in the past so the incentivize people to the charging stations out there you know how and you have to know what you're doing you have to have the hardware the locations and so on but theres massive subsidies there will be billions.
As of dollars tens of billions of dollars, maybe even 100 billion of more that's going to be earmarked towards EV infrastructure, there's a handful of companies and that doesn't really have the experience and.
To be able to go out there and deploy it and we believe blink will be able to be of major beneficiary of a lot of these graduate rebates from the administration.
Understood Yeah, thanks for the color and yeah, I mean I agree with the.
With the tremendous opportunity you have in front of you.
Just stepping back and looking at you and near term a bunch of entities, especially as it relates to Panama and Dominican Republic of these sales and it is no longer a blink on the system. So when you look at South America.
Or how does that work are used and owning part of the units that are going to Panama and the government.
And of the public.
It depends on where we are operating in the South Latin America of certain areas of with your own and operate certain areas. We sell very similar models to what we have.
And our relationship with inter energy and through energy buys of the hardware from us.
Understood and.
And then just one last one.
And I think the both of the previous analyst asked me about the SG&A, but now that you have over 200.
$90 million and the bank, how do you see that utilize the debt what are the.
The areas that you would like the focus on.
And more than the others.
And from a perspective of.
We're going to focus of the capital.
The capital going to the focus is it going to be most of the expansion and the U S is it Europe is going to be focus the.
How do you look at the spending this money.
And as you can see historically, we've been the very acquisitive company and we bought a bunch of companies and the best.
Blink consist of of roughly about nine acquisitions now.
And and we plan on growing the business both the.
Domestically as well as globally through acquisitions and.
In addition, wherever we buy we like the help grow the business. So we believe and organic growth and our current business and in the areas. We currently operate and as well as in the areas that were booked from the expanding and so.
We're going to focus our capital and in ways that will be best suited to our shareholders.
And wherever there is activity and we need to focus on.
All of our resources on areas, where we can have the media utilization of them and areas, where there may be a bit more utilization and then there is here and I'm again, but you know our focus is to grow out of network and grow our business and no matter, where it is we're positioning and blink.
To be a global network with multi currency and.
Multi language.
And you know really the up be able to operate anywhere and this is a global business. It's one network that can handle the whole world and obviously you have certain.
And the information and storage of that information and local areas, but the network.
It could be of global network and and that thing so.
As I mentioned earlier, it's very easy to spend at the any area.
And you can put one charging station and if there's a viable location over there it's profitable.
And that's how we're looking at this business.
One of us.
Thanks, Michael Thanks for taking my questions.
You're welcome.
It appears we have no further questions at this time I will now turn the program.
The first for any additional or closing remarks.
Thank you for joining us and this is an extremely exciting time for our company and we remain focused on expanding our footprint growing our customer base and establishing new partnerships.
We are very excited and looking forward to speaking to you guys on our next quarter.
And thank you very much.
This does conclude today's program. Thank you for your participation you may disconnect at any time.
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