Q4 2021 Advent Technologies Holdings Inc Earnings Call
Good morning, everyone.
I will be your conference operator today. At this time, I would like to welcome everyone to Advent Technologies' fourth quarter earnings conference call. All lines have been placed on mute to prevent any background noise.
I will be your conference operator today at.
At this time I would like to welcome everyone to I've been technologies fourth quarter earnings Conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session.
After the speaker's remarks, there will be a question and answer session.
On the call today, we are joined by Don Barclays Gregory Advent, Chairman and CEO .
Speaker Change: On the call today, we are joined by Dr. Vasilis Gregory, Advent's Chairman and CEO , and Kevin Brackman, Advent CFO .
Kevin Brackman advent CSI.
Before we begin the prepared remarks, we would like to remind you that Advent Issues issued a press release announcing its fourth quarter 2021 financial results, shortly before market open today.
Before we begin the prepared remarks, we would like to remind you that absent issues pressure issued a press release announcing its fourth quarter 2021 financial results shortly before market opened today.
You may access the materials.
You may access the materials on the Investor Relations section of IR Ads and Energy.
On the Investor Relations section of IL Oddsson energy.
I'd also like to remind everyone that during the course of this conference call, Advanced Management will discuss forecasts, targets, and other forward-looking statements regarding the company's future, customers' orders, and the company's business outlook that are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements.
I'd also like to remind everyone that during the course of this conference call.
Chairman will discuss forecast targets and other forward looking statements regarding the companys future customer orders and the Companys business outlook that all intended to be covered by the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 forward looking statements.
Speaker Change: While these statements represent management's current expectations and projections about the future results and performance as of today, actual results are subject to many risks and uncertainties that could cause actual results to differ materially from those expectations. In addition,
While these statements represent management's current expectations and projections about future results and performance as of today actual.
Actual results are subject to many risks and uncertainties that could cause actual results to differ materially from those expectations.
In addition to any risks.
Speaker Change: Highlighted during this call, important factors that may affect Advent's future results are described in its foremost recent SEC report, filed with the Securities and Exchange Commission, including today's earnings press release.
Highlights during this call important factors that may affect advent future results are described in its full most recent FDIC report filed with the Securities and Exchange Commission, including todays earnings press release.
Speaker Change: except as required by applicable law, the company undertakes no obligation to update any of these forward-looking statements for any reason after the date of this call. Lastly, information discussed on this call concerning the company's industry competitive position in the market which it operates is based on information from independent industry other third-party sources and management estimates.
Except as required by applicable law. The company undertakes no obligation to update any of these forward looking statements for any reason after the date of this call lastly.
Lastly, information discussed on this call concerning the company's industry competitive position in the market, which operates is based on information from independent.
Or a third party sources and management estimates.
Speaker Change: Management estimates are derived from publicly available information released by independent industry analysis and other third-party resources as well as data from the company's internal research and are based on assumptions made upon reviewing such data in this experience and in knowledge of such industry and markets which it believes to be reasonable.
Management management estimates are delivered I'll divide from publicly available information released by independent industry analysts is.
Another third party resources as well as data from the companies in total research and are based on assumptions made upon leaving such data in this experience and knowledge of such industry end markets, which it believes to be reasonable.
These assumptions are subject to uncertainties and risk, which could cause results to differ materially from those expressed in the estimate.
These assumptions are subject to uncertainties and risks, which could cause results to differ materially from those expressed in the estimates. Please note. This call is being recorded kicking off the call. It will be dialysis Gregory sorry talk to Gregory I will now turn it over to you.
Speaker Change: Please note, this call is being recorded. Kicking off the call will be Dr. Alice Gregory. So, Dr. Gregory, I'll now turn over to you.
Alice Gregory: Thank you operator. Good morning to everyone listening in and thank you for joining us on Advent's fourth quarter 2021 earnings call. I'm joined today by Advent CEO Kevin Brock.
Thank you Brett.
Good morning to everyone listening in and thank you for joining us.
Third quarter 2000.
So everyone earnings call I'm joined today by our CFO Brian .
Kevin Brock: Today's call, I will provide comments regarding our fourth quarter result, followed by another
On today's call.
Right.
Our fourth quarter results for.
<unk> Goodbye and update on the business.
Kevin Brock: I will then hand over to Kevin, who will give a review of our financial performance and outlook in more detail.
He will then hand it over to Kevin.
Yoga financial performance.
For months now.
Okay.
2021 was a very significant changes.
Kevin: 2021 was a very significant year of change and progress for us.
The brokers were up.
February trying to everyone. After the successful listing on NASDAQ Ogden has grown from I guess.
Kevin: February 2021 after a successful lead in another. I think he has grown from a head gun around 50 to nearly 200 people in December 2021. And now he has additional offices and manufacturing facilities in Denmark Germany Silicon Valley and the Philippines. We now have a global structure of integrated manufacturing.
52.
200 people in December 'twenty, one and now has additional offices.
If I can foresee, Denmark, Germany Silicon Valley in the Philippines.
We now have a global structure will be the great demand.
Well.
Kevin: Prior to 2021, Aden has grown organically into an advanced fuel cell materials manufacturer with a target of moving across the value chain to both lightweight and stationary advanced fuel cells.
Prior to 2021, <unk> has grown organically and advanced fuel cell manufacturer with a target of moving across the.
Lightweight.
Everyone's fuel cell system.
Kevin: During 2021, the acquisitions of Ultracell, Serenergy, Serenergy Philippines, and Fisher EcoSolutions enabled us to leapfrog ahead by years, which effectively accelerated our development and growth.
During 2021 acquisitions of ultra sells.
Energy.
In Philippines, and <unk> solutions enable <unk> to leap program.
Five years with respectively accelerated development and growth plan.
The acquisitions give brought together some of the leading expertise in the high temperature fuel cell space and have expanded <unk> platform.
Kevin: The acquisitions have brought together some of the leaders' expertise in the high-temperature fuel cell space and have expanded Aden's platform to meet the increasing demand for clean energy worldwide.
The increase in demand for clean energy worldwide.
Kevin: We now hold 190 issues of PennyPath technology and have 38 R&D programs.
We now hold 192005 to technology and you have 38 R&D programs.
<unk>.
I've been to offer a spectrum of products to the fuel cell market from advanced materials to final system.
Kevin: and to offer a spectrum of products to the fuel cell markets from advanced material to final
Kevin: After the acquisitions, Ultracell, Serenity, Serenity Philippines, and Fiseraco Solutions
After the acquisitions with Brazil.
The Philippines.
Philippines and <unk> solutions.
Kevin: consolidated and integrated under one structure and one brand.
Solid David and integrated under one structure.
Thanks.
Kevin: This consolidation to maximize the efficiencies of scale began in earnest in 2021 and will continue throughout 2021.
This consolidation to maximize efficiencies of scale began in earnest in 2021 and will continue throughout 2022.
Kevin: The activities throughout our global reach cannot be summarized as follows.
The activities throughout the global rights cannot be summarized as follows.
We are headquartered in Boston months.
Kevin: We're building state-of-the-art membrane electro-manufacturing facilities in Charlestown now.
We're building state of the art membrane electrode manufacturing facilities and telephone months.
Kevin: In Livermore, California, we designed and manufactured a lightweight system with a former ultrasound staff.
Livermore, California with design and manufacture lightweight system with a farmer will grow sales staff.
Then looking at German sales development and assembly responsibility for advanced five kilowatts to 15 kilowatts of energy system.
Kevin: Denmark and Germany share development and assembly responsibility for advanced 5-kilowatt to 15-kilowatt solar energy systems.
Kevin: In the Philippines, we serviced the telecom market through our sales, service, and site preparation. And in Greece, we have expanded our MEA production and polymer synthesis capacity, including polymer for the next generation of the MEA.
In the Philippines, We said with the telecom market through our sales service and site preparation and in Greece.
We have expanded our EMEA production polymers San Francisco Boston.
Included polymers for the next generation of an NDA.
Kevin: We're now rolling out complete hydrogen fuel cell systems and our global sales force has expanded our reach across North America, continental Europe , the Middle East and Asia.
We're now rolling out complete hydrogen fuel cell systems in our global sales force has expanded our recent gross North America Continental Europe , the middle East and Asia.
Kevin: The business focus is on the production of advanced fuel cell materials leading to direct sales. On the development of advanced fuel cell systems in collaboration with OEMs will enable us to enter into long-term licensing agreements.
<unk> focuses on the production of advanced fuel cell material leaves the direct sales on the development of advanced fuel cell systems in collaboration with the Oems will enable us to enter into long term licensing agreement.
In the fourth quarter, we delivered $2 9 million U S. Dollar revenue up 714% from the prior year driven by strong customer demand for admin Skype <unk>, So an MBA fuel cell systems and flow battery materials.
Kevin: In the fourth quarter, we delivered 2.9 million U.S. dollars in revenue, up 714 percent from the prior year, driven by strong customer demand for advanced high-temperature MVAs, fuel cell systems, and flow battery materials.
Kevin: We also collected $3 million from Serenity customers during the fourth quarter related to pre-acquisition revenue. For the full year, we generated $7.1 million of revenue. On a pro forma basis, though, as if Serenity and FisherEcoSolutions had been acquired at the beginning of the year, our revenue would have been $16 million.
We also collected $3 million from Surendra customers during the fourth quarter related to pre acquisition revenue.
The full year, we generated $7 1 million of revenue on a pro forma basis, though is if you said anything appreciate agco solution has been acquired at the beginning of the year, our revenue would have been $60 million.
Kevin: We continue to have strong capital reserves totaling $79.8 million at year-end.
We will continue to chip's strong cash reserves totaled $79 million.
Year end overall, our performance this quarter and for the year leaves us confident about the long term growth and earnings potential of the company.
Kevin: performance this quarter and for the year leaves us confident about the long-term growth and earnings potential of the company.
Kevin: Our last quarter validated our business model, and I will now give an overview of the selection of our key achievements.
Our last quarter validated our business model and I will now give an overview of the selection of ICSC.
Kevin: In October , we announced that a new order has been placed for Admin Serenity U system for the rollout in the Asian market. The new fuel cell stacks and reformers are intended to support internal testing setups to evaluate performance and to showcase results with Thai telecom operators.
In October we announced the new order has been delayed for admin ceramic <unk> system for the rollout and data market.
New fuel cell stacks and reformers are intended to support an dental setups.
<unk> performance and to showcase results tight telecom operator.
Kevin: Our business in Denmark has been a partner with Thai-based All Right Combination Centric since 2017, which is a product distributor and service provider to Thailand's information and communications technology industry.
Our business in Denmark has been a pattern type base, alright can be mentioned centric.
2017, which is a product distributors and service providers to Thailand's information and communications technology industry.
Five kilowatt fuel cell will address.
The multimillion dollar telecom checkpoint title augment surrounding <unk> fuel cells are forced to generalize from fuel cells and this generation produces advanced disease, including longer lifetime, let service and maintenance fees and improved total cost of ownership.
Kevin: the multimillion-dollar telecoms sector in Thailand. Advanced serenity fuel cells are fourth-generation fuels.
Kevin: And this generation introduces advantages, including longer lifetime, less service and maintenance fees, and improved total cost of ownership.
Kevin: The product upgrade places Aden fuel cells in a pivotal position to respond to an increase in global demand for sustainable energy.
The product calculate places us on fuel cells in a pivotal position to respond to an increase in global demand for sustainable.
Kevin: Also in October , ADBAN announced that with its partner, Smart Communications...
Also on October <unk>.
<unk> announced that its partner smartphone medications, which are <unk>.
Kevin: successfully completed the first installation of the 85,000 fuel cell system across the Philippines.
<unk> completed the first installation of the 85000 fuel cell system across the food delivery agreement was made early in 2021.
Kevin: The delivery agreement was made early in 2021 with Smart Communications, and this partnership follows the commitment to the United Nations' Race to Zero campaign.
My Communications and these partnerships fall is the commitment to the United Nations a race to zero campaign.
Kevin: The movement of the global industry of mobile network operators highlights a broad-based commitment to zero emissions for all circles.
Many of the global industry.
<unk> network, albeit later skylights, a broad based commitment to zero emissions for Ulta.
Smart access to Green energy.
Kevin: Smart shift to green energy follows the announcement of the Philippines Department of Energy that the government would no longer accept proposal to build new coal power plant.
Management of the Philippines, the Panama venues that the government will no longer accept proposals to build new coal power plants.
Kevin: These significant policy shifts support the development of clean and energy resources to help ensure a more sustainable growth for the country.
Difficult policy shifts.
The development of clean energy sources to help ensure a more sustainable growth we've got for the company.
In December <unk> signed an Mou to develop an increase among vaccine scale.
Kevin: December , Argonne and BASF signed an MOU to develop and increase the manufacturing scale of advanced fuel cell membranes designed for long-term operations under extreme conditions.
Advanced fuel cell memory designed for long term operations under extreme conditions under these agreements we will explore a implementation of high volume manufacturing for Celtic membrane utilize the utmost fuel cell stack and system testing facilities to assess and quantify the use of that remembered we're accelerating new product for telecom.
Kevin: Under this agreement, we will explore the implementation of high-volume manufacturing for celltech membranes, utilize advanced fuel cell stack and system testing facilities to assess and qualify the new celltech membrane for our CERN-EU product for telecom power, M0 product for methane emission reduction, and Honey Badger product for portable.
Power and zero product for methane emission reduction and highly positive product for portable.
In addition, <unk> support to our utilization of the wide without going in Greenfield projects, which are pending your approval through materials for power generation hydrogen generation and power storage.
Kevin: In addition, BECEF supports our realization of the White Dragon and Green Hippo projects, which are pending EU approval, through materials for power generation, hydrogen generation and power storage.
Kevin: BE7 will also evaluate the producibility of the ion pair membrane developed in collaboration between ADMEN and the U.S. Department of Energy. ADMEN is working to increase the performance and scope of its products to satisfy the requirements of its customers and to address new applications by developing next-generation fuel cell materials.
<unk> will also evaluate the production.
The stability of the ion pair membrane develop in collaboration between now and the U S Department of vendors Aten is working to increase the performance of the scope of its products.
Despite the requirements of its customers and to address new applications by development next generation fuel cell material.
Also in December <unk> announced that its fuel cell units for the marine sector.
Kevin: Also in December , ADVER announced that its fuel cell unit for the marine sector, developed within the framework of the River Cell Consortium, has passed safety testing, as well as safety assessment completed by D&D, one of the world's leading classification societies.
Within the <unk>.
Framework reverses consortium has passed safety testing as well as safety assessment completed by <unk>, one of the worlds leading classification societies.
Kevin: The RiverCell project is dedicated to the design and development of a pure-cell hybrid system for inland vessels.
Reversal project is dedicated to the design and development of the fuel cell hybrid system for inland vessels.
Kevin: In addition to cutting greenhouse gas emissions, the hybrid concept demonstrated an increase in both safety and efficiency in shipping.
In addition to cutting greenhouse gas emissions.
The hybrid concept demonstrated an increase in both safety and efficiency.
As part of demonstration the prototype of asthma setting a new modern fuel cell unit were successfully integrated into a modern hybrid diesel electric energy grid, which was equipped with all relevant.
Kevin: As part of the demonstration, the prototype of ADVENT Serenity U Marine Fuel Cell Unit was successfully integrated into a modern hybrid DC electric energy grid, which was equipped with all relevant ship systems, including battery storage.
Systems included battery storage.
Kevin: During the fourth quarter, we have continued to progress the White Dragon and Green Hippo project in Southeastern Europe . The goal of the two projects, as submitted by Adlen and the White Dragon Consortium of Companies, is to replace Greece's largest coal-fired power plants with renewable solar energy parks, which will be supported by CO2-free hydrogen production of 4.65 gigawatts capacity and fuel cell heat and power production of 400 megawatts.
During the fourth quarter, we have continued to progress the wide without going to a greenfield project in southeastern Europe . The goal of the two projects.
We did buy oven and the wide driving consortium of companies is to replay Greece's largest coal fired power plant with a renewable solar energy parks, which will be supported by Seo to free hydrogen production of 465 gigawatts of capacity and fuel cell, Keith and powder production 400 megawatt.
What's come out.
Kevin: Through GreenHippo, Aden will use renewable electricity to produce green hydrogen by electrolysis.
Through great people oven will use renewable electricity to produce green hydrogen by electrolysis.
Kevin: This green hydrogen is converted to clean electricity, green energy, and heat through advanced high-temperature pamphlet.
Getting hybrid is converted to clean electricity green energy and heat ovens high temperature fuel cells.
The projects are part of the hydrogen technologies IPC.
Kevin: The projects are part of the Hydrogen Technologies IPCI with the European Union.
European Union.
While the approval timeline is not within our control, we're expecting four months to get them from the EU during Q2 or Q3 this year with final ratification by the <unk> shortly thereafter.
Kevin: While the approval timeline is not within our control, we expect a formal notification from the EU during Q2 or Q3 this year, with final ratification by the EU occurring shortly thereafter.
Kevin: In parallel, Aden has started to put in place an operational structure that will deliver on these significant power projects, with Aden being ideally poised to commence immediately upon final recognition.
<unk> has started to put in place and operational structure that will deliver on the significant power projects with others being ideally poised to commence immediately upon final ratification.
We're pleased to be the technology partner for such a large and important environmental projects to Europe and to have received approval from the Greek government will look forward to be enable to provide multiple.
Kevin: We're pleased to be the technology partner for such a large and important environmental project in Europe and to have received approval from the Greek government. We look forward to being able to provide more information around EU approval and the final scope of the project over the coming months.
Youll approval and the final scope of the project over the coming months.
<unk> remains well positioned to take advantage of the growing focus on clean energy and where the current <unk>.
Kevin: Arden remains well positioned to take advantage of the growing focus on clean energy and where current government, businesses and societies will work together to address the climate crisis. In the hydrogen economy, we play a key role in power decarbonization. With that, I would like to hand over to our CFO , Kevin Brackman.
Government businesses emphasizes will work together to address the climate crisis and the hydrogen economy will play.
Hero empower decarbonization with that I would like to turn it over to our CFO Kevin Brackman.
Thank you you bet.
Kevin Brackman: Good morning, everyone. Turning to our financials, as Vasilis noted earlier in the fourth quarter, a 714% increase from the prior year. The increase for ADVENT, MEAs, fuel cell systems, and other... We also...
And good morning, everyone turning to our financials as facility noted earlier $10 million in the fourth quarter, 7%, 14% increase.
The prior year.
The increase for advent emea's fuel cell systems and other.
We also collected $3 million.
The fourth quarter related to pre yet.
Acquisition revenue.
$21 million of revenue.
On a pro forma basis.
Kevin Brackman: as if Star Energy and Fisher EcoSolutions had been acquired at the time it would have been 16 years ago.
Ssf's, our energy and fishery Eco solutions had been acquired at that would've been $16 million.
Cost of revenue year over year in the fourth quarter. The increase was directly related to revenue growth over the last year and the requirement for increased production of Mbas and fuel cell systems.
Kevin Brackman: cost of revenue year over year in the fourth quarter. The increase was directly related to revenue growth over the last year and the requirement for increased production of MEAs and fuel cell systems to satisfy.
R&D expenses.
Primarily related to our cooperative research and development agreement with the department of energy.
Kevin Brackman: Primarily related to our cooperative research and development agreement with the Department of Energy That's our energy
Sarah NRG and Fisher egos.
<unk> and selling expenses were 40.
$14 3 million in the fourth piece of $12 4 million, primarily due to increased staff.
Kevin Brackman: 14.3 million and the fourth piece of 12.4 million primarily due to increased
Kevin Brackman: acquisitions of SurEnergy and Fisher EcoSolutions and the cost to operate as a public company and to incentive and stock-based...
Physician subset of NRG and fishery Eco solutions and the cost to operate as a public company and to incentive and stock based compensation expenses.
Net loss totaled $9 million in the quarter and adjust adjusted net loss was $15 9 million.
Kevin Brackman: Net loss totaled $9 million in the quarter and adjusted net loss with $15.9 million.
Kevin Brackman: I should note that our adjusted net loss excludes a $6.9 million gain from the change in the fair value of outstanding warrants.
Note that our adjusted net loss excludes a $6 $9 million gain from the change in the fair value of outstanding warrants.
Kevin Brackman: Our net loss per share was $0.18 in the fourth quarter.
Our net loss per share was <unk> 18 in the fourth quarter.
Kevin Brackman: ADVENT remains well-capitalized with $79.8 million on sheet at year-end, which provides
At that remains well capitalized with $79 8 million achieved at year end, which provides.
Provides us with the flexibility to be agile and executing on our strategic and operational priorities. This is a decrease of $12 7 million from September 32021, driven by the increased level of R&D and administrative and selling expenses.
Kevin Brackman: Provides us with the flexibility to be agile in executing on our strategic and operational priorities.
Kevin Brackman: This is a decrease of 12.7 million from September 30th of 2020.
Kevin Brackman: driven by the increased level of R&D and administrative and selling expenses.
Our existing cash reserves and projected cash flows are anticipated to be sufficient to support our planned operations for the next 12 months.
Kevin Brackman: Our existing cash reserves and projected cash flows are anticipated to be sufficient to support our planned operations for the next 12 months. I will now
I will now turn to our outlook.
Kevin Brackman: Advent has developed significantly during 2021, and we have entered 2022 with a more advanced product range, a dedicated technical sales team focused on key sectors and geographies, and potentially large infrastructure projects. We therefore have a strong pipeline.
<unk> has developed significantly during 2021, and we have entered 2022 with a more advanced product range of dedicated technical sales team focused on key sectors and geographies and potentially large infrastructure projects.
Therefore have a strong pipeline as we all know however, not every opportunity in the pipeline will transpire due to factors that may be beyond <unk> control.
Kevin Brackman: As we all know, however, not every opportunity in the pipeline will transpire due to factors that may be beyond advance control.
Opportunities may not materialize or it could be delayed advent will use its expertise and resources to bring opportunities to fruition, which will translate into revenue.
Kevin Brackman: Opportunities may not materialize or could be delayed.
Kevin Brackman: ADVENT will use its expertise and resources to bring opportunities to fruition, which will translate into revenue.
Kevin Brackman: Due to the long-term contract nature of our business model, the timing of our revenue can also be difficult to predict.
Due to the long term contracted nature of our business model the timing of our revenue can also be difficult to predict.
Kevin Brackman: Having said that, we anticipate revenue and income from our grants for 2022 to total approximately $23 million, which will be heavily weighted towards the second half.
Having said that we anticipate revenue and income from our grants for 2022 to total approximately $23 million, which will be heavily weighted towards the second half of the year.
Kevin Brackman: This estimate does not include a significant contribution.
This estimate does not include a significant contribution.
Kevin Brackman: from the White Dragon and Green Hippo projects in Southeastern Europe due to the uncertainty around timing and approval of the project.
From the White Dragon and Green Hippo projects in South Eastern Europe , due to the uncertainty around timing and approval of the project.
Kevin Brackman: In closing, we believe that ADVENT is well-positioned to be the provider of clean energy solutions across a variety of end markets.
In closing, we believe that advent is well positioned to be the provider of <unk>.
Clean energy solutions across a variety of end markets. The company has built a solid foundation for the business and continues to grow and execute on our strategic initiatives with that I will hand back to the silly for closing remarks.
Kevin Brackman: The company has built a solid foundation for the business and continues to grow and execute on its strategic initiatives. With that, I will hand it over to you.
Kevin Brackman: Thank you, Kevin. It is clear that the hydrogen economy is now in the commercialization phase, and Athens has a massive opportunity for its advanced materials and fuel cell system products.
Thank you Kevin It is clear that the hydrogen economy is non docomo sterilization phase and not been as a massive opportunity for advanced materials and fuel cell system products.
Kevin Brackman: The repercussions from climate change, coupled with an impetus for decarbonisation, are quite simple factors that can no longer be ignored, and this requires creative solutions as a positive change to address these issues.
There are precautions from climate change coupled with an impetus for decarbonization are quite simply factors that can no longer be ignored and this requires creative solution as opposed to this change to address these issues.
Kevin Brackman: I would like to conclude by saying that Aden has the technology and products now to create a cleaner, decarbonized world, Aden's offerings are economically feasible in the face of an increased global demand for energy.
We'd like to conclude by saying that I've been here that the close in products now to create a cleaner Decarbonize war oven brokerage are economically feasible in the face of increased global demand for energy.
Speaker Change: I would like to thank you all for joining us today, and we're now ready to answer questions. Thank you very much.
Like to thank you all for joining us today, and we're now ready to answer your questions. Thank you very much.
Speaker Change: Thank you. If you would like to ask a question today, please press star followed by 1 on your telephone keypads now.
Thank you.
If you would like to ask a question. Please press star followed by one from your telephone keypad now.
Speaker Change: If you change your mind at any time, please press star 2 to remove the question.
If you change your mind any time, please press star <unk> question.
Yes.
We have our first question on the phone lines from.
Speaker Change: We have our first question on the phone lines from.
Laura Alexander with Jefferies. Please go ahead, when you're ready.
Speaker Change: Laurence Alexander of Geoffrey. So, please go ahead when you're ready, Laurence.
Sure. Thank you. Good morning, everyone. This is actually Kevin <unk> on for Laurence Alexander So thank you for taking my questions.
Speaker Change: Sure, thank you. Good morning, everyone. This is actually Kevin S. Black on for Lawrence Alexander. So thank you for taking my question. Mine is actually just more a broader general question. I guess you talked a little bit about it on the call, but I just wondered if you had any more detail or anything that you didn't touch on, like on the new project pipeline, given some recent business wins, maybe any updates on timing or potential milestones. So just anything that you didn't touch on the call would be helpful. Thank you.
One is actually just more broader general question I guess.
You talked a little bit about it on the call, but I'm just wondering if you had any more detail.
Or anything that you didn't touch on like on the.
The new project pipeline and given some recent business wins, maybe any update on timing or potential milestones, but just anything that you didn't touch on the call.
It would be helpful. Thank you.
Yes, Kevin.
Speaker Change: Yes Kevin. You know I can put a little bit of color to this as you say. First of all as you know we are trying to replace the diesel generator. So our you know basic approach is to go after the off grid backup power and the portable.
I can put a little bit color to this as you say first of all as you know.
We are trying to replace the diesel generator so.
<unk>.
Basic approach is to go after the off grid backup power and portable, but with a new deck that were development, we made that announcement.
Speaker Change: But with the new tech that we're developing and we made an announcement. So you know very recently with a new generation and the way that we call development of asylum was a game changer. We're talking about automotive and marine also in 20.
So very recently.
With a new generation of EMEA that we co developed with the Lasalle and most of that's a game changer, we were talking about automotive and marine also in 2022.
Speaker Change: Uh, so, you know, the whole idea here is that to be able to
So.
The whole idea here is to be able to.
Get the sales, we predict as Kevin pointed out of Midland without the the big projects I'll spend a little bit time on that.
Speaker Change: get the sales, we project, as Kevin said, $23 million without the big projects, and I'll spend a little bit of time on that.
Speaker Change: And that will be basically driven, as I said, about the existing.
And that will be basically driven as I said about the existent.
Revenue stream that we predict over brig backup power and then the <unk> for the new for the new TEG will develop because keep in mind that either.
Speaker Change: revenue stream that we project, off-grid backup power, and then the JTAs for the new tech will develop. Because keep in mind that Admin has two major pillars, if you will. One is a fuel cell company right now.
He has two.
Major pillars, if you will one is.
Fuel cell company right now to more than 200 people.
Speaker Change: More than 200 people, you know, the patents, the manufacturing capability, the inventory, the almost 1,000 Serenity U systems in the field. So we're not the company that we were before. Now we're a fuel cell company, so I think the sector also.
The patents the manufacturing capability the inventory the almost 1070 <unk> systems in the field. So we're not the comment that we were before now where our fuel cell carbon neutral I think the sector also.
Speaker Change: has changed for us. We're with this particular group, you know, people and you know the
What's changed for us.
This particular group of people.
You know the set of companies.
The data the U S and Canada, and the UK, Sweden, So we need to be looked at that and I think.
Speaker Change: the trade in the U.S. and Canada in the U.K. Sweden. So we need to be looked at that. And I think as I said 2022 will be a big year for us.
As I said 2022 will be a big year for us.
Now the other.
With that said the big thing and I say that because we announced it on September seven where we actually.
Speaker Change: potentially big thing. And I say that because we announced it on September the 7th, where we actually got two of the five approved out of the 20 submitted projects for IPCI from the Greek government. And one is the White Dragon, and the other is the Green Hippo. The Green Hippo is ours. The White Dragon is a consortium with the largest energy companies. But what we know there is that the Green Hippo is a consortium with the largest energy companies.
Got it.
Of the five approved out of the 2000 submitted projects for.
<unk> from the Greek government.
And one is the white Dragon and the other is the.
Great people, the Greenhill boys hours drive as a consortium.
With the largest energy companies, but.
Yes.
We know there is that at least for them.
Getting people is that we have gone through the second set of questions.
Speaker Change: Green people is that we have gone through the second set of questions. And I think in the next few months as I said before either to do or to.
And I think in the next few months as I said before either Q2 or Q3, we expect are going to go.
And there.
Speaker Change: And there, we will know. Now, are we optimistic or pessimistic? I will say we're very optimistic, the reason being that there are two things that have happened. One is the geopolitical aspect of it. I think it's very obvious that Europe will put a lot of effort on renewables for energy independence.
We will not know we optimistic or pessimistic I will say, we are very optimistic the reason being that.
So there are two things other happened one is the geopolitical aspects of it.
It's very obvious that Europe .
We've put a lot of effort on renewables for energy independence.
Speaker Change: And hydrogen will be a big part of the storage. Because right now, the renewables don't have very good storage. Batteries are not good enough.
And hydrogen will be.
Harper with stores because right now the renewables don't ship very good start, but there is a real good enough and hydrogen is coming up now but takeout.
Speaker Change: and hydrogen is coming up now. But take our word for it. Hydrogen will be a big part.
Take our word for it hydrogen will be a big part.
No.
Speaker Change: It's not going to be only in a gaseous form or a liquefied form, we'll find out what it is and all of them are there. But we also believe, as you know, in methanol if fuels or use hydrogen.
It's not going to be on the gaseous form or liquefied form.
We'll find out what it is and all of them there, but we also believe as you know and methanol lipschultz or use hydrogen.
Speaker Change: to produce fertilizers. The fact of the matter is the geopolitical thing, it was before strong and now it has become much, much stronger.
To produce fertilizers. The fact of the matter is the geopolitical thing he was before stronger knock has become much much stronger because of the award and the other <unk>.
Speaker Change: because of the war. And the other is the geoeconomical part of it. Keep in mind.
Economical part of it.
Keep in mind that.
Speaker Change: All the other things have become very expensive also, you know, liquid financial gas is also expensive, you know, bring it to Europe , you need to make terminals as well. So, and also the fact that we do it in Greece, and it's not an accident that the other big...
All the other things you have become very expensive oil liquefied.
Liquefied natural gas results are expensive breakthrough to Europe , you need to make sediment notes as well so.
Also the fact that we do it in Greece and its not.
And vaccines the other big projects also is in the south of Europe in Spain, because theres a lot of time here. So.
Speaker Change: project also is in the south of Europe , in Spain, because there's a lot of sun here. So you can imagine, if you have 2.5 times the sun in the south that we have, let's say, in Alburg, then we produce...
You can imagine you have two five times the sun in the South we have let's say in Alberta.
Than we produce.
Speaker Change: you know we produce higher than 2.5 times cheaper. So the the even though we haven't gotten the approval for the white dragon people we feel confident that and an optimist. But I cannot I cannot say say that we got or not. But all the things.
We produced higher than two five times cheaper.
EBIT, even though we haven't gotten the approval for the wide dialogue we.
We feel confident that.
But I cannot I cannot say say that we've got there, but all the things that have been said that and I think Kevin said, it again and I will say we project.
Speaker Change: Go there. Kevin said that. And I think Kevin said it again. I will say we project 23 million for this year without any significant contributions. And I know it's a tough year. We have covered it. We have supplied technicians manufacturing common.
$23 million for this year without any significant contributions and I know, it's a tough year, which have coverage, we have supply technicians find the bugs and comment.
Speaker Change: are not very much in favor. But for us, traded at $2.38 right now, we believe we're vastly, vastly, grossly undervalued. Because if you take a look at the sector, as I mentioned in the comments before, take a look at their valuation.
Not very much in favor, but for us traded at 238 right now.
We believe we lastly, lastly, gross numbers because if you take a look at the sector.
As I mentioned the comment before we take a look at their valuations.
Speaker Change: Take a look at the revenue, you know, the total revenue as it's defined. How much everybody spends in order to make this revenue, if there is any debt or not, you will see that we're in the wrong, we're on the wrong side. So I think, I'm optimistic that in 2032 we'll get our fair share.
If you look at the revenue the total revenue.
Fine how much everybody dispense in order to make this revenue if there is any of that or not.
You will see that.
We are in the wrong.
With a wrong site, so I think I'm optimistic that.
In 2022, we'll be able to get our fair share.
Thank you.
Thank you.
Speaker Change: We now have our next question on the phone line from Lacey Migley of Panmore, Gordon. So, please go ahead when you're ready, Lacey. I've opened your line.
We now have our next question on the phone lines from Nathan <unk> of <unk>.
Gordon. Please go ahead, thank you ladies and gentlemen.
Your line.
Hi can you hear me okay.
Yesterday highlighted yes.
Lacey Migley: Yes. Hi, Mr Lee. Hi, Kevin. Firstly, congratulations on the result.
Really hard to then Src congratulations on the results.
Speaker Change: and thanks for the presentation. A couple of questions, probably two actually for Kevin, I'd say. You've given the revenue guidance. How should we think about that in terms of MEA sales, stack sales, and system sales going forward? Is there any dramatic split for this year there and perhaps for next year and the year after? I'll let you take that one first.
Thanks for the presentation.
Couple of questions probably for.
For Kevin.
Hi.
Given the revenues.
Go ahead.
How should we think about that in terms of <unk>.
<unk>.
Going forward is there any.
<unk> <unk>.
So next.
Sure Neal.
You can take that one first.
After the acquisition of <unk> energy.
Kevin: Yeah after the acquisition of SurEnergy you know I think moving forward you know probably over half our revenue will be fuel.
I think moving forward probably over half of our revenue will be.
Fuel cell systems.
The full system.
Kevin: with the remainder being split between MEAs and engineering fees.
With the remainder being split between MBA engineering fees.
Hi.
Kevin: Depending on the year, I don't know exactly which of those two pieces will be more significant.
Depending on the year I don't know exactly which of those two pieces will be more significant.
Yes.
Kevin: So, a little over half from systems and then the remainder MEAs.
So a little over half from systems and then the remainder.
<unk> and engineering fees.
Speaker Change: Thank you. That's helpful. And then just start thinking of costs, particularly for your CAPEX, R&D costs, over the, well, I guess, 12 months. So is that focused on one? I mean, firstly, some guidance there, if you can, would be helpful. And how should we think about that in a similar vein? Is that focused on one particular area? Any IE stacks, or systems, or all three? Any color there would be helpful.
Thank you helpful and then just thinking of cost.
Okay Paul.
Jay.
Sure.
Well I guess 12 months.
So Paul is that focused on one.
Got it.
Okay helpful and how should we think about that in a similar vein is that focused on one particular area.
Scott.
Okay.
Any color there would be helpful.
Yes, let me let me go down the individual lines on the P&L and provide a little bit of guidance on each so.
Speaker Change: Yeah, let me let me go down the individual lines on the P&L.
Speaker Change: provide a little bit of guidance on each. So let me start with research and development expenses. It was two million in the fourth quarter. I think that's a reasonable number moving forward on a quarterly basis.
Let me start with our research and development expenses, it was $2 million in the fourth quarter.
I think thats, a reasonable number moving forward.
Quarterly basis, the 2 million that we had in the fourth quarter, So I think thats.
Speaker Change: So I think that's, and that's mostly cash.
And thats, mostly cash.
Speaker Change: The administrative and selling expenses, that was $14 million in the fourth quarter, which included some accruals for incentive compensation and other items. So I think the number was a little bit high in the fourth quarter.
The administrative and selling expenses that was $14 million in the fourth quarter.
Which included some accruals for incentive compensation and other other items. So I think that number was a little bit high in the fourth quarter.
Speaker Change: I think moving forward on a quarterly basis, that SG&A number will be more like $10-12 million.
I think moving forward on it.
Quarterly basis that SG&A number will be more like $10 million to $12 million.
Speaker Change: which includes, let's say, roughly $3.5 million of stock-based compensation expenses, which are non-cash.
Which includes let's say roughly three $3 5 million of stock based compensation expenses, which are non cash.
So that's the SG&A line and then.
Speaker Change: And then CapEx, you know, I think we had, I believe it was around one and a half.
Capex I think we had I believe it was around one and a half in the.
One six something like that in the fourth quarter, I think thats, probably a reasonable run rate.
Speaker Change: fourth quarter, I think that's probably a reasonable run.
Speaker Change: Again on a quarterly basis and so on a cash basis when you add those three lines up Let's say 11 million from SG&A, but three of that is non-cash. So let's say eight million of cash
Again on a quarterly basis, and so on a cash basis when you add those three lines.
Let's say $11 million from SG&A about three of that is noncash so, let's say $8 million of cash for SG&A couple million for R&D.
Speaker Change: for SG&A, a couple million for R&D, and then one, you know, two million.
And then one 2 million per quarter from Capex gives you a run rate of about $11 million to $12 million of cash use for our costs.
Speaker Change: CapEx gives you a run rate of about $11-12 million of cash use.
Thank you that's really helpful.
Speaker Change: Thank you. That's really helpful. Appreciate that. And then I guess, well, probably more for silly type questions, but when White Dragon and Green Hippo projects, you know, well, if and when they're approved, where will AdventService that demand from? You know, which of your sites? And will you need extra capacity coming on stream to meet the demands of those? I guess you will, given the size, but just your thoughts on that.
And then I would guess.
Probably more so sidney.
Questions.
One.
What drove that and going to pipe projects.
<unk>.
Well I think the demand.
Thank you.
Until you need extra capacity coming on stream to meet the demands of our walk if you will given the given the size.
Sure.
Good.
Yes, absolutely.
Speaker Change: Yeah, absolutely. You know, as we said, we have separated the two, you know, the existing business, which is very strong and growing. And this will be, you know, a colossal project. Again, obviously, as you very well pointed out, capacity is the question. It's not the finance and engineering project. For a project like that, we know how to.
As we said Doug we have separated the two existing business, which is very strong and growing and this will be a colossal project again, obviously zubair.
We are very well pointed out capacity. The question is not that finite engineering projects.
Projects like that we know.
Hello, Nick.
Speaker Change: negotiate and get the final number. The thing is, how do you...
<unk> and get the final numbers I think is how do you actually.
Speaker Change: Actually you know we feel the demand. And then we have already announcements. You know we have the announcement would be set. And we're talking to other very big players. So the thing is that we're preparing very diligently as if this is a goal.
We feel the demand and then we have already.
Announcements.
The announcement will be SaaS, and we're talking to other players.
So the thing is that we're preparing very diligently as if this is a goal because the truth is humongous. The most important thing listening to properly noise is the access to renewable energy that's the key.
Speaker Change: because the majority is humongous. The most important thing, less than you probably know it, is the access to cheap renewable energy. That's the key.
The minimum but then we do have are there in western Australia.
Speaker Change: The minute we have it, and we do have it in Western Macedonia, then the rest can be built.
The rest.
Bill.
Speaker Change: So we're preparing and we're ready.
So we're prepared and.
We're ready.
And hopefully we're success thanks for Sidney.
Sidney.
Thank you thank.
Speaker Change: Thank you. Thank you. One last one for me, sorry. The larger stacks for the heavy-duty applications that you're developing, what's the next milestone? I think you said sort of prototypes in this financial year expected. Are you still on track for that and when should we sort of be thinking of expecting first sales on that side? Thank you.
Thank you.
One last one for me, sorry, and the largest box for heavy duty applications developing.
The next milestone I think you said.
On pricing.
In this financial year.
Still on track for that and when should we sort of think Kenneth.
Alright, thank you.
Speaker Change: I'm sorry, I think I missed the first part of the question. What's the question?
I'm, sorry, I think I missed the first part of the.
First part of the question.
Yes.
Speaker Change: Sorry, Vassili, the development of your largest apps, the heavy duty applications, just trying to think, you know, the next milestone there, is it still prototypes for this year, and when we should sort of expect the first sales online.
Sorry, the Sydney.
<unk> is your largest heavy duty patients just trying to think the next milestone that is still quite fast this year and when we should sort of expect online.
Vassili: For the very, very big one, we're trying to do a JPA. You understand that, right? So it.
For the very very big one.
We're trying to do a JV you understand that right. So it is.
Vassili: You know, even a project of that nature, again, is very intense, both in labor and income.
Yeah.
Projects of that nature it again.
Events, both in labor and.
And.
Vassili: costs. So we're building things either organically, you know, from the Serenity, you know, five kilowatt module. We can go out. We know how high can we go in order for this to be economical. We have a couple of demonstrations. You see the.
Costs.
We're building things either organically from the Sirona U five kilowatt module.
We can go out we're not how high can we go in order for this to be economically we have a couple of them once vessels youll see that.
Vassili: the boat demonstration, 90 kilo. But the other one, which is a very different concept, we did it in smaller modules, to be honest, because we haven't figured it out internally either if we want to go with many thirties, if you will, or one mega. But the concept is there, our patents are there, and the group is working very good. But there, in our opinion, and we should see more
The board demonstration 90 kilo.
But the other one we took a bit of different concepts, we built it in smaller modules to be honest, because we haven't figure without internet either if we want to go with.
Many service if you will were one mega but the concept is there are patterns are there.
The group is working very good but they're in our opinion.
We should see.
More one of them.
Vassili: There is a lot of interest in the community, and the people who understand, about doing a JTA with us, because they've seen the...
There is a lot of interest in the community.
Understand about doing <unk> with us because that symbiont.
And the.
Vassili: And the game-changer is the NBA, coupled with, obviously, the new style design for the bigger systems.
The game tends to the NBA, coupled with obviously the new stock.
Stag designed for the biggest systems.
I expect.
Vassili: things to go there. But we need the capital if you were in the capital it would be the JDA with the manufacturing company.
I think to grow that but we need the catalyst if you will in the catalyst will be the date.
Yes.
The manufacturing.
Understood. Thank you thanks for answering my question.
Thank you.
Speaker Change: Thank you, Lacey. As a reminder, to ask any more questions, please press star followed by one on your telephone keypads now.
As a reminder, youre asking a question. Please press star followed by one on your telephone keypad.
Speaker Change: We now have another question on the line from Adam with Earth Long Spur Capital. So please go ahead when you're ready, Adam.
We now have another question on the line from <unk>.
Didn't know Spa capital. Please go ahead Adam.
Adam: Morning, Leslie. Morning, Kevin. Two questions for me. Firstly, around supply chain issues, which a lot of companies are seeing issues with, one of the first things I noticed in the numbers was actually your inventory level. It almost looks like you've got one year's worth of inventory sitting on the balance sheet. Is that right, or are there one-offs in that? If it is right, does that give you protection against supply issues going forward?
More.
Good morning, Kevin.
Two questions from me firstly.
Around supply chain issues, which a lot of companies are seeing issues with.
One of the first things I noticed in the numbers was actually your inventory level is it almost looks like you've got one year's worth of inventory sitting on the balance sheet.
Is that right or other one offs in that.
And if it is right does that give you protection against supply issues going forward.
Adam: And should we expect that sort of, you know, almost 360-odd stock days, would we expect that to unwind going forward?
Should we expect that sort of.
Yes.
360 old stock days should we expect that to unwind.
Forward.
Speaker Change: Yeah, that's a good question.
Yes, good question.
Speaker Change: To your point, we're seeing the same cost pressures that every other company.
To your point, we're seeing the same cost pressures that every other company has seen and so we strategically.
Speaker Change: So we strategically bought inventory and material.
<unk> inventory and materials.
Speaker Change: really starting late last year. We strategically.
Really started in late last year.
We strategically increased our inventory levels to help mitigate some of the impact of the.
Speaker Change: increased our inventory levels to help, you know, mitigate some of the impact of the cost pressure. And so, you're right, we have built up the inventories.
Cost pressure and so you are right.
We have built up inventories.
To a higher level than you would normally expect to have that was a strategic decision we made and.
Speaker Change: expect to have. That was a strategic decision we made.
Speaker Change: And yeah, you know, as we go through the course of the year, I would expect that to wind down a little bit.
And yes.
As we go through the course of the year I would expect that to wind down.
Speaker Change: Yeah, that makes a lot of sense. Second question, a bit more kind of general, but it's almost on things we're not seeing. I just wonder, have you seen much business on the gas sensor side, and then perhaps less likely anything around electrolysis? I'm seeing quite a number of offerings, particularly from solid oxide solutions in the electrolysis space. And I wonder if that's been an area where, somewhere you would seem to have an advantage with your technology. I just wonder if you're seeing anything around that.
Yes.
That makes a lot of sense.
Second question a bit more general, but it's almost all things, we're not seeing I just wonder.
Have you seen much business on the gas sensor side.
And then perhaps less slightly anything along the electrolysis.
I think quite a number of offerings, particularly from solid oxide solution suddenly electrolysis space. So I wonder if that's been an area where.
So are we.
Would seem to have an advantage with your technology I, just wonder if youre seeing anything around that.
Yes, I mean, we don't have the the sensor.
Speaker Change: Yeah, I mean, we do have the the sensor going and we do. And as Kevin said, though, we have actually.
And we do.
As Kevin said, though we have actually.
Speaker Change: the corner and we are a fuel cell company now. So in that respect the fuel cell company has more effort than and we put a lot of you know a lot of effort into engineering and how to reduce the cost how to sell these things. That doesn't mean that we.
The corner, we are a fuel cell company now so in that respect the fuel telecom items guys more effort and we put a lot of.
A lot of our effort and the engineering know how to reduce the cost how to sell these things. So it doesn't mean that we.
We're done.
Speaker Change: who don't operate the others, the materials, but they're not, in our opinion, as important as you think.
But as the others and materials, but not in.
In our opinion is important as it used to be.
At the end of the day, the combination of all of that now, but the mcdonalds.
Speaker Change: The end of the day, the combination of all that now about electrolysis, we have excellent, excellent material and excellent.
Excellent excellent materials.
Excellent.
Yeah.
Back there and you will see <unk>.
Speaker Change: and you will see the patents coming and a very nice collaboration with Northeastern University for that as well. But time is of the issue.
Come in and then nice collaboration with northeastern University for that as well.
Time is of the issue.
Right.
Speaker Change: I mean, right, you know, if we go to a green people situation there, we have to collaborate with existing people. We have to use existing technologies with, you know, whatever the power density is there. But we can win the battle with what we have. I think that, OK, the economics now have changed to our advantage. OK, everything else has become expensive. Therefore, we're not that expensive. Second, the government is a.
Go to a green simple.
Situation there we have to collaborate with existing people, we have to use existing technologies.
Whatever the power density there but.
We can win the battle with why do we have I think that group okay.
If the economics, Nokia pertain to Atlanta, Okay, everything else has become expensive therefore.
That's expensive second the government is as I said.
At one two.
Speaker Change: I'd want to do bigger and bigger projects, because if we have a bigger project, by the nature of scaling up, the cost goes down, and it goes down dramatically.
The bigger projects, because we have a bigger project.
By the nature of scaling up the cost goes down it goes down dramatically.
Speaker Change: And therefore you might not have to invent every day you know a new MBA or something when I'm talking about the electrolysis piece now because we know that also.
And therefore, you might not have to invent everyday.
The new MBA or something when I'm thinking about the electrolysis piece now because we know there also.
Speaker Change: So I would say that we're putting together.
So I.
I would say that would put them together.
Speaker Change: an investor day, not only for the investors, as the word says, but also to showcase our products, our results, our technology. That will happen in the next couple of months, I would say. And I think that will be an excellent opportunity for people to come and ask questions.
An investor day, not only for the investors as the World said, but also to showcase our product as a result, our technologies that will happen.
And the next couple of months I will say and I think that will be an excellent opportunity for people to come in and ask questions.
Speaker Change: what we have in materials, in membranes and electrodes, which are our strength, but also I think people will be very impressed with the progress that the Danish people and the German people have done and actually have created another type of fuel cell, a high-temperature fuel cell. The engineering also is there, and now I think we can all, if you take a look around, there are not that many companies in the fuel cell industry.
What would you have materials and membranes in electrodes, which are our strength, but also I think we were very impressed with the progress that.
Dennis people in the demo people have done and actually have created another double a fuel cell or high <unk>.
Engineering and also is there and now I think.
We can.
Okay.
If you take a look around they are not that many companies in the future.
Speaker Change: You put a big order and I'm talking about larger companies because as you know, larger companies.
To put a big order and I'm talking about larger companies because as you know luxury coverings.
The Bay area is very significant to entering an industry.
Speaker Change: The barrier is very significant to enter in an industry, you know, and in the end of the day, you have to go back to the, you know, standard actors, if you will, right? I mean, the people who have the low temperature technologies, the solid oxide, as you mentioned, and now we've brought the high temperature pen. So I think we should concentrate a little bit of that and showcase it.
In the end of the day, you've got to go back to the standard actors. If you will right I mean, the people who get the.
Low temperatures been technologies. This all look side as mentioned and now we brought the high temperature Ben So I think we should concentrate a little bit of that and showcase it.
Not.
Speaker Change: not, you know, trade it like a spark, I have to make.
It's traded like spark.
Thanks.
Speaker Change: comment about that as well. We came in with a Spark transaction.
Any comment about that as well.
We came in with the spark transaction.
It has its own idiosyncrasies will northward but.
Speaker Change: It has its own idiosyncrasies. We know that. But I want for us to start you know thinking about we had the unlocking of February the 5th. Very substantial volume the last couple of months. So let's start from that. And I think it's very.
For us to start thinking about.
We had.
The unlocking on February 5th very substantial.
Volume in the last couple of months solar sales from that I think is very high.
Speaker Change: to us to trade the SPAC, a 2.38 share, you know, two times cash and maybe three times sales if you take away the cash that we spent.
Fair to us to trade in the spot 238.
Two times cost and maybe three times say to take away the costs.
No.
Actually tied to see us as a fuel cell car bundle with a global reach.
Speaker Change: actually try to see us as a fuel cell company with a global reach.
Speaker Change: listed in the U.S. now, but we compete not only with U.S. companies, but with the companies that are listed in other places. And if you see that, I think that you will agree with us when it's...
Listed in the U S now, but we compete not only with U S comp.
The comment that they are listed in other places and maybe Youll see that I think I think that you will agree with us.
It's poised to report a very good growth in 2022.
Speaker Change: It's poised for very good growth in 2022.
Thank you.
Great. Thank you.
Speaker Change: Thank you. To ask any further questions, press star followed by 1 on your telephone keypad.
Thank you Chuck any further questions.
Philip I wanted on your telephone keypad.
We now have.
Speaker Change: We now have the next question on the line from Sanjay Jha of Panmul Gordon. So please go ahead when you're ready.
The next question on the line from Sanjay Shah.
Panmure Gordon. Please go ahead when you're ready.
Sanjay Jha: Hi gentlemen, I just wanted to ask a couple of questions if I may, how, if I look at your
Hi, gentlemen, just wanted to ask couple of questions if I may.
If I look at Europe when.
Sanjay Jha: When you profile this year and for coming up here, how important is Philippines and Thailand?
When your profile this year coming up here, how important the Philippines and Thailand.
To your business.
And I just wanted to.
Sanjay Jha: And I just wanted to get head around is is your high temperature product line is that kind of more suitable to those countries or you know it's just wanted to get my head around those kind of issues.
You've got the head around it.
Your high temperature product line is that kind of <unk>.
<unk> suitable to those countries.
Just wanted to get my head around.
Those kind of issues.
Speaker Change: Yes, you're right. They're very important. I think we're ideally suited for this part of the world. And that's where we will put a lot of effort, a lot of technical sales effort to educate the people there and use the very nice examples that we have in the Philippines as a showcase for the rest. So this region is very important to us and it couples very well to
Yes.
You're right. They are very important I think where we ideally suited for these parts of the world.
That's where we will put a lot of effort a lot of technical sales effort to educate the people there and use the very nice examples that we have in the Philippines as a showcase for there in that region, it's very important to us in.
Couples very well too.
<unk> offered.
And how developed is the hydrogen presumably you need a.
Speaker Change: And how developed is the hydrogen, presumably you need a
Speaker Change: you need a high quality hydrogen so is that infrastructure no no no there we use methanol and actually we use renewable methanol
You need a high quality hydrogen.
So is that infrastructure.
Yes.
No no not that we use.
Methanol and actually we use renewable methanol, which mirrored carbon neutral fuel.
Speaker Change: So the hydrogen, the methanol is a hydrogen carrier. So it's very ideal, you know, you bring.
So the hydrogen methanol hydrogen.
So it's very ideal.
Break up there.
Speaker Change: the jungle where you know when you have the installation where you have the towers you bring uh liquid fuel which
The jungle, where when we have the installation where you have the towers will bring.
Sure.
Speaker Change: Think about it like liquid hydrogen in a way, right? Because of the fact that we take.
Think about liquid hydrogen in the way because of the fact that we take the hydrogen from the methanol. So it's very okay.
Speaker Change: the hydrogen from the methanol. So it's very good. Every new product has its own.
Every new product has its own.
Speaker Change: Um, how can I say the same standard problems? Okay. It's more expensive that people will want. It lasts a little bit less that they want. And that's what we're trying to
For commercial the same standard problems, okay, its more expensive, but people want it lost a little bit less that they want and thats, where we think too to.
Speaker Change: to address. We can make the product cheaper, make it last longer, learn how to make, you know, many thousands of them, many hundreds of thousands of them. But this region over there, to come back to your original question, it is ideal and we will put a lot of effort.
To address so we can make the product cheaper to make the last longer.
And then how do we make many thousands of them many hundred thousands of them, but these region over there to come back to your original question.
This idea and we will put a lot of effort.
And just one final thing for me I mean I know.
Speaker Change: And just one final thing for me, I mean I know there has been lots of talk about increases in costs, raw material costs and things. Could you remind us what is kind of your...
There have been lots of talk about it.
Increases in costs.
Raw material costs and things.
Could you remind us.
What is kind of yield.
Speaker Change: two or three things which are your biggest expenses in your product line.
Two or three things, which are your biggest expenses in your product line.
Raw material expenses.
Speaker Change: As you know, the platinum is expensive, but for the stationary things, you know, the plan is to recycle. So basically we take it out of the equation.
As you know the platinum is expensive, but the stationary thanks.
The plan is to recycle so basically we take it out of the equation.
Speaker Change: And now all the supply chain is going up, you know, that electronics, things like that, because there's a shortage.
Now all the supply chain has done that.
Ron mix things like that because there is a shortage.
Speaker Change: But yeah, and we try to address as we said, we're trying to be.
Yes.
The rest as we said, we're trying to be smart even before.
Speaker Change: smart even before when we got the money from the from the stock market. You know with the big inventory because we know that you know it's better.
We've got the money from the from the stock market.
With the big inventory, because we know that.
Better.
Speaker Change: you have, how can I say it, your things before you go to war, you have the supplies in line. And in that respect...
Sure.
Hey.
Your things before.
But the world.
The supplies in line and in that respect.
Speaker Change: We have pressure now from this, you know, external factors.
We have pressure now from this.
<unk>.
External factors.
But eventually if you look at lung when you take the platinum mile because the platinum is the issue with the fuel cells Gate technology.
Speaker Change: But eventually if you look at long way and you take the platinum out because the platinum is the issue with with the fuel self. It's a technology that really works well with platinum and platinum. Yeah. Even though we always try to use that. So for the for the backup or off grid we almost neutralize that problem.
It really works well with platinum and platinum, yes, even though we will always try to reduce debt. So for the for the backup of off grid, we almost neutralized our problem okay.
Speaker Change: Okay, that's good. Okay, so you're, you know, you're well covered for.
Okay. That's good.
Okay.
Well covered for.
So at least.
Speaker Change: for at least given your inventory levels. Thank you.
Given your inventory levels.
Thank you.
You're very welcome.
Yes.
Speaker Change: Thank you. If you would like to ask any further questions today, please press star followed by one on your telephone keypads now.
Thank you guys.
Ask any further questions today. Please press star followed by one can you kind of think keypad.
Speaker Change: We have had no questions related at this time, so I'd like to hand it back to the management team
We have no questions registered at this time, so I'd like to hand, it back to.
The management team.
Speaker Change: I would like to thank everybody for being on the call and looking forward to a very good 2022. Thank you very much.
I would like to thank everybody for being on the call and.
We're looking forward to a very good.
2022, thank you very much.
Thank you.
Speaker Change: Thank you all. This does conclude today's call. Thank you for joining. You may now disconnect your line.
This does conclude today's call. Thank you for joining you may now disconnect your line.
Speaker Change: Thanks for watching!
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