Q4 2021 Beam Global Earnings Call

Yeah.

Good day, and welcome to the BEAM Global Year in 2021 Financial Results Incorporate Update Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

Good day and welcome to the beam global year in 2021 financial results and corporate update conference call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one.

To ask a question, you may press star than one on your touchtone phone. And to withdraw your question, please press star than two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Catherine McDermott. Please go ahead.

You touched home phone and to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to MS. Kathy Mcdermott. Please go ahead.

Catherine Mcureman: Thank you. Good afternoon and thank you for participating in today's fiscal 2021 conference.

Thank you good afternoon, and thank you for participating in today's fiscal 2021 conference call. We appreciate your support and interest in being global and we're taking the time to join our call.

Catherine Mcureman: We appreciate your support and interest in being global and for taking the time to join our call. Joining me today is Desmond Wheatley, President and CEO and Chairman of BEAM.

Joining me today is seven Wheatley, President CEO and chairman of <unk>.

Desmond Wheatley: Desmond will be sharing his thoughts and observations about our fiscal 2021 results and his perspective on the vision.

One will be sharing his thoughts and observations about our fiscal 2021 result, and his perspective on the business.

Speaker Change: But first, I'd like to communicate to you that during this call, management will be making forward-looking statements, including statements that address these expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

But first I'd like to communicate to you that during this call management will be making forward looking statements, including statements that address expectations for future performance or operational results forward looking statements involve risks and other factors that may cause actual results could differ materially from those statements for more information about these risks please refer to it.

Speaker Change: For more information about these risks, please refer to the risk factors described in the periodic report on Form 10K that will be filed tomorrow, March 31, 2021, our most recent Form 10K, and other periodic reports filed with the SEC. The content of this call contains time-sensitive information that is accurate only as of today, March 30, 2022.

The risk factors described in beans periodic report on Form 10-K that will be filed Tomorrow March 31, 2021, our most recent Form 10-K and other periodic reports filed with the SEC. The content of this call contains time sensitive information that is accurate only as of today March 32022.

Speaker Change: Accept as required by law, being disclaimed any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

Except as required by law, we disclaim any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call.

Speaker Change: I'd now like to take you through financial results for the 2021 fiscal year and the December 31, 2021.

And now I'd like to take you through financial results for 2021 fiscal year ended December 31 2021.

Speaker Change: Beam Global reported record revenues in fiscal 2021 of 9 million

Being global reported record revenues in fiscal 2021 of $9 million.

Speaker Change: 1,751 compared to 6,210,350 in fiscal 2020.

1751, compared to 6 million and $210003 15 in fiscal 2020.

Speaker Change: an increase of 45%. In the fourth quarter of 2021, the company generated revenues of $3,487,649, a 56% increase over $2,206 in the fourth quarter of 2020. The company invested in sales and marketing resources during the past two years by increasing the sales theme, adding consultants, and investing in marketing.

An increase of 45% in the fourth quarter of 2021, the company generated revenues of $3 487, 649, a 56% increase over 2 million $207 six in the fourth quarter of 2020.

The company invested in sales and marketing resources during the past two years by increasing the sales team, adding consultants and investing in marketing, we're delivering more higher than the orders the largest of which was a 52 unit order for the state of California's Department of General services. This is an increase in say Theres, an increase in state and federal funding programs available to provide.

Speaker Change: We're delivering more hires in the orders, the largest of which was a 52-unit order for the State of California's Department of General Services.

Speaker Change: There's an increase in state and federal funding programs available to provide incentives to invest in electric vehicles and electric vehicle infrastructure. These programs have supported our growth and we expect that they will continue in the future.

Incentive to invest in electric vehicles and electric vehicle infrastructure. These programs have supported our growth and we expect that they will continue in the future.

Speaker Change: Our gross loss in fiscal 2021 was 971,644, or 10.8% of sales, compared to 710,974, or 11.4% of sales during fiscal 2020.

Our gross loss in fiscal 2021 was 971006 44 or 10, 8% of sales.

710970 school or 11, 4% of sales during fiscal 2020.

Speaker Change: The gross loss in the fourth quarter of 2021 was 340,624 or 9.8% of sales, compared to 537,937 or 24.4% of sales in the fourth quarter of 2020.

The gross loss in the fourth quarter of 2021, with 340624 or nine 8% fall compared to 537937 or 24, 4% of sales in the fourth quarter of 2020.

Speaker Change: During 2021, we saw price increases on many of our purchase materials, primarily for steel and batteries, as well as transportation cost increases due to COVID-19 related issues.

During 2021, we saw price increases on many of our purchase material primarily for steel and batteries as well as transportation cost increases due to COVID-19 related issues.

Speaker Change: We were able to partially mitigate some of the transportation calls by delivering systems using company resources.

Were able to partially mitigate some of the transportation call by delivering systems using company resources.

Speaker Change: We implemented some design changes and streamlined our manufacturing which provided some cost reductions in labor efficiency during the year.

We implemented some design changes and streamlined our manufacturing, which provided some cost reductions in labor efficiency during the year.

Speaker Change: In addition, with the increased production levels in 2021 compared to 2020, we were able to benefit from increased fixed overhead of work.

In addition, with the increased production levels in 2021 compared to 2020, we were able to benefit from increased fixed absorbed fixed overhead absorption.

Speaker Change: This resulted in a small improvement of our gross margin, excuse me, our gross loss as a percentage of sales in 2021 compared to 2020 despite the cost increase.

This resulted in a small improvement why gross margin excuse me our gross loss as a percentage of sales in 2021 compared to 2020, despite the cost increases.

Speaker Change: Operating expenses as percentage of revenue decreased by 10% in fiscal year 2021 compared to 2020.

Operating expenses as a percentage of revenue decreased by 10% in fiscal year, 2021 compared to 2020.

Speaker Change: Operating expenses were $5,627,674 in fiscal 2021 compared to $4,496,660 in fiscal 2020. Operating expenses in the fourth quarter of 2021 were $1,674,683 down from $1,799,242 in the same period of 2020.

Operating expenses were $5 million 627, and 674 in fiscal 2021 compared to 4 million for 96 660 in fiscal 2020 operating.

Operating expenses in the fourth quarter of 2021 were $1 674, 683 down from $1 799 to 42 in the same period of 2020.

Speaker Change: The increase in total year operating expense was primarily due to increases in sales and marketing to support revenue goals. Research and development for design changes and cost reduction.

The increase in total year operating expense was primarily due to increases in sales and marketing to support revenue growth research and development for design changes and cost reductions.

Speaker Change: and accounting and filing fees related to a change in auditors and our proxy and meeting costs.

In accounting and filing fees related to the to a change in auditors and our proxy and beating call.

Speaker Change: Net loss as a percentage of revenue decreased by 11% in fiscal year 2021 compared to 2020. The net loss was $6,596,039 for the 2021 fiscal year compared to $5,213,025 for the 2020 fiscal year.

Net loss as a percentage of revenue decreased by 11% in fiscal year 2021 compared to 2020.

The net loss was 6 million 596, Oh 39 for the 2021 fiscal year compared to $5 2014 O 25 for the 2020 fiscal year.

Speaker Change: For the three months ended December 31, 2021, the net loss was $2,014,811 compared to $2,336,524 for the same period in the prior year. This is primarily attributable to the increase in growth loss and increased operating expense.

For the three months ended December 31, 2021, the net loss was 2 million or 14, 811 compared to 2 million $3 36, $5 24 for the same period in the acquired Yeah. This is primarily attributable to the increase in gross loss and increased operating expenses.

Speaker Change: At December 31, 2021, we had cash of $21,948,512 compared to $26,702,804 at December 31, 2020.

At December 31, 2021, we had cash of 20 million 21 million 948, 512 compared to $26 million seven O. Two eight O four at December 31 2020.

Speaker Change: The cash decrease was primarily from operating activities, which was partially offset by cash generated from the exercise of warrants.

The cash decrease was primarily from operating activities, which was partially offset by cash generated from the exercise of warrants.

Speaker Change: Our working capital decreased from $28,133,031 to $24,611,810 from December 31, 2020 to December 31, 2021. And with that, I will turn the call over.

Our working capital decreased from 28 million 133 O 31, 24 million 611 810 from December 31, 2020 to December 31 2021.

And with that I will turn the call over to Doug to provide a business update.

Speaker Change: Thank you Kathy and thanks everybody for tuning in and for your support. Listen before I get started here I just want to remind all of you that we are in the flight path of the Marine Corps air station Miramar. So far nothing's flown overhead since we started this call but it's going to happen for sure and when that does happen there's going to be a tremendous roaring noise because I mean we're literally a mile away from the base and they fly right over

Thank you Kathy and thanks, everybody for tuning in for your sports I listen before I get started here I just want to remind all of you that we are in.

In the flight path of the Marine Corps Air station Miramar.

So far nothing slowing overhead since we started this call, but I'm going to hop in for sure and when that does happen there should be a tremendous roaring noise, because we were literally a mile away from the base and they fly right overall systems.

Speaker Change: That's part of the way we keep the rent down here, but at any rate just be aware of that if that happens I may even have to stop talking because it's so loud, but I'll pick up right where I left off Just don't be surprised and please don't concern yourself for me

The way, we keep the rent down here, but anyway, just be aware that that happens I mean, even up to stop talking so loud, but I'll pick up right, where I left off just don't be surprised on that please don't concern yourself for me.

Sure.

Speaker Change: 2021 was a year in which Beam Global broke record after record after record.

2021 was a year in which being global broke record after record after record.

Speaker Change: and the various records which we built find almost every area of our business.

Various records with pre books fund almost every area of our business.

Let's start with deliveries and revenues and.

Speaker Change: In the second quarter of 2021, we delivered a record number of EBR systems, up 109% over the same period prior year.

In the second quarter of 2021, we delivered a record number of <unk> systems up a 109% over the same period prior year.

Speaker Change: In the third quarter, we set another record for deliveries and revenues, with deliveries increasing over 123%.

The third quarter, we set another record for deliveries and revenues with deliveries increasing over 123%.

Speaker Change: Before it was time for another record for deliveries and revenue with a 45% increase in system deliveries over 2020.

Before it was time for another record for deliveries and revenue with a 45% increase system deliveries what looks like.

Speaker Change: Not surprisingly, all these record quarters contributed to the biggest year of system deliveries and revenues in our history.

Not surprisingly all of these record quarters contributed to the biggest year system deliveries revenues in our history.

Speaker Change: By the time the year was over, we'd manufactured 124 EBR systems, delivered 119, and generated revenues of over $9 million.

By the time the year was over we manufactured 124 D. Var systems delivered 119 generated revenues of over $9 million.

Speaker Change: This compares to 69 systems in 2020 with revenues of just over 6 million, amounting to a 45% year-over-year increase in revenue.

This compares to 69 systems in 2020 with revenues of just over 6 million amounting to a 45% year over year increase in revenue.

Speaker Change: In Q4 of 2021, we had a 59% increase in revenue over the same period prior year, with a significant increase in syphon deliveries over the prior quarter and over the same quarter in 2020.

Thank you for 2020 , one we had a 15, 9% increase in revenue over the same period prior year.

The significant increase in system deliveries over the fourth quarter and over the same quarter in 2020.

Speaker Change: In the past, when we've had a very strong fourth quarter, we generally entered the following year with little or no backlog and a lot of work to do to start the machine rolling again.

So in the past when we bought a very strong fourth quarter. We generally entered the following year with little or no backlog of a lot of work to do to start the machine Rolling again.

Speaker Change: But in 2021, along with all the record breaking deliveries and revenues, we also had a record year of sales, which were up over 131% from the prior year.

But in 'twenty or 'twenty, one along with all the record breaking deliveries and revenues. We also had a record year of sales, which were up over 151% from the prior year.

Speaker Change: This meant that for the first time in our history, we're able to enter a new year with a strong backlog of contracted orders for our products and little or no interruption to our production.

This meant that for the first time in our history, we're able to enter a new year with a strong backlog of contracted orders for our products and little or no interruption to our production.

Speaker Change: Backlog is not always the best metric to use when measuring our progress because, of course, it goes down when we convert it to revenue. It is, nevertheless, very positive for us to enter a new year with a healthy backlog, particularly because January and February can be slow months for new orders.

Backlog is not always the best metric do you use when you're measuring our progress because of course, it goes down even when it converts into revenue.

Nevertheless, very positive for us to enter a new here with a healthy backlog, particularly because January and February can be slow months for new orders.

Speaker Change: This record number of new contracted sales in 2021 was contributed to by several other records.

This record number of new contracted sales in 2021 was contributed to by several other records. For example, we received the largest single order in our history 52 system order from California's Department of dental services.

Speaker Change: For example, we received the largest single order in our history, 52 system order from California's Department of General Services.

Speaker Change: The order was funded by California's Office of Emergency Services.

The older was funded by California's office of emergency services validating a game that disaster preparedness resiliency aspects, which are unique to our EV charging infrastructure products.

Speaker Change: validating again the disaster preparedness and resiliency aspects which are unique to our EV charging infrastructure product.

Speaker Change: That 52 system order was, of course, a follow-on order through our California contract, which has been in place for many years and renewed more than once. In fact, we're currently in the process of renewing it again.

About 52 system order was of course, a follow on order to our California contracts, which has been in place for many years and renewed more than once but we're currently and of course, I said wouldn't even get the game.

Speaker Change: A further contribution to our historically high 2021 sales came from yet another record, which was that we received the largest first-time order in our history from the United States Marine Corps, 21 EBR systems as a first order to be deployed across Marine Corps bases in the continental United States and Hawaii. All the DGS and Marine Corps

Further contribute to check contribution toward historically high 'twenty, one 2021 sales came from yet another record which was that we received the largest first time order in our history.

The United States Marine Corps 21, <unk> system. So the first order to be deployed across Marine Corps bases in the continental United States and Hawaii.

All the D G as a marine Corps systems, a sense being deployed.

Speaker Change: That Marine Corps order sets another record in that it was the largest order we've received through our General Services Administration contract.

Got Marine Corps order set another record and that it was the largest order we received through our general services administration contract.

Speaker Change: I feel very confident that it will not retain this record for long.

I feel very confident that it will not retain this record for law.

Speaker Change: But the Marine Corps was not the only federal agency to place orders through our GSE contract in 2021. Historically, we've generated significant revenues from government sales. In fact, during COVID, that's how we are in the majority of our revenues. But most of those have come from state,

But the Marine Corps was not the only federal agency to place orders through our GSA contract in 2021.

Frankly, we generated significant revenues from government sales, if I drink cold, but that's how we earn the majority of our revenues, but most of those have come from state municipal and local governments.

Speaker Change: 2021 did not disappoint in this area either, as we received orders from or delivered product to 20 different US states and also Canada during the

2021 did not disappoint this area either as we received orders for them or deliver product to 20 different U S States and also Canada during the year.

Speaker Change: But 2021 was the first full year in which our GSA contract was active, so I suppose it's not surprising that it was also the year in which we received the greatest amount of revenue from federal opportunities in our history, another record soon, I believe, to be broken.

But 2021 was the first full year, which our GSA contract was that too. So I suppose it's not surprising that was also the year in which we received the greatest amount of revenue from federal opportunities in our history. Another record soon I believe to be broken.

Speaker Change: The United States government is today the largest consumer of diesel and gasoline in the world.

The United States government is today, the largest consumer of diesel and gasoline in the world.

Speaker Change: It has a current mandate to replace it's 675,000 internal combustion engine vehicles with zero emission vehicles.

Card mandate to replace at 675000 internal combustion engine vehicles with zero emission vehicles it.

Speaker Change: it will soon become the largest consumer of electric vehicle charging infrastructure in the world.

It will soon become the largest consumer of electric vehicle charging infrastructure in the world.

Speaker Change: We're all aware that the federal government does not always move at a pace consistent with the commercial world. However, like a mighty battleship with a full head of spheme, it does not readily change course and it's very hard to start once it gets going.

We're all aware that the federal government does not always move at a pace consistent with the commercial world. However, like a mighty battleship with a full head of steam it does not readily change course, and it's very hard to start once it gets going.

Speaker Change: Beam Global has the fastest deployed, most scalable, lowest total cost of ownership and most resilient EV charging infrastructure product in the world.

Being global has the fastest deployed most scalable lowest total cost of ownership and most resilient EV charging infrastructure products in the world.

Speaker Change: It's made in America, and it delivers clean, green energy to the vast new fleet of electric vehicles which are coming.

It's made in America, and it delivers clean green energy to the vast new fleets of electric vehicles, which are coming.

Speaker Change: cannot think of a product which is better suited to meeting the aggressive and accelerating goals of the federal and indeed all other governments in the United States and globally for that matter.

I cannot think of a call out which is better suited to meeting the aggressive and accelerates and goals of the federal and indeed, all other governments in the United States and globally for that matter.

Speaker Change: With that said, we believe that the orders we received from the federal government in 2021, though they did set a new record for us, will seem fairly insignificant as the machinery of that contract spins up in the remainder of 2022 and the years to come.

With that said, we believe that the orders we received from the federal government in 2020 . One so they did set a new record for us will seem fairly insignificant cause the machinery of that contract spins off in the remainder of 2022 of the years to come.

We are not leaving this to chance.

Speaker Change: we have significantly increased our investment in government relations and it's paying off.

We have significantly increased our investment in government relations and it's paying off.

Speaker Change: Our internal government relations specialists and our two DC based consultants have been responsible for making sure that off-grid EV charging infrastructure language is included in funding bills where it was previously neglected.

Our internal government relation specialists and our two D. C based consultants have been responsible for making sure that all squared EV charging infrastructure language is included in funding bills, where it was previously neglected.

Speaker Change: And we've been made eligible for programs which previously excluded us, like Cal EVIP and the Car Moyer Incentive Programme.

And we've been made eligible programs, which previously excluded us like Cali VIP in the column oil and smaller incentive program.

Speaker Change: Beam Global has been voted onto the Board of Directors of the Electric Vehicle Charging Association and perhaps most striking of all, when the Federal Highway Administration released its program guidance document on the National Electric Vehicle Infrastructure Program, they used a picture of Beam Global EVOX on the front cover. I think that's what's called a buying

Being global has been bolted onto the board of director of electric vehicle charging Association and perhaps most striking the ball when the Federal Highway administration released its program guidance document on the National Electric vehicle infrastructure program. They use a picture of beam global EV ox on the front cover.

I think that's what's called the buying side and sales pilots.

Speaker Change: People quite often comment that we generate a lot of revenue from government customers. There's always something wrong with that. And it's true, as I've mentioned, that particularly during COVID, a very high percentage of our revenues came from government customers.

People quite often comment that we generate revenue from government customers I was always something wrong with that and it's true I was I've mentioned, particularly during cold with a very high percentage of our revenues came from government customers.

Speaker Change: But prior to COVID, enterprise customers often made up more than half of our annual revenue.

But prior to Covid enterprise customers, often made up more than half of our annual revenues.

Speaker Change: Of course, as people start going to the office and visiting other types of businesses, the requirement for workplace or amenity spell charging was reduced significantly, and therefore so were our enterprise revenues.

Of course as people start going to the office and visiting other types of businesses the requirement for workplace or medicine cell charging was reduced significantly and therefore sort of our enterprise revenues.

Speaker Change: Notably, even though we lost this avenue of revenue generation, which as I said was more than 50% often, we were still able to hold and even grow our revenues in 2020 and 2021 because the growth in government made up for the loss in commercial sources.

Notably, even though we lost this avenue of revenue generation, which as I said was more than 50 per cent, often we were still able to hold and even grow our revenues in 2020 in 2021, because the growth in government made up for the loss in commercial sources.

Speaker Change: It might be reasonable to assume that post-vaccine, with the return to normal life, or at least something like it, being global ought to expect a return of enterprise spending on EV-charging infrastructure, and indeed we have.

It might be reasonable to assume that post vaccine with a return to normal life or at least something liked it being global ought to expect to return of enterprise spending on EV charging infrastructure and indeed, we have.

Speaker Change: In 2021, we received purchase orders from non-governmental business sectors, including automotive, commercial real estate, construction, travel, entertainment, and education.

In 2021, we received purchase orders from non governmental business these sectors, including automotive commercial real estate construction travel entertainment and education.

We also saw continued growth in sales to utility customers.

Speaker Change: One of the many misconceptions about being global is that we compete with utility.

One of the many misconceptions about being global is that would compete with utilities.

Speaker Change: In fact, we're increasingly adding them to our customer list because our product is ideally suited to their requirements on many levels.

In fact, we are increasingly adding them to our customer list because our product is ideally suited to their requirements on many levels.

Speaker Change: They, too, need to deploy very large volumes of electric vehicle charging stations and they need to do it quickly.

The two need to deploy very large volumes of electric vehicle charging stations and they need to do it quickly.

Speaker Change: Utilities are not generally known for their rapid deployment of infrastructure but our EVR gives them an opportunity to provide EV charging faster than any traditional method.

Utilities are not generally known for their rapid deployment of infrastructure, but.

It gives them an opportunity to provide EV charging faster than any traditional method.

Speaker Change: The increasing number of blackouts and brownouts is causing utilities to seek methods to deliver electricity to their customers in manners which are not reliant on large and centralized infrastructure.

The increasing number of blackouts and brownouts is causing utilities to seek methods to deliver electricity to their customers the matters, which are not relying upon large centralized infrastructure.

Speaker Change: Regulators are calling upon them to provide resiliency in the face of the increasing risk of blackouts caused by more severe weather conditions and, of course, the ever-present threat from the various nation-state actors.

Regulators are cold, calling upon them to provide resiliency in the face of increasing risk of blackouts caused by more severe weather conditions and of course, the ever present threat from the ferrous nation state actors.

Speaker Change: This is only going to become more important that electricity replaces oil as our transportation fuel.

This is only going to become more important as electricity replaces oil is all consultation fuel.

Speaker Change: The United States has a strategic petroleum reserve to ensure that we never run out to diesel or gas it. But there is no strategic electric reserve. In fact, in most markets in the United States.

The United States has a strategic petroleum reserve can ensure that we never run out of diesel or gasoline, but there is no strategic electric resort in fact in most markets in United States.

Speaker Change: have insufficient capacity to serve current loads. This is why we experience blackouts and brownouts during heat waves when everybody turns off their air condition.

Have insufficient capacity to serve current load.

This is why we experienced blackouts brownouts during heat waves when everybody turns out their air conditioning.

Speaker Change: Our products continue to provide electric vehicle charging and emergency power during those sorts of events or any other grid.

Our products continue to provide electric vehicle charging and emergency power during those sorts of events or any other great things.

Speaker Change: The current situation in Ukraine and our deteriorating relationship with the Russians, who we know have already hacked the U.S. utility grid, when combined with the existing lack of capacity, makes the requirement for rapidly deployed EV charging infrastructure, which does not rely upon centralized utility grid, more urgent than ever.

The current situation in Ukraine and are deteriorating relationship with the Russians, who we know have already have a U S utility grid when combined with existing lots of capacity. It makes it a requirement for rapidly deployed EV charging infrastructure, which does not rely upon centralized utility grid more urgent than ever.

Speaker Change: It's probably true that for the foreseeable future, the majority of EV charging will be supplied by the grid, but the utilities know, and so increasingly does the government, that we must have charging solutions which are faster and more scalably deployed, and which will continue to operate when the utility grid fails or cannot add sufficient capacity quickly enough to keep up with the demands of all the new electric vehicles.

It's probably true that for the foreseeable future. The majority of EV charging will be supplied by the grid, but the utilities know so increasingly does the government that we must have charging solutions with a faster more scalable deployed which will continue to operate when the utility grid fails or cannot add sufficient capacity quickly enough to keep up with the demands of all the new electric.

Vehicles.

Speaker Change: To give you an idea of how acute a problem, and therefore an opportunity for us, is, it's helpful to understand that an electric vehicle has a similar load profile for a single family residence in California. Each time you add an electric vehicle, it's as though you're adding another home to the demand on the grid.

Could you give me an idea of how about you a problem and therefore, an opportunity for US is it's helpful to understand that an electric vehicle has a similar load profile for a single family residence in California.

You add in electric vehicles. So this is only we're adding another home to the demand on the grid.

Speaker Change: Of course electric vehicles will come far faster than new homes ever could and as a result will be much harder to keep up with.

Of course electric vehicles will come far faster than new homes that Richard and as a result will be much harder to keep up with.

Speaker Change: Charging an electric vehicle with a 350 kilowatt DC fast charger is like turning on 500 homes at the same time because of the speed at which the electricity is delivered to the vehicle.

Charging an electric vehicle with a 350 kilowatt DC fast charge off it was like turning on 500 homes at the same time because of the speed at which the electricity is delivered to the vehicle.

Speaker Change: The Electric Utility Grid was never designed to replace oil as a source of transportation energy, but will need sufficient electricity to replace oil over the next few decades. The grid cannot be expanded quickly enough to keep up with transportation of electrification.

The electric utility grid was never designed to replace oil as a source of transportation energy, but we'll need sufficient electricity to replace oil over the next few decades, the grid cannot be expanded quickly enough to keep up with the transportation of electrification.

Speaker Change: Beam Global is in many ways creating the early stages of a strategic electric reserve with our products, a fact that is recognized not only by our federal and state government customers, but also by our growing portfolio of utility customers.

Being global is in many ways, creating the early stages of a strategic electric reserve with our products. In fact that is recognized not only by our federal and state government customers, but also by our growing portfolio of utility customers.

Speaker Change: The combination of our pipeline and backlog continued to set new records throughout 2021 and leading into 2022.

The combination of our pipeline and backlog continued to set new records throughout 2021, leading into 2022.

Speaker Change: pipeline is in many ways a better metric than BATBOK when measuring our progress, as long as we continue to do a good job of converting it into revenue.

Pipeline is in many ways, a Bachelor metric the backlog when measuring our progress as long as we continue to do a good job of converting into revenue.

Speaker Change: Historically, we've taken a fairly conservative view where pipeline is concerned meaning that we don't add opportunities to our pipeline unless we have a very reasonable expectation that they can and may convert to revenue at some point within a reasonable time.

Historically, we've taken a fairly conservative view, where pipeline is concerned meaning that we don't add opportunities to our pipeline unless we have a very reasonable expectation that they can and may convert to revenue at some point within a reasonable timeframe.

Speaker Change: The reason the pipeline is a more worthy metric so long as we stick to these high standards is because, as I've already mentioned, backlog converts to revenue and increasingly does so within the period between our reporting on it.

The reason the pipeline is it more worthy metric so long as we stick to these high standards is because as I've already mentioned backlog converts to revenue and increasingly does so within the period before between our reporting on it.

Speaker Change: Said in other words, the more efficient we become, the faster we deliver products to customers we've ordered them since the last time we reported backlog. As a result, those orders never appear in the backlog that you get.

Said another way the more efficient we become the faster we deliver products to customers who have ordered them since the last time, we reported backlog as a result, those orders never appear in the backlog that you get to see.

Speaker Change: I believe that we're continuing to use sensible and reasonable methods for the calculation of the pipeline as concerned. There are four important aspects to our pipeline which I want to share with you.

I believe that we're continuing to use sensible and reasonable methods for calculation of the pipeline is concerned the.

There are four important aspects to our pipeline, which I want to share with you.

Speaker Change: Of course, the most obvious is the price, which today is over $90 million.

So the most obvious is the songs, which today has over $19 million.

Speaker Change: The second is whether or not the pipeline is growing and it is.

The second is whether or not the pipeline is growing and it is.

Yes.

Speaker Change: As long as the pipeline is growing and the revenue that report is growing with it, then we are executing on our growth plan.

As long as the pipeline is growing and the revenue that reports is growing with it then we are executing on our growth plan.

Speaker Change: The other two important aspects of our pipeline make up are A, that the size of the initial customer orders are increasing and B, that the timeline between initial contact and receiving a part disorder from the customer is shrinking.

The other two important aspects of our pipeline makeup or eight but the size of the initial customer orders are increasing and b that the timeline between initial contact and receiving a purchase order from a customer is shrinking.

Other words prospects are ordering more units and their first order and accelerating through our sales cycle faster than any time in our history.

Speaker Change: Our improved efficiency in the factory and our ability to produce and ship product in greater volumes and shorter timeframes, combined with this accelerated sales process, means that we are in a position to convert early stage pipeline into revenue at a faster and greater rate than ever before.

Our improved efficiencies in the factory and our ability to produce and ship product in greater volumes in shorter Timeframes combined with this accelerated sales process means that we're in a position to give our early stage pipeline into revenue to foster a greater rate than ever before.

I believe there are several reasons.

Speaker Change: why these initial orders are bigger and moving through our sales cycle faster.

While these initial orders are bigger and moving through our sales cycle faster.

Some of those reasons related.

Speaker Change: But first of all, there seems to be an increase in the urgency around the ordering of EV charging and press trucks.

First of all there seems to be an increasingly urgency around the ordering of EV charging infrastructure.

Speaker Change: is not surprising as there are more and more mandates and financial incentives in place at a time when there are simultaneously more and more attractive EV models available to the public.

Not surprising because there are more and more mandates and financial incentives in place at a time when there were simultaneously more and more attractive EV models available to the public.

Speaker Change: Ten years ago, when we first started making solar-powered electric vehicle charging products, electric vehicles were the domain of elitists and Teslas and tree-huggers in cars like the Nissan Leaf.

And years ago, when we first started making solar powered electric vehicle charging brought us electric vehicles, where the domain of elitist tesla's tree huggers than cars like the Nissan leaf.

Speaker Change: fast forward to today and now we see a whole host of new products like the Ford F-150 Lightning, GM's Electric Hummer, Rivian's RT1, Ford's Electric Mustang, the Kia EV6 and about 100 other compelling EV offerings which are formatted and increasingly priced to be attractive to the average American consumer.

Fast forward to today and now we see a whole host of new products like the Ford F 150, Lightning Gm's electric Hummer resilient Saar T. One towards electric Mustang the key I E six and about 100 other compelling hearing all EV offerings, which are format and increasingly priced to be attractive to the app.

Average American consumer.

Speaker Change: situation in Ukraine is again contributing and that the very high oil prices, which are being translated into greater than $6 a gallon of gasoline, are invigorating consumer interests at a pace which might have been hard to predict even a year ago.

Situation in Ukraine is again contributing the very high oil prices, which are being translated into greater than $6 per gallon gasoline are invigorating consumer interest at a pace, which might've been hard to predict even a year ago.

Speaker Change: All in all, there's a dramatic increase in the requirement for EV charging, and that increase is coming with urgency.

All in all there's a dramatic increase in the requirement for EV charging and that increase is coming with urgency.

Speaker Change: Customer urgency is music to our ears because, again, we have the fastest deployed, most scalable, most robust and lowest total cost of ownership EV charting infrastructure solution available today.

Customer urgency is music to our ears, because again, we have the fastest deployed most scalable most robust and lowest total cost of ownership EV charging infrastructure solution available today.

Speaker Change: And because we positioned ourselves to support any EV charging company rather than competing with them, we're in a position to be in increasing demand regardless of which EV charger or service provider a customer may choose.

And because we positioned ourselves to support Amy E charging company, rather than competing with them. We're in a position to be an increasing demand, regardless of which EV charger or service provider customer may choose.

Speaker Change: You can deploy ChargePoint, Blink, Electri America, Anel, or any other quality new charger and service provider.

Redeploy charge point, Blink Electrify America, enel or any other quality he charger on service provider.

Speaker Change: We just do it faster and without the need for construction, electrical work, permitting, utility bills, or risk from blackouts and brownouts.

Just do it faster and without the need for construction electrical work permitting utility bills or risks from blackouts and brownouts.

Speaker Change: We have essentially productised out all the risky, timely consuming and variable cost aspects of EV charting installation.

We have essentially product ties out all the risky timing consuming and variable cost aspects of EV charging installations.

Speaker Change: The same time as we're seeing this significant increase in the urgency around the deployment of EV charging infrastructure, we're also seeing an increase in the acceptance of our product as a mainstream solution to provide the infrastructure which makes EV charging work reliably, scalably, and robust.

At the same time as we're seeing the significant increase in the urgency around the deployment of EV charging infrastructure. We're also seeing an increase in the acceptance of our product as a mainstream solution to provide the infrastructure, which makes EV charging work reliably scalable robustly.

Speaker Change: Whereas in the past, we used to have to spend a good deal of time convincing prospective customers that our products worked, and then go through a process where they order one or two units before feeling sufficiently confident to order larger quantities.

Whereas in the past we used to have to spend a good deal of time convincing prospective customers that our products work and then go through a process where they are the one or two units before feeling sufficiently confident to order larger quantities. The question is can we know get no longer about whether or not the product works.

Speaker Change: The questions we now get are no longer about whether or not the product works.

Speaker Change: Rather, they're focused upon whether or not we can produce the quantities that our prospects require within the increasingly urgent timeframes under which they're now operating.

They're focused upon whether or not we can produce the quantities that are prospects require within the increasingly urgent timeframe under which they're not operating.

Speaker Change: This year, I've already toured several large organizations through our factory to demonstrate not how our products work, but that we are set up to meet their requirements for the types of large orders which they believe they will need to fulfill.

This year I've already toured several large organizations through our factory to demonstrate how our products work, but we are set up to meet their requirements for the types of large orders, which they believe they will need fulfilled.

Speaker Change: I'm not representing to you today that we've received such an order, but I do believe that the inquiries are serious and that they're coming from entities who have the wherewithal and the need to place such an order. In my view, it's only a matter of time.

I'm not representing to you today that we received such an order, but I do believe that the inquiries are serious but theyre coming from agencies, who have the wherewithal and the need to play such an order it.

In my view, it's only a matter of time.

Speaker Change: I'm happy to report that none of these organizations left disappointed.

I'm happy to report that none of these organizations left disappointed.

This is in no small way due to the investments and efforts that we've been making in our factory anticipating that this time with Tom.

And our final assembly here, which is if you like the bottleneck in our production capability. We now have six workstations each of which is capable when stopped producing an EV all kinds of shifts.

That means we produced one EV per station per shift and run five shifts a week, we can produce <unk> hundred 50, <unk> systems per year.

Going to two shifts five days a week, we produced 2700 system for years and it was moved to three shifts seven days a week, we can produce over 4000 systems annually from our existing 53000 square foot facility, and Mary Barra, California, and remember that our fixed cost will not accrete increase along with the increase in revenues.

Producing that volume of products that generate somewhere between 100 $260 million of revenue in a year, but it will do nothing to satiate the requirement of our customers and prospects.

A quick glance at our current customer base will I believe leaving you recognizing that any number of them could deploy several thousand BD charges without coming close to meeting their needs.

We've made further investments in the factory such as tooling equipment and most importantly, human resources, we've increased head count on the manufacturing floor and we've also increased the experience and skill set requirements of those new employees.

The result of this is it were paying more per hour for those employees, but we are reducing the labor cost per ADR to increase efficiencies utilization and quality of workmanship.

In 2021, we also invested in bringing new manufacturing leadership to our company. This of course, the most important steps that we could take along the path to mass producing high quality products with controlled costs.

And I'm very happy with the progress of our new leaders are deliberate.

The fruits of their labor and our investments are clear to see when you look at the increasing volumes of products passing through our factory.

So, perhaps a little harder to see but no less dramatic when considering our cost structure.

In the face of the highest inflation in over 40 years and without increasing our prices, we actually improved our gross profitability in 2021 over prior year.

It's true that we continue to report the gross loss and it's also true that improvement year over year was minor, but it was an improvement nonetheless at a time when the costs, we were paying for materials and components were going up faster than I have ever seen.

Comparing two equally equipped <unk> one could you shortly before Covid and one produced during this last month I can see over $6600 or cost increases for steel aluminium copper EV Chargers and even for the first time in our history vouchers.

Speaker Change: $6,600 accounts for around 10% of the selling price of an EVR model I'm comparing.

<unk> $6600 accounts for around 10% of the selling price of elite model I'm comparing.

Speaker Change: In other words, we've seen a greater than 10% increase in COGS required to make an EBR, and yet we improved our gross profitability at the same time as we bore these costs and without increasing our selling prices.

In other words, we haven't seen a greater than 10% increase in Cogs required to make any VR and yet we improved our gross profitability at the same time as we bought these costs and without increasing our selling prices.

We do that.

Speaker Change: Simply stated, while the costs that we cannot control have been going up.

Simply stated while the cost that we cannot control have been going up.

Speaker Change: We have done a very good job of bringing down the cost that we can control.

We've done a very good job of bringing down the cost that we can control.

Speaker Change: I've been reporting for some time that as we increase volumes through our factory, the fixed overhead costs shared amongst larger volumes of product would have a decreasing impact on cost of goods sold for each individual product.

I've been reporting for some time and as we increased volume through our factory the fixed overhead cost shared amongst larger volumes of product, we have a decreasing impact on cost of goods sold for each individual product.

Speaker Change: We have witnessed that impact in 2021, as a result of the dramatic increase in units fabricated and shipped.

We have witnessed that impact in 2021 as a result of the dramatic increase in units fabricated and shipped.

Speaker Change: We've also decreased the cost of direct labor required to fabricate an EBR by approximately 36% since the end of 2019.

We've also decrease the cost of direct labor required to fabricate.

Fortunately, 36% since the end of 2019.

Speaker Change: Transportation is another area we've seen significant external cost increases over the last couple of years.

Transportation is another area, where we've seen significant external cost increases over the last couple of years.

Speaker Change: change for that. We've invested in increasing our ability to deliver our products with our own equipment.

I am sure that we've invested in increasing our ability to deliver our products with our own equipment.

Speaker Change: We now employ a mix of third-party transportation companies and our own in-house delivery equipment and personnel.

We now employ a mix of third party transportation companies and our own in house delivery equipment and personnel.

Speaker Change: using our own teams and equipment, reduces risks and costs, and has played a significant role in our increasing ability to deliver our products on time and as inexpensively as possible.

Using our own teams and equipment reduces risks and costs and has played a significant role in our increasing ability to deliver our products on time and as inexpensively as possible.

Speaker Change: While the gross profitability improvement has not been as impressive as I would have wished, in the face of the highly inflationary period we're currently navigating, our own internal cost reducing and efficiency increases have been dramatic.

While the gross profitability improvement has not been as impressive as I would've wished in the face of highs the highly inflationary period. We're currently navigating our own internal cost reducing inefficiency increases have been dramatic.

Especially in 10% in 2021.

Speaker Change: We believe that many of the inflationary cost increases may be temporary, and while we do not anticipate a full return to pre-COVID cost structures, we do believe that some of the higher prices we're paying, particularly for steel, will return to some sort of normality through the end of 2022.

We believe that many of the inflationary cost increases may be temporary and while we do not anticipate a full return to pre COVID-19 cost structures. We do believe that some of the higher prices, we're paying particularly for steel will return to some sort of normality through the end of 2022.

Our vendors are certainly representing that to us.

Speaker Change: As prices normalize, we will see a reduction in our bond costs and all the improvements we've made which have resulted in better than 10% cost reductions internally will compound to provide what I believe will be significant improvement in gross profitability.

As prices normalize we will see a reduction in our bom costs and all the improvements we've made which have resulted in back to that 10% cost reductions internally will compound to provide what I believe will be significant improvement in gross profitability.

Speaker Change: Of course, we always have the ability to increase our selling price if we view that as being in the best interest of growing the business.

Of course, we always have the ability to increase our selling price if we view that as being in the best interests of growing the business.

Speaker Change: I'm hesitant to do that at the moment as increasing volume is so important to our growth plans and I don't want to create any barriers to that increased volume.

Hesitant to do that at the moment is increasing volume is still important to our growth plans and I don't want to create any barriers so that increased volume.

Speaker Change: There are some areas where I believe we can increase costs without negatively impacting our opportunities. For example, we do plan to start to pass on any increased pricing in the EV chargers our customers select, that we buy and install on their behalf, or integrate rather into our product.

There are some areas, where I believe we can increase cost without negatively impacting our opportunities. For example, we do plan to start to pass on any increase pricing in the EV Chargers, our customers select because we buy and install on their behalf or integrate rather into our products.

Speaker Change: For example, charge point chargers, which are a popular choice with many government customers, have increased in price by 26%.

For example, charge point charges, which were a popular choice with many government customers have increased in price by 26%.

Speaker Change: We absorb those cost increases during 2021, but we do not intend to do that with new customers.

We absorbed those cost increases youre trying to 'twenty, one, but we do not intend to do that with new customers.

Speaker Change: That particular reversal of absorbing a vendor's pricing increase is worth 2% of gross profit to us.

Not particular reversal of absorbing Avengers pricing increase is worth 2% of gross profit to us.

Speaker Change: But the real opportunities for margin expansion come from cost reduction.

But the real opportunities for margin expansion come from cost reductions.

Speaker Change: We already have line of sight other material cost savings through the efforts of our engineering and operations teams, and we will continue to rigorously.

We already have line of sight on the material cost savings through the efforts of our engineering and operations teams. We will continue to rigorously pursue those efforts.

Speaker Change: I believe that additional significant cost reductions will be achieved as we replace the energy storage solutions we're currently using with our own as we integrate the new battery packs from our recently acquired company formerly known as All Cell Technologies in Chicago.

I believe that additional significant cost reductions will be achieved as we replace the energy storage solutions. We're currently using with our own as we integrate the new battery products from our recently acquired company, formerly known as all cell technologies and Chicago.

Speaker Change: Batteries currently account for almost a third of our bill of materials, and I believe that the initial margin recap

Batteries currently account for almost a third of our bill of materials and I believe that the initial margin recapture will reduce our bom cost by something in the order of 7%.

Speaker Change: We'll reduce our bomb costs by something in the order of 7%.

Speaker Change: further collaboration between our Chicago-based engineers and scientists and our San Diego-based engineering.

Further collaboration between our Chicago based engineers, and scientists and our San Diego based engineering team.

Speaker Change: promise to deliver as much as a 15% decrease in our bomb costs within the next 12 months.

To deliver as much as a 15% decrease in our Bom cost within the next 12 months.

Speaker Change: The combination of our cost reduction efforts, including a significant reduction in battery costs, along with some return to normalcy and materials costs and the increasing volumes we anticipate in 2022, lead me to have a high degree of confidence that we will return to positive growth profits this year.

The combination of our cost reduction efforts, including a significant reduction in battery costs, along with some return to normalcy in materials costs and increasing volumes. We anticipate in 2020 to lead me to have a high degree of confidence that we will return to positive gross profit this year.

Speaker Change: Because of our tremendous discipline around cash management and cost controls, the route to bottom line profitability and positive cash flow is not intellectually challenging to chart thereafter.

Because of our tremendous discipline or cash management and cost controls the route to bottom line profitability and positive cash flow is not intellectually challenging to chalk thereafter.

Speaker Change: To illustrate this, it's helpful to analyze the change in our operating loss between 2020 and 2021.

To illustrate this is helpful to analyze the change in our operating loss between 2020 in 2021.

Speaker Change: While our operating loss increased in absolute dollars during the year, as a result of our investments in sales and marketing, R&D and other improvements to the business, it did not increase anywhere near as much as revenues did.

While our operating loss increased in absolute dollars during the year as a result of our investments in sales and marketing R&D and other improvements to the business. It did not increase anywhere near as much as revenue state.

Speaker Change: as a result, we actually had an 11% reduction in our operating loss as a percentage of revenue.

As a result, we actually had an 11% with duction in our operating loss as a percentage of revenue.

Speaker Change: Absent the extraordinary inflationary pressures that have increased the cost of materials and commodities that we integrate into our products, that reduction would have been closer to 20% as a percentage of revenue.

Absolutely extraordinary inflationary pressures that have increased the cost of materials and commodities that we integrate into our products that reduction would have been closer to 20% as a percentage of revenue.

Speaker Change: This is a perfect illustration of what I have long reported, which is that as we increase volumes to our factory, and I certainly expect that we will continue to do so, we will be able to reduce our costs through increased efficiencies, value engineering of the products, and as a simple result of the increasing operating leverage that we have.

This is a perfect illustration of what I've long reported which is that as we increased volume through our factory and I certainly expect that we will continue to do so we will be able to reduce our costs through increased efficiencies value engineering of the product and as a simple result of the increasing operating leverage that we have.

Speaker Change: We remain well capitalized with the funds necessary to execute on our growth plans and with no foreseeable need to raise capital.

We remain well capitalized with the funds necessary to execute on our growth plans with no foreseeable need to raise capital.

Speaker Change: No, as I've often said in the past, not needing to raise capital is not the same thing as saying, I would never do it.

Now as I've, often said in the past not needing to raise capital. It was about the same thing as saying I would never do it.

Speaker Change: There may be a strategic benefit to doing so from time to time, and if there are and if they clearly are in the best interest of our existing shareholders and the growth of our company, then I will of course consider them.

There may be a strategic benefit to doing so from time to time and if there are and if they clearly are in the best interests of our existing shareholders and the growth of our company and I will of course consider them.

Two examples of what I consider to be excellent strategic reasons to raise capital are firstly.

Theres, a dramatic run up in our share price and unable to further shore up our balance sheet defensively and to assist with our growth plans without being terribly dilutive I might consider that.

Speaker Change: Secondly, I am acquisitive, as is perfectly illustrated by a recent acquisition of all cell technologies in Chicago.

Secondly, I am acquisitive as this perfectly illustrated by our recent acquisition of all cell technologies in Chicago.

In the case of that acquisition, we did an all stock deal and so there was no need to raise capital alongside the acquisition Tulsa.

It also came with no debt.

However, there may be other worthy targets, which will bring tremendous increase value to being global and which would be improved by the raising of capital either at the time of the acquisition or at some point in the future to fund growth or new technologies or some other competitive advantage for being global.

And any of them, whether it's a continent such of it I would only do so through the same lens that I always use when considering investments for this company is it in the best interest of existing shareholders.

Boys are customers of the company.

If the answer is yes, you can time told me to at least explore the opportunity.

Answer is no you can equally kind of told me not to invest our cash or our precious equity folly.

Speaker Change: to be absolutely and abundantly clear, we do not need to raise capital and we are not seeking to do so.

To be absolutely and abundantly clear we.

We do not need to raise capital and we are not seeking to do so.

Speaker Change: I hope you will agree that they all shell acquisition illustrates this level of discipline on my part.

I Hope you will agree that they all sell acquisition illustrates this level of discipline on my part.

Speaker Change: In that instance, we acquired 100% of the assets in a fantastic technology company operating in a vibrant and going space for around 10% of our equity.

In that instance, we acquired 100% of the assets in a fantastic technology company operating in a vibrant and growing space for around 10% of our equity.

Speaker Change: seller has an opportunity to gain more equity in being mobile through our night provisions in 2022 and 2023. I'm looking forward to paying those out because I'll only do so in the event that we've had a couple of fantastic years of performance from this newly acquired entity.

The seller has an opportunity to gain more equity and be more through.

<unk> nine provisions in 2022 and 2023.

I'm looking forward to paying goes arnotts, because I'll only do so in the event that we've had a couple of fantastic years of performance from this newly acquired entity.

The acquisition was accretive in almost every way.

Speaker Change: With it comes increased revenues and gross profit from All-Cell's existing line of business.

With it comes increased revenues and gross profit from wholesale existing line of business.

Speaker Change: With it also comes a significant reduction in our COGS through margin recapture first and then through cost reductions in our suite of products as a result of the engineering and scientific efforts of our combined team.

With it also comes with significant reduction in our Cogs through margin recapture first but then through cost reductions in our suite of products as a result of the engineering and scientific efforts of our combined teams.

Speaker Change: We acquired a significant intellectual property portfolio, which will help make being even harder to compete with when combined with our existing patents and other IPs.

We acquired a significant intellectual property portfolio, which will help make it even harder to compete with when combined with our existing patents and on the other another IP.

Speaker Change: We acquired a team of some of the most experienced and respected engineers, scientists and manufacturing experts in the battery space, perhaps anywhere in the world.

We acquired a team of some of the most experienced and respected engineers scientists and manufacturing experts in the battery space, perhaps anywhere in the world.

Speaker Change: this at a time when energy storage and battery technology is more important than it has never been and yet nowhere near as important as it's going to be.

This at a time when energy storage battery technology is it more important than it has never been yet nowhere near as important as it's going to be.

Speaker Change: The structure of the deal was well-crafted, in that the seller at once became one of the largest shareholders in Beam Global. Our priorities have become perfectly aligned as they seek to help us grow the business, and as a result, their significant equity stake in it.

The structure of the deal was well crafted and that the seller wants became one of the largest shareholders and being global.

Priorities have become perfectly aligned as they seek to help us grow the business and as a result their significant equity stake in it.

Speaker Change: As if that weren't enough, the stock we use as currency for this acquisition is restricted. And even in the event that those restrictions are lifted, the seller has contractually agreed to sell no more than 4% of average weekly volume ever.

If that weren't enough the stock we use as currency for this acquisition is restricted.

And even in the event that those restrictions are lifted the seller has contractually agreed to sell no more than 4% of average weekly volume.

Sure.

Speaker Change: So even were they to liquidate their entire position, they'd have to do so in a way that would have an immaterial impact on the way our stock trades.

So even worthy to liquidate the entire position they'd have to do so in a way that would have an immaterial impact on the way our stock trades.

Speaker Change: I'm confident that we won't have to rely on that coverage because these are clever people who own a big chunk of being global. The last thing they want to do is hurt their investment through irresponsible trading. They certainly don't need the cash.

I'm confident that we won't have to rely on that covenant. Because these are clever people who own a big chunk of being global the last thing they want to do is hurt their investment can be irresponsible trading.

They certainly don't need the cash.

Our new energy storage product makes you put batteries safer.

Speaker Change: Many of the fires you may have heard of would not have happened had they been using our new technology.

Many of the fire as you may have heard off would not have happened had they been using our new technology.

Speaker Change: It also makes them longer lasting and more energy efficient, which is another way of seeing less expensive because you can cycle more energy through the batteries without having to replace them.

It also makes them longer lasting and more energy efficient, which is another way of saying less expensive because you can cycle more energy through the Barclays without having to replace them.

Speaker Change: It's an excellent and well-protected technology differentiator at a time when the world is electrifying rapidly and increasingly in an untethered manner which relies upon safe battery energy storage for its efficacy.

It's an excellent and well protected technology differentiator at a time when the world's electrifying rapidly and increasingly in the non tethered button, which relies upon C battery energy storage for its efficacy.

Speaker Change: You can see from the way this deal is structured and from all its many benefits that if we do continue down a path of acquisition and it's my plan to do so that we will only acquire companies which will bring the greatest amount of value to the best possible deal structure.

You can see from the way this deal was structured from all its many benefits, but if we do continue down a path of acquisitions and it's my pleasure to do so that we will only acquire companies, which will bring the greatest amount of value with the best possible deal structure.

Speaker Change: Our corporate sponsorship business unit continues to make progress, though, of course, not always as fast or as I or perhaps many of you would like to see. Nevertheless, the.

Our corporate sponsor ship business unit continues to make progress no of course, not always as fast or as I or perhaps many of you would like to see.

Nevertheless, the progress is real.

Speaker Change: We've engaged the superlative group, arguably one of the best respected and most experienced corporate sponsorship selling consultant groups in the world, to sell the driving

We've engaged the superlative group arguably one of the best respected and most experienced corporate sponsorship selling consultant groups in the world.

Sell the driving on Sunshine contract.

Speaker Change: Superlative has made a business of selling corporate sponsorships for stadiums, mass transit and other highly visible venues.

Superlative has made a business of selling corporate sponsorships for stadiums mass transit and other highly visible venues.

Speaker Change: our model of engagement with and sees them being paid only if they're successful.

Our model of engagement with the season being paid only if were successful.

Speaker Change: The fact that they're investing significant time and resources into selling the Driving On Sunshine Network is a strong indication to me that they believe they will succeed. I continue to

The fact that they are investing significant time and resources into selling the driving on Sunshine network with a strong indication to me that they believe they will succeed.

I continue to believe that too.

Speaker Change: They have a growing pipeline of qualified prospects who've demonstrated an active interest in sponsoring the network.

They have a growing pipeline of qualified prospects, who demonstrated active interest in sponsoring a network.

Speaker Change: I have personally been involved in several face-to-face and virtual meetings with many of these prospects, so I know that their interest is real.

Personally been involved in several face to face and virtual meetings with many of these prospects. So I know that their interest is real.

Speaker Change: Half an hour after we finish this call, I will lead a tour of our factory for one of those prospects here only because they're interested in the sponsorship program.

Half an hour after we finish this call I will lead a tour of our factory for one of those prospects.

Youre only because they're interested in the sponsorship program.

It's a very large organization, who all of you will have heart.

Speaker Change: they would not waste their time coming to see our factory unless they had a legitimate interest in the driving on sunshine sponsorship program.

They would not waste their time coming to see our factory unless they had a legitimate interest in the driving on Sunshine sponsorship program.

Speaker Change: not mean that I have posed a deal, but it does mean that the business model of sponsoring the world's only driving on Sunshine Network is a sufficiently good idea to attract the very best organizations in related fields.

This does not mean that I I've closed the deal, but it does mean that the business model of sponsoring the worlds only driving on Sunshine network is a sufficiently good idea to attract the very best organizations and related fields I remain confident.

Speaker Change: I remain confident that we'll make a success of this business entity, so I still cannot say when.

That will make a success of this business entity, so I still cannot say when.

Speaker Change: So 2021 was a year of records, and many of them, including by the way, a new world record for the longest flight of a production electric airplane powered only by locally generated and stored renewable energy.

So 2021 was a year of Red cross and many of them, including by the way a new world record for the longest flight of the production of electric airplanes powered only by locally generated and stored renewable energy.

Speaker Change: It was a lot of fun, and it got us a lot of good press, but we should also not lose sight of the fact that there are around 20,000 airports in the United States. They will all need a significant amount of charging infrastructure, and our products are uniquely suited to provide that charging because we do not require construction, electrical, or other disruptive activities, which most airports dread.

There was a lot of fun and it got US a lot of good press, but we should also not lose sight of the fact that there are 20000 airports in the United States. They will all need a significant amount of charging infrastructure and other products are uniquely suited to provide that charges because we do not require construction electrical or other disruptive activities, which most airports dredge.

Speaker Change: Yet another niche market which provides a huge opportunity for us.

Yes, another niche market, which provides a huge opportunity for us.

Speaker Change: Of course, we intend to sell a lot more of our energy-scored solutions that provide lightweight and high energy density to the aviation sector.

Of course, we intend to sell a lot more of our energy storage solutions that provide lightweight and high energy density to the aviation sector.

Speaker Change: We're already powering aircraft, drones, and a whole host of marine and other vehicles such as submarines.

We're already preparing aircraft drones at a whole host of marine and other vehicles such as Submersibles.

Speaker Change: Another record we set was through the improvement store EVR product, which resulted in its being able to deliver 12% more energy than previous parts.

Another record, we set with some of the improvements already VR product, which resulted in us being able to deliver 12% more energy than previous versions.

Speaker Change: The new EV Arc is the most powerful version of the product we've ever produced.

<unk> is the most powerful version of the product we've ever produced.

Speaker Change: We'll continue to improve our existing products and develop and deliver new ones like REB Standard and UAV Art in the months and years to come.

We will continue to improve our existing products and develop and deliver new ones like our EP standard and UAV often amongst some years to come.

Speaker Change: We will also continue to develop our IP portfolio, both in energy storage and in our charging and energy security products. In fact, we received another Chinese patent in 2021 and filed many other applications.

We will also continue to develop our IP portfolio, both in energy storage and in our charging and energy security products.

Received another Chinese patents in 2021 and filed many other applications.

Speaker Change: So, as I said, 2021 was a year of wreck.

So as I said 2021 was a year of records, but those are all records that we intend to break in 2022, I believe we will do that and I believe we will break them again in 2023 and I believe we will keep doing that for many years to come.

Speaker Change: But those are all records that we intend to break in 2022. I believe we will do that, and I believe we will break them again in 2023, and I believe we'll keep doing that for many years to come.

Speaker Change: We're addressing several massive and new opportunities with huge influxes of capital coming from both government and enterprise.

We're addressing several massive and new opportunities with huge influx of capital coming from both government and enterprise.

Speaker Change: We have unique and patented products, and a proven history of being able to sell them and produce them at ever-growing volumes and with ever-improving cost structures, even during the most challenging of times.

We have unique and patented products on a proven history of being able to sell them and produce them at ever growing volumes and with ever improving cost structure, even during the most challenging times.

Speaker Change: I have never been more committed to this company or more excited by the prospect of continuing to grow it.

I have never been more committed to this company or more excited by the prospects of continuing to grow it.

Speaker Change: Thank you all for your support, your time, and your attention.

Thank you all for your support your time and your attention.

Speaker Change: and now I'll return the call for any questions you may have. Thank you.

And now I'll return the call for any questions you may have thank you.

Speaker Change: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. And to withdraw your question, please press star then 2. And at this time, we'll pause momentarily to assemble our roster.

We will now begin the question and answer session.

To ask a question you May press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys and to withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.

Speaker Change: And the first question will come from Noel Parks with Tui Brothers Investment Research. Please go ahead. Hello, Noel. Hi.

And the first question will come from Noel Parks with Tuohy Brothers investment Research. Please go ahead.

Oh no.

Hi, good afternoon.

I just had a couple of things I wanted to touch on.

Noull Parks: Just a couple of things I wanted to touch on. I was wondering, thinking about some of the nuts and bolts of allocation of the federal money that's on the land, I'm just curious, similar to the particular link contract that you have in California, or that's in place in California, that makes purchasing easier for the state

I was wondering.

Thinking about some of the nuts and bolts of allocate.

Allocation of the federal money that that's on the way I'm just curious.

Similar to the the procurement contract that you have in California.

In place in California that that mix.

Purchasing or easier for her.

State and municipal agencies.

Noull Parks: In other states in the country, are you seeing right now more of that urgency as far as, for example, state incentives where purchasers are kind of anxious to get their orders in? Or I'm wondering if you're seeing a little bit more of a standing back and waiting and see as different states.

In other states in the country are you seeing right now.

More of that that urgency as far as.

For example, state incentives where repurchases are kind of anxious to get their orders in our I'm wondering if youre seeing.

A little bit more of a standing back and waiting and see as.

As different states.

Noull Parks: to see how the infrastructure bill funds are going to be distributed and what sort of allocations they'll get.

See how they are waiting to see how the infrastructure.

Bill funds or are going to be distributed and what sort of allocation. Okay.

Speaker Change: Yeah, so I think I stand back and wait and see it's pretty good description of what we witnessed for the first 10 years of our being involved in this business. I've often said we were a little too early to the party, but now we have very good seats.

Yeah, So I think I stand back and wait and see as a pretty good description of what we witnessed for the first 10 years of being involved in this business I've often said we were all too early to the party.

But now we have very good seats, but the fact is that we have a contract in place with the state of California, Ah stay at Florida State of Massachusetts.

Speaker Change: The fact is that we have a contract in place with the state of California, state of Florida, state of Massachusetts.

Speaker Change: But most importantly, probably, and more germane to this conversation, we have a GSA contract in place with the federal government. And by the way, our GSA contract is quite different than most GSA contracts, which are only available to federal entities.

But most importantly, probably the most germane to this conversation we are a GSA contract in place with the federal government and by the way our GSA contract is quite different than most GSA contracts, which are only available to federal entities. Our GSA contract is also available to any governmental entity. So long as they have a disaster preparedness.

<unk>, our emergency requirement and of course, our product fulfills disaster preparedness and emergency power requirements and so that's another way of saying that anybody who is in a hurry to get this done and is looking for funding doesn't even need to get a contract in place.

Speaker Change: anybody who is in a hurry to get this done and is looking for funding doesn't even need to get a contract in place with us. They can just use the federal contract. States of California has also made their contract available to other state and governmental entities too should they want to use it. So those are excellent vehicles for us and we're seeing a lot of increased activity through it. I do to the to the core of your question I do believe that there's still a little bit of waiting to see what how some of these federal funds are going to be spent the five billion on the highways and the two

With us they can just use the federal contract States of California has also made their contract available to other state and governmental entities to date.

They want to use it so those are great excellent vehicles for us and we're seeing a lot of increased activity.

Speaker Change: So those are great, excellent vehicles for us and we're seeing a lot of increased activity through it.

Due to the to the core of your question I do believe that there is still a little bit of waiting to see what some of these federal funds are going to spend the 5 billion on the highways and the $2 1 billion in the rural in disadvantaged communities in particular again, we've done an awful lot there and are very well placed to do that but at the same time, although we are seeing right now is an increase.

And interesting urgency around EV charging infrastructure, it's just amazing how different things are today than they were a year ago and certainly two years ago as I mentioned in my comments that the orders that we're getting a bigger initial orders and they're moving through our sales process faster and that is not because we were more charming than we used to be it's because the people need to <unk>.

Speaker Change: the orders that we're getting are bigger, initial orders, and they're moving through our sales process faster. And that is not because we're more charming than we used to be, it's because the people need the product and they need it quickly. So I think you can see a combination of things. But yes, as I also said, federal spending is a bit like a battleship, takes a bit of time to get it up to speed, but goodness knows when it gets up to speed, it's hard to stop.

And they need it quickly so I think you're going to see a combination of things, but yes.

As I also said federal spending is a bit like a battleship takes a bit of time to get it up to speed. The goodness knows when it gets up to speed, it's hard to stop.

Speaker Change: The goodness knows when it gets up to speed, it's hard to stop. Great. Thanks a lot. And, um, I was wondering, as you look at the year ahead, as far as, um, your, uh, internal R and D, I'm just curious, can you talk about maybe what, what some of the priorities are? Um, I guess that's particularly curious about on the, um, on the software side and whether, um, this is going to be a, uh, a big year in terms of, for example, you know, new releases or if it's going.

Speaker Change: Great, thanks a lot. And I was wondering, as you look at the year ahead, as far as...

Great. Thanks, a lot and I was wondering as you look at the year ahead as far as.

Speaker Change: your internal R&D. I'm just curious, can you talk about maybe what some of the priorities are? I guess that's particularly curious about on the software side and whether this is going to be a

You're.

Internal R&D I'm, just curious can you talk about maybe what what some of the priorities or I guess, that's particularly curious about on the on.

On the software side and whether this is going to be.

Speaker Change: a big year in terms of, for example, new releases or if it's going to be more sort of a blocking and tackling sort of maintenance-based enhancements.

A big year in terms of for example, new releases or if it's going to be more sort of a blocking and tackling sort of maintenance basic enhancement kind of a year.

Speaker Change: Yeah, so first of all, R&D basically serves sales and marketing as its customer. And that's our philosophy. So we don't invest in R&D because we think it's fun or interesting. We only invest in things that we believe will have a significant opportunity within a market to monetize. That's the same as our philosophy around investing in patents, barrier to entry and monetizing.

Yeah. So first of all R&D based.

Basically sharp sales and marketing as its customer and that's our philosophy. So we don't invest in R&D, because we think it's fun or interesting we only invest in things that we believe will have a significant opportunity within the market to be to monetize. So that's the same as our philosophy around investing in patents barrier to entry and monetize yeah. So.

Speaker Change: But you have raised a very interesting point which is this software thing and the answer is yes, you will see us concentrating more heavily on software and firmware this year, but you will also see us continuing to concentrate on hardware. The EV standards are a very high priority for us to get out this year as we believe it will be one of the biggest, if not the biggest, numerical seller that we have. But we're going to make all of our products more intelligent.

But you have raised a very interesting point, which is the software thing and yes. The answer is yes, you will see us concentrating more heavily on software and far more this year I bet. You will also see us continuing to concentrate on hardware. The E. V standards are very high priority for us to get out this year as we believe it will be one of the biggest if not the biggest new medical seller.

But we're gonna make all of our products more intelligent.

Speaker Change: more data rich, more sensor rich, and more manipulatable, and you're gonna see that have a tremendous impact on their capabilities in the market. In fact, one of the things that's important about us is because we are a technology company, because we produce new and proprietary technologies, we are able to accelerate our capabilities in a way that just connecting to the grid simply can't. That's fairly finite. You can't speed up digging a trench or concrete takes a certain amount of time to dry, but our products will get better and better and more and more intelligent. You will see investment in that this year. And then on the energy storage side of our business, you should also expect to see us continue to invest heavily in that space as well. But again, always as with sales and marketing as a client. So it will be driven with profitability at the core, not,

More data rich more sensor rich.

And more manipulate to bowl and you're going to see that have a tremendous impact on their capabilities.

In the market, but the one of the things that's important about us because we are a technology company, because we produce new and proprietary technologies, we are able to accelerate our capabilities in a way that just connecting to the grid simply can't that's fairly finite.

You can't speed up digging a trench or concrete takes a certain amount of time to dry, but our products will get better and better and more and more intelligent and you will see investment in that this year and then on the energy storage side of our business. You should also expect to see us continue to invest heavily in that space as well, but again always as a with sales and marketing as a client so it'll be driven.

With profitability at the core not a science.

Speaker Change: slides.

Great. Thanks, a lot.

Thank you.

Speaker Change: The next question will come from Tyler DiMatteo with BTIG. Please go ahead.

The next question will come the next question will come from Tyler <unk> with B P. I G. Please go ahead.

Hi, Tyler.

Speaker Change: Hi, everybody. Thanks for taking the question here. I was just wondering if we could dive a little bit deeper into the all cell acquisition there. I know you briefly said gives you access to new customers and markets. Can you kind of talk about the overlap there in terms of, you know, the customer base and the differentiation and just compare them, if you don't mind, please.

Hi, everybody. Thanks for taking the question here I was just wondering if we could dive a little bit deeper into the all cell acquisition. There I know you briefly said gives you access to new customers and markets can you kind of talk about.

The overlap there in terms of.

The customer base and the differentiation and just compare them. If you don't mind. Please.

Speaker Change: No, I'd be delighted to. I've been involved in a lot of M&A activity throughout my professional career, and I've got to tell you that this is the clearest, the most obvious, strategically beneficial acquisition I've ever been involved with. The simple fact of the matter is, it's a great fit for us in terms of reducing costs, bringing in revenue, bringing in gross profits, and everything else. But to get to your question, yes, they have been.

No I'd be delighted you ive been involved in a lot of M&A activity throughout my professional career and I got to tell you that this is be clear is the most obvious strategically beneficial acquisition I've ever been involved with them.

The simple fact of the matter is it is.

A great fit for us in terms of reducing costs, bringing in revenue, bringing gross profits and everything else, but to get to your question.

Yes, they have been selling energy storage solutions to customers, which are very similar to the customers that we've been selling charging solutions to over the last many years they'd be selling energy storage to electric vehicles to micro mobility to drones to submersibles to aircraft, we've been selling a beach.

Speaker Change: selling energy storage solutions to customers, which are very similar to the customers that we've been selling charging solutions to over the last many years. They've been selling energy storage to electric vehicles.

Speaker Change: to micro-mobility, to drones, to submersibles, to aircraft. We've been selling EV charging to electric bicycles and our products have been used to power drones and aircraft.

RJ to electric vehicles to do it.

Electric bicycle motorcycles too.

Two.

Our products are being used to power drones and aircrafts, so it's a bit.

Speaker Change: So it's a, it's a, we've been basically firing at many similar targets, but always separately.

We've been basically firing at many similar targets, but always separately.

Speaker Change: As I look at their existing customer list, and they look at ours, there are tremendous opportunities. In fact, every conversation I have with anybody now who's looking for EB charging for whatever new fantastic vehicle or contraption that they're considering, the first thought that goes through my mind is, good God, you're a consumer of batteries. Surely you need batteries which are safer, more energy dense, and longer lived, and lower cost. And that's precisely what we provide.

As I look at their existing customer list and they look at ours. There are tremendous opportunities. In fact every conversation I have with anybody who's looking for EV charging for whatever new fantastic vehicle, a contraption that theyre considering.

First the other goes through my mind us good God, you're a consumer of batteries surely you need batteries, which are safer more energy than some longer life lower cost and that's precisely what we provide so it's great for us and then from from their point of view of course, so many of their customers.

Speaker Change: So great for us. And then from their point of view, of course, so many of their customers, you know, they have electric

They have electric devices of one sort or another the greatest challenge for them is to get charging infrastructure in place and that's what we're terribly good at faster and more scalable than anybody else. So I I cross selling is often one of these things that sold with acquisitions and frankly, as an investor and as a guy who's done a fair amount of M&A I pretty much here with a pinch of salt most of the time.

Speaker Change: devices of one sort or another. The greatest challenge for them is to get charging infrastructure in place. And that's what we're terribly good at faster and more scalable than anybody else.

Speaker Change: So I cross selling is often one of these things that's sold with acquisition.

Speaker Change: And frankly, as an investor, and as a guy who's done a fair amount of M&A, I pretty much cheat it with a pinch of salt most of the time I see it. Sounds great, but does it really, how often does it really happen? In this case, I genuinely believe that it's a significant opportunity. But it's only, believe me, it was not a driving force behind doing the deal. We would not have done the deal if it wasn't going to make us more profitable, add more revenue, make us stickier, harder to compete with, and everything else.

Sounds great, but does it really and how often does it really happened in this case I genuinely believe that it is a significant opportunity, but it's only believe me it was not a driving force behind doing the deal we would not have done the deal if it wasn't going to make us more profitable add more revenue make us stickier harder to compete with and everything else Cross sellings, not even icing on the cake.

Speaker Change: Not even icing on the cake, it's the little baubles on the icing, but we're going to make those baubles pretty important.

Little bubbles on the icing, but we're going to make those bubble is pretty pretty important.

Speaker Change: Okay, great. Thanks for answering the question, and I'll turn it back to the queue here. That's all I have.

Okay, great. Thanks for answering the question and I'll turn it back to the queue here, that's all I have.

Thank you.

Speaker Change: The next question will come from Alejandro Nuno with Maxim Group. Please go ahead.

The next question will come from Holly on Joe No with Maxim Group. Please go ahead.

I don't know how are you.

Speaker Change: How are you? Thank you for taking my question. I was curious if we could touch a little more on Let's Fly America. They recently announced the new charging, which is going to include those solar canopies. I know they have about 30 – they've ordered 30 EV arcs so far. Is there any more orders in the pipeline that we should be expecting soon, or have they spoken to you at all about how much they plan on spending on that off-grid EV arc technology?

It does mean how are you. Thank you for taking my question I.

I was curious if you could touch a little more on Electrify America. They recently announced the new charging which doesn't include the solar canopies.

It had about 30 ordered 30 <unk>. So far is there any more orders in the pipeline that we should be expecting soon or had they spoken to you at all about how.

How much they spend they plan on spending on on that off grid <unk> technology.

Speaker Change: Yeah, so I'm not going to speak for what orders Electrify America may or may not make, but I will tell you that we're actively engaged with them. I had a conversation regarding that piece of our business just last night. I want to make sure that we don't in any way conflate the idea of putting a solar canopy with an EV charger with what we do for a business. There are lots of companies out there now installing solar canopies above or near or adjacent to EV chargers.

Yeah, So I'm I'm I'm not going to speak for what our orders Electrify America may or may not make but I will tell you that we're actively engaged with them.

I just had a conversation regarding that asset that piece of our business just last night.

Let's let's not get too to I want to make sure that we don't in any way conflate the idea of putting a solar kind of people with an EV charger with what we do for our business.

There are lots of companies out there now installing solar canopies above or near or adjacent to E. V. Chargers. That's a construction project in most instances those solar kind of piece of grid connected even if they are batteries onsite and the whole thing is grid connected and it's a construction project you are talking about permitting you're talking about pouring foundations, you're talking about two teams on site.

Speaker Change: That's a construction project. In most instances, those solar canopies are grid-connected. Even if there are batteries on site, the whole thing's grid-connected. And it's a construction project.

In spite engineers and specialists and all that sort of stuff that simply is not what we do for a living so another against that but I think I think I'll leave you charter should have a solar kind of people that it was a great idea.

Speaker Change: what we do for a living. I've got nothing against it, by the way. I think all EV chargers should have a solar canopy with them. That's a great idea. A bit of shade and some solar onto the grid is a great idea. I've got nothing against battery storage on EV chargers as a means to sort of deflect demand charges and other utility costs that the charging companies are trying to get away from. And even, frankly, as a resiliency play, when the grid goes down, you've got battery backup that gives you a couple hours of batteries. But let's not in any way conflate that with what we do. Our resiliency is forever. Every morning we produce more energy. It's not a matter of charging batteries from the grid. And then when they're discharged, you wait till the grid comes back up, which after Hurricane Ida was six weeks in certain areas. That's not a solution. Our products continue to operate during those types of environments and generate and store electricity. So from a resiliency point of view, we beat them hands down. And then the key thing I keep saying is product. We are product. We are not project. Everything we do is produced in a factory, delivered to site, ready to operate. This is not going out and getting out your tape measure and your tool belt and starting on a process, which – and I shouldn't say that's not starting on the process – two years earlier when you got into the environmental impact and permitting processes when you started that. So, yeah, look, I think it's great. We love and value Electrify America as a customer. We can't wait to do a lot more work with them. We're proud of them for putting solar – solar –

And in some solar onto the grids, a great idea nothing against I've got nothing against battery storage E. B Chargers as a means to sort of deflect demand charges and other utility costs that the charging companies are trying to get away from and even frankly as a resiliency play and the grid goes down you got battery backup that gives you a couple of hours of batteries, but let's not.

We can play that with what we do our resiliency is forever.

Every morning, we produce more energy, we don't it's not a matter of charging batteries from the grid and then when they're discharged you wait till the grid comes back up which after hurricane Ida was six weeks in certain areas. That's not a solution. Okay. Our products continued to operate during those types of environments and generate and store electricity. So from resiliency point of view, we'd beat my understanding and then the creaky thing.

Keep saying is product we are product we are not project everything we do is produced in a factory delivered to site ready to operate this is not going out and getting a tape measure in your tool belt and starting on a process, which I shouldnt say, that's not starting on the process two years earlier when you go into the environmental impact and permitting processes. When he started that so.

Speaker Change: So, yeah, look, I think it's great. We love and value Electra by America as a customer. We can't wait to do a lot more work with them. We're proud of them for putting solar arrays on their deployments, but it should not be conflated in any way with what we do for a living.

Yeah look I think it's great, we love and value Electrify America as a customer we kind of wait to do a lot more work with them. We're proud of them for putting solar module solar arrays on their on their deployments, but it should not be complacent in any way with what we do for a living.

Speaker Change: Great. Thank you so much Desmond. I appreciate that. And then one last question. Along the lines of the increase for the EV arc, the number you gave us about was 6,000, correct?

Great. Thank you so much doesn't I appreciate that and then.

One last question along the lines of the increase from the <unk> arc.

The number you gave was about 6000 correct.

Speaker Change: Now to be absolutely clear, the increase I cited was $6,600, a little bit more than that actually. And what that refers to...

No to be absolutely clear the increase I cited was $6600 a little bit more than that actually and what that refers to is the increase in cost of components and materials like steel and aluminium and that sort of stuff that we have incurred and absorbed since the since COVID-19 began so we've had an IND.

Speaker Change: is the increase in cost of components materials like steel and aluminium and that sort of stuff that we have incurred and absorbed since.

Speaker Change: since COVID began. So we've had an increase of $6,600 in cost, and yet we improved our gross profit. That's the thing I want everybody to understand from this. As you're looking at gross profitability, just please understand that we did not increase our sales price, and yet we increased gross profitability, or improved gross profitability, to use a better word, in the face of all these costs, and in spite of all these cost increases.

Increase of $6600 and cost and yet we improved our gross profit that's the thing I want everybody to understand from this as you're looking at gross profitability. What just please understand that we did not increase our sales price and yet we increased gross profitability.

Our improved gross profitability to choose a batch of word in the face of all these costs and in spite of all of these cost increases, which tells you we have to get the money somewhere else and the only way we could do that would be by reducing our own costs through increased efficiencies disciplines and other things that we have been doing.

Speaker Change: which tells you we had to get the money somewhere else. And the only way we could do that would be by reducing our own costs through increased efficiencies, disciplines and other things that we have been doing.

Speaker Change: Understood and that so that six thousand six hundred did not include the the cost of the charges as well that you were you were taking out in 2020

Understood and that's about 6600 did not include the cost of the charges as well that you were you were taken out in 2021 correct.

Speaker Change: Correct? And in that instance, that did include an increase for cost of the charger. I was just comparing two like EV arcs and I included the cost of increase of the charger. What I went on to say was after that, that although I do not anticipate or intend to increase the cost of an EV arc today, remember when we deploy an EV arc, we deploy on it a factory integrated charger, which is produced by somebody else, ChargePoint, Blink, and now Electrify America or whoever it is.

And no one in that instance that did inclusive.

Include an increased cost of the charge off I was just comparing to like E auction and included the cost of increase of the charter would I went on to say was after that that although I do not anticipate or intend to increase the cost of an E. B R. Today remember when we deploy an E V arc, we deploy one at a factory integrated charger, which is produced by <unk>.

Somebody else charge point blank Canal Electrify America whoever it is and those have gone up in price and what we are going to start doing I was telling our customers that we will not absorb the price increase of the EV charger that they are requiring from any other vendor that we will in fact pass those cost increases through to them and we've been absorbing that in 'twenty.

'twenty, one we're not going to do that anymore and as I mentioned in one instance, that's worth about 2% of gross profit to US 2% may not sound like a lot, but we weren't bloody hard to squeeze every percentage point as we kind of at these things and I'm done if I'm going to subsidize a charging companies.

Speaker Change: And I'm damned if I'm going to subsidize charging companies charges, not that there's anything wrong with what they're doing, by the way, but I just don't think we're not going to absorb it. We're not going to subsidize it. We will pass that cost increase through to our customers and endeavor to hold the cost of the steady and all the gains that we'll get will come to further cost reductions, which, as I say, we have pretty damn good line of sight to. Great, thank you so much. I appreciate it. Thank you. All the best. The next question will come from Jay Burke with, excuse me, Jay Burke, investor. Please go ahead, sir. Hi, thanks for taking the call. I am. I am an investor and I have a couple of questions. One is yes, please go ahead.

There's nothing there's nothing wrong with what they're doing by the way, but I just don't think we're not going to absorb it we're not going to subsidize. It we will pass that cost increase through to our customers in an endeavor to hold the cost of the <unk> study and all the games that we will get will come through further cost reductions, which as I say, we have a pretty damn good line of sight too.

Jate Perg: Great, thank you so much Desmond, appreciate it. Thank you.

Great. Thank you so much doesn't appreciate it.

Thank you all and all of us.

Speaker Change: The next question will come from Jay Burke with, excuse me, Jay Burke, Investor. Please go ahead, sir.

The next question will come from J Burke with excuse me J Burke Investor. Please go ahead Sir.

Jay Burke: Hi, thanks for taking the call. I am I am an investor and I have a couple questions one is Yeah, yes, please go ahead One is why did you change auditors? You want me to take them one at a time J

Hi, Thanks for taking the call.

So Jim I am and I am an investor and I have a couple of questions one.

Hello, Yes.

Yes. Please go ahead.

One is why did you change auditors.

Do you want me to take them one at a time.

Why did you change auditors.

Speaker Change: Yes, simple reason, and there's nothing sinister about it.

Yes.

Simple reason.

And there's nothing sinister about it.

Speaker Change: I'm not suggesting, I'm not suggesting it is. It's quite often a red flag, so I just want to make sure that nobody's raising their red flags. The fact is, we had been using a company called Solberg & Co, which is a Boca Raton-based boutique audit company. And when we were small, and before we went up onto a national exchange, they were perfectly appropriate and adequate, and frankly, much less expensive.

I'm, not suggesting I'm not suggesting it is.

If I could follow up on the Red flags. So I just want to make sure that nobody is raising their red flags.

We had been using a company called Salt Bergen co, which is a which is at Boca Raton based boutique audits company and the fact, when we were small and.

Before we went up onto a national exchange they were perfectly appropriate and adequate.

Frankly, much less expensive.

Speaker Change: than the much larger nationally recognized audit form that we've gone to now. But the simple fact is, when you are operating on a national exchange and when you're growing as we are and capitalizing as we are and everything else, you really cannot proceed with a boutique firm. You have to have one of the large and nationally recognized auditors, and that's why we made that decision. If nothing negative at all about Solberg, they did a great job for us. The new auditors have found nothing remiss with anything that they did or anything that we ever previously reported, but it's just a fact of life. Move up to national exchange, get bigger, you need a nationally recognized audit.

Then the much larger nationally recognized audit firm that we've gone to note, but the simple fact is when you are operating on a national exchange and when you're growing as we are in capitalized as we are and everything else. You really cannot proceed with a boutique car you have to have one of the large a nationally recognized auditors and that's why we.

Made that decision if nothing negative at all about Solberg. They did a great job for us the new orders just fine nothing remiss with anything that they did or anything that we haven't previously reported.

But it's just a fact of life move up to a national exchange get bigger you need you need a nationally recognized audit company.

Speaker Change: And who did you change to?

And who did you change too.

Our S N.

Speaker Change: Okay, and my second question is, do you think your M&A background is going to drive this?

Okay.

And.

My second question is.

Do you think your M&A background is going to drive this.

Speaker Change: In other words, is your focus going to be on your product? What I understand is that you're product driven.

In other words is your focus going to be on your product what I understand is that you are product driven.

Speaker Change: And as you discussed, and as you discussed with the battery, you know, I mean with the whoever this is that you're that you're getting part of the components from to pass that on to the consumer, is that going to be sort of the goal is so that you can control that?

And as you discussed and as you discussed with the battery you know I mean with that.

Whoever this is that you're that you're getting tired of the components come to pass that on to the consumer is that going to be sort of the goal.

So that you can control that.

Speaker Change: Yes, whenever I see opportunities, which will allow us to lower our costs.

Yes.

Whenever I see opportunities, which will allow us to lower our costs or increase our technology stickiness make us hard to compete with or.

Speaker Change: or increase our technology stickiness, make us harder to compete with, or introduce us to new markets or new customers.

Or and introduce us to new markets.

Or new customers.

Within our strategy they need human experiments to be interested in those opportunities also by the way globally.

Speaker Change: then you can expect me to be interested in those opportunities. Also, by the way, global or geographic expansion, I'm very interested in Europe . Acquiring a way into Europe is a significant potential for us. What I will not do is go out and buy a profitable dog food company.

Geographic expansion I'm very interested in Europe , acquiring our way into Europe as it is.

Significant potential for us what I will not do is go out and buy a profitable dog food company, just because it's accretive.

Speaker Change: just because it's not available. I will continue to execute you on our strategy. We're very happy with the clean mobility for all strategy and as long as it fits within the that nexus of clean energy and transportation you can expect and it has the other attributes I've already described you can expect me to be interested in it but again most people who've ever done M&A with me will call me difficult.

Mike will continue to execute on our strategy. We're not we were very happy with our clean mobility for all strategy and as long as it fits within the that Nexus of clean energy and transportation you can expect and how does the other attribute as I've already described you can expect me to be interested in it but again most people have ever done M&A with me will call me <unk>.

Speaker Change: and difficult translates to you as an existing shareholder that I will not do a deal unless it's absolutely right for us. I don't fall in love with them, I don't grab at shiny things and I won't do a deal to enrich future shareholders or bankers.

<unk> and difficult to translates to you as an existing shareholder that I will not do a deal unless it's absolutely right for us I don't fall in love with them I don't grab it shiny things and I won't do a deal to enrich future shareholders or bankers.

Speaker Change: yeah so when you when you try and get some cash to buy something you're doing it to reduce the cost of course good

Yeah. So when you when you try and get some cash to buy something.

Doing it to reduce the cost.

Of course.

Okay. Okay. Your question again.

Thank you.

Okay.

Speaker Change: The next question will come from Amit Dayal with H.C. Wainwright. Please go ahead. Amit, how are you? Thank you. Hey, Desmond. Thank you for taking my questions. So, you know, just focusing on 2022, how should we think about, you know, sales mix, you know, between government and enterprise this year compared to, say, 2021? They're both going to grow. Now, you didn't, you asked me mix.

The next question will come from Amit Dayal with H C. Wainwright. Please go ahead.

Alright, Thank you Hey doesn't thank you for taking my questions. So.

Just focusing on.

2022.

How should we think about sales mix between government and enterprise this year.

Fair to say 2021 .

They're both going to grow.

No you didn't you asked me mix am I right. The truth is the truth is.

I think at the moment I have more insight into where I think government sales are going to go then we're enterprise sales will go and so I'm.

Itay Wainwright: I have more insight into where I think government sales are going to go than where enterprise sales will go. And so I would say that if someone was holding a gun to my head and I had to pick with one or other of them, at the moment I would say government sales. But I want to be absolutely clear. We have a couple of

I would say that if someone was holding a gun to my I don't know how to pick which one or all of them at the moment I would say government sales, but I want to be absolutely clear we have a couple of enterprise northern government opportunities, which were working at the moment, which could eclipse anything we've ever done with the government before so it's there simply isn't enough historic.

Itay Wainwright: enterprise non-government opportunities, which we're working at the moment, which could eclipse anything we've ever done with the government before.

Itay Wainwright: There simply isn't enough historical data for me to give you a scientific response to that question. There is going to be some more art than science and forecasting at the moment. The good news is that there's no question in my mind that the combination of the two things we're going to see some very, very good stuff this year.

Data for me to give you a scientific response to that question. There is going to be some more art than science in forecasting at the moment. The good news is that there's no question in my mind that the combination of the two things we're going to see some very very good good stuff this year.

Itay Wainwright: So is that pipeline, I think you said 19 million, is that pipeline sort of 50-50 between government and enterprise?

So is that pipeline you know I guess I think you said 19 million as that pipeline.

<unk> between government and enterprise.

Itay Wainwright: at 9-0 million, not 19. In case you said that, you may not have, but it's 9-0 million and it's in excess of that. And I think that that's probably more heavily weighted government at the moment. But in truth, you've caught me unprepared. I did not actually look at the breakdown between government and enterprise in the pipeline prior to the call. But I would say at the moment, it's probably a little more heavily weighted to government, but that can change very, very quickly.

At nine zero.

Million not 19, Incase, you said that you may not but it's nine zero million.

As in excess of that and I think that that's probably more heavily weighted government at the moment, but in truth. You caught me on you caught me unprepared I did not actually look at the breakdown between government and enterprise it and the pipeline part of the call.

But I would say at the moment, it's probably more heavily weighted to.

The government, but that can change very very quickly.

Speaker Change: Understood and then you know with this also acquisition

Understood and then.

Then.

This also acquisition.

Speaker Change: Are we looking to be potentially gross margin positive in 2022? Yes.

How are we looking to be potentially gross margin positive in 2022.

Yes.

Okay. Thank you.

Speaker Change: Have you already implemented any price increases or are these going to come through maybe later in the year?

Have you already implemented any price increases or are these going to come through maybe later in the year.

Speaker Change: We have not yet implemented any price increases, however, we are, as I said in my comments, and we do not intend at this point to increase the price of our product, but we are starting, well, not right now, we've already started to communicate to new prospects.

We have not yet implemented any price increases however.

We are as I said it was as I said in my comments.

And we do not intend at this point to increase the price of our product, but we are starting well not right now we've already started to communicate to new prospects.

Speaker Change: that in the event that they select an EVSE, a charger, which has increased in price, we will be passing that price on to them.

If in the event that they select and Evs EV Charger, which has increased in price, we will be passing that price at all.

Speaker Change: And, you know, they have options, right? The truth of the matter is, there are quite a lot of now good quality EV chargers out there. And we will, one of our philosophies and one of our commitments to our customers is that we will always try to steer them towards the least complicated, least expensive solution which will fit their needs.

On to them and.

And they have options right, but the truth of the matter is there are there are quite a lot no good quality EV Chargers out there and when we will one of our.

Philosophies in one of our commitments to our customers is that we will always try to steer them towards the least complicated least expensive solution, which will fit their needs.

Speaker Change: and their needs come first. Sometimes they choose things which, frankly, are a lot more than they need. We're gonna help them where that's concerned if they'll take our help. But the fact is, if they choose a charter which has gone up in price, then we will not absorb that cost. And as I said, in the one instance that I described, that's a 2% return of gross profit to us. And it happens to be one of the instances that we do more often than many others. So it should be impactful.

And their needs come first sometimes they they they choose things, which frankly in a lot more than they need we're gonna help them, where that's concerned if they'll take our health, but the fact is if they choose a charter which has gone up and price then we will not absorb that cost and as I said in the in the one instance that I described that's a 2% return of gross profit to us.

And it happens to be one of the most one of the instances that we do more often than than many others. So it should be impactful.

Speaker Change: Thank you. And then, you know, the folks who are coming to get a tour of the facility for the sponsorship side of things, you know, how deep are those discussions? I mean, at what stage of...

Got it. Thank you and then you know the folks who are going to get a tour of the facility for the sponsorship side of things.

How depot those discussions I mean at what stage of.

Speaker Change: are these transaction potential, are you...

These.

A transaction potential.

Are you at with those guys.

Speaker Change: They know the cost, they know the business model, they know the benefits, and they are coming to see.

They know the cost they know the business model they know the benefits.

And there they are.

Coming to see.

Speaker Change: us and get comfortable with our ability to manage it. Now, as I tell everyone on my sales team, if there's no ink, it stinks, right? We can tell lots of people the costs and benefits and do tours all day long, it doesn't make us any money. But what I'm trying to communicate to you, the types of organizations that are doing this, it's not reasonable to suggest that they would come and visit us and tour the factory and everything else like that, unless they were at least...

Austin get comfortable with our ability to do.

To manage it.

That you know that as I.

Tell every one of my sales team if Theres No Inc. Stinks right.

We can tell a lots of people that costs and benefits and do tours all day long doesn't make us any money, but I'm just what I'm trying to communicate to you is the types of organizations that are doing this.

It's just it doesn't it's not reasonable to suggest that they would come and visit us intuitive factor and everything else like that unless they were at least.

Speaker Change: you know, had some pretty high degree of interest in what we're doing here. I don't want to overstate something, I want to be careful about how I describe this, but I'm just...

You know.

Some pretty high degree of interest in what we are and what we're doing I don't want to over over state something I want to be careful about what I, how I describe this but I'm just it's.

Speaker Change: When you've been in business for as long as I have, you start to understand that when enough people keep asking for something, eventually one of them takes it.

When you've been in business for as long as you start to understand when enough people keep asking for something eventually one of them takes it.

Speaker Change: Have there been other tours like this or other sort of discussions that have gone this far on the sponsorship side?

Has there been other doors like this or are there sort of.

Discussions that are going to start in the spring to.

Just to try to do.

Speaker Change: No, it's much more active now than it's ever been. There's no question about that. It's taken a little while. I mean, there's all the other things that contribute. Remember, the sponsorship of this network is kind of like, it's in many ways.

No. It's much more active now than it's ever been so there's no question about that it's taken a little while I mean, there's all the other things that contribute to remember the sponsorship of this network is kind of like it is in many ways. It's a.

Speaker Change: It's very, very tuned into the whole EV thing, right? A couple of years ago, when we first started putting this in front of people, they didn't really kind of get it. There was not much urgency. They weren't really sure, but that's very much changing now. You could yourself, in five minutes, write down on the back of a napkin about 10 different companies that would be obvious players for this. And you might find that some of those are on our pipeline list.

Very tuned into the whole <unk> thing right a couple of years ago. When we first started putting this in front of people. They didn't really kind of get there was not much just they weren't really sure no I shouldn't but that's very much changing that you could yourself and <unk>.

Five minutes right down on the back of a napkin about 10 different companies that would be obvious players for this.

You might find that some of those are on our pipeline list.

Okay understood. Thank you doesn't mean, that's what Meyer appreciate it thanks, Tom all the best.

Speaker Change: Thank you, Desmond. That's all I have. Appreciate it. Thanks, Damir. All the best. I think we're a little over time, operator, but I'll

I think we're a little over time, operator, but I'll take another question. If there is one yes.

Speaker Change: Yes, sir. The next question will come from James McCulloch, investor. Please go ahead, sir.

Yes, Sir the next question will come from James Mcculloch Investor. Please go ahead Sir.

James Mcullck: Hello, James. Yes, good afternoon. So I had a question regarding the pricing strategy. So it's almost a three-part question. First one was, is there a price ceiling right now on your product that you feel that you can't bump up against?

Hello James.

Yes, good afternoon or.

So I had a question regarding the pricing.

Strategy. So it's a almost a three part question.

First one was there a price ceiling right now on your product.

But you feel that you can bump up against.

James Mcullck: Number one, and then as far as the strategy, most.

And then as far as the strategy most.

James Mcullck: well-run companies i would say are passing on uh... raw material or the cost increase uh... now more so than we've ever seen and for the most part consumers are accepting those increases uh... i'm a firm believer in your product in the need for your product and

Well run companies I would say are passing on raw material or other cost increase now more so than we've ever seen and for the most part consumers are accepting those increases.

I'm a firm believer in your product and the need for your product and.

James Mcullck: would anticipate a huge demand, so it was just usually price.

We would anticipate a huge demand so I was just due to the price.

James Mcullck: So I was just curious as to why you felt it was so important to not to pass on a legitimate cost increases on your current product line, as opposed to putting forward a new one.

Polished demand. So I was just curious as to why you felt it was so important to.

Not to pass on a legitimate cost increases on your current product line.

As opposed to putting forward some modest increases.

James Mcullck: third question was on the price. Is that due in part to the government contracts you've got that limit the potential or have a fixed price in the contract?

Third question was on the pricing is that due in part to a contract to the government contract got that limit the potential or have a fixed price and the contracts.

James Mcullck: And then the last question, if you can absorb all this, is if you know what percent of your cost of goods sold is actually the purchase price of the chargers that you're installing.

And then the last question, but you can absorb all this is it.

If you know what percent of your cost of goods sold is actually the purchase price of the charges that you are installing.

Speaker Change: Yes, but those are all I mean, those are all excellent questions, James. And frankly, you're talking about things that we spent a great deal of time talking about here. The 1st answer to the 1st part of your question is no, there is no ceiling on our product.

Yes. So those are all I mean, those are all excellent question, James and frankly, you're talking about things that we spent a great deal of time talking about the first answer to the first part of your question is no. There was no ceiling on our product.

Speaker Change: We have invented a brand new product for a pretty brand new industry. There are no comps out there. I'm not Kamatsu selling against Caterpillar or anything else like that. Similarly, it's not a cost plus margin type of model like a project would be. So what we've had to do is we've had to try to price the product in a way that there are two contributors to it. First of all, we seem to be getting an ever increasing sales doing that. It's obviously not priced so high that no one will buy it.

We we we have invented a brand new product for a pretty brand new industry. There. There's no comp side. There are no comp side, there I'm not come out to selling against caterpillar or anything else like that similarly, it's not a cost plus margin type of model like a project would be so what we've had to do is we've got to try to price the product in a way that.

Two there are two contributors to first of all we seem to be getting into ever increasing sales doing that so we're not it's obviously not priced so high that no one will buy it.

Speaker Change: And at the same time, we have a very clear path to profitability, in fact, very good profitability even at this price. Taking out inflationary matters right now, I'm very confident that at this selling price we can get to a 50% gross profit. And if you look at the sort of volumes that you and I believe are going to happen, then you can see that that ends up being a very profitable business because we have a lot of operators.

At the same time, we have a very clear path to profitability in fact, very good profitability even at this price.

Taking a inflationary mattresses right now I'm very confident that this selling price we can get to a 50% gross profit and if you look at the sort of volumes that you and I believe were going to happen.

You can see that that's ended up being a very profitable business, because we have a lot of operating leverage.

Speaker Change: There is no ceiling. To your point about the Government contracts, we have pricing in place with certain Government contracts, which we have to negotiate and increase if we do that.

So there's no ceiling.

To your point about the government contracts, yes, we do have pricing in place with certain government contracts.

Which we are we have to negotiate an increase.

If we do that.

Speaker Change: And then you also, but again, we're very happy to have those. I don't view them as problematic. I really don't, because as I said many times, the opportunity with our business actually right now is cost reduction. We don't need to increase our price. We can find many more ways to reduce our cost when we get to much larger volumes, or even before we get to much larger volumes. We're in the process of doing that right now. I described much of that in the call. So I don't think those contracts, volume is our best friend.

And then you also but but but again, we're very happy to have those I don't view them as problematic.

Really don't because as I've said, many times the opportunity, but with our business actually right. Now is cost reduction we don't need to increase our price. We can find many more ways to reduce our costs when we get to a much larger volumes or even before we get locked in much larger volumes were in the process of doing that right. Now it described much of that in the call. So I don't think that those those contracts.

Volume is our best friend the more volume that we do in fact, I'll say this to even more assertively. If one of our salespeople came to me and said I could tell a thousand of these units to market took $5000 off the selling price I'd say do it and we would make a buck a lot of money doing that volume is absolutely our friend and so we're gonna go along with that as for the percentage.

Speaker Change: the more volume that we do. In fact, I'll say this to you even more assertively. If one of our sales people came to me and said I could sell a thousand of these units tomorrow if it took $5,000 off the selling price, I'd say do it.

Speaker Change: and we would make a bucket load of money doing that. Volume is absolutely our friend, and so we're gonna go along with that. As for the percentage of the increasing, or the percentage of cost of the EVSE based against the total cost of our product, it goes anywhere from a couple of percent to 10%, depending on which version the customer chooses.

Of the increase in the percentage of cost of the the E D C based against our.

Against the total cost of our product it goes anywhere from a couple of percent to 10%, depending on which version.

Speaker Change: And so there's a great deal of variation in that. And by the way, the cost of the product, the cost of the EVSE doesn't always directly link to its capabilities. In other words, there are some which are quite expensive with a certain set of capabilities. And then there are others which are much less expensive that can pretty much offer the same things. But we, you know, we don't drive that bus. Usually our customer has already decided what kind of charge or service provided they want. All we're doing is replacing the construction and electrical process required to get that thing installed. Did I hit all four of them? You got them all.

We're choosing and so there's a great deal of variation in that and by the way the cost of the product the cost of the Evs. He doesn't always directly linked to its capabilities in other words, there are some which are quite expensive with a certain set of capabilities and then there are others, which are much less expensive that can pretty much offer the same things, but we you know we don't drive that bus usually our customer has already decided.

What kind of charge or service provider. They want all we're doing is replacing the construction and electrical process required to get that thing installed did that did I hit all four of them you got them all.

Thank you Sir.

Thank you.

Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to Mr. Desmond Wheatley for any closing remarks. Please go ahead.

This concludes our question and answer session I would like to turn the conference back over to Mr. Desmond Wheatley for any closing remarks. Please go ahead.

Desmond Weeley: Well, we're over time, so I'm going to keep them brief. You can probably gather from my tone, feeling pretty good about the business right now.

Well, we are over time, so I'm going to keep them brief.

You can probably gather from my tone, feeling pretty good about the business right now.

Desmond Weeley: Everybody is operating well. The first half of last year was not stellar for us. We made the changes that we needed to make, I think, and it was all personnel. And so any of the benefits that we described here today pretty much took place in the second half, particularly in the fourth quarter. I'm really looking forward to continuing through this year.

Everybody is operating well, we the first half of last year was not stellar for US we made the changes that we needed to make I think when it was all personnel.

And so any of the benefits that we described here today pretty much took place in the second half, particularly in the fourth quarter.

I'm really looking forward to continuing through this year.

Desmond Weeley: everything seems to be lining up right for us. It's tough. We've got a lot of inflation to deal with, but everything is lining up for us at the moment. I feel very good about the business. I'm happy that you're involved. I thank you for your questions and your attention. Let's make some money.

Everything seems to be lining up right for us it's tough to get a lot of inflation to deal with but everything is lining up for us at the moment and I feel very good about the business I'm happy that you're involved I. Thank you for your questions and your attention.

Uh huh.

Let's let's make some money together.

Bye bye.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

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