Q4 2021 Nuvve Holding Corp Earnings Call

March 31, 2022

Greetings. Welcome to Newby Holding Corp. Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. I should learn a question.

Greetings and welcome to the New Z holding Corp, fourth quarter, 2020 one earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press star zero on your.

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Eduardo Ruiz, Investor Relations. Thank you. We may begin.

Telephone keypad. Please note. This conference is being recorded I will now turn the conference over to Eduardo raise.

Investor Relations. Thank you you may begin.

Edward Roy: Thank you. On today's call are Gregory Poilan, Chief Executive Officer, and David Robson, Chief Financial Officer of Nuvi. Earlier today, Nuvi issued a press release announcing its fourth quarter and full year 2021 results. Following prepared remarks, we will open the call up for questions.

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On today's call are Gregory colon, Chief Executive Officer, and David Robson, Chief Financial officer of newly.

Earlier today <unk> issued a press release announcing its fourth quarter and full year 2021 result.

Following prepared remarks, we will open the call up for questions.

Edward Roy: Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect NUVI's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections.

Before we begin I would like to remind you that this call may contain forward looking statements. While these forward looking statements reflect <unk> current judgment.

They're subject to risks and uncertainties that could cause actual results could differ materially from those implied by these forward looking projections. These risk factors are discussed in movies filings with the SEC and in the earnings release issued today, which are available on our website <unk> undertakes no obligation to revise or update any forward bookings.

Edward Roy: These risk factors are discussed in NUBY's filings with the SEC and in the earnings release issued today, which are available on our website. NUBY undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances.

Statements to reflect future events or circumstances.

Edward Roy: With that, I would like to turn the call over to Gregory Paulan, Chief Executive Officer of NUV. Gregory?

With that I would like to turn the call over to Gregory Kwan, Chief Executive Officer of Newbie Gregory.

Gregory Paulan: Thanks Eduardo and good day to all. Thanks for joining us today to discuss our results for the fourth quarter and full year 2021.

Thank you Eduardo and great well, thanks for joining us today.

Results for the fourth quarter and full year 2021 .

Gregory Paulan: The need for vehicle electrification and the benefits and possibilities of vehicle-to-grid technology are coming more into view with each passing day and is important to grow grain.

The need for vehicle electrification and the benefits in <unk>.

Vehicle to grid technology.

Coming more into view with each passing day and is poised to grow mainstream.

Gregory Paulan: Recently, many of you have likely heard the buzz around Ford and GM support for bidirectional charging and pilot programs with utility companies that will demonstrate the ability for vehicles to interact with the electric grid.

Recently, many of you have likely heard the buzz around Ford and GM support for bidirectional charging and pilot programs with utility companies that will demonstrate the ability for vehicles to interact with the electric grid.

The bigger the or you have to get it.

Gregory Paulan: As they prefer to launch an electric version of their flagship models, they want to be sure they are enabling those vehicles to capture and deliver the full value they are capable of as the world actually buys, and this includes vehicles.

As they prepare to launch the electric versions of their flagship models. They want to be sure. They are enabling those vehicles to capture and deliver the full value. They are capable of as the world. She buys and these include vehicle to home.

Gregory Paulan: We see this development as a huge endorsement for Nuvi, raising awareness about the ability for EVs to send power back to the home and the grid. However, a vehicle capable of bi-directional charging does not on its own address the current challenges faced by the grid today for increased UV adoption.

We see these developments are a huge endorsement from new the raising awareness about the ability for evs powered back to the home and the grid.

However, our vehicle capable of bidirectional traffic not only phone address the current challenge.

By the grid today for increase give you adoption.

Gregory Paulan: and vehicle to own which allows an EV to power home in the event of blackouts and vehicle to grid are two different offers

And vehicle people, which allows the navy to power at home in the event of a blackout and vehicle to grid.

Different offerings.

Gregory Paulan: Bidirectional EVs are part of the solution, but it cannot solve the challenges posed to the grid on their own, nor do they improve EV economics, and this is where Nuvi comes into play.

Bidirectional Evs are part of the solution, but it cannot solve the challenges posed to the grid on their own nobu. They improve EV you couldn't mix and this is where <unk> comes into play.

Gregory Paulan: Through Nuvi's Grid Integrated Vehicle, our GIF platform, we're able to aggregate and provide power from EV at scale back into the grid by creating what we call virtual performance of VPP. Thereby integrating electric vehicles into the grid in the most efficient way possible.

Januvia as greedy integrated vehicle, our gift platform, we're able to aggregate and provide power from EV at scale back in the into the grid by creating what we call virtual apartments of ETP.

Thereby integrating electric vehicles in the into the grid in the most efficient way possible.

Gregory Paulan: In doing so, we're able to generate revenue for the customers and to lower the total cost of ownership of TCO.

In doing so we're able to generate revenue for our customers and lower the total cost of ownership OTT O.

Gregory Paulan: And at NUV our focus is first and foremost on fleet given their particular focus on TCO. The opportunity provided to them by V2G is simple. A fleet vehicle has predictable needs and spends a predictable amount of time parked and thereby not being utilized.

And that movie I focus first and foremost on fee given that particular focus on D. C O. The opportunity provided to them by BTG simple our fleet vehicle has predictable need and spent a pretty good amount of predictable amount of time heart and thereby not being utilized.

Gregory Paulan: By intelligently integrating vehicles into the grid, we're able to turn EVs into economic assets that both generate revenues and save costs to the customer.

Diligently integrating vehicles into the grid, we're able to do on ease into it couldnt be cast that both generated revenues and save cost to the customers.

Gregory Paulan: In the process, they also help provide overall great stability and resilience.

In the process. They also help provide overall grid stability and resilience.

Gregory Paulan: This is something very tough to do and is a product of our company's dedicated focus on V2G since our funding 12 years ago.

Something very tough to do.

These are product whereby companies dedicated focus on <unk> since our funding 12 years ago.

Gregory Paulan: And it is something that big established companies in the renewable sector with multiple focus areas are not equipped to handle.

And if it's something that big established companies in the renewable sector with notable focus areas I'm not equipped to handle today.

Of course electric vehicles need to be prepared to be used for their primary use case, which is to transport people goods and services from Boeing to eight point of view.

Gregory Paulan: Of course, electric vehicles need to be prepared to be used for their primary use case, which is to transport people goods and services from point A to point B. Our cloud-connected technology makes sure that every vehicle on our platform has enough energy charged for the next trip before it calculates how much capacity it can afford to sell back to the grid, and it ensures the vehicle is charging and discharging at optimum levels, all within the battery warranty.

Cloud connected technology mixture that every vehicle platform is enough energy to charge for the next year before it calculate how much capacity you can't afford to sell back to the grid and it ensures the vehicle the stocking and destocking at optimum levels all within the battery warranty limits.

Gregory Paulan: The end result is that through our technology we can, one, help lessen the burden on the grid that will be caused by the shift to electrification of transportation.

The end result is that through our technology, we can one help lessen the burden on the grid that will be caused by the shift to electrification of transportation.

Gregory Paulan: Two, increase the value of renewables and three, flatten the load curve.

To increase the value of renewable.

And three flatten the curve.

Gregory Paulan: Let me now turn to a recap of some of the key accomplishments in the fourth quarter and the full year 2021 before discussing a few recent developments and expectations that make us particularly excited for the year.

Let me now turn to a recap of some of our key accomplishments in the fourth quarter and the full year 2021 before discussing a few recent developments and expectation that make us, particularly excited for the year ahead.

Gregory Paulan: To recap the year, we completed our Go Public Acquisition just over a year ago, and are incredibly proud of our advancements in the past.

To recap the year, we completed our go public acquisition just over a year ago and are incredibly proud of our admin advancements in the past 12 months key milestone that we achieved include the introduction of our VITAS Your hub model, which enables us to combined energy from multiple EV battery to form virtual power plant that generate energy.

Gregory Paulan: three milestones that we achieved include the introduction last May of our V2G Hub model, which enables us to combine energy from multiple EV batteries to form virtual power plants and generate energy to be sold back to the grid. We took a big step towards putting this into practice in November when we announced our partnership with Bluebird to install hub infrastructure for up to 400 buses at the company's primary delivery facility in Georgia. We'll give you a date in the near future about this project.

If you go back to the grid, we took a big step towards putting this into practice in November when we announce our partnership with Bluebird too so hub infrastructure for up to 400 buses at the pump.

Chinese primary that'd be very facility in Georgia, We will give you some of the near future about this project.

Gregory Paulan: Last May, we have also announced our livability joint venture with Stonepeak and Evolve, and disclosed that transaction in the third quarter. Livore allows us to deliver a turnkey fleet as a service solution for fleet of all types of vehicles.

Let me be able to announce our E mobility joint venture, we don't take an evolved and disclose that transaction in the third quarter.

Allows us to deliver a turnkey fleet as a service solution for fleet of all types of vehicles.

Gregory Paulan: And as discussed in our last learning call, we have several notable commercial wins in the fourth quarter, including one our partnership with Bullbox on the Iberia Peninsula, which give us the entryway into the consumer slash residential vehicle to home market.

And as discussed in our last earning call. We had several notable commercial wins in the fourth quarter, including one our partnership with ballparks on being very upbeat in Sudan, which give us the entry way into the consumer's less residential vehicle to home market too.

Gregory Paulan: Two, a collaboration agreement with BYD and Nivo. And three, the V2G Hub announcement with Bluebird that I just referred to, all of which we did just in Modbus.

Two a collaboration agreement would be where the in vivo and three the VITAS your hub announcements with Bluebird that I just referred reaffirms too.

All of which we discussed in more detail in our last call.

Gregory Paulan: Each of these developments are critical to building out our pipeline of projects and expanding our megawatt into management, which I will touch in a few minutes.

Each of these developments are critical to building out our pipeline of projects and extending out maybe that wasn't the management, which I will touch in a few minutes.

Since the last earnings call the momentum continues to build.

Gregory Paulan: In February , we have announced the John Venture with 2021.ai to collaborate exclusively on the integration of their artificial intelligence platform with new VV2G platforms.

In February we have announced the joint venture with 2021 that AI to calibrate exclusively on the integration of their artificial intelligence platform with new VB tissue platform.

Gregory Paulan: 2021.ai platform handles the full lifecycle of artificial intelligence development and operation, and we believe this will bolster the predictive analytics capabilities of our products and services.

2021 , but AI platform and all the full lifecycle of artificial intelligence development and operation and we believe this is this will bolster the predictive analytics capabilities of our.

Our products and services.

Gregory Paulan: As we continuously look to enhance our platform, we will always consider whether to build by a partner. And this is one area where we believe partnering with those who are already experts in the field is most logical.

As we continuously look to enhance our platform, we will always consider whether to build buy or partner and this is whenever you are aware, we believe partnering with those who are already experts in that field is the most logical.

Gregory Paulan: A few weeks ago, we have announced a partnership with Swell Energy to offer combined solar storage, battery, and intelligent EV charging for residential and commercial markets.

A few weeks ago, we have announced the partnership with swelling energy two of a combined solar and storage battery.

In intelligent EV charging for residential and commercial markets.

A vehicle to grid services combined with swells distributed energy resource management system expands the passengers do pro residential customers to establish a comprehensive omni air system. We believe this will open the door for us to engage with other solar and storage providers and continue to enhance <unk> overall value proposition.

Gregory Paulan: vehicle to great services combined with swell distributed energy resource management system expands the opportunity for residential customers to establish a comprehensive home energy

Gregory Paulan: We believe this will open the door for us to engage with other solar storage providers and continue to enhance newbies' overall value properties.

Gregory Paulan: Turning now to our Levo Mobility JV for a few brief updates.

Turning now to our Levo mobility JV for a few brief updates.

Gregory Paulan: Earlier this month, LIVO announced a 10-year contract with the Troy School District in Troy, Illinois.

Earlier this month LIBOR announced a 10 year contract with a Troy School district and tried ignite the contract initially calls for the devote deployments of 76 Chargers Monday, a transportation as a service agreement and provide vivo with the rights of first refusal to convert the school district split of 64 school buses to zero emission vehicles.

Gregory Paulan: The contract initially calls for the deployment of 76 chargers under a transportation as a service agreement and provides LIVO with the right of first refusal to convert the school district split of 64 school buses to zero emission vehicle in as little as five years.

In the last five years, we are incredibly proud of this deal as it marks the largest and first 100% plant zero emission school bus with conversion in the Midwest, We expect to kick off with an initial deployment of charterers installation.

Gregory Paulan: We are incredibly proud of this deal as it marks the largest and first 100% planned zero emission school bus fee conversion in the Midwest. We expect to kick off with an initial deployment of charges installation

Gregory Paulan: infrastructure upgrades this summer before ruling out additional chargers with speed conversion plan in 2023.

Infrastructure upgrades December before rolling out additional charters with fleet conversion plan in 2023.

Gregory Paulan: Meanwhile, the leadership bench at Levo keeps getting deeper. Earlier this quarter, we announced the hiring of Levo's Chief Commercial Officer and Chief Operating Officer. And we recently hired a Chief Procurement Officer.

Meanwhile, the leadership bench that vivo keeps getting deeper earlier this quarter, we announced the hiring of Levo as Chief commercial officer, and Chief operating Officer, and we've recently hired a chief procurement Officer Levo and now has an established call leadership ready to capitalize on increasing appetite from our turnkey suite of services.

Gregory Paulan: LIVO now has an established core leadership ready to capitalize on increasing appetite from our turnkey fit as a service offering.

Buffering frame.

Gregory Paulan: Lastly, and more broadly than Nuvi, we continue to be excited about the $5 billion that will be made available to build out a national electric vehicle charging network and new infrastructure.

Lastly, and more broadly the movie we continue to be excited about <unk> 5 billion that will be made available to build out a national electric vehicle charging network and your infrastructure law.

Gregory Paulan: We have made a tremendous amount of progress across our business and achieved many important milestones over the past 12 months.

We have made a tremendous amount of progress across our business and achieved many important milestones over the past 12 months. These.

Gregory Paulan: These operational accomplishments have driven growth in our megawatt management and significant increase in orders for our chargers in momentum in our pipeline. I'd like to briefly speak.

These are personal accomplishment of driven growth.

Management and significant increase in orders for Chargers and momentum in our pipeline.

I'd like to briefly speak to the to each of these.

Gregory Paulan: First, megawatt under management, which we introduced on last quarter's call and is a pretty metric that we trapped because we believe it is a good indicator of the potential revenue growth embedded by commercial wings.

First maybe a bit under management, which we introduced on last quarters call and he's a predict midstream that'd be trapped because we believe it is a good indicator of the potential revenue growth embedded by commercial wins.

Gregory Paulan: Megawatt under management quantifies the aggregated amount of electrical capacity from deployment of new VV2G chargers, V1G chargers, and stationary batteries that we control and can supply under ideal conditions.

It's not a management quantified aggregated amount of electrical capacity from deployments of New V. Vitucci Charterers do you wanted your charterers and stationary batteries that we control and can supply under ideal conditions.

Gregory Paulan: We ended 2021 with 14.7 megawatts on the management.

We ended 2021 with $14 seven megawatts under management.

Gregory Paulan: This reflects a nearly 20% increase versus the third quarter of 2021, and nearly tripping of megawatt standard management from year and 2021 level.

This reflects a nearly 20% increase versus the third quarter 2021, and nearly tripling of megawatts under management from year end 2021 levels.

Gregory Paulan: We also experienced a significant increase in order for our chargers in the fourth quarter, including a step change in orders from DC charger.

We also experienced a significant increase in order for our charterers in the fourth quarter, including a step change in orders from DC Chargers.

Gregory Paulan: In fact, we sold more DC chargers in the fourth quarter than during the previous nine-month combined.

In fact, this commodity charterers in the fourth quarter than during the previous nine months combined.

Gregory Paulan: Importantly, we believe we are just getting going and this is reflected in our backlog as well as our pipeline.

Importantly, we believe we are just getting going and this is reflected in our backlog as well as our pipeline.

Gregory Paulan: Over the course of the year, we have increased our dedicated sales team, which is approaching 10 people compared to only one at the start of 2021.

Over the course of the year, we have increased our dedicated sales team, which is approaching 10 people compared to only one at the start of 2021.

Gregory Paulan: through the sales team and business development efforts that are the focus of our senior management team. We have created a process to connect with potential customers that we spend in size from one to five charging stations to larger partners involving thousands of more charging

Through the sales team and business there from the efforts that are focused on the focus of our senior management team. We have created a process to connect with potential customers that we spend in size from one two charts. We went to five charging stations to larger partners involving thousands more charging stations.

Gregory Paulan: At your end, we have a hardware and service order backlog of approximately 6.2 million.

At year end, we have it hardware and services order backlog of approximately $6 2 million.

Gregory Paulan: And through our sales efforts, our pipeline continues to grow at an even faster rate. We consider our qualified pipeline to be those potential customers where we have a memorandum of understanding in place or where we are working towards the definitive agreement.

And sure it sounds different pipeline continues to grow at an even faster rate, we consider our qualified pipeline to be those potential customers, where we have a memorandum of understanding in place where we are working towards a definitive agreement.

Gregory Paulan: A qualified pipeline is currently approximately 225 million.

Our qualified pipeline is currently approximately $225 million.

Formalized agreement can take time to execute and then given that in most cases. These are the first conversation that customers are having about exploring the benefits of b to G.

Gregory Paulan: Formalized agreement can take time to execute an announcement given that in most cases these are the first conversation that customers are having about exploring the benefits of V2G.

Gregory Paulan: This is a new concept to many prospective customers and stakeholders, and there is much to understand.

This is a new concept to many prospective customers and stakeholders and there is much to understand.

Gregory Paulan: We do not expect to cover 100% of our pipeline, and it's, of course, also important to keep in mind that, ultimately, products and services may be either sold outright to our customers or through a multi-year agreement, which would affect timing on revenue and conditions.

We do not expect to convert a high percentage of our pipeline and it's of course also important to keep in mind that ultimately products and services may be either sold outright who are accustomed to our customers all through a multiyear agreement, which would affect timing on revenue recognition.

Gregory Paulan: That said, we believe this information is helpful in providing insight into the efforts of our teams and the future potential we see with the growing market of EVs and increasing adoption for EVs.

That said, we believe this information is helpful in providing insight into the efforts of our teams and the future potential we see with the growing market of Evs and increasing adoption coffee too cheap.

Gregory Paulan: And based on active discussion and framework agreements we have in place, all in-let stage negotiations, we expect to have several exciting development developments to announce as we go through 2022 that will support backlog growth and ultimately revenue growth.

And based on active discussion then framework agreements, we have in place or in late stage negotiations, we expect to have several exciting deployment developments to announce as we go through 2022 that will support backlog growth and ultimately revenue growth.

Gregory Paulan: School buses have been the focus use case for our technology. School buses are, of course, part of the majority of the time, making usually just two trips for them and sitting at all for many, many months out of the year in the aggregate, all of which make them an excellent use case for each one.

Talbot is I've been to FERC. This use case for our technology.

But of course parts the majority of their time, making usually just two trips where theyre sitting idle for many many months out of the year in the aggregate all of which make them an excellent use case for BTG.

Gregory Paulan: However, the school bus segment is hardly the only opportunity

However, the school bus segment is hardly the only of course reset.

Gregory Paulan: Spend a bit on this. Flip management companies or FMCs are rapidly exploring vehicle electrification opportunities.

Spend a bit on this fleet management companies or FMC is a rapidly exploring vehicle electrification opportunity.

Gregory Paulan: As mentioned earlier, their fleet customers are hyper-focused on vehicle economics and lowering their total cost of ownership. And so as we as EV go mainstream, we see opportunities to partner with FMC's to set up hubs in various US locations and sell our products and services through their sales channel through multi-year agreements. Government vehicle fleet also has a lot to offer.

Earlier their fleet customers are hyper focused on vehicle, they can mix and lowering their total cost of ownership and so as we as easy go mainstream we see opportunities to partner with FMC is to set up hubs in values, you application and sell our products and services through their sales channel through multiyear agreements.

Government vehicle fleets also report going electric.

Gregory Paulan: This is especially true in isolated or remote location where there is, of course, a building out renewable infrastructure and where today's energy supply has proven to be costly and reliable. And we're keeping the lights on at the reasonable cost is likely to be increasingly challenged by the effects of climate.

This is especially true in isolated a remote location, whether it's of course, a building out renewable infrastructure.

And we have two days of energy supply has proven to be costly and unreliable.

And we're keeping the lights on at a reasonable cost is likely to be increasingly challenged by the effects of climate change.

Gregory Paulan: Newbies V2G offering not only helps reduce the total cost of vehicle ownership as governments replace their IC vehicles with still more expensive EVs, but it improves the resilience and therefore ultimately quite a deal.

Movies, Vitucci offering literally helps reduce the total cost of vehicle ownership of governments replace their IC vehicles, we still more expensive movies, but it improves degrees the resilience and therefore ultimately quality of life.

Gregory Paulan: Mobile storage systems are another exciting deployment in the battle against grid infrastructure challenges that are also in dynamic nature. We're excited to explore opportunities to integrate our vehicle-to-grid technology with mobile stationary storage systems.

Mobile search sistema or another exciting deployment in the battle against Green Cross grid infrastructure challenges that offer and dynamic nature, we're excited to explore opportunities to integrate our vehicle to grid technology with mobile stationary storage.

Gregory Paulan: opportunities that can track trickle grid challenges not only when needed but also when you

A press release that can track trickle grid challenges not only when needed, but also where needed.

Gregory Paulan: And finally, we see initial hub agreement and other contracts when we have announced we're afflicting only the beginning when it comes to our potential commercial opportunities with these particular customers.

And finally, we see initial hub agreement and other contracts when we have announced reflecting only the beginning when it comes to our potential commercial opportunities with these particular customers.

Gregory Paulan: We are always in discussion with our existing partners about how we can scale up our offering and even further.

We are always in discussion with our existing partners about how we can scale up our offering and even further.

Gregory Paulan: whether it be by expanding the number of vehicles served or enhancing our offering as we enter into new partnerships such as iCollaboration with Swell to integrate all of the storage.

Whether it be by expanding the number of vehicles serve are enhancing our offering as we enter into new partnerships such as our collaboration with swell to be taken.

Solar plus storage.

Same goes for Levo.

Gregory Paulan: Our win in Troy is getting the LIBO name out there, and we think it will help drive additional important commercial wins over the balance of the year. The future of NUV is truly...

Winning Troy is getting the legal name out there and we think it will help drive additional important commercial wins over the balance of the year.

The future of UV truly does feel bright.

Gregory Paulan: With that said, let me now turn to the call of David to discuss our financials before I conclude with some prepared remarks and open to some questions.

With that said, let me now turn to the call of its David to discuss our financials before I conclude with some prepared remarks and open to some questions.

David Robson: Thanks, Gregory. I'll start with a recap of the fourth quarter 2021 results.

Thanks Gregory.

Start with a recap of the fourth quarter 2021 results.

David Robson: In the fourth quarter, we generated total revenues of 1.2 million compared to 1.5 million in the fourth quarter of 2020.

In the fourth quarter, we generated total revenues of $1 2 million compared to $1.5 million in the fourth quarter of 2020. This reflects a year over year decrease of 15% primarily due to the completion of grant projects, which are no longer a core focus for newsy in the fourth quarter product and service.

David Robson: This reflects a year-over-year decrease of 15% primarily due to the completion of grant projects, which are no longer a core focus for newbie. In the fourth quarter product and service revenues increased 11% compared with the fourth quarter of last year, while grant revenues declined by 79% over the same period.

Revenues increased 11% compared with the fourth quarter of last year, while in grant revenues declined by 79% over the same period.

David Robson: Product and service revenues in the 4th quarter of 2021 represented 93% of total revenues compared with 71% for the 4th quarter of 2020. We expect product and service revenues will continue to become a larger mix of our business and grant revenues will be a smaller mix.

Product and service revenues in the fourth quarter of 2021 represented 93% of total revenues compared with 71% for the fourth quarter of 2020, we expect product and service revenues will continue to become a larger mix of our business and grant revenues will be.

Smaller effects.

David Robson: Margins on product and service revenues was 2.8% for the 4th quarter 2021 compared to 56.3% for the 4th quarter last year. DC Charger gross margins generally range from 20% to 25%. AC Charger gross margins are approximately 50%. And engineering service gross margins are

Margins on product and service revenues was two 8% for the fourth quarter 2021, compared to 56, 3% for the fourth quarter last year.

<unk> charges gross margins generally range from 20% to 25%.

You see charge your gross margins are approximately 50%.

Engineering services gross margins are 100%.

David Robson: The decline on a year-over-year basis not only reflects a mix shift,

The decline on a year over year basis, not only reflects a mix shift but also our decision to engage in a sale of D. C charges at a discount and a return for the contractual rights for a larger share of future grid service revenues with a particular customer.

David Robson: but also our decision to engage in the sale of DC charges at a discount in return for the contractual rights for a larger share of future grid service revenues with a particular customer.

David Robson: Total operating expenses excluding cost of sales was $8.5 million for the fourth quarter of 2021 compared to 3.3 million in the fourth quarter of 2020.

Total operating expenses, excluding cost of sales was $8 $5 million for the fourth quarter of 2021 compared to $3 3 million in the fourth quarter of 2020 the.

David Robson: The increase was primarily attributable to increased cost of sales associated with being a public company, an increase in payroll costs from increased staffing, and the cost associated with levo, which we established this year.

The increase was primarily attributable to increased cost of sales associated with being a public company.

An increase in payroll costs from increased staffing.

And the cost associated with Levo.

We established this year.

David Robson: Total operating expenses excluding cost of sales were relatively flat compared with the third quarter of 2021, increasing .3 million to 8.5 million from 8.2 million.

Total operating expenses, excluding cost of sales were.

Were relatively flat compared with the third quarter of 2021, increasing <unk> 3 million to $8 5 million from $8 2 million.

David Robson: Cash expenses or total expense, excluding stock compensation, depreciation and amortization was $7 million in the fourth quarter of 2021.

Cash expenses, our total expense, excluding stock compensation depreciation and amortization was $7 million in the fourth quarter of 2021.

David Robson: Levo incurred 0.3 million in operating expenses during the fourth quarter.

We incurred <unk> 3 million in operating expenses during the fourth quarter.

David Robson: Other income decreased to approximately $275,000 in expense for the three months ended December 31, 2021 relative to $241,000 in expense in the year-go-quarter.

Other income decreased to approximately $275000 in expense for the three months ended December 31, 2021 relative to $241000 in expense in the year ago quarter.

David Robson: Net loss attributable to newbie common stockholders for the fourth quarter 2021 was $8.8 million compared to $2.6 million for the fourth quarter of 2020.

Net loss.

Little to newly common stockholders for the fourth quarter, 2021 was $8 $8 million compared to $2 6 million for the fourth quarter of 2020.

Turning to full year results for the full year 2021, we generated total revenues of $4 2 million in line with our full year 2020.

David Robson: Turning to full year results, for the full year 2021, we generated total revenues of $4.2 million in line with the full year 2020.

David Robson: Full-year product and service revenues increase to $2.9 million from $1.9 million in the prior year, while grant revenues decline to $1.3 million from $2.3 million. This reflects a full-year 70-30 revenue split between product and service and grant revenues.

Full year product and service revenues increased to $2 $9 million from $1 $9 million in the prior year, while grant revenues declined to one 3 million from $2 3 million. This reflects a full year 70, 30 revenue split between product and service and grant revenues.

Yes.

David Robson: margins on products and service revenues was 31.4% for the full year compared to 73.2% for the prior year.

Margins on product and service revenue was 31, 4% for the full year compared to 73, 2% for the prior year.

David Robson: Again, product and service margins declined year-over-year due to a larger mix of DC charger sales in 2021 compared with the prairie year.

Again product and service margins declined year over year, I think a larger mix of decent charter sales from 2021.

Paired with the prior year.

David Robson: Total S&A expenses were $22.9 million for the full year of 2021, compared to $5.5 million in the full year of 2020. The increase was primarily attributable to increases in compensation expense of $12.3 million, including share-based compensation, non-recurring severance costs, as well as professional fees and governance costs associated with the completion of our business combination.

Total SG&A expenses were $22 $9 million for the full year of 2021 compared to $5 5 million and the full year of 2020.

The increase was primarily attributable to increases in compensation expense of $12 3 million, including share based compensation nonrecurring severance costs as well as professional fees and governance costs associated.

Associated with the completion of our business combination.

David Robson: Total R&D expenses increased to $6.5 million from $2.9 million.

Total R&D expenses increased to $6 5 million from $2 9 million.

David Robson: Levo incurred 0.8 million in operating expenses during the full year.

<unk> incurred $8 million in operating expenses during the full year.

David Robson: Other income increased to approximately $70,000 in income for the full year 2021 from a $200,000 expense in the prior year.

Other income increased to approximately $70000 in income for the full year 2021 from a $200000 expense in the prior year.

David Robson: Net loss attributable to Nuvi common stockholders for the full year 2021 was $27.3 million compared to $4.9 million for the full year 2020.

Net loss attributable to newly common stockholders for the full year 2021 was $27 $3 million compared to $4 9 million for the full year 2020.

David Robson: Now, turning to our balance sheet, we had approximately 32.4 million in cash as of December 31st, 2021, and remain in a good position with the funding from the transaction and our pipe investors.

Now turning to our balance sheet, we had approximately $32 4 million in cash as of December 31, 2021 and remain in a good position with the funding from the transaction and our pipe investment.

David Robson: We used $8.4 million in cash during the fourth quarter, $6.8 million in net cash losses, $1.8 million in higher working capital, and $0.3 million in fixed asset purchases associated with our new corporate office space offset by $0.6 million in proceeds from stock option exercise.

We used $8 4 million in cash during the fourth quarter $6 8 million in net cash losses, $1 8 million in higher working capital and $3 million and fixed asset purchases associated with our new corporate office space offset by <unk> 6 million and proceeds from stock option.

Mrs.

David Robson: Inventory increased to 11.1 million at the end of the fourth quarter from 6.2 million at the end of the third quarter. We increased our inventory on hand for chargers to ensure we had adequate product to support future sales growth. Given the longer lead times we are experiencing for product due to supply chain constraints.

Inventory increased to $11 1 million at the end of the fourth quarter from $6 2 million at the end of the third quarter, we increased our inventory on hand for Chargers to ensure we had adequate product to support future sales growth given the longer lead times, we are experiencing her product due to supply chain constraints.

Yeah.

David Robson: During the quarter, deferred financing costs associated with the $750 million capital commitment available to LEVO decreased by $3 million.

During the quarter deferred financing costs associated with the $750 million capital commitment available to levo decreased by $3 million, we reduced deferred financing cost to additional paid in capital when we issued preferred equity associated with levo.

David Robson: We reduced deferred financing costs to additional paid in capital when we issued preferred equity associated with levo on a first in first out basis of accounting.

On a first in first out basis of accounting.

David Robson: Now, turning to megawatts under management and estimated future grid service revenues, as Gregory noted, megawatts under management is symmetrically used

Now turning to megawatts under management and estimated future grid service revenues as Gregory noted megawatts under management symmetrically is to quantify the aggregated amount of electrical capacity.

David Robson: quantify the aggregated amount of electrical capacity for the deployment of our V2G chargers.

Appointment of our <unk> Chargers.

David Robson: V1G chargers and stationary batteries that NUV manages and can supply under ideal condition.

<unk> Chargers and stationary batteries that movie manages supply under ideal conditions. Currently are megawatts under management includes Chargers batteries located throughout the United States Europe and Japan.

David Robson: Currently, our megawatts under management includes chargers and batteries located throughout the United States, Europe , and Japan.

David Robson: During the fourth quarter, we added 2.3 megawatts under management, increasing our total megawatts under management to 14.7 from 12.4 megawatts at the end of the third quarter.

During the fourth quarter, we added 2.3 megawatts under management, increasing our total megawatts under management to $14 seven from $12 four megawatts at the end of the third quarter.

David Robson: The 14.7 megawatts under management was comprised of 3.4 megawatts from DC chargers, 4.3 megawatts from AC chargers, and 7.1 megawatts from stationary batteries.

The $14 seven megawatts under management was comprised of three four megawatts from DC Chargers for three megawatts from AC Chargers and seven one megawatts from stationary batteries.

David Robson: As of the end of the fourth quarter, 7.5 of the 14.7 megawatts under management included customer agreements allowing for new V to earn future grid service revenue.

As of the end of the fourth quarter, seven five or the $14 seven megawatts under management, including customer agreements, allowing for a new leader earn future grid service revenues.

David Robson: When we create V2G hubs, we will also further expand our Megawatt Thunder Management.

We create future <unk> House, we will also further expand our megawatts under management.

David Robson: This brings me to the estimated future grid service revenues associated with our megawatts under management and megawatts to be deployed, which is based upon a combination of contracted grid service revenues and merchant exposed revenues.

This brings me to the estimated future grid service revenues associated with our megawatts under management and megawatts to be deployed.

Based upon a combination of contracted grid service revenues and merchant exposed revenues.

David Robson: Contracted grid service revenues results from negotiated revenues per kilowatt year to be paid by the utilities. Merchant exposed grid service revenues is projected based on a number of factors and inputs, including the types of vehicles connected to our network, the expected use patterns for those vehicles, the length of term of the customer agreements, and the geographies of the deployment.

Contracting grid service revenues results from negotiated revenues per kilowatt year to be paid by the utilities merchant expose grid service revenues is projected based on a number of factors and inputs, including the types of vehicles connected to our network, we expect to use patterns for those vehicles.

The length of term of the customer agreements and the geographies of the deployments.

David Robson: Depending upon the geographic regions of our deployments, the grid service revenue opportunities will vary.

Depending upon the geography geographic regions of our deployments and grid service revenue opportunities will vary.

David Robson: Currently in the markets where we are focused, we are seeing grid service revenues ranging between $85 per kilowatt year up to $300 per kilowatt year.

Currently in the markets, where we are focused we are seeing grid service revenues ranging between $85 per kilowatt year up to $300 per kilowatt here.

David Robson: These revenues include a combination of contracted services and merchant exposed services, given the long-term nature of our customer deployments. These revenues are generally recurring for a period of 10 to 12 years and in some cases even longer.

These revenues include a combination of contracted services and merchant exposed services, given the long term nature of our customer deployments.

These revenues are generally recurring for a period of 10 to 12 years and in some cases even longer.

David Robson: Earlier, Gregory spoke to our backlog and qualified pipeline.

Earlier, Gregory spoke to our backlog and qualified pipeline.

David Robson: At year end, our hardware and services backlog was $6.2 million, which we estimate will add another 1.7 megawatts under management once deployed. And currently, our qualified pipeline is approximately $225 million.

At year end, our hardware and services backlog was $6 $2 million, which we estimate will add another $1 seven megawatts under management once deploy and currently our qualified pipeline is approximately $225 million.

David Robson: Although all of our qualified pipeline will not convert into backlog, the size of our qualified pipeline demonstrates the potential for Nuvi to significantly grow megawatts under management, which is building at a faster pace in 2022 than we experienced in 2021. And with more megawatts under management, we are able to offer more services which can generate larger amounts to bridge service revenue.

Although all of our qualified pipeline will not convert into backlog.

<unk> of our qualified pipeline demonstrates the potential for newsy.

Secondly, grow megawatts under management, which is building at a faster pace in 2022 than we experienced in 2021.

With more megawatts under management.

We're able to offer more services, which can generate larger amounts of risk service revenues.

David Robson: And with that, let me turn it back to Gregory for some closing thoughts before we go to Q&A.

And with that let me turn it back to Gregory for some closing thoughts before we go to Q&A.

Thanks, David 2021 was a transformational year for movie in which we help lay a foundation for us to continue to evolve and scale up of <unk> technology as the awareness and receptivity to our value proposition increases.

Gregory: Thanks, David. 2021 was a transformational year for Nuvi, in which we helped lay foundation for us to continue to evolve and scale up our V2G technology as awareness of and receptivity to our valuable position increases.

Gregory: the creation of our LIVO JV, our VPG Hub models, and some key commercial wins to go with the supported and near tripling of our megawatt under management.

The creation of our Levo JV, because you have models and some key commercial wins to go with the supported and near tripling of our megawatts under management.

Gregory: 2022 is up to a strong start as we continue to find new ways to strengthen and broaden our offering and has already included a key commercial win with Leavers.

'twenty two is off to a strong start as we continue to find new ways to strengthen and broaden our offering and has already included a key commercial win with level.

Gregory: We see opportunities to continue to expand our offering with existing customers and the school bus market, while also expanding beyond given an ample variety of use cases that we believe make sense for V2G application.

Gregory: We expect to have some exciting news on these fronts in the coming months. And look forward to speaking with you again in May, during our first quarter 2022 earning call. I would like to now turn the call over to the operator to be in the Q&A session. Operator.

We expect to have some exciting news on these fronts in the coming months and look forward to speaking with you again in may during our first quarter 2022 earn equal I'd.

I would like to now turn the call over to the operator to begin the Q&A session operator.

Thank you as he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star he is.

Speaker Change: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up the handset before pressing the start keys. Our first question is from Eric Stein with Craig Hallam Capital Group. Please proceed.

Our first question is from Eric Stine with Craig Hallum Capital Group. Please proceed.

Hi, Greg Hi, David.

Hey, Eric.

Eric Sign: Okay, so maybe just starting with the pipeline, just to confirm, I mean, is it fair to say that that $225 million, that that is hardware only? And then secondly, you know, I know that you're not expecting to have 100% hit right there. But just maybe some thoughts on how you think the timing might be of the progress you make within that pipeline.

So maybe just starting with the pipeline and just to confirm I mean is it fair to say that that $225 million that that is hardware only.

And secondly, I know that youre, not expecting to have 100% hit rate there.

And just maybe some thoughts on how you think.

Timing might be of the progress you make within that pipeline.

Uh huh.

Eric Sign: Hey, Eric, this is David. It is a combination of hardware and service products.

Hey, Eric This is David it is a combination of hardware and service revenues.

I believe we can contract.

Eric Sign: But it's hard to predict on the timing. These are ones that we've been working on for the better part of six months.

But it's hard to predict on the timing. These are ones that we've been working on for the better part of six months. So some of them some shorter.

Eric Sign: There are large agreements, many of them, so the timing of when they're closed.

They're large agreements many of them so the timing of when they're close.

Closes for forecasts at this point.

Eric Sign: And the revenue recognition associated with it is also can be complex, right? Some of it might be purchased by the customer, some of it might be including, for example, a default financing, which still changed the revenue recognition associated with those.

And the revenue recognition associated with it.

It can be complex.

Some of it might be purchased by customers some of it might be including for example, a depot.

Financing.

We still have changed their revenue recognition associated with those.

Speaker Change: Got it. Okay, maybe just ask this another way and kind of tie it into what you're seeing on the funding side, you know, in terms of, you know, the infrastructure funding, just maybe your most recent thoughts on timing, the form that may take here going forward over the next couple of months and quarters. And then just curious, I mean, are these

Got it okay.

Just ask this another way and kind of tied into what youre seeing on the funding side in terms of the infrastructure funding just maybe your most recent thoughts on <unk>.

The form that May take here going forward over the next couple of a couple of months and quarters.

And then just curious I mean are these.

Speaker Change: some of the large projects you're talking about within the pipeline is the vast majority of that tied to incentive availability and that being released, or how should we think about that?

The large projects Youre talking about within the backlog are within the pipeline.

The vast majority.

Majority of that tied to incentives availability and that being released or how should we think about that.

Yeah.

No.

Yes.

Speaker Change: Some of it is, but most of it is actually independent and some of it is actually outside the US as well. So, you know, I mean, you remember we have a footprint in Europe , in the US, in Japan. And so we still see traction across all those different areas.

Some of it is but most of it is actually independent.

Some of it is actually outside the U S as well.

I mean, you remember we have a footprint in Europe , and the U S and Japan.

And so we still see traction across the country.

Yes.

Speaker Change: And added, we're certainly seeing the funding helpful and we provide those services for customers to help them get funding. But as Gregory said, with respect to this qualified pipeline, it's a small.

We're certainly seeing the funding helpful and we provide those services for customers to help them get funded but its Gregory said with respect to the qualified pipeline. It's a small portion of the total.

Speaker Change: got it okay well maybe you know I guess

Got it.

Okay, well maybe.

I guess.

Speaker Change: Last one for me, just tied to LIVO.

Last one for me just tied to legal.

Speaker Change: I mean, where do you feel like you're at in terms of educating school districts that there are...

I mean, where do you feel like you're at in terms of educating school districts that there are solutions out there.

Speaker Change: solutions out there that enable this transition to electric school buses. I mean, is this a...

That enable this transition to electric school buses I mean is this.

Speaker Change: Is this a foreign concept to most school districts and you need to really work with them in detail or is this something that's...

Is this a foreign concept amongst school districts and you need to.

Really work with them in detail or is this something thats.

Speaker Change: It's fairly well understood and this is just a case of, you know, sometimes school districts can be slow moving as they, you know, roll out a new technology across their fleet.

Fairly well understood and this is just a case of.

Sometimes school districts can be slow moving as they.

Rollout.

New technology across their fleets.

Speaker Change: I think this is a great question. I think it depends, you know, geographically where this is happening, but we actually see quite a few dealers that are coming to us and say, hey, we really need to divide V2G with those school buses. And so, clearly, you know, it's what we've said here, the education around V2G and how this is a critical step in integrating the vehicle, it's also an important step in helping the total cost of ownership of those vehicles.

I think this is a great question I think it depends.

Geographically, where this is happening but.

We actually see quite a few dealers.

Behavior.

Because even though.

And so clearly it's what we've said here.

Patient around <unk> and how it is a critical step in integrating the vehicle.

So any critical importance thats been helping do they seem to total cost of ownership of those vehicles.

Speaker Change: And so, and so we really see the traction at training all across the change now, as I said, it depends on which geographies, I mean, California, definitely a lot of push for that, the Northeast, the great geography all the way, I'd say, even along the East Coast. And, and, and, and this is either here by the dealers that we're seeing that from the school districts or the dealers that I understand how this is important for them to differentiate their products in the marketplace as well.

And so and so we really see the attraction actually all across the chain now as I said, it depends on which geography.

Yeah definitely a lot of.

Push for that.

Did a great job after you all the way David.

Coast.

And.

And this is EBIT, who is either dealers.

We're seeing that from the school district.

And I understand how this is evolving.

<expletive> their products in the marketplace as well.

Got it thanks a lot.

Speaker Change: Our next question is from Brian Dobson with Shardan Capital Markets.

Our next question is from Brian Dobson with Chardan capital markets. Please proceed.

Hi, Good evening, so just a follow up question on your on your backlog and your pipeline I guess.

Brian Dobson: Hi, good evening. So just a follow-up question on your backlog and your pipeline. I guess, first, could you remind us where those numbers stood at the end of the last quarter? And second, did you see similar trends progress through the first quarter in terms of activity in your backlog and your pipeline?

First could you remind us where those numbers stood at the end of the last quarter and second did you see similar trends progressed through the first quarter in terms of in terms of activity in your backlog in your pipeline.

Hey, Brian This is David the backlog was relatively the same at the end of last quarter as it was.

Brian Dobson: This is David. The backlog was relatively the same at the end of last quarter, because it was this quarter, but one thing I would note is there's still a lot of work to be done.

This quarter, but one thing I would.

There was a pretty sizable.

Brian do you have any further questions.

David Robson: Oh, I'm sorry. I think I lost you there for a second. So you were saying that the backlog was was pretty flat from the last quarter.

I'm, sorry, I think I think I lost you there for a second so you were saying that the backlog was pretty flat from the last quarter.

Hello.

Oh, Okay maybe.

David Robson: Hold up one moment. Their line was showing connected. Let me just see what is wrong. Hold up one moment. I move.

Hello, one moment their line was showing connected let me just.

See what is wrong hold on one moment.

No.

Brian can you hear me, Okay, you're back in the conference.

Brian .

Brian can you hear us all right.

Brian can you hear us.

Speaker Change: Yes, I can. Can you hear me? Yeah, sorry about that technical difficulty. With respect to the question, you're right. The backlog was relatively unchanged from Q3 to Q4, but what I would point out is we had a lot of grant projects within our backlog that we rolled off because we're no longer focused on that. There's a pretty significant niche shift between hardware and charger sales that are comprised in our backlog as opposed to grant revenues in the past.

Yes, Hi, Ken can you hear me okay, yes.

Yes, sorry about that technical difficulty with respect to your question you're right. The backlog was relatively unchanged from Q3 to Q4, but what I would point out is we had a lot of grant.

Projects within our backlog.

<unk> rolled off because we are no longer focused on that there's a pretty significant mix shift between hardware and charger sales that are comprised in our backlog as opposed to grant revenues in the past.

Speaker Change: Oh, excellent. And I guess the same question for your...

Excellent and I guess.

Same question for you.

Yeah.

So.

Brian can you repeat that question one more time.

Speaker Change: Oh, sure. So, where did your pipeline stand at the end of the last quarter and, you know, have you seen similar activity in your pipeline and your backlog call it through the first quarter of the year as well?

Oh sure so where did your pipeline stand at the end of the last quarter and have you seen similar activity in your pipeline and your backlog call. It through the first quarter of the year as well.

Yes, we've seen an acceleration in our qualified pipeline in 2021 2022 as opposed to 2021 and what we're also seeing is the size of the pipeline for the customer size is larger than it had been in the past.

Speaker Change: Yeah we we've seen an acceleration in our qualified pipeline in 2021 2022 as opposed to 2021 and what we're also seeing is the size of the pipeline for the customer size is larger than it had been in the past.

Speaker Change: Which is why we wanted to come out this time and start to talk about qualified pipeline to give.

Which is why we wanted to come out at this time to start to talk about qualified pipeline to give.

Speaker Change: everyone a view of the size and scope of what we're seeing, which was the $225 million number that we put out.

Everyone have a view of the size and scope of what we're seeing which was the $225 million number that we put out.

Speaker Change: And one thing I want to ask is, when we go into the backlog, that means we have vehicles that are being deployed, where there is a contract for those vehicles.

And one thing I will announce exactly when we will know when we go into the backlog that means we have vehicles that are being deployed where there is a contract for those vehicles, but also where we have somewhat of a contract with the local utility right.

Speaker Change: but also where we have somewhat of a contract as a local utility, right? In something that just has an end customer contract, but yet not yet a contract as a utility might not get qualified for the backlog.

It's something that just has an end customer contract, but you might get a contract with EQT might not yet qualify for the backlog.

Speaker Change: And, and, but that would then go into the, into the, the qualified pipeline, which is not just the whole pipeline that we have, which is again, those.

But that would then go into the into the qualified pipeline, which is not just the whole pipeline rehab, which reaches again those those.

Speaker Change: no contracts that are partly in place either through an MOU or that we're negotiating a final agreement or that maybe we have one side of the agreement but we don't have the other side of the agreement.

No contracts that are partly in place.

An mou or that we are negotiating a final agreement while that maybe we have one side of the increments that we don't yet have the other side of the increments.

Speaker Change: Great. And then just finally for me, you felt pretty substantial lift in megawatts under management during the fourth quarter. Did you see similar trends progressing through the first quarter of the year as well?

Great and then just finally for me you saw a pretty substantial lift in megawatts under management during the fourth quarter did you see similar trends progressing through the first quarter of the year as well.

Speaker Change: You know, I mean, what I can say is that those tend to be very step functions, right? I mean, if you look at our history code, you can see that they are step, then it goes, no, to a slow pace, so potentially, and then they have bigger steps. It really depends on the size of the implementation, the make-out and the management, those are really charging stations that have been commissioned and that now are operational. And, you know, sometimes, again, these are coming through step process.

What I can say is that is that.

Those tend to be very step functions right. I mean, if you look at our historical as you can see that there are step then it goes to a slower pace of potentially and then the biggest that.

It really depends on the size of the implementation to the megawatts under management without recharging stations that have been.

Commission and then now our personal.

And sometimes again these aren't coming through two step process.

Speaker Change: So they tend to go at different space, at speed when you look at it from a quarter by quarter basis.

And so they tend to go a different space at speed when you look at it.

By quarter basis, I think very important to note here is the fact that we tripled our capacity in 2021.

Speaker Change: I think what's very important to note here is the fact that we tripled our capacity in 2021, and that we think this is a good matrix here.

And we think this is a good good matrix here Brian .

Speaker Change: Brian , one thing we did point out, which was with respect to our backlog that we have that hasn't been deployed, there's another step up that you can see that we disclosed in the script of around 2.3 megawatts when we deploy that backlog that we have today.

Brian One thing we did point out which was with respect to more backlog that we have that hasnt been deployed there is another.

Step up that you can see that we disclosed in the script is around two three megawatts when we deploy that backlog that we have today.

Wonderful thank you very much.

Yeah.

Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to management for closing comments.

This concludes our question and answer session I would like to turn the conference back over to management for closing comments.

Management: Thank you. Thank you for listening to us today. We're again very, very excited about the opportunity that we are facing and we are looking forward to sharing more with you as we get ready for our next zoning call in about a month and a half in May. So thank you very much.

Thank you. Thank you for listening to US today, we are again very very excited about the opportunity that we are facing and we are looking forward to sharing more with you.

As we get ready for our next earning call.

In about a month and a half you may.

Thank you very much.

Speaker Change: Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

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Speaker Change: Greetings, welcome to Newby Holding Corp. 4th Quarter 2021 Earning Squall. At this time, all participants are in a listen-only mode. A question is.

Greetings and welcome to our New V holding Corp, fourth quarter, 2020 one earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Edward Roy: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Eduardo Roy's investor relations. Thank you. You may begin.

Please note. This conference is being recorded I will now turn the conference over to Eduardo race.

That's the relations. Thank you you may begin.

Edward Roy: Thank you. On today's call are Gregory Poulin, chief executive officer, and David Robson, chief financial officer of Newby. Earlier today, Newby issued a press release announcing its fourth quarter and full year 2021 results. Following prepared remarks, we will open the call up for questions.

Thank you.

On today's call are Gregory colon, Chief Executive Officer, and David Robson, Chief Financial Officer of Newbie.

Earlier today <unk> issued a press release announcing its fourth quarter and full year 2021 result.

Following prepared remarks, we will open the call up for questions.

Edward Roy: And before we begin, I would like to remind you that this call may contain forward-looking statements, while these forward-looking statements reflect newbies' best current judgment, their subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections.

Before we begin I would like to remind you that this call may contain forward looking statements. While these forward looking statements reflect <unk> current judgment.

Subject to risks and uncertainties that could cause actual results can differ materially from those implied by these forward looking projections. These risks factors are discussed in movies filings with the SEC and in the earnings release issued today, which are available on our website <unk> undertakes no obligation to revise or update any forward looking.

Edward Roy: These risk factors are discussed in newbies filings with the SEC and in the earnings release issue today, which are available on our website. Newbie undertakes no obligation to revise or update any forward booking statements to reflect future events or circumstances.

Payments to reflect future events or circumstances.

Edward Roy: With that, I would like to turn the call over to Gregory Poulin, Chief Executive Officer of NUVI. Gregory.

With that I would like to turn the call over to Gregory Kwan Chief Executive Officer.

Gregory.

Gregory Paulan: Thanks, Eduardo, and great to all. Thanks for joining us today to discuss our results for the fourth quarter and full year 2021.

Thank you Eduardo and gradual.

Thanks for joining us today to discuss our results for the fourth quarter and full year 2021 .

Gregory Paulan: The need for a vehicle electrification and the benefits and possibilities of vehicle to grid technology are coming more into view with each passing day and imposed to grow maintenance.

The need for vehicle electrification and the benefits of 50 bps of vehicle to grid technology.

Coming more into view with each passing day and is poised to grow mainstream.

Gregory Paulan: Recently, many of you have likely heard the buzz around Ford and GM support for bi-directional charging and pilot programs with utility companies that will demonstrate the ability for vehicles to interact with electric grid.

Recently, many of you have likely heard the buzz around Ford and GM support for bidirectional charging and pilot programs with utility company that will demonstrate the ability for vehicles to interact with the electric grid.

The bigger the oil you have to get it.

As they prepare to launch the electric version of their flagship models. They want to be sure. They are and it being both vehicles to capture and deliver the full value they are capable of.

They actually buys and these include vehicle to home.

Gregory Paulan: We see this development as a huge endorsement for NUV, raising awareness about the ability for EVs to send power back to the home and the grid. However, a vehicle capable of bi-directional charging does not on its own address the current challenges faced by the grid today for increased UV adoption.

We see these developments are a huge endorsement from new the raising awareness about the ability for UBS powered back to the home and the grid. However.

However, the vehicle capable of bidirectional traffic not only address the current challenge.

By the grid today for increase give you adoption.

Gregory Paulan: and vehicle to one which allows the Navy to power home in the event of blackout and vehicle to grid up to different

And vehicle fuel, which allow the navy to power at home in the event of a blackout and vehicle to grid two different offerings.

Gregory Paulan: Bidirectional EVs are part of the solution, but they cannot solve the challenges posed to the grid on their own. Nor do they improve the economics. And this is where Nuvi comes into play.

Bidirectional Evs are part of the solution, but they cannot solve the challenge as opposed to the grid on their own nobu, they improve EV kind of mix and this is where <unk> comes into play.

Gregory Paulan: Through Nuvi's Grid Integrated Vehicle, or GIF platform, we're able to aggregate and provide power from EV at scale back into the grid by creating what we call virtual power plants or VPPs. Thereby, integrating electric vehicles into the grid in the most efficient weapons

Through new he's greedy integrated vehicle or <unk> platform, we're able to aggregate and provide power from EV at scale back in into the grid by creating what we call virtual apartments, or BGP, thereby integrating HD vehicles in the into the grid in the most efficient way possible.

Gregory Paulan: In doing so, we're able to generate revenue for the customers and to lower the cost of ownership of TCO.

In doing so we're able to generate revenue for the customers and.

Lower the total cost of ownership of TCU.

And maybe I focus first and foremost on fee given that particular focus on tcl.

Importantly provided to them by BTG simple.

Vehicle hot predictable need and spent a pretty good amount of predictable amount of time heart and thereby not being utilized by diligently integrating vehicles into the grid raybould ease into it couldnt be cats that both generate revenues and the cost to the customers.

Gregory Paulan: By intelligently integrating vehicles into the grid, we're able to turn EVs into economic assets that both generate revenues and save costs to the customer.

Gregory Paulan: In the process, they also help provide overall great stability and resilience.

The profit they also help provide overall grid stability and resilience.

Gregory Paulan: This is something very tough to do and is a product of our company's dedicated focus on V2G since our funding 12 years ago.

This is something very tough to do and ease of product whereby companies dedicated focus on BTG since our funding 12 years ago.

Gregory Paulan: And it is something that big established companies in the renewable sector with multiple focus areas are not equipped to handle.

And if it's something that big established companies in the renewable sector with notable focus areas I'm not equipped to handle today.

Gregory Paulan: Of course, electric vehicles need to be prepared to be used for their primary use case, which is to transport people goods and services from point A to point B. Our cloud-connected technology makes sure that every vehicle on our platform has enough energy to charge for the next trip before it calculates how much capacity it can afford to sell back to the grid, and it ensures the vehicle is charging and discharging at optimal levels, or within the battery warranty.

Of course electric vehicles need to be prepared to be used for their primary use case, which is to transport people goods and services from Boeing to eight point of view.

Cloud connected technology mixture that every vehicle platform nothing there do you charge for the next year before it calculate how much capacity you can't afford to sell back the big rate any of that ensures the vehicle the stocking and destocking at optimum levels all within the battery warranty limits.

Gregory Paulan: The end result is that through our technology, we can, one, help lessen the burden on the grid that will be caused by the shift to electrification of transportation.

The end result is that through our technology. We can one helped lessen the burden on the grid that will be caused by the shift to electrification of transportation.

Gregory Paulan: to increase the value of renewable and three flatten the load curve.

To increase the value of renewable and three flattening the yield curve.

Gregory Paulan: Let me now turn to a recap of some of the key accomplishments in the fourth quarter and the full year 2021 before discussing a few recent developments and the expectations that make us particularly excited for the year.

Let me now turn to a recap of some of our key accomplishments in the fourth quarter and the full year 2021 before discussing a few recent development and the expectation that make us, particularly excited for the year ahead.

Gregory Paulan: To recap the year, we completed our Go Public Acquisition just over a year ago and are incredibly proud of our advancements in the past month.

To recap the year, we completed our go public acquisition just over a year ago and are incredibly proud of our admin advancements in the past 12 months key milestone that we achieved include the introduction last may although BTG hub model, which enables us to combined energy from multiple EV battery deform virtual power plant that's been there right.

Gregory Paulan: Key milestones that we achieved include the introduction last May of our V2G hub model, which enables us to combine energy from multiple EV batteries to form virtual power plants and generate energy to be sold back to the grid. We took a big step towards putting this into practice in November when we announced our partnership with Bluebird to install hub infrastructure for up to 400 buses at the company's primary delivery facility in Georgia. We'll give you some updates in the near future about this project.

If you go back to the grid.

Okay.

Putting this into practice in November when we announce our partnership with Bluebird two hub infrastructure for up to 400 buses.

Company's primary day rate facility in Georgia, We will give you some of the near future about this project.

Gregory Paulan: Last May, we have also announced our livability joint venture with Stonepeak and Evolve, and this closed that transaction in the third quarter. Livore allows us to deliver a turnkey fleet as a service solution for fleet of all types of vehicles.

Let me now I really wont read your joint venture, we still can evolve and disclose that transaction in the third quarter.

<unk> allows us to deliver a turnkey fleet as a service solution for fleet of all types of vehicles.

Gregory Paulan: And as discussed in our last earnings call, we had several notable commercial wins in the fourth quarter, including when our partnership with Bulbox on the Iberia Peninsula, which give us the entryway into the consumer slash residential vehicle to home market.

And as discussed in our last earning call. We had several notable commercial wins in the fourth quarter, including one our partnership with Volvo on the <unk>.

Very upbeat into law, which give us the entry way into the consumer's less residential vehicle to home market.

Gregory Paulan: two, a collaboration agreement with BYD and Nivo, and three, the V2G Hub announcement with Bluebird that I just referred to, all of which we did just in Modbus.

Two a collaboration agreement to be where the in vivo and three the VITAS you have announcements with Bluebird that I just referred reaffirms too.

All of which we discussed in more detail at the high school.

Gregory Paulan: Each of these developments are critical to building out our pipeline of projects and expanding our megawatt into management, which I will touch in a few minutes.

Each of these developments are critical to building out our pipeline of projects.

Sending out maybe that wasn't the management, which I will touch in a few minutes.

Since the last earnings call the momentum continued to build.

Gregory Paulan: In February , we have announced the John Venture with 2021.ai to collaborate exclusively on the integration of their artificial intelligence platform with new VV2G platforms.

In February we have announced the joint venture with 2021 that AI to calibrate exclusively on the integration of their artificial intelligence platform with new <unk> platform.

2021 that AI platform and all the food lifecycle of artificial intelligence development and operation and we believe this is this will bolster the predictive analytics capabilities.

Our products and services.

Gregory Paulan: As we continuously look to enhance our platform, we will always consider whether to build by a partner, and this is one area where we believe partnering with those who are already experts in the field is most logical.

As we continuously look to enhance our platform, we will always consider whether to build buy or partner and whenever you are aware, we believe partnering with those who are already experts in the field most logical.

Gregory Paulan: A few weeks ago, we have announced a partnership with Swell Energy to offer combined solar storage, battery, and intelligent EV charging for residential and commercial markets.

A few weeks ago, we have announced the partnership with swell energy two of a combined solar storage battery.

And intelligent EV charging providential and commercial markets.

Gregory Paulan: vehicle-to-grid services combined with swell distributed energy resource management system expands opportunity for residential customers to establish a comprehensive home energy

A vehicle to grid services combined with swells distributed energy resource management system expands the posture, you've probably seen national customers to establish a comprehensive omni air system. We believe this will open the door for us to engage with other solar and storage providers and continue to enhance <unk> overall value proposition.

Gregory Paulan: We believe this will open the door for us to engage with other solar storage providers and continue to enhance newbies overall value proposition.

Gregory Paulan: Turning now to our Levo Mobility JV for a few brief updates.

Turning now to our Levo mobility JV for a few brief updates.

Gregory Paulan: Earlier this month, LIVO announced a 10-year contract with the Troy School District in Troy, Illinois.

Earlier this month LIBOR now a 10 year contract with Detroit School District, and try to ignite the contract initially calls for the devote deployments of 76 Chargers Monday, a transportation as a service agreement and provide vivo with the rights of first refusal to convert the school district split of 64 school buses to zero emission vehicles.

In the last five years, we are incredibly proud of this deal as it marked the largest and first 100% plan zero emission school bus feed conversion in the Midwest, we expect to kick off with an initial deployment of charterers installation.

Gregory Paulan: We are incredibly proud of this deal, as it marks the largest and first 100% planned zero emission school bus fee conversion in the Midwest.

Gregory Paulan: We expect to kick off with an initial deployment of charges installation.

Gregory Paulan: infrastructure upgrades this summer before ruling out additional charters with speed conversion plan in 2023.

Infrastructure upgrades of December before rolling out additional charters with big conversion plan in 2023.

Gregory Paulan: Meanwhile, the leadership bench at LIVO keeps getting deeper. Earlier this quarter, we announced the hiring of LIVO's Chief Commercial Officer and Chief Operating Officer. And we recently hired a Chief Procurement Officer.

Meanwhile, the leadership bench that vivo keeps getting deeper.

We announced the hiring of Levo as Chief commercial Officer, and Chief operating Officer, and we've recently hired a chief procurement officer.

Gregory Paulan: Livo now has an established core leadership, really capitalized on increasing appetite from our turnkey service offering.

We will now be called leadership ready to capitalize on increasing appetite from our turnkey fit does it serve.

Visa suffering right.

Gregory Paulan: Lastly, and more broadly than Nuvi, we continue to be excited about five billion that will be made available to build out a national electric vehicle charging network and new infrastructure.

Lastly, and more broadly the movie we continue to be excited about $5 billion that will be made available to build out a national electric vehicle charging network and new infrastructure alone.

Gregory Paulan: We have made a tremendous amount of progress across our business and achieved many important milestones over the past 12 months.

We have made a tremendous amount of progress across our business and achieved many important milestones over the past 12 months.

The personal accomplishment driven growth.

And the management and significant increase in orders for Chargers and momentum in our pipeline.

I'd like to briefly speak to the to each of these.

Gregory Paulan: First, megawatt under management, which we introduced on last quarter's call, and is a pretty metric that we trapped because we believe it is a good indicator of the potential revenue growth embedded by commercial wings.

First maybe about under management, which we introduced on last quarters call and he's a predict midstream that'd be trapped because we believe it is a good indicator of the potential revenue growth and get it back commercial wins.

Gregory Paulan: Megawatt under management quantifies the aggregated amount of electrical capacity from deployments of new VV2G chargers, V1G chargers, and stationary batteries that we control and can supply under ideal conditions.

Another management quantified aggregated amount of electrical capacity from deployment of new the BTG Charterers do you when do your charterers and stationary batteries that we control and can supply and the ideal conditions. We ended 2021 with $14 seven megawatts under management.

Gregory Paulan: We ended 2021 with 14.7 megawatts on the management.

Gregory Paulan: This reflects a nearly 20% increase versus the third quarter of 2021, and nearly tripping of megawatt standard management from year and 2021 level.

This reflects a nearly 20% increase versus the third quarter of 2021, and nearly tripling of megawatts under management from year end 2021 levels.

Gregory Paulan: We also experienced a significant increase in order for our chargers in the fourth quarter, including a step change in orders from DC charger.

We also experienced a significant increase in order for our Chargers in the fourth quarter, including a step change in orders from DC Chargers.

Gregory Paulan: In fact, we sold more DC chargers in the fourth quarter than during the previous nine months combined.

In fact, the commodity charterers in the fourth quarter than during the previous nine months combined.

Gregory Paulan: Importantly, we believe we are just getting going and this is reflected in our backlog as well as our pipeline.

Importantly, we believe we are just getting going and this is reflected in our backlog as well as our pipeline.

Gregory Paulan: Over the course of the year, we have increased our dedicated sales team, which is approaching 10 people compared to only one at the start of 2021.

Over the course of the year, we have increased our dedicated sales team, which is approaching 10 people compared to only one at the start of 2021.

The sales team and business there from the efforts that are focused on that but the focus of our senior management team. We have created a process to connect with potential customers that we spend in size from one to charge went through five charging stations to larger partners involving thousands more charging stations.

Gregory Paulan: At the end, we have a hardware and service order backlog of approximately 6.2 million.

At year end, we have better hardware and service order backlog of approximately $6 2 million.

Yes.

Gregory Paulan: And through our sales efforts, our pipeline continues to grow at an even faster rate. We consider our qualified pipeline to be those potential customers where we have a memorandum of understanding in place, or where we are working towards a definitive agreement.

And through it all different pipeline continues to grow at an even faster rate, we consider I qualified pipeline to beat those potential customers.

Where we have a memorandum of understanding in place, where we are working towards a definitive agreements. Our qualified pipeline is currently approximately $225 million.

Gregory Paulan: A qualified pipeline is currently approximately $225 million.

Gregory Paulan: Formalized agreements can take time to execute an announcement given that in most cases these are the first conversation that customers are having about exploring the benefits of V2G.

Formalized agreement can take time to execute and then given that in most cases. These are the first conversation that customers are having about exploring the benefits of BTG.

Gregory Paulan: This is a new concept to many prospective customers and stakeholders, and there is much to understand.

This is a new concept for many prospective customers and stakeholders and there is much to understand.

We do not expect to come to a high percentage of our pipeline and it's of course also important to keep in mind that ultimately products and services may be either sold outright youre accustomed to our customers all through a multiyear agreement, which would affect timing on revenue recognition.

Gregory Paulan: That said, we believe this information is helpful in providing insight into the effort of our teams and the future potential we see with the growing market of EVs and increasing adoption for the future.

That said, we believe this information is helpful in providing insight into the efforts of our teams and the future potential we see with the growing market of Evs and increasing adoption for BTG.

But as I've been the FERC use case for our technology School buses off course part the majority of their time, making usually just two trips where theyre sitting idle for many many months out of the year in the aggregate all of which make them an excellent use case for BTG.

Gregory Paulan: However, the school bus segment is hardly the only approach we see.

However.

<unk> segment is hardly the only of course reset.

Gregory Paulan: spend a bit on this, fleet management companies or FMC's are rapidly exploring vehicle electrification opportunities.

Extend a bit on this.

Fleet management companies, Oh, FMC that rapidly exploring vehicle electrification opportunity.

Gregory Paulan: As such and earlier, their fleet customers are hyper focused on vehicle economics and lowering their total cost of ownership. And so as we as EV go mainstream, we see opportunities to partner with FMC to set up labs in various U.S. locations and sell our products and services through their sales channel through multi-year agreements. Government vehicle fleet also has a number of products that are available in the U.S.

Touched on earlier their fleet customers are hyper focused on vehicle, they kind of mix and lowering depth of low cost of ownership and so as we as easy go mainstream we see opportunities to partner with FMC is to set up hubs in values, you application and sell our products and services through their sales channel through multiyear agreements.

Government vehicle fleets also grateful going electric.

This is especially true in isolated or remote location, whether it's of course, a building out renewable infrastructure.

And with two days of energy supply has proven to be costly and unreliable.

And we're keeping the lights on at a reasonable cost is likely to be increasingly challenged by the effects of climate change.

Gregory Paulan: Newbies V2G offering not only helps reduce the total cost of vehicle ownership of governments replace their IC vehicles with still more expensive EVs, but it improves the grid resilience and therefore ultimately quality of service.

Maybe it's because you're offering that probably helps reduce the total cost of vehicle ownership of governments replace their IC vehicles, we still more expensive evs, but he is improve the grid resilience and therefore ultimately quality of life.

Gregory Paulan: Mobile storage systems are another exciting deployment in the battle against grid infrastructure challenges that are often dynamic in nature. We're excited to explore opportunities to integrate our vehicle-to-grid technology with mobile stationary storage systems.

Mobile search does derma or another exciting deployment in the battle against grade grid infrastructure challenges that offer and dynamic nature. We're excited to explore opportunities to integrate our vehicle to grid technology with mobile stationary storage.

Gregory Paulan: opportunities that can track trickle grid challenges not only when needed but also when you

Approximately that can trickle grid challenges not only when needed, but also where needed.

And finally, we see initial IHOP agreement and other contracts, we have announced reflecting only the beginning when it comes to our potential commercial opportunities with these particular customers.

Gregory Paulan: We are always in discussion with our existing partners about how we can scale up our offering and even further.

We are always in discussion with our existing partners about how we can scale up our offering and even further.

Gregory Paulan: whether it be by expanding the number of vehicles served or enhancing our offering as we enter into new partnerships such as iCollaboration with Swell to be taken with solar storage.

Whether it be by expanding the number of vehicles serve are enhancing our offering as we enter into new partnerships such as our collaboration with swell, because we think with solar plus storage.

Same goes for Levo.

Gregory Paulan: Wind in Troy is getting the LIBO name out there, and we think it will help drive additional important commercial winds over the balance of the year. The future of NUV is truly important.

We didn't try getting the legal name out there and we think it will help drive additional important commercial wins over the balance of the year.

Future of UV truly battlefield brights.

Gregory Paulan: With that said, let me now turn to the call of David to discuss our financials before I conclude with some prepared remarks and open to some questions.

With that said, let me now turn to.

Cole of its David to discuss our financials before I conclude with some prepared remarks and open to some questions.

David Robson: Thanks, Gregory. I'll start with a recap of the fourth quarter 2021 results.

Thanks, Gregory I'll start with a recap of the fourth quarter of 2021 results.

In the fourth quarter, we generated total revenues of $1 2 million compared to $1 5 million in the fourth quarter of 2000 and twice. This reflects a year over year decrease of 15% primarily due to the completion of grant projects, which are no longer a core focus for newsy.

In the fourth quarter product and service revenues increased 11% compared with the fourth quarter of last year.

While in grant revenues declined by 79% over the same period.

The smaller banks.

Margins on product and service revenues was two 8% for the fourth quarter 2021, compared to 56, 3% for the fourth quarter last year, we see charges gross margins generally range from 20% to 25% AC charge. Your gross margins are approximately 50% and engineering service gross.

Margins are 100%.

The decline on a year over year basis, not only reflects a mix shift but also our decision to engage in a sale of D. C charges at a discount and in return for the contractual rights for a larger share of future grid service revenues with a particular customer.

David Robson: but also our decision to engage in a sale of DC charges at a discount in return for the contractual rights for a larger share of future grid service revenues with a particular customer.

David Robson: Total operating expenses excluding cost of sales was $8.5 million for the fourth quarter of 2021 compared to 3.3 million in the fourth quarter of 2020.

Total operating expenses, excluding cost of sales was $8 $5 million for the fourth quarter of 2021 compared to $3 3 million in the fourth quarter of 2020.

The increase was primarily attributable to increased cost of sales associated with being a public company.

An increase in payroll costs from increased staffing and the cost associated with Levo, which we established this year.

David Robson: Total operating expenses excluding cost of sales were relatively flat compared with the third quarter of 2021, increasing .3 million to 8.5 million from 8.2 million.

Total operating expenses, excluding cost of sales.

Were relatively flat compared with the third quarter of 2021, increasing <unk> 3 million to $8 5 million from $8 2 million.

David Robson: Cash expenses or total expense, excluding stock compensation, depreciation and amortization was $7 million in the fourth quarter of 2021.

Cash expenses, our total expense, excluding stock compensation depreciation and amortization was $7 million in the fourth quarter of 2021.

David Robson: We've incurred 0.3 million in operating expenses during the fourth quarter.

Incurred <unk> 3 million in operating expenses during the fourth quarter.

David Robson: Other income decreased to approximately $275,000 in expense for the three months ended December 31, 2021 relative to $241,000 in expense in the year-go-quarter.

Other income decreased to approximately $275000 in expense for the three months ended December 31, 2021 relative to $241000 in expense in the year ago quarter.

David Robson: Net loss attributable to newbie common stockholders for the fourth quarter 2021 was $8.8 million compared to $2.6 million for the fourth quarter of 2020.

Net loss.

Turning to new the common stockholders for the fourth quarter 2021 was $8 $8 million compared to $2 6 million for the fourth quarter of 2020.

David Robson: Turning to full year results, for the full year 2021, we generated total revenues of $4.2 million in line with the full year 2020.

Turning to full year results for the full year 2021, we generated total revenues of $4 2 million in line with our full year 2020.

Full year product and service revenues increased to $2 $9 million from $1 $9 million in the prior year.

Grant revenues declined to one 3 million from $2 3 million. This reflects a full year 70, 30 revenue split between product and service and grant revenues.

David Robson: Margins on product and service revenues was 31.4 percent for the full year compared to 73.2 percent for the prior year.

Margins on product and service revenue was 31, 4% for the full year compared to 73, 2% for the prior year.

David Robson: Again, product and service margins declined year-over-year due to a larger mix of DC charger sales in 2021 compared with the prairie year.

Again product and service margins declined year over year into a larger mix of decent charter sales in 2021.

Compared with the prior year.

David Robson: Total SG&A expenses were $22.9 million for the full year of 2021 compared to $5.5 million in the full year of 2020. The increase was primarily attributable to increases in compensation expense of $12.3 million, including share-based compensation, non-recurring severance costs, as well as professional fees and governance costs associated with the completion of our business combination.

Total SG&A expenses were $22 $9 million for the full year of 2021 compared to five 5 million and the full year of 2020.

Associated with the completion of our business combination.

David Robson: Total R&D expenses increased to $6.5 million from $2.9 million.

Total R&D expenses increased to $6 5 million from $2 9 million.

David Robson: LIVO incurred 0.8 million in operating expenses during the full year.

<unk> incurred $8 million in operating expenses during the full year.

David Robson: Other income increased to approximately $70,000 in income for the full year 2021 from a $200,000 expense in the prior year.

Other income increased to approximately $70000 in income for the full year 2021 from a $200000 expense in the prior year.

David Robson: Net loss attributable to Nuvi common stockholders for the full year 2021 was $27.3 million compared to $4.9 million for the full year 2020.

Net loss attributable to newly common stockholders for the full year 2021 was $27 $3 million compared to $4 9 million for the full year 2020.

David Robson: Now, turning to our balance sheet, we had approximately 32.4 million in cash as of December 31st, 2021 and remain in a good position with the funding from the transaction and our pipe investors.

Now turning to our balance sheet, we had approximately $32 4 million in cash as of December 31, 2021 and remain in a good position with the funding from the transaction and our pipe investment.

We used $8 4 million in cash during the fourth quarter $6 8 million in net cash losses.

$8 million and higher working capital and point $3 million and fixed asset purchases associated with our new corporate office space offset by $6 million and proceeds from stock option exercises.

David Robson: Inventory increased to 11.1 million at the end of the fourth quarter from 6.2 million at the end of the third quarter. We increased our inventory on hand for chargers to ensure we had adequate product to support future sales growth given the longer lead times we were experiencing for product due to supply chain constraints.

David Robson: During the quarter, deferred financing costs associated with the $750 million capital commitment available to LEVO decreased by $3 million.

David Robson: We reduced deferred financing costs to additional paid in capital when we issued preferred equity associated with levo on a first in first out basis of accounting.

So.

On a first in first out basis of accounting.

David Robson: Now, turning to megawatts under management and estimated future grid service revenues, as Gregory noted, megawatts under management is metrically used to quantify the aggregated amount of electrical capacity for the deployment of our V2G chargers.

Deployment of our <unk> Chargers.

David Robson: V1G chargers and stationary batteries that NUVY manages and can supply under ideal conditions. Currently, our megawatts under management includes chargers and batteries located throughout the United States, Europe , and Japan.

<unk> Chargers and stationary batteries that movie managing supply under ideal conditions. Currently are megawatts under management includes Chargers batteries located throughout the United States Europe and Japan.

David Robson: During the fourth quarter, we added 2.3 megawatts under management, increasing our total megawatts under management to 14.7 from 12.4 megawatts at the end of the third quarter.

During the fourth quarter, we added two three megawatts under management, increasing our total megawatts under management to $14 seven from $12 four megawatts at the end of the third quarter.

David Robson: The 14.7 megawatts under management was comprised of 3.4 megawatts from DC chargers, 4.3 megawatts from AC chargers, and 7.1 megawatts from stationary batteries.

The $14 seven megawatts under management was comprised of three four megawatts from DC Chargers for three megawatts from AC Chargers and seven one megawatts from stationary batteries.

David Robson: As of the end of the fourth quarter, 7.5 of the 14.7 megawatts under management included customer agreements allowing for new V to earn future grid service revenue.

As of the end of the fourth quarter, seven five or the $14 seven megawatts under management, including customer agreements, allowing for a new leader earn future grid service revenues.

David Robson: When we create V2G hubs, we will also further expand our megawatts under management.

When we created <unk> House, we will also further expand our megawatts under management.

This brings me to the estimated future grid service revenues associated with our megawatts under management and megawatts to be deployed.

Which is based upon a combination of contracted grid service revenues and merchant exposed revenues.

Contracted grid service revenues results from negotiated revenues per kilowatt year to be paid by the utilities merchant exposure grid service revenues is projected based on a number of factors and inputs, including the types of vehicles connected to our network, we expect to use patterns for those vehicles.

Length of term of the customer agreements and the geographies of the deployments.

David Robson: Depending upon the geographic regions of our deployments, the grid service revenue opportunities will vary.

Depending upon the geography geographic regions of our deployments and grid service revenue opportunities will vary.

David Robson: Currently in the markets where we are focused, we are seeing grid service revenues ranging between $85 per kilowatt year up to $300 per kilowatt year.

Currently in the markets, where we are focused we are seeing grid service revenues ranging between $85 per kilowatt year up to $300 per kilowatt here.

David Robson: These revenues include a combination of contracted services and merchant exposed services. Given the long-term nature of our customer deployments, these revenues are generally recurring for a period of 10 to 12 years and in some cases even longer.

These revenues include a combination of contracted services and merchant exposed services, given the long term nature of our customer deployments.

These revenues are generally recurring for a period of 10 to 12 years and in some cases even longer.

David Robson: Earlier, Gregory spoke to our backlog and qualified pipeline.

Earlier Gregory spoke to our backlog on qualified pipeline.

Although all of our qualified pipeline will not convert into backlog.

<unk> of our qualified pipeline demonstrates the potential for newsy.

Secondly, grow megawatts under management, which is building at a faster pace in 2022 than we experienced in 2021.

And with more megawatts under management, we are able to offer more services, which can generate larger amounts of bread service revenues.

David Robson: And with that, let me turn it back to Gregory for some closing thoughts before we go to Q&A.

And with that let me turn it back to Gregory for some closing thoughts before we go to Q&A.

Gregory: Thanks, David. 2021 was a transformational year for Nubi, in which we helped lay foundation for us to continue to evolve and scale up our V2G technology as awareness of and receptivity to our valuable position increases.

Thank David 2021 was a transformational year for <unk> in which we help lay a foundation for us to continue to evolve and scale up of Atg technology as awareness and receptivity to our value proposition increases there.

Gregory: the creation of our LIVO JV, our VQG Hub models, and some key commercial wins to go with the supported and near tripling of our megawatt under management.

The creation of our Levo JV.

Because you have models and some key commercial wins to go with the supported and near tripling of megawatt under management's two.

Gregory: 2022 is up to a strong start as we continue to find new ways to strengthen and broaden our offering and has already included a key commercial win with Levo.

2022 is off to a strong start as we continue to find new ways to strengthen and brought into our offering and has already included a key commercial win we'd level.

We see opportunities to continue to expand our offering with existing customers and the school bus market. While also expanding beyond given ample variety of use cases that we believe makes sense for heavy duty applications. We expect to have some exciting news on these fronts in the coming months and look forward to speaking with you again in May.

Gregory: We see opportunities to continue to expand our offering with existing customers and the school bus market while also expanding beyond given an ample variety of use cases that we believe make sense for our V2G application.

Gregory: We expect to have some exciting news on these fronts in the coming months. And look forward to speaking with you again in May during our first quarter 2022 earning call. I would like to now turn the call over to the operator to be in the Q&A session. Operator.

During our first quarter 2022, earning calls I would like to now turn the call over to the operator to begin the Q&A session operator.

Thank you as he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment may be necessary to pick up the handset before pressing the star he is.

Our first question is from Eric Stine with Craig Hallum Capital Group. Please proceed.

Hi, Greg Hi, David.

Hey, Eric.

Eric Sign: Hey, so maybe just starting with the pipeline, just to confirm, I mean, is it fair to say that that $225 million, that that is hardware-only? And then secondly, you know, I know that you're not expecting to have 100% hit right there. But just maybe some thoughts on how you think the timing might be of the progress you make within that pipeline.

So maybe just starting with the pipeline and just to confirm I mean is it fair to say that that $225 million that is hardware only.

And then secondly, I know that youre not expecting to have 100% hit rate there.

Maybe some thoughts on how you think.

The timing might be of the progress you make within that pipeline.

Eric Sign: Hey, Eric, this is David. It is a combination of hardware and service products.

Eric This is David it is a combination of hardware and service revenues.

I believe we can contract.

Eric Sign: But it's hard to predict on the timing. These are ones that we've been working on for the better part six months.

But it's hard to predict on the timing. These are ones that we've been working on for the better part of six months. So some of them some shorter.

Eric Sign: There are large agreements, many of them, so the timing of when they're closed.

They are large agreements many of them. So the timing of when they are close.

When it closes.

Eric Sign: and the revenue recognition associated with it is also can be complex. Some of it might be purchased by the customers, some of it might be including, for example, a default financing which will change the revenue recognition associated with those.

And the revenue recognition associated with it.

So it can be complex right.

Some of it might be purchased by the customers some of it might be including for example, a depot financing.

We still have changed their revenue recognition associated with those.

Got it okay.

And then maybe just asked another way and kind of tied into what youre seeing on the funding side in terms of the infrastructure funding just maybe your most recent thoughts on timing the form that may take here going forward over the next couple of a couple of months and quarters.

And then just curious I mean are these.

Some of the large projects youre talking about within the backlog are within the pipeline.

It is the vast majority of that tied to incentives and availability and that being released or how should we think about that.

No.

Speaker Change: Some of it is, but most of it is actually independent, and some of it is actually outside of the US as well. So, you know, I mean, you remember, we have a footprint in Europe , in the US, in Japan, and so we still feature action across all those different genres.

Some of it is but most of it is actually independent.

Some of it is actually outside the U S as well.

I mean, you remember we had a footprint in Europe , and the U S and Japan.

And so we still see traction across all of your revenues.

Speaker Change: And added we're certainly seeing the funding helpful and we provide those services for customers to help them get funding, but as Gregory said, with respect to this qualified pipeline, it's a small.

We're certainly seeing the funding helpful and we provide those services for customers to help them get funded but its Gregory said with respect to this qualified pipeline. It's a small portion of the total.

Speaker Change: got it okay well maybe you know I guess

Got it.

Okay, well maybe.

Speaker Change: Last one for me, just tied to Levo.

Yes.

Last one for me just tied to legal.

Speaker Change: I mean, where do you feel like you're at in terms of educating school districts that there are...

I mean, where do you feel like you're at in terms of educating school districts that there are solutions out there.

Speaker Change: solutions out there that enable this transition to electric school buses. I mean, is this a...

To enable this transition to electric school buses I mean is this.

Speaker Change: Is this a foreign concept to most school districts and you need to really work with them in detail or is this something that's...

Is this a foreign concept amongst school districts and you need to.

Really work with them in detail or is this something that's fairly well understood and this is just a case of.

Speaker Change: It's fairly well understood, and this is just a case of, you know, sometimes school districts can be slow-moving as they, you know, roll out, you know, a new technology across their fleet.

Sometimes school districts can be slow moving as they.

Rollout.

New technology across their fleets.

I think this is a great question I think it depends.

Speaker Change: I think this is a great question. I think it depends geographically where this is happening, but we actually see quite a few dealers that are coming to us and say, hey, we really need to divide V2G with those cool buses. And so clearly, you know, it's what we've said here, the education around V2G and the how it is a critical step in integrating the vehicle. It's also an important step in helping to this in the core cost of ownership of those vehicles.

Geographically, where this is happening but we.

We actually see quite a few deals that are coming to us.

Goodbye, because even though.

And so clearly it's what we've said here the education around <unk>, how big is it.

Critical integrating the vehicle.

And the critical importance that can help increasing the total cost of ownership of those vehicles.

Speaker Change: And so, and so we really see attraction after all, all across the change. Now, as I said, it depends on, on which geographies, I mean, California, definitely a lot of push for that, the Northeast. There's a great geography all the way, I'd say, and along the East Coast and, and, and, and, and this is either given by the dealers that receiving that from the school districts or the dealers that I understand how this is important for them to differentiate their products in the marketplace as well.

And so we really see the traction actually all across the chain now as I said, it depends on which geography.

Yeah definitely.

Push for that.

Did a great job for you all the way David along the East Coast.

And.

And this is either the dealers.

Recently on the school district.

How would you define it but it is differentiate their products in the marketplace as well.

Got it thanks a lot.

Speaker Change: Our next question is from Brian Dobson with Shardan Capital Markets.

Our next question is from Brian Dobson with Chardan capital markets. Please proceed.

Brian Dobson: Hi, good evening. So just to follow up question on your backlog and your pipeline. I guess first, could you remind us where those numbers stood at the end of the last quarter? And second, did you see similar trends progress through the first quarter in terms of activity in your backlog in your pipeline?

Hi, Good evening, so just a follow up question on your on your backlog and your pipeline I guess first could you remind us where those numbers stood at the end of the last quarter and second did you see similar trends progressed through the first quarter in terms of in terms of activity in your opinion.

Backlog and pipeline.

Brian Dobson: This is David. The backlog was relatively the same at the end of last quarter, because it was this quarter, but one thing I would add is there's still a lot of time left.

Hey, Brian This is David the backlog was relatively the same.

Last quarter as it was.

This quarter, but one thing I would.

There was a pretty sizable niche.

Brian do you have any further questions.

David Robson: Oh, I'm sorry. I think I lost you there for a second. So you were saying that the backlog was was pretty flat from the last quarter.

Hello, I'm, sorry, I think I think I lost you there for a second so you were saying that the backlog was pretty flat from the last quarter.

Hello.

Okay maybe.

David Robson: Hold up one moment, their line was showing connected, let me just see what is wrong, hold up one moment.

Hello, one moment their line was showing connected let me just.

See what is wrong hold on one moment.

No.

Brian can you hear me, Okay, you're back in the conference.

Brian .

Brian can you hear us all right.

Brian can you hear us.

Speaker Change: Yes, I can. Can you hear me? Yeah, sorry about that technical difficulty. With respect to the question, you're right, the backlog was relatively unchanged from Q3 to Q4, but what I would point out is we had a lot of grant projects within our backlog that we rolled off because we're no longer focused on that. There's a pretty significant mix shift between hardware and charger sales that are comprised in our backlog as opposed to grant revenues in the past.

Yes, Hi, Ken can you hear me okay.

Yes, sorry about that technical difficulty.

With respect to your question you're right. The backlog was relatively unchanged from Q3 to Q4, but what I would point out is we had a lot of grant.

Within our backlog.

We've rolled off because we're no longer focus on that as a pretty significant mix shift between hardware and charger sales that are comprised in our backlog as opposed to grant revenues in the past.

Speaker Change: Oh, excellent. And I guess the same question for your, for your,

Excellent and I guess the.

Same question for your crude.

Okay.

So.

Brian can you repeat that question one more time.

Atlin: Oh sure, so where did your pipeline stand at the end of the last quarter and you know have you seen similar activity in your pipeline and your backlog call it through the first quarter of the year as well?

Oh sure so where do your pipeline stand at the end of the last quarter.

And have you seen similar activity in your pipeline and your backlog call. It through the first quarter of the year as well.

Speaker Change: Which is why we wanted to come out this time and start to talk about qualified pipeline to give.

Which is why we wanted to come out at this time that start to talk about qualified pipeline to give.

Speaker Change: everyone a view of the size and scope of what we're seeing, which was the $225 million number that we put out.

Everyone have a view of the size and scope of what we're seeing which was the $225 million number that we put out.

Speaker Change: And one thing I want to ask is, when we go into the backlog, that means we have vehicles that are being deployed, where there is a contract for those vehicles.

Speaker Change: but also where we have somewhat of a contract as a local utility, right? It's something that just has an end customer contract, but yet not yet a contract as a utility might not yet qualify for the backlog.

It's <unk>.

Something that just has a name customer contract, but not yet a contract with EQT might not yet qualify for the backlog.

Speaker Change: And, and, but that would then go into the, into the qualified pipeline, which is not just the whole pipeline that we have, which is again those.

But that would then go into the into the qualified pipeline, which is not just the whole pipeline out of rehab, which reaches again those those.

No contracts that are in place.

An mou all of that we are negotiating a final agreement while that maybe we have one side of the argument that we don't yet have the other side of the equipment.

Great and then just finally for me you saw a pretty substantial lift in megawatts under management during the fourth quarter.

Speaker Change: Great. And then just finally for me, you saw a pretty substantial lift in megawatt under management during the fourth quarter. Did you see similar trends progressing through the first quarter of the year as well?

You see similar trends progressing through the first quarter of the year as well.

Uh huh.

Can say is that is that those tend to be very step functions right. I mean, if you look at our historical as you can see that they are.

Then it goes to a slower pace of potentially and then yet because it.

Speaker Change: It really depends on the size of the implementation, the make-out and the management. Those are really charging stations that have been commissioned and are now operational.

It really depends on the size of the implementation that began with no management without recharging station that had been.

Commissioned and then now our personal.

Speaker Change: And, you know, sometimes, again, these are coming through step process.

And sometimes again these aren't coming through two step process.

Speaker Change: And so they tend to go at different space, a speed when you look at it from a quarter by quarter basis.

And so they tend to.

At defense space at speed when you look at it on a quarter by quarter basis, I think very important to note here is the fact that we tripled our <unk>.

Speaker Change: I think what's very important to note here is the fact that we tripled our capacity in 2021 and that we think this is a good matrix here.

Capacity in 2021.

And we think this is a good good metrics there.

Brian One thing we did point out which was with respect to work backlog that we have that hasnt been deployed there is another.

Step up that you can see that we disclosed in the script and throughout two three megawatts when we deploy that backlog that we have today.

Wonderful thank you very much.

Okay.

Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to management for closing comments.

This concludes our question and answer session I would like to turn the conference back over to management for closing comments.

Thank you. Thank you for listening to US today, we again very very excited about the opportunity that we are facing and we are looking forward to sharing more with you.

As we get ready for our next earning call.

In about a month and a half in may so thank you very much.

Speaker Change: Thank you, this does conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

Q4 2021 Nuvve Holding Corp Earnings Call

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