Q1 2022 Romeo Power Inc Earnings Call

Okay.

The increase in our production capabilities and volume is made possible by our teams pointed focus on key areas of process improvement as we expand our capabilities.

And we will speak on this later in the call.

Additionally, we have also met all of our milestones and remain ahead of schedule and the ongoing transition of operations to our new manufacturing facility in Cyprus, California.

This new larger location will further allow us to streamline operations increased delivery levels.

Execute against our major contracts and keep our R&D department and our manufacturing operations under one common roof.

These enhancements will allow us to capture increased cost efficiencies and productivity.

Which will further reduce operating costs relative to our revenues as we take a new business and work down our existing backlog.

Which currently sits at $412 million based on minimum purchase commitments as of quarter end.

Slide five gives you a visual sense for how our commercial momentum is accelerating.

Our new management team came onboard starting in the summer of last year.

While this was important foundational for our company.

The purchase of our prior joint venture in February of this year was truly transformational.

It gave us back full control of our intellectual property and R&D.

Very importantly, it also opened new markets and geographies for us to pursue.

Our commercial momentum is clearly evident on this slide as you can see how quickly our commercial wins followed this event.

Working chronologically.

In early February we signed a three year contract extension with a longstanding customer and leader in the commercial vehicle industry. The minimum value of this extension of $17 million.

Then in March recaptured numerous wins, including a new multi phased commercial program with indigo technologies in automotive OEM that powers, both rideshare and delivery vehicles.

Next we announced a collaboration with Wrightspeed now revoke powertrains.

Leading designer and manufacturer of EV powertrains to safely Repower school buses transit buses and certain medium and heavy duty trucks into zero emission vehicles.

Yes.

And another major milestone we began shipping the first units of 80 kilowatt hour production pedigree packs to a key customer who has a heavy duty commercial electric vehicle manufacturer.

Moving to me, we just recently announced that we were selected by a new customer as the sole provider of lithium ion batteries for its first for its next generation low speed electric vehicles.

Lastly, the importance of full ownership of our solutions can be seen by the fact that we have secured four new pilot program customers two of which were previously restricted by clauses within our joint venture agreement.

Given this momentum and the breadth of conversations that are commercial and technology teams are having today.

I believe we have only scratched the surface of what Romeo is capable of and we look forward to continuing to deliver exciting new partnership opportunities.

To summarize I'm extremely proud of the Romeo team and the progress we are making commercially and operationally.

We continue to strengthen our partnerships leverage new opportunities and streamline our operations.

As our industry continues to grow and evolve we are well positioned to power vehicle electrification across multiple industries and further advance our leading EV battery technology.

With that high level overview, I would now like to turn the call over to Chief strategy and commercial officer, Lauren Webb, who will speak further about the exciting commercial sales and partnerships activities occurring at Romeo power Lauren. Thank.

Thank you Susan and good afternoon, I'll begin my remarks on slide six where I will give a brief discussion of Romeo powers recent business development activity and successes.

And Susan just the last quarter, we've been one of building forward momentum.

First we reached a tremendous milestone in the history of our company, though we've been designing battery systems and delivering battery packs to customers for multiple years in Q1, we began serial production for a class eight OEM. We've now proven that we not only have the right technology to power long haul heavy duty.

We also have the operational know how to put these trucks on the road at scale, we expect to solidify our position as a class eight battery supplier as we move towards serial production with other class eight customers in 2023.

We have commercial relationships with truck manufacturers, representing approximately 30% of the class eight market today, and we're pressing forward to engage with others.

We're also pleased to have announced for commercial wins in this quarter selecting the right battery supplier is a linky an important process for all customers regardless of their industry. We understand the complex concerns each of our perspective customers hasn't choosing the right electrification partner and we will continue to invest the time necessary to develop a high quality.

Order book.

To that end, we've built a strong new sales team with extensive experience in commercial in transit vehicles as well as in a variety of alternative fuels.

In a short period of time. These seasoned sales professionals have developed a strong pipeline of new pilot customers and our expanded target markets and designed a battery seminar for prospective customers who are in early stages of their electrification decisions.

We're looking forward to hosting the first one of those seminars this summer in our Cypress facility.

Since our acquisition of the prior joint venture in February our team has thoroughly vetted the opportunities from the acquisition and determined 15 to be worth pursuing in fact two of these opportunities have already converted to new orders. We've also added seven new opportunities in fields that previously would have been restricted by the JV, either because of vehicle type or <unk>.

AGA fee.

On slide seven we outline and simple fashion the value proposition of our product and technology and why customers are choosing romeo to meet their unique needs.

Increasing numbers of small commercial and niche vehicle markets are beginning the transition to electrification and romeos highly configurable design and variety of voltage offerings make us an attractive option for all of them.

Our 10 kilowatt hour building blocks can be sold alone individually or as a bundle of modules with our battery management system.

Or they can be packaged into the 30 kilowatt hour or 80 kilowatt hour minera packs, which will accommodate newer numerous vehicles in any industry on road or off road on land and sea or in the air manned or autonomous et cetera.

We are engaged in conversations weekly with vehicle manufacturers and integrators in these markets as we focus on commercializing our existing product portfolio and as many applications. As we can we will continue to be opportunistic in emerging markets.

Slide eight outlines one such emerging market and Thats mobile charging.

As the commercial vehicle industry seeks to comply with federal and state electrification goals by 2030, it's clear that sufficient charging infrastructure and grid capacity to support the vehicle mandates will be difficult to achieve on that timeline.

In order to support our fleet customers electrification activities Romeo is developing a mobile charge trailer capable of powering multiple vehicles simultaneously for example up to for class eight trucks.

This mobile unit pairs, our monarch 80 packs with DC Chargers in a 40 foot container that can be attached to a trailer for mobile deployment network sites as supplemental charging in a depot or in emergency response situations.

Discharging trailer is currently in a proof of concept phase and the first prototype is planned for deployment with one of our strategic fleet partners in the first quarter of 2023, we look forward to sharing more information about this project with you in future calls.

With that I'll turn the call over to Ann Devine, Chief operating officer, who will discuss details around our operational activity and.

Thank you Lauren and good afternoon, everyone. This is my first earnings call with Romeo power since joining the team as Chief operating officer earlier, this year and I look forward to getting to know our investors and stakeholders in the coming months.

Going to focus my remarks on the exciting strides we are making as we advance our operational capabilities and the progress in our ongoing move to our state of the art facility in Cyprus, California.

First regarding the move to our new plant in Cyprus or timeline as detailed on slide nine and we're currently slightly ahead of schedule since.

Since February we have consistently met our internal milestones from completing the architectural design through the initial launch of construction achieving all the necessary permitting we are now pushing forward through the construction process and we anticipate that this will ultimately be completed by late July .

This slide also displays a few images of the current construction progress underway in Cyprus.

Including the completion and setup of our production lines number three which will be commissioned shortly.

Bottom image shows the already completed relocation of wind one from the Vernon facility you.

<unk> heard us state in the past that this move is strategically important to our development and success moving forward as we grow it not only allows romeo to double its floor space and provide for expanded lab facilities, but it also keeps our product manufacturing under the same roof as our engineering personnel and assets, which could not have occurred.

Had we remained in our current burn Vernon location.

Moving on to slide 10-Quad.

Quality remains one of romeo's critical focus areas as we strive to partner with our customers in this rapidly evolving industry. We have spent considerable amounts of time.

Banding training programs conducting fewer changeovers in order to improve consistency and machine uptime.

Focus on this critical area has been the driving force in delivering the observed 90% improvement to our end of line yield targets and evidenced further by the 18% reduction in scrap and meaningful improvements in laser weld performance, we have achieved.

The image towards the bottom of the page actually displace machinery that has directly contributed to the improvements we are seeing in laser wealth and scrap reduction.

These developments are exciting steps forward in our operations and indicative of the sequential progress we are making in positioning our operations to meet customer commitments and growing demand.

Turning to slide 11, we show the progress we are making in terms of driving higher manufacturing throughput and increased customer deliveries. The chart on the page shows a significant increase in deliveries to customers as measured by the battery modules shipped on a month by month basis as we closed the first quarter, we were able to achieve monthly production rates.

A marked an increase of up to 75% compared to that of the sequential fourth quarter. As you can see on the chart line three as I mentioned, a moment ago has been installed and is in the process of completing its commissioning phase and full ramp up at the Cyprus facility.

Again, the full move to Cyprus is expected to be complete in Q3.

Going forward, we will install additional production equipment, which we expect to be complete by the end of the first quarter. In 2023. This will help us satisfy the growing needs of our current and prospective customers. We are very encouraged not only by the solid operational foundation, we are building, but how these actions translate to a greater fixed cost.

Leverage and direct improvements to manufacturing throughput driving our ability to deliver volume growth.

Now I'll turn the call over to AK, Chief Technology Officer, who will provide you with greater detail around the future of Romeo power technology.

Hey.

Thank you Ann this is AK Chief Technology Officer at Romeo power on responsible for ensuring our technology and products are leading the transition to electrification of commercial vehicles early.

Earlier today I was honored to be a future panelists.

Clean transportation Expo here in town, where Romeo is also a sponsor and exhibitor.

This is one of north America's largest conferences showcasing real world applications of the latest transportation technologies I thought it would be great for our investors to get a sense of the presentation that I delivered at the Expo as it highlights, our leading IP and where romeo fits in the rapidly evolving electrification industry.

Please turn to slide 12, as I'd like to give you more insight into what our current technological pillars are and share some of our latest critical data and results demonstrating our leadership and competitive edge in the marketplace.

From a very high level the segment the segments on which were focused our cell technology.

Jewel impact technology embedded systems, and power electronics, and last but not least battery intelligence and warranty services.

Turning to slide 13 now funding.

Fundamentally on the technology side, we're seeing the EV industry exhibit three major categories with multiple approaches within each category.

As categories or segments are best referred to as entry level low cost, mostly achieve your lithium iron phosphate oiler fee Hy.

High volume performance with the MCM, NCA and CMA cathodes as well as high performance for specialty applications, usually dominated by dominant silicon anodes lithium metal solid state cells.

Vic I think it was just mentioned exhibit different performance to cost characteristics and typically sacrifice performance for improved cost.

With the current state of technology scaling and market penetrations, it's evident that commercial vehicle solutions are spread between entry level low cost for low mileage applications and the high volume performance segment enabled through the advancement of nickel based energy dense systems.

Our menorah product family today competes very well and the performance high volume segments as evidenced by our customers achieving some of the longest range performance and their vehicles using our batteries.

So this is a very strong position to be in as performance to enable complex electric applications is well balanced with the cost of entry and the total cost of ownership.

Additionally, this places us in a very particular position on this graph.

Roadmaps and development efforts are focused on continuously increasing energy density while maintaining the highest safety standards, all while reducing costs. This would basically be moving us and our customers towards the top left corner of the graph towards the ideal state. We all would like to see in this quarter and we're optimizing for safety.

Range cost charge time.

Power as a liquidity.

Yes.

As a result for at least the next decade, we're convinced that advanced commercial vehicles under applications will thrive on graphite based on nodes and nickel based cathodes under evolutions.

Now I'd like to show you some of the technical results demonstrates how advanced our product is as applied to advance commercial vehicle electrification.

As you can see on slide 14 safety comes first it's our goal to eliminate on safety events by combining design in algorithms in a cost effective fashion.

The industry must move and maintain at least single cell salt tolerance. This is the ability to control the cascading events, resulting from the major failure over so.

We have all seen in the media recently, the consumer vehicle thermal events across some very some very well known car brands.

Systems were based on pouch cells, prismatic cells, which cannot achieve single cell fault tolerance on Leslie and cure heavy losses in energy density and increased cost in the design.

Not only do our systems achieve single cell fault tolerance on a variety of cell chemistries. While we have also implemented and commercialized and event detection feature that exceeds industry standard by threefold.

We're able to provide the commercial truck driver in 18 minutes safety window by providing a warning signal before an uncontrolled event or a normally of course, we believe we're one of the few if not the first to achieve and exceed the standard called <unk> for complex commercial vehicle applications.

In the future, we will be developing even more advanced features with longer horizon prediction ability.

It's our goal to one day achieve prognostics to give alert signals with even longer 60 windows.

Moving onto another critical piece of the puzzle. We sold is the combination of fast charge and long life for commercial vehicle batteries. Please.

Please turn to slide 15, as a reminder, electric commercial vehicles are trying to displace diesel commercial vehicles, which are known to be heavy duty with long life, albeit they are notorious for toxic emissions and impact on global warming.

What you see on the graph are validating results from our own or our product under daily fast charging conditions here.

Here, we're talking about 10% to 80% state of charge in 30 minutes, only which believe is a first for commercial vehicles.

This is equivalent to adding 250 to 300 miles of range on a class seven or eight truck using the growing in popularity one megawatt Chargers.

Results showed that even though charge conditions are very aggressive we're able to achieve 800 cycles and counting all while maintaining so far 85% capacity reduction to be clear. These results were collected on a minority prototype delivered to a major class eight OEM.

We will continue conducting this test and report back.

This state of the Art result is achieved through careful cell chemistry selection and applying it to email powers proprietary charge control algorithms thermal management and other design features.

Our nominal charge results in fast charge results indicated that our battery systems can compete on performance and life against diesel scoring eight to 12 years of first life and in excess of hundreds of thousands of miles. This is a very high bar for new Chemistries to achieve it's a major challenge for lithium met.

It'll solid state or solid silicon dominant systems to penetrate advanced commercial vehicle applications against the results you've just seen.

Romeo power has clearly defined the right solution for this demanding vehicle classes.

We believe we are the first company to deliver such validated performance for heavy duty commercial vehicles.

I'll now turn the call to Cary to discuss our financial results and 2022 outlook and for some closing remarks Jerry.

Thank you AK in June or evening to everyone. Please now turn to slide number 16.

Susan mentioned, our first quarter results demonstrate continued progress and notable top line growth as we further leverage our commercial progress improved operations and industry leading technology.

Beginning on the left we reported $11 $6 million of revenue for the first quarter of 2022, which was 27% higher than revenues in the previous quarter and almost 11 times higher when compared to the first quarter of 2021.

Notable revenue growth was driven by increased delivery levels against our key sales contracts supported by our improved production capabilities and increased staffing to add effective production capacity.

Moving to our revenue guidance, we are affirming our outlook of $40 million to $50 million for the full year 2022.

I do want to remind you that we have changed the arrangement with respect to battery cells used in our manufacturing a product for a major customer that's having an impact on how we frame our revenue guidance pre.

Previously we procured these cells. So the related value was included in both revenues and cost of revenues going forward, we anticipate that our major customer will be procuring and consigning battery cells that go into the product we make for them as a result, the <unk>.

Al you of battery cells, which is the largest single component of the bill of material, we will no longer be part of <unk>.

Our revenue or cost of revenues for this customer.

Absent a change in the sell arrangement the underlying product volume would equate to a revenue expectation roughly two times higher than our stated guidance. When you compare this to how we reported in the prior year.

We will inform you in the future of the revenue impact if the battery cell consignment arrangements change from the assumptions underlying our stated revenue guidance.

Turning to liquidity. Please reference the right side of the slide.

We ended the quarter with approximately $67 million of cash cash equivalents and investments, which I will refer to with cash for simplicity.

This compares to $120 million at the end of the previous quarter the sequential.

The decline in cash was significantly impacted by the roughly $37 million of expenditures, we made to acquire the remaining interest in our former joint venture.

These expenditures include both the purchase price and fees directly associated with the transaction.

While this was a substantial investment by the company as you've heard today this was strategically and commercially transformational.

The full control of our valuable intellectual property and the manner in which it has further developed and deployed commercially will allow us to capture new sales opportunities open up new markets and drive new revenue growth.

As discussed last quarter. This February we secured a $350 million standby equity line of credit, which I referred to as an <unk>.

We intend to continue to use the <unk> the timing and amount sold will consider cash needs in the context of share price and trading volumes during the quarter, we raised $25 million through the sale of $16 7 million shares.

Please now turn to slide number 17.

As Susan and the team have discussed we are taking many steps, which collectively are aimed at increasing the long term value of the company.

Loren discussed our continuing focus on the commercial vehicle market, including the largest segment, which is heavy duty truck applications. We also are broadening our reach into applications, where we believe our technology is demonstrating differentiated value for new and diverse customers.

Im described we continue to achieve important operating improvements we will continue to support the commercial scale launch of our largest customer while also increasing our agility to support new customers and programs concurrently.

Hey, Jay discuss key elements of our underlying technology, reflecting the depth and breadth of our industry recognized expertise, which supports the capture of new customers and applications, both for now and into the future.

Finally, we are making important capital investments to increase and improve our production capacity and laboratory capability to ensure we can be ready to support and enhance our growth in the commercial marketplace.

Our continued investments whether they be for capital assets or to support the important resources driving our market operating and technical efforts clearly require our ability to have continuing access to capital and liquidity to drive our initiatives.

At our current stage of development. It also was clear that our access to capital will continue to be the equity markets to which it is with many other companies that are in similar stages as we are.

We are mindful of the shorter term impact on share dilution. However, our path forward and the ability to increase enterprise and shareholder value require continued funding to support our progress.

The long term market outlook continues to reflect significant growth opportunities, which points to the opportunity to increase value of the business at.

At the same time, we also must be realistic and then recognize the pace of our development and related funding can be affected by many variables influencing the overall industry.

Some of these variables may shift the timeline of growth rates to the right, which also may affect our capital needs.

As many of you likely have seen already we filed the proxy statement for our annual shareholders meeting with the SEC on April 28 of this year I want to point out there are two proposals specifically numbers five and six which as described in the proxy statement focus on measures important.

<unk> to our ongoing ability to access the equity market to raise capital.

While we will continue to explore all options to best enhance long term shareholder value. Your support of all of our ballot proposals that will be important to our future.

Thank you for your attention and ongoing support.

We now we will turn to addressing your questions. So Brent we can go ahead and start the Q&A session. Please.

At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad.

We'll pause for just a moment to compile the Q&A roster.

Okay.

Again, if you would like to ask a question press star one on your telephone keypad.

Okay.

Ladies and gentlemen, please standby.

Again, if you would like to ask a question.

Press Star one on your telephone keypad.

Your first question comes from Noel Parks with Tuohy Brothers. Your line is open.

Hi, good afternoon.

Good afternoon.

Hi.

Sort of a broad question, but just as you.

You've discussed.

A number of the things about your technology that are proprietary and offered.

Differentiating advantages.

And maybe for example, some of your development on the BMS side I'm thinking.

With these innovations are there.

Additional development have associated with that ability.

Yes.

Third party vendors systems or just some of the among potential client base.

Alright, great, bringing any any issues or challenges as far as.

We are integrating them with their own for example, Okay fleet management software and so forth.

Hi, Thank you very much that's a great question and I'll start and then turn it over to AK. So we do have several aspects of our technology that make the battery management system and our own batteries function at a premium level together, but we work very well with our customers.

And their vehicle management systems and software as well as with fleet partners to make sure that the service that we offer is exactly what they need and.

Potentially it could be a service that we would offer separately from products in the future that thats not something that we do today, so I'll, let <unk> speak to more technical aspects.

Yes, I don't think for Loren and I would say I would just reconfirm the umbrella.

Lauren provided.

Shall we translate this technology to other players in different areas in the value chain, then directly through our battery systems.

It's something we don't.

We don't have more information to discuss on today.

But the most important thing is that everything we develop developing.

As develop for the industry and for our customer pool as well as for it to become compatible and integrated <unk> with all the other components that you would see on a vehicle electrification and <unk>.

That's why we are able to address.

The breadth of customer we have today.

Yes.

Great. Thanks for the clarification.

And I also just wanted to.

Does that just to make sure I understood.

You mentioned that in the <unk>.

And the guidance for revenue.

Because of the.

I guess accounting change for this customer that would have.

A much bigger effect on on the guidance numbers.

Has that changed and have them could you just walk through the details of that again.

To make sure I got it.

Sure no.

The Big change was really the accounting is just following on how the business is changing number one.

In the past and with most of our customers we procure cells. So when we do that they go into our products and the value of those cells. Therefore ends up in our invoice. It's part of our revenue stream ends up in our cost report goes cost of product revenues.

With a major customer of ours and this is why it's a significant impact on our guidance.

We are together working where they're going to be purchasing sells directly themselves from a battery cell supplier and consigning them to us so because we don't actually own those cells. We don't rebuild them two of them. They don't show up in our invoice value or our cost group.

Cost of revenues.

Because of the cell is the single largest component of the bill of material as well as combined with the fact that it's a significant customer that's why the impact on a comparable basis.

As large as really two weeks impact.

Comparing our $40 million to $50 million guidance that would basically double those numbers, 80% to $100 million.

If the business arrangement, where the same and then therefore, the accounting were the same year over year.

Another way to think about it at all is that the volume of product that underlies that he is going up substantially in the ratio basically that our revenue guidance would be if it were accounted for in the same basis. So the product volume is there just kind of nets down the numbers both on the revenue and the cost side.

Great. Okay. Thanks, a lot and I just wonder if.

If we could.

Maybe talk a bit about.

The implications of that.

You are taking over.

The Borgwarner joint venture, just what thats likely to maintenance or the.

Yes.

Coming year as far as.

Either your strategic positioning or in terms of.

Product that you would've been developing with their cooperation on their behalf, but that's not going to be essentially in house.

Sure and I am actually going to start with the latter part of your question first which is that the business pipeline both for Romeo power itself and for the joint venture was all around the same product family same product line. So there is no.

Lack that we will see in terms of business opportunities or a delay in product development. Since Romeo was responsible for the R&D behind the joint venture already.

In terms of how that puts us strategically positioned.

The optionality that we now have by being able to sell into any vehicle market in any geography that really can't be underestimated and this year.

I would.

Let's say most of the volume that we will see in the largest portion of our revenue will continue to be in the commercial vehicle space and as we are pursuing and developing the opportunities that we have now taken over from the joint venture pipeline and that we're developing separately those may take some time.

To convert into material volume orders since the typical cycle is to start with some initial samples and then grow that over a period of time. So we expect to see the same sort of development cycle from the commercial side that we have seen in romeos history over the last couple of years.

Okay.

Right.

<unk>.

And.

Are there is there any capital that was more or less allocated to the.

The JV or or accrued in advance that.

It's not going to just sort of revert back into your.

Your own budget.

Yes no.

Up to the point in time, where we purchase.

The remaining share on the joint venture our funding obligations, primarily were to share our proportionate amount of operating expenses, which was basically focused on the.

The technical efforts the R&D efforts that were being.

Ron.

As part of the debenture there were no capital assets in that venture up at the point of separation.

So there was no.

Historical funding for that and there is certainly no funding obligation for Capex that we assumed all of our future capital plans are all under our own direction under our own roof. Those were plans we were making.

Even before the separation, so theres no impact kind of before and after that as material as a result of that.

Great. Thanks, a lot that's all for me.

Okay. Thank you.

Your next question comes from the line of Tyler <unk> with <unk>. Your line is open.

Hi, everybody. Good afternoon. Thanks for taking the question really appreciate it.

Hi, Tyler.

So as we think about the big Capex build and Cypress facility, particularly as we move through the next couple of quarters. I know you mentioned you said that you were looking to add some additional equipment at that facility. How should we think about that ramp up and build out to get us to that.

First quarter 2023, commercialization I'm, just curious to hear the cadence and what else what other tooling could be done there. Please thank you.

Sure.

Not surprised by the question Tyler as you try to fill out your model.

First off looks kind of reiterate some of the things that we talked about that are drawing investment for us at this point in time.

As we mentioned the facility significantly larger basically to exit where we reside today in Vernon.

Theres costing involved to build out.

The facility itself, we kind of inherited are locked into a big box basically which was great because it allowed us to designed everything inside the factory exactly as we wanted it to be when we were constructing lab space of course the factory floor.

In addition to that and talked about that we are also not only relocating existing manufacturing equipment, but we are adding to our capacity. In fact, the first addition on top of our existing capacity is on the floor today.

In the form of a production line that is going through its shakedown crews right now to start up and running and then we also have additional.

I'll call them highly automated production lines that we are looking at for the future to be able to support our growth going forward. In addition to I think through the benefits of increasing authorization or automation improve quite honestly, the consistency as well as the pace of the product that we get.

Off the line. So there is a stream of things that we are doing here now where I'm going to disappoint you quite honestly is we have not issued specific guidance on capex or cash flow and I'm going to have to stay within those lines I will tell you directionally Tyler that the amount of Capex that we will incur incurred this.

This year, which is up a <unk> for all the things that I, just talked about will be significantly higher than.

Annualizing, what we incurred in the first quarter I think our first quarter was out of memory about $3 million worth of Capex. Our spend pattern. This year is going to be heavily rear end loaded in the back half of the year.

It will be I will use the term significantly higher than what the annualized rate of the first quarter would be.

Okay, great. Thanks for the color really appreciate that's all I have I'll turn it back to the queue. Thank you.

Okay.

Tyler.

There are no further questions at this time I will now turn the call back to management for closing remarks.

Thank you all for joining today's call you heard from several of our leaders today and it is clear that our momentum is growing.

We have carved out a unique position in our industry and we have a unique opportunity to help drive the world's transition to electrification.

We thank all of you for the current and continued support and look forward to the journey ahead have a great night.

Ladies and gentlemen, thank you for your participation. This concludes today's conference call you may now disconnect.

[music].

Okay.

Yes.