Q2 2023 GreenPower Motor Company Inc Earnings Call

[music].

Good morning, and welcome to the Green Power mother Company second quarter earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the snarky followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one.

One on your Touchtone phone to withdraw from the question queue. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Michael Sheaffer CFO . Please go ahead.

Thank you. This is Michael <unk>, Chief Financial Officer of Green Power Motor Company I would like to welcome everyone to our call to discuss Green power as financial results for the period ended September 32022 I'm.

I'm here today, with our Chief Executive Officer, Freezer Atkinson, better President Brendan Riley.

During today's call, we may make comments or statements about our future expectations plans and prospects, which may constitute forward looking statements for the purposes of the safe Harbor provisions under the private Securities Litigation Reform Act of 1995 and applicable Canadian Securities laws.

Actual results may differ materially from those indicated by these forward looking statements as a result of various important factors, including those discussed in.

Our quarterly interim results MD&A filed on SEDAR and on that.

In addition, these forward looking statements relate to the date on which they are made.

Subsequent events and developments may cause the company's views to change.

Power disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information future events or otherwise.

Also during the course of today's call we may refer to certain non <unk> financial measures reconciliation of these non <unk> measures can be found in our MD&A filed on SEDAR and don't occur and is also located on our website at Www Dot Green power Motor Darko.

I will now pass the call over to Chris powers CEO freezer Atkinson.

Thank you Michael.

I'm going to discuss our activities in the quarter with our manufacturing facility School bus pilot project and recent vouchers and incentive activity.

In August Green power took possession of the 80000 square foot manufacturing facility in South Charleston, West, Virginia and began the process of on boarding its first employees and readying the facilities for production.

This facility will be Green Power's primary North American School bus manufacturing center servicing the eastern states and beyond.

Green power entered into a lease purchase agreement last quarter with the state of West, Virginia, where the terms of the lease required no cash upfront.

Monthly lease payments beginning in May 2023.

All lease payments will be applied in full to the purchase price of the property.

The state will also provide up to three and a half million in employee incentive payments to green power for jobs created in the state as production increases over time.

Title to the property will be transferred to Green power once total lease and incentive payments talk reached $6 $7 million.

This arrangement allows us to focus our resources in the short term on production, while having the ability to retain ownership of this facility long term.

In September Green power began a pilot project with the state of West Virginia to demonstrate its type D Beast and Taipei Nano B school buses to school districts across the state.

Test buses and a range of real world conditions.

The type D bus has operated well with this pilot and provided valuable insight into via cooperation that'd be can be used in the transition of the state School bus fleet from diesel to zero emission.

Green power sold three type D School buses in West Virginia during the quarter that had been used in the pilot project and subsequent to quarter and delivered its first.

Type a nano Beast school bus in the state.

In September Green powers Nano Beast Taipei, All electrics purpose built school bus one the innovation award for Best Screen Bus Technology from School Transportation News.

The non obese was launched in June and has been out on demonstrations in numerous states and received rave reviews, which positions green power well for the 8000 to 9000 Taipei School buses are sold every year.

Now turning to vouchers and incentives stakeholders, often ask us what happens when the incentives right now that's not going to happen anytime soon.

Federal government introduced two new programs with the E. P. A school bus program starting this year.

And the $40000 tax credit for medium duty vehicles, starting January one 2023.

In California, the cap and trade program continues to grow exponentially.

Being a double digit growth annually, creating additional funding are over and above exist the existing funding for programs true.

Through the California Air Resource Board as well as several new programs that were introduced this year.

In September Green power secured a another 85 vouchers under the innovative small E fleet set aside funds with the California H pay program for 75 of our 22 foot cargos eight box trucks and two of our 25 foot cargo vans.

In October the EPA announced the select these for the school bus program with almost $1 billion of funding.

Green power work with dealers in school districts across numerous states, who were selected to acquire Green powers type D bus for up to 375000.

For our type a nano beast for up to $285000. The next step is to negotiate the contracts and the deliveries must be completed by October 31 2024.

In November Green power vehicles were listed as eligible for grants under the San Joaquin Valley Air Pollution Control District, VW Trust fund for up to 180000 for transit buses 400000 per school buses and 160000 per our shuttle buses Green power continues to work on.

Opportunities in California from a standard H Pip vouchers, which presently is 38 million available scuba set aside funding, which will also have a recurring funding available next year and the year. Following C E C and air quality management District funding.

I'll now hand, it over to Brendan Riley President of Green power for discussion on the operations.

Thank you Fraser.

In late July Green power completed deliveries of the first E D Star Ccs under the 1500 unit purchase and sale contract with Workhorse group.

At the end of the quarter Green power had completed 100, EV stars theses awaiting delivery and another 200 E V stars in various stages of production.

Deliveries of E V stars have been slower than anticipated.

Due to difficulties in securing shipping delays in ports and delays from importation and other logistics matters.

Management has been actively managing shipping and logistics issues in order to facilitate a faster and more predictable delivery cadence and.

In July Green power completed.

The acquisition of Lion truck body manufacturer of truck bodies for all types of trucks Lion truck body manufacturers and installed a complete line of bodies, including dry freight aluminum refrigerated box.

I'm Gonna embed Snakebird flatbed service and utility bodies.

The acquisition allows green power to vertically integrate and important component of its supply chain and ensure that these bodies are optimized.

For Evs to.

To make this more relatable this optimization concept.

I like to think of it as the same concept of making homes and buildings more efficient.

Kind of like Leeds for EV trucks Green power continues to focus on the post closing integration of this business.

And intend to leverage the businesses capabilities.

Capture new lines of business.

Approve improve and expand its product offerings and even grow the existing legacy business.

During the quarter Green power continued to successfully deliver its popular 22 foot E V Starr cargo vehicles and the New Jersey.

And surrounding areas.

With over 20 deliveries. This battery electric ban is ideally suited and configured for commercial use in urban markets and mid model delivery.

But you need to start cargo is the only battery electric vehicle currently available with this payload and range.

And the.

[noise] excuse me.

With a massive diverse.

Addressable market with the addition of $40000 federal tax credits available in 2023, we expect to have strong sales and order backlogs for this model.

We have also made great progress.

Positioning green power for future growth.

The minor <unk>.

Winds from Omni Kron last year and early 2022, we continue to accelerate deliveries while building our sales reach both internally and externally.

These recent expansions provide green power with tremendously greater reach on a national level.

In closing Green power has demonstrated that we have the products that the market demands and are now working tirelessly to solidify the strategic relationships necessary to catapult our growth in the next level. We are optimistic that this fiscal year.

We will provide to be a transformative year.

I look forward to providing additional details on our progress when prudent.

Now I'd like to turn it over to Michael Sheaffer Green power CEO , who will cover our quarterly financial highlights. Thank you.

Thank you Brendan.

Pre power achieved record revenues in the quarter of 7.726 million, which is an increase of 67% over the revenue of $4 $6 million to $9 million for the second quarter in the previous fiscal year.

Revenue was generated from the sale of three beach type D. All electric school buses, one night obese type eight Oh Electric School bus 21, EV start 22 foot cargoes three EV stars in 'twenty you start cabin chassis. We also recognized revenue from finance and operating leases and from Lion truck bodies.

Since the acquisition on July the seventh.

Cost of revenues in the quarter were $5 97, 1 billion children into your gross profit of $1 $75 5 million or 22, 7% of revenues compared to a gross profit of 26%.

Quarter of the previous fiscal year.

Gross profit for the quarter was lower than the historical range of 30% primarily due the deliveries of the restart cabin chassis under the workhorse contracts and sales or are you have you started 22 foot cargo, which are at lower margins.

We have seen a steady improvement in the Companys quarterly adjusted EBITDA, giving us this calendar year as we benefited from a higher sales and gross profit.

Green power generated record revenue for the six months ended September 32022 of $11 6 million, which was an increase of 52% over the revenue of $7 6 million.

At the same period in the previous year.

We saw an increase in our quarterly cash expenses compared to the prior quarter.

Which was attributable to continued investments in our business, including sales activities expanding our team of production and operations professionals and in professional fees and product development as we expanded into new markets develop new products.

We finished the quarter with $26 7 million of working capital at approximately $2 million in available liquidity.

Working capital included $4 2 million and here the majority of which was current at quarter end and $44 million in inventory, which is comprised of over $27 million in finished goods inventory, which is primarily comprised of you start trends of plus you start cabin chassis you'd be stars.

If you start cargo book.

Both BC and then it'll be school buses.

As well, we had $16 $5 billion in work in process.

We have completed work in process inventory since quarter end.

Over 100, you'd be stars across model types 30, B school buses that we expect to be driving near term sales growth.

I'll turn it back to Fraser for final word before the Q&A.

Thanks, Michael we want to address our cash requirements. Unlike the majority of medium and heavy duty E. V. O you Havent said have.

Reported gross profit losses. This year, that's where cost of goods sold exceeds their revenues we've been consistently reporting a gross profit in the twenties, along with operating expenses that are a fraction of our peers.

We have access to additional liquidity and continue to review traditional sources of capital that are beneficial to us.

We have a financial model, where increased sales leads to profitable operation.

Finished good inventory translated tend to almost $40 million of cells. So our primary focus today is to deliver these customers while deliveries may be lumpy. The next few months the record revenues this past quarter demonstrate our path to a profitable business in SUV sector with that operator. Please.

Open up the call for questions.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone.

If you are using a speakerphone please pick up your handset before pressing that Keith.

And Jonathan the question queue. Please press Star then two.

My first question is from Greg Lewis of <unk>. Please go ahead.

Thank you and good morning, everybody and thanks for taking my questions.

Hello.

Hey, Greg Good morning, how are you Oh, okay. Good I wasn't sure if I was I wasn't muted or something so hey, I guess my first question is around the cadence of deliveries.

It looks like you delivered 29.

Units as part of the war of course agreement and you know and I guess, congratulations on like a great quarter of deliveries.

I guess one of my questions is can you could you confirm the 29% to workhorse and then really just thinking about I know, there's seasonality and deliveries of the business, but as we as we think about that now that where we have this agreement with more of course should we.

Expect more of a smoothing of deliveries.

<unk>.

As maybe that can kind of offset some of the seasonality and the delivery of <unk>.

Buses for schools.

Greg That's a really great question. This is brendan and by the way and good morning.

Yes the.

The work horse.

Good.

Cadence will be.

It should be predictably regular month over month and fairly stable.

And oddly enough now that we've got all this government money for school buses, we don't expect the school bus deliveries to be seasonal as they were.

As a the monies doled out it.

It does appear to be a regular delivery schedule.

Month over month for them for the foreseeable future.

The EPA funds for the school buses.

So we expect that to.

To actually be fairly smooth.

The seasonality.

Could relate to folks getting vehicles ready for delivery like last mile delivery, which doesn't really affect green power or that much. We don't play much in that space, we're more mid mile.

So we're not so seasonal seasonally affected.

I expect you'll see our delivery rate go up.

Mostly due to us working you know.

Yeah.

Our facilities are expanding in our transportation network is expanding you know we've got big deliveries on the horizon and that will drive our.

Our deliveries right now we're not production.

Limited, we're just getting into the swing of getting these these.

Deliveries happened to end users such as workforce.

Okay, Okay, great great.

So thank you for that my other question.

Was around margins and maybe Mike I don't know if this question is best suited for you.

You clearly called out the integration of Lion truck body and West Virginia. The ramp there was going to weigh on margins here in this quarter and it looks like we probably have another quarter of of you know, let's call it suboptimal margins.

Any any kind of color you can give us how you think.

We should be thinking about margins sequentially over the next couple of quarters and you know kind of realizing the cow, maybe if we think about it on a fiscal year basis, I guess some point in the middle of next year.

You think we kind of can choose through.

The drag from West Virginia in line truck body, where we kind of start approaching those.

Normalized margins you've guided to in the call. It 30% range is that kind of a fair way to think about it.

Yeah, I think we've said in the past Greg.

The margins is really a function of our product mix and I would say right now as we move into higher volume sales.

We're going to be at a slightly lower margin.

And depending on certain sales of as an example, EV stars and certain of our school buses those could be at higher margins and so I think.

Where we see it right now, it's probably a little lower than what we anticipate for the remainder of the year, but there could be some lumpiness on this depending on the product mix and I would say you know if youre looking at a 25% to 30% range, that's probably about right on average overtime now that would be.

Lumpy from quarter to quarter, but.

Over over a period of time that that should be about right for what we can see today, okay and just as we think about the upcoming call.

That we're in right now just thinking about I mean, I guess, we're still on track to get buses out from West Virginia.

Sooner rather than later.

But I imagine that we should see still a little bit of a drag around margins in this in this quarter that we're in.

It sounds like the Lion truck body integration is behind us.

Yeah, I wouldn't I wouldn't say there would be a massive swing.

Upwards, but I would say it could be sort of in that.

In that range that I've just provided you.

Okay, but so but it does sound like it sounds like we just made it through the bottom in margins.

As I said I think it would be based on our product mix over time got you. Okay understood. Okay. Super helpful. Everybody have a great rest of the day alright.

Alright, Thank you Greg.

The next question is from Craig Irwin Roth Capital Partners. Please go ahead.

Hey, good morning, and thanks for taking my questions.

I'd like to ask about the the EPA vouchers that were recently Oh, what a different districts for purchase of of clean School buses can you maybe update us on where you are in the in the conversations out there with different districts.

Have you successfully.

Booked awards from any customers at this point you know how should we gauge the potential for for Green power.

More than 2300 buses that got funded and you know don't need too many of those to get you guys to profitability.

And any color would be useful.

So thanks.

Thanks for the question Craig we've got.

Some manufacturers went direct in that they were.

The select D or were directly awarded.

Through the program our approach was to work with our dealers.

And to work with school districts and in some cases educational departments that represented the state interest.

And so with all of those across.

All the states, where we have dealerships.

From West Coast to East Coast, We've got both the type B Beast as well as some of the type a nano beast.

That we're currently engaged in terms of moving forward on a contractual basis.

So our approach is when we have.

The contract in hand, and we have a set delivery date, which is also a critic also equally important.

Then we will be providing regular updates on where we are with that process.

Okay excellent excellent and then can we maybe switched and I should point out as well that we're I mean, we're in four behalf in California, just sticking with that state for a second.

There the initial vouchers that came out in March.

$198000 for our type D School bus, but if its a public school district, they can get up to another 65%.

So it's still not quite as much as the $3 75 for the peds. So there was some initial interest in California, but people took the approach of well I'm going to wait and see what goes on with the EPA program.

Now that the EPA program is through.

We're dealing with a number of candidates that are.

That have a <unk>.

Come back if you will in and re engaged because they were not a select D or didn't qualify for D. E. P. H. So theyre looking back this program.

There was also the set aside funding that closed in the summer.

The California Air Resource Board is behind on that program in terms of getting.

All of the contracts out to the successful applicants.

That's another $120 million as well as another two years of this.

Close to $130 million.

And then as I as we said.

In today's remarks.

The San Joaquin Valley has come out with a program for $400000 per school bus.

So what all of these programs have done is created.

Some delays in terms of people waiting for the next program that may be better than the current ones and I'd say that now that all of these are out there are people right now.

Solidly moving forward to get contracts in place and to get deliveries.

Understood understood.

So I wanted to switch to the cabin chassis products now that we have workhorse.

Hum.

Rising volumes.

It gives you a lot more credibility in the market because your presence there's vehicles people.

On the road.

Can you maybe update us on the sales funnel there.

Your level of engagement with different partners.

How this how this works with your Youre lying chassis acquisition.

And what you think are fair expectations for this business as far as milestones.

Milestones it doesn't have to be units, but commercial milestones over the next number of quarters.

And then did you want to start off.

Yeah, I could start off Craig so part of this.

The cab chassis strategy was of course land the big commercial partner or a customer that's going to start driving volumes that was workhorse.

Uh huh.

Next.

Really dovetailing portion of the strategy.

Is incorporating our sales.

The team.

To go after that business that not only commercial but also vocational and other.

You know either wholesale or retail.

For the cab chassis either people that do just pass through they put on their body. They do whatever they want with it or we put the body on either through lie in truck body or one of our other body producing partners.

We have many of.

So youre going to see actually the.

The dealership network start getting more mature and expanded with these 40000 dollar commercial tax credits.

The medium duty vehicles that the any Saar is.

As eligible for.

That's really changed our whole kind of strategy. So.

Youre going to see a lot more of what you discussed I know, we're not giving guidance now and but the next milestone I think you'll see us.

Changes in our sales strategy.

Additional dealers announced.

And some additional partnerships.

Okay excellent excellent.

Your breakeven so.

Fraser I really like to prepared remarks.

Have consistently been one of the most reliably healthy margin companies in the sector.

But how should we think about the breakeven for the company as a revenue run rate.

Do you have.

Some updated assumptions are updated revenue levels that you think that we should.

We should be using as external observers.

Well I think that that's impacted on a couple of fronts.

One certainly we've invested.

You'll have a much higher investment rate with the additional personnel that we brought onboard that have really.

Yellow two to support the the higher level of deliveries and the anticipated level of deliveries so.

The current level of investment is as much for where we expect to be over the next several quarters and that's overall is higher than where we were a year or year and a half ago, which changes that.

That breakeven dynamic, but going back to.

The gross profit.

Yeah I'll if the next quarter is at or slightly above the current level then.

That would be would require.

A higher revenue number than if we kind of get back to a.

Two a higher GDP level that we certainly expect and a couple of quarters time.

Okay, but then there were still talking about it.

A pretty low number compared to most of the other or truck producers out there in the market that's correct.

Well most of the other medium and heavy duty that we look at have a they read a gross profit loss as opposed to a positive gross profit so.

I think that's almost an infinite amount of sales required to I guess lose an infinite amount of gross profit dollars, but.

So it's it's I don't think there's a comp comparable there.

And we are certainly focused on what is going to get us there with our with our business.

But yeah, we are.

Positioned in a very different.

A different set of metrics in terms of having a very low operating expense in relation to.

Our revenues and the order book that we're working on.

Excellent well congrats like.

Oh gosh, Yeah. This is Brendan I just wanted to add one thing also as we start driving volumes.

Then we have the opportunity to really start doing the costs down measures.

That also help.

You know lower costs and drive more business. So we do expect you know that automotive growth that you get when you start driving the volumes that really enable you to start going after the cost down measures.

Understood understood.

Well, hey, congratulations on the progress here guys.

So hop back in the queue. Thanks.

Thanks, Craig.

The next question is from Tate Sullivan of Maxim Group. Please go ahead.

Alright. Thank you Brendan you mentioned I believe the cargo vans the cargo opportunity of strong sales and order backlog in that business can you talk about it has mostly been.

Cargo vans to New Jersey based on that voucher program or is it turned to other states in terms of where the demand is for cargo vans. Please.

Well good.

Good morning, and thank you you know we haven't.

Yet really started marketing the cargo van outside of California, and New Jersey, So New Jersey has been.

The launch of that program.

You know.

<unk> was a.

Concurrent with our release of this product. So that's where we've made most of the deliveries and we've had a very strong demand for those there we have an additional demand in California.

For 80 plus units.

That we will be building too.

So we're.

We're seeing demand everywhere and that does not include our approach with new dealers.

And a modified sales strategy to really take advantage of the opportunities coast to coast.

So.

I'd have to say that that 22 foot cargo.

Is.

As a home run of a product for us I expect that product to be honest for that vehicle to outstrip demand outstripped our capacity.

You know in the next.

Little while which is not something we like to say, but.

It's gonna be a reality that that the demand for that product is really.

Is really exceptional for us.

Well the two things to add is that the California program that we referenced in our earlier remarks.

In September we were able to secure 75 vouchers for their 22 foot cargo.

And we haven't talked about are the Canadian program, but in the Canadian.

A federal program all of our various TV star models are eligible for 75000, that's Canadian dollars.

The Oh vouchers and.

They allow for stacking with other programs so in the province of British Columbia, which also has its own boettcher incentive program.

The combined can get you a three quarters.

The purchase price of that product.

Which net of incentives makes it considerably cheaper than the Ford class to be E transit.

Which has.

Ill approximately half the battery capacity and.

Maybe a third to half of the payload.

So.

You know that the product is really timely in terms of being positioned for for.

For those commercial operators that are looking for a range and payload with a cargo van.

Thank you, Mike and then on the carve up Michael I think you mentioned that cargo right now of that lower margin is that because of the bodywork and could the margin improve after I mean, how do you integrate lion truck bodies more or are there other considerations for the lower margins for the cargo vans.

If I heard Dara.

I would say.

Cargo banners or have enough fitting process and so whereas the cabin chassis is where we have the opportunity for.

Two two for two to have different bodies that gives you a different model. So for example, we're working with lie in truck body on.

The 16 foot or a 14 foot box with a rolling door in anywhere up to a 2500 pound lift gate.

And that is a.

That positions us with the two two and a half metric ton box truck market, which is considerable.

As well it accommodates a service truck can accommodate a refrigerated unit with that box configuration.

And so all of these to find products that are address a fairly significant or substantial markets in the case of the cargo. What we've found is that some buyers are looking for as is whereas with a bare interior.

Others are looking for where they want it.

With a.

Finished interior with our.

With the lighting and everything else all all done ready to go so there's a what.

What we've learned with the early deliveries, which as a result of.

Driven a lower gross profit margin is.

Is that we can commoditize this by having several specific packages as opposed to trying to just a piece to each and every customer at their own custom fab.

And I think that's our path to.

Two where we can have those repeatable packages that are.

That is the end user.

Fines will meet their requirements, but don't require us to.

Custom built out their band for them.

Okay.

Thank you all.

Yeah.

Again, if you have a question. Please press Star then one and next question is from John J from quiet Investor. Please go ahead.

Good morning, guys, it's really nice to see the progress.

<unk> been making I had a couple of questions partly.

Wind I think.

Number one with.

With all the grants and subsidies that are being had it up by various oh.

Hi, Dave.

Right.

Does the element of our price against somebody else feed into the <unk>.

<unk>.

Uh huh.

Our orders are those vouchers.

And.

If so what is what is our.

Structure of costs versus maybe the big bus people like Bluebird or.

Our forest view or whatever.

Okay.

John Thanks for taking my question.

Go ahead Brandon.

Thanks for that question, we don't see you know that.

Got it.

Necessarily price driven.

<unk>.

The demand for the vouchers even now.

We're just in early days, especially with this.

Federal program, that's just being rolled out now John So most of those arent even under contract yet but.

I think green power as price point is highly competitive across all level. So we.

And are planning to maintain competitive pricing and some cases, a price advantage and other places in our competitive pricing, but maybe a small adder.

And any place that I do have a higher priced product available.

We would.

South of the benefits of it.

I was saying, it's a superior product for the price, but in any way we look at it John our position is.

That our products are not only competitively priced they're really a great value and we believe we offer.

Not only a better product, but better support better services.

Than anybody else out there in the sectors we plan.

That's really good to know.

Especially as you build out your sales program throughout the country.

As these deliveries to workhorse and others are beginning to flow through on a more regular basis.

That will be relieving some of the need for cash.

You applied for with the ATM program.

A couple of months back.

Has that ATM program building.

The need.

So far or any type.

How much of that was I think $20 million you were looking for.

Okay.

Yeah.

Yes.

So John we were we showed are disclosed in our subsequent event note. So it wouldn't have been anywhere in our press release that I think about it but we did disclose in our subsequent event note that.

We have raised a total of just over $800000. So not a not a lot of shares but.

There were a few days where there is.

Decent liquidity with our stock. So we just took advantage of that.

And as the price of the average prices are around where we were trading yesterday.

Uh huh.

As we go forward with the deliveries I expect that there ought to be.

An emergence of Andrew.

The stock because you should.

Having higher prices.

Zoomed in the food group.

That was the.

Bring about an interest in procuring.

The <unk>.

Current level of.

Oh, the stock or the other raw for people.

We are empowered to bring their clients to the table or.

Totally Oh, a random thing is people.

Go by the window.

Well, it certainly opens up that opportunity where if.

Without it.

A party, especially.

And institutional holder that is interested in acquiring our position.

They are at the whim of the marketplace, whereas now they have a two or a mechanism and where are they can work on that so yes. It does open up those opportunities and as we've said for years, we're always keen on getting strategics involved with us because.

He'll then they can help you in a whole lot more than just the.

The capital infusion.

Well I would I would think that.

The deliveries you're about to be making.

Yep.

Your cask wings should be alleviated.

Pretty well is that right.

Yeah.

Well with deliveries that we have available to us.

That is our our primary release no question.

But yes with the with just the overall increase in and spin.

Specific delivery dates for those because that's part of getting one thing to have the order. It's another thing to ensure they have the infrastructure in place to charging ready to go.

The funding check can be caught I mean, all of those things are part of when we talk about delivery.

So having more of those and having more definitive delivery dates is only going to ease our.

Yes.

The cash flow.

Okay.

Sure.

The problem is they did worldwide about.

Uh huh.

Because I was getting supplies or are the prices.

The needs for your various <unk>.

Art.

Or are you subject to the whims of the market in that regard.

You know John I think we're all subject to market conditions every industry in every sector.

So yes, I mean, we are but we.

We really.

<unk> the prices to stabilize and even come back which is what we are seeing right. Now is that there is less pricing pressure.

On many and even shipping costs and all kinds of different things so.

We keep our eyes on it and.

We do want to make sure that we do have we do maintain our gross profit margin our target gross profit margin.

But right now we don't see any any reason to drastically raise prices or change our strategy.

In the short term as we're seeing things starting to stabilize again.

Very good.

The roadmap is available we have to do is get the vehicle.

Good good growing output.

Well put thank.

Thank you John .

This concludes our question and answer session I would like to turn the conference back over to Frazer Atkinson for closing remarks.

We appreciate your support.

An outstanding team at Green power, a great suite of products and we're focused on high growth market sectors.

We've been very encouraged to see increased engagement with investors and reengagement with past investors recently.

Really like what we are doing.

Thanks for taking the time today to listen to our earnings call and as always Michael Brendan and I are available post earnings call. If you have any additional questions or if you would like.

Any additional information on what Green power is doing thanks for your time and all the best.

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

Yeah.