Q1 2024 Aeva Technologies Inc Earnings Call
Desiree: Good day. My name is Desiree, and I will be your conference facilitator. I would like to welcome everyone to the Aeva Technologies First Quarter 2024 Earnings Conference Call. During the opening remarks, all participants will be in listen-only mode. Following the opening remarks, we will conduct a question-and-answer session. As a reminder, today's conference call is being recorded and simultaneously webcast. I would now like to turn the call over to Andrew Fung, Senior Director of Investor Relations and Corporate Development. Andrew, please go ahead.
Good day My name is does Ryan and I will be your conference facilitator I would like to welcome everyone to the Eva Technologies' first quarter 2024 earnings conference call. During the opening remarks, all participants will be in listen only mode. Following the opening remarks, we will conduct a question and answer session as a reminder.
Desiree: Today's conference call is being recorded and simultaneously webcast.
Desiree: I would now like to turn the call over to Andrew Fung Senior director of Investor Relations and corporate development. Andrew. Please go ahead.
Andrew Fung: Thank you and welcome everyone to Aeva's first quarter 2024 earnings call. Joining on the call today are Soroush Salahian, Ava's co-founder and CEO, and Saurabh Sinha, Ava's CFO.
Andrew Fung: Thank you and welcome everyone <unk> first quarter 2020 earnings conference call.
Andrew Fung: Joining on the call today are serious.
Andrew Fung: David as co founder and CEO and <unk>.
Saurabh Sinha: Our CFO.
Andrew Fung: Ahead of this call, we issued our first quarter 2024 press release and presentation, which we will refer to today and can be found on our investor relations website at investors.aeva.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
Andrew Fung: Ahead of this call we issued our first quarter 2024 press release and presentation, which we will refer to today and can be found on our investor relations website at investors <unk> Dot com.
Andrew Fung: Please note that on this call we will be making forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties.
Andrew Fung: These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date.
Andrew Fung: These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
Andrew Fung: For a further discussion on the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-K. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of AIS performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from, GAAP research. The webcast replay of this call will be available on our company website under Investor Relations. And with that, I will turn the call over to Soroush.
Andrew Fung: For a further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC, including our most recent Form 10-K.
Soroush: In addition, during today's call, we will discuss non-GAAP financial measures.
Soroush: Which we believe are useful as supplemental measures of <unk> performance.
Soroush: These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.
Soroush: A webcast replay of this call will be available on our company website under the Investor Relations link.
Soroush: And with that let me turn the call over to search.
Soroush Salehian Dardashti: Thank you, Andrew. And good afternoon, everyone.
Soroush: Thank you Andrew and good afternoon, everyone.
Soroush: In Q1, Eva continued to build on our strong start to 2024, as we executed to our customers milestone as well as further our commercial traction on new opportunities.
Soroush Salehian Dardashti: In Q1, Aeva continued to build on our strong start to 2024 as we executed on our customers' milestones, as well as further our commercial traction, a new opportunity. I would like to highlight our key accomplishments in Q1. We shipped a record number of sensors to customers in the first quarter, including Daimler Trucks. As a result, the first Daimler vehicles equipped with ALA sensors are now on the road for real-world operation in order for Daimler to continue to ready their stack for commercial operation.
Soroush Salehian Dardashti: To highlight our key accomplishments in Q1.
Soroush Salehian Dardashti: We shipped a record number of sensors to customers in the first quarter, including two Daimler truck.
Soroush Salehian Dardashti: As a result, the first Daimler truck vehicles.
Soroush Salehian Dardashti: With <unk> sensors are now on the road for real World Operation in order for Daimler truck to continue to ready their stack for commercial operation.
Soroush Salehian Dardashti: We are excited to enter this next phase and are overall on track with the OEM's development milestones and startup production timeline. We have also made significant progress on multiple automotive RFTs. In particular, Aeva completed a comprehensive audit for a global top 10 passenger OEM and advanced on multiple other automotive projects, which reflect the growing interest and maturity of Aeva 4D Liners. To support our commercial momentum, we established a new automotive center of excellence located in Germany, which positions Aeva to collaborate directly and more closely with our existing and new partners in Europe. We believe this team further positions Aeva to expand our automotive momentum. Let's now discuss a recent business development in more detail.
Soroush Salehian Dardashti: We are excited to enter this next phase and are overall on track with the Oems development milestones and startup production timelines.
Soroush Salehian Dardashti: We also made significant progress on multiple automotive RF skus in particular, Ava completed a comprehensive audit for a global top 10 passenger OEM and advanced on multiple other automotive engagements, which reflect the growing interest and maturity of Eva 40 lighter.
Soroush Salehian Dardashti: To support our commercial momentum, we established a new automotive center of excellence located in Germany, which positions Eva to collaborate directly and more closely with our existing and new partners in Europe.
Soroush Salehian Dardashti: We believe this team further positions <unk> to expand our automotive momentum.
Soroush Salehian Dardashti: Let's now discuss in more detail our recent business developments.
Soroush Salehian Dardashti: With Daimler Trucks, we have successfully kicked off the next phase as their exclusive Tier 1 production supplier for long-range and ultra-long-range LiDAR. In Q1, we delivered a significant number of sensors to Daimler, which have been integrated into the trucks and are now on the road collecting data. As part of this, our teams are in close collaboration to integrate Aeva's unique velocity data into their perception stack and continue addressing key use cases needed for safe operation at highway speeds. This work, and the real world data, will help Dymatruck and Torque validate their stack on routes they intend to deploy for commercial use in series production.
Soroush Salehian Dardashti: With Daimler truck, we have successfully kicked off the next phase as their exclusive tier one production supplier for long range and ultra long range of IR.
Soroush Salehian Dardashti: In Q1, we delivered a significant number of sensors to Daimler, which have been integrated into the trucks and are now on the road collecting data.
Soroush Salehian Dardashti: As part of this our teams are in close collaboration to integrate Eva unique velocity data into their perception stack and continue addressing key use cases needed for safe operation at highway speeds.
Soroush Salehian Dardashti: This work in the real World data will help Daimler truck and torque validate their stack on routes they intend to deploy for commercial use in series production.
Soroush Salehian Dardashti: Overall, we are progressing well on Dynatrux milestones on our path to production, and we will continue supporting the rollout of additional trucks over the course of this year. As Donna Truck expands its fleet for on-road deployments, as partners, we're jointly on track for Aeva's startup production in 2026 to support Dynatrux market entry in 2027, which they recently reiterated in their post-Q1 investor update. As highlighted in their Q1 update, Summit Truck is making great strides on their path to vehicle launch, where they highlighted the start of testing with the industry-first vehicle platform and finalization of the production intent hardware for commercial launch.
Soroush Salehian Dardashti: Overall, we are progressing well and done the trucks milestones on their path to production we.
Soroush Salehian Dardashti: We will continue supporting the rollout of additional trucks over the course of this year as Dominic expand its fleet for on road deployments.
Soroush Salehian Dardashti: As partners, we're joined the on track for a startup production in 2026 to support Daimler trucks market entry in 2027, which they recently reiterated in their post Q1 investor update.
Soroush Salehian Dardashti: As highlighted in their Q1 update Daimler trucks is making great strides on their path to vehicle launch where they highlighted the startup testing with the industry first vehicle platform and finalization of the products and intent hardware for commercial launch.
Soroush Salehian Dardashti: Finally, before moving to the next topic, we will have some additional updates to share together with Diamond Truck and Torque at upcoming events. The first will be at a fireside chat at Financial Times Future of the Car later this week, where I will be joined by Peter Von Schmitt, the CEO of Torch. And later this month, we will be at the Advanced Clean Transportation Expo, or ACT, with Joanna Butler, head of the Autonomous Technology Group at Diamond Truck, and other key management at TORC. We hope to see you there.
Soroush Salehian Dardashti: Finally, before moving to the next topic, we will have some additional updates to share together with Daimler truck at torque at upcoming events.
Soroush Salehian Dardashti: First we'll be at a fireside chat at financial times future of the car later this week, where I will be joined by Peter von Schmidt the CEO of torque.
Soroush Salehian Dardashti: And later this month, we will be at advanced clean Transportation Expo, our ICT with China Butler head of Autonomous Technology group at Daimler truck and other key management of torque, we hope to see you there.
Soroush Salehian Dardashti: Now I would like to provide an update on additional opportunities that we are working on in the automotive sector. Interest in Aeva's unique 4Divider continues to increase following the production program when with Amitra. This is a cross-site range of applications, including for both passenger and commercial vehicle programs.
Soroush Salehian Dardashti: Now I would like to provide an update on additional opportunities that we're working on in automotive.
Soroush Salehian Dardashti: Interest for <unk> unique fortified our continues to increase following the production program win with Daimler truck business across a range of applications, including for both passenger and commercial vehicle programs.
Soroush Salehian Dardashti: Based on our engagements and endowed interests, we are excited to see that the industry is advancing on its trend towards FMCW technology to enable new capabilities, including automation at highway speed. While the adoption of FMCW has begun first in commercial vehicles, there continues to be signs of similar trends emerging in passenger vehicles, with an increasing number of industry participants publicly announcing FMCW initiatives for next-generation programs, as well as Aeva's growing number of R&D.
Soroush Salehian Dardashti: Based on our engagements and inbound interest we are excited to see that the industry is advancing on its trend towards FMC W technology to enable new capabilities, including automation at highway speeds.
Soroush Salehian Dardashti: While the adoption of FMC W has begun first in commercial vehicles. There continues to be signs of a similar trend emerging in passenger vehicles with an increasing number of industry participants publicly announcing mcw initiatives for next generation programs as well as Eva growing number of our Skus.
Soroush Salehian Dardashti: In particular, we mentioned last quarter our engagement with the new Global Top 10 Passenger OEM. I am pleased to share that we have advanced as a finalist on this OEM's RSU, having completed the comprehensive audit and final assessment ahead of their award. In Q1, we also progressed on other ongoing automotive RFQs and advanced from the RFI to the RFQ stage on additional opportunities. We continue to expect a number of these RFQs to be awarded this year.
Soroush Salehian Dardashti: In particular, we mentioned last quarter, our engagement with a new global top 10 passenger OEM.
Soroush Salehian Dardashti: I am pleased to share that we have advanced as a finalist on this Oems are you having completed the comprehensive audit and final assessment ahead of their award decision.
Soroush Salehian Dardashti: In Q1, we also progressed on other ongoing automotive our skus and advanced from the RFID to our acute stage on additional opportunities.
Soroush Salehian Dardashti: We continue to expect the number of people are accused to be awarded this year.
Soroush Salehian Dardashti: In addition, the recent rulemaking from the National Highway Traffic Safety Administration requiring passenger vehicles in the U.S. to have standard automatic emergency braking by 2029 has the potential to accelerate OEM adoption of LiDAR, and we believe FMCW LiDAR is an enabler for achieving the more stringent requirements. The new standard will require OEMs to prevent forward collisions at speeds up to 100 kilometers per hour or 62 miles per hour, as well as prevent collisions with pedestrians at up to 45 miles per hour, both of which are at higher speeds than what solutions on the road today are reliably capable of preventing.
Soroush Salehian Dardashti: In addition, the recent rulemaking from the National Highway traffic safety administration, requiring passenger vehicles in the U S to have status automatic emergency braking systems by 2029 has the potential to accelerate OEM adoption of Lidar.
Soroush Salehian Dardashti: And we believe FMC there'll be lidar is an enabler for achieving the more stringent requirements.
Soroush Salehian Dardashti: The newest standard will require Oems to prevent forward collision at speeds up to 100 kilometers per hour or 62 miles per hour as well as prevent collision with pedestrians at up to 45 miles per hour.
Soroush Salehian Dardashti: Both of which are at higher speeds than what solutions on the road today are reliably capable of preventing.
Soroush Salehian Dardashti: Building on the work that we have done with Dynatruck, we believe Aeva 40 LiDAR is particularly well-positioned to help OEMs achieve automation at higher speeds. Aeva's unique ability to simultaneously deliver long range at high resolution and instant velocity measurements enables our LiDAR to more accurately detect and classify objects at farther distances, even in challenging conditions such as inclement weather. The new standard also requires, for the first time, that testing for pedestrian automatic braking be conducted in the dark without overhead lighting.
Soroush Salehian Dardashti: Building on the work that we've done with Daimler truck, we believe Eva 40, Lidar is particularly well positioned to help Oems achieve automation at higher speeds.
Soroush Salehian Dardashti: <unk> unique ability to simultaneously deliver long range at high resolution and instead velocity measurement enables our lidar to more accurately detect and classify object as farther distances, even in challenging conditions, such as income ex weather.
Soroush Salehian Dardashti: The new standard also requires for the first time that testing for pedestrian automatic braking to be conducted in the dark without overhead lighting with.
Soroush Salehian Dardashti: With more than three-quarters of pedestrian fatalities occurring in conditions other than daylight, this is another important test scenario where LIDAR, with its ability to function in complete darkness, has the potential to meaningfully improve safety for vulnerable road users, like pedestrians and cyclists. Aeva's 4D LiDAR further improves perception with instant velocity for every pixel that can enable faster and more accurate object segmentation and a greater ability to filter out noise, resulting in more confidence in avoiding hazards on the road.
Soroush Salehian Dardashti: With more than three quarters of pedestrian fatalities occurring in condition other than daylight. This is another important test scenario, where we see lidar with its ability to function in complete darkness has the potential to meaningfully improve safety for vulnerable road users like pedestrians and cyclists.
Soroush Salehian Dardashti: <unk> 40, Lidar further improves perception with ensign velocity for every pixel that can enable faster and more accurate objects segmentation and greater ability to filter out noise, resulting in more confidence and avoiding hazards on the road.
Soroush Salehian Dardashti: So overall, we are highly encouraged by this industry development. Our focus is on meeting the growing interest in Aeva 4D LiDAR and converting our current RF fuse to production WIMP. As part of this, Aeva announced a new automotive center of excellence with a local engineering team in Europe, out of Germany. This positions Aeva to collaborate more directly and closely with OEMs that we are engaged with in the region, and will also allow us to accelerate the validation, testing, and as well as provide direct OEM support for their program.
Soroush Salehian Dardashti: So overall, we are highly encouraged by this industry development. Our focus is on meeting the growing interest for Eva 40, Lidar and converting our current our skus to production wins.
Soroush Salehian Dardashti: As part of this ever announced a new automotive center of excellence with a local engineering team in Europe out of Germany.
Soroush Salehian Dardashti: Dispositions Eva to collaborate more directly and closely with Oems that we are engaged with in the region and will also allow us to accelerate the validation testing and as well as providing direct OEM support for their programs.
Soroush Salehian Dardashti: We have assembled a team of industry veterans with extensive experience spanning ADAS, autonomous, and software technologies at top OEMs and suppliers, such as Mercedes-Benz, Diamond Truck, and Valeo. We believe this new Center of Excellence will not only enable us to support our existing engagements but also better meet the growing interest in Aeva4Divider on new opportunities. With that, I will turn the call over to Sir Rob to discuss the financial aspects.
Soroush Salehian Dardashti: We have assembled a team of industry veterans with extensive experience spanning Adas autonomous and software technologies at top Oems and suppliers, such as Mercedes Benz Daimler truck and Vallejo.
Sir Rob: We believe this new center of excellence will not only enable us to support our existing engagements, but also better meet the growing interest for Ava forward about our new opportunities.
Sir Rob: With that let me turn the call over to <unk> to discuss the financials.
Saurabh Sinha: Thanks Soroush, and good afternoon to everyone on this call today. I would like to review our Q1 financial results. Revenue in Q1 was $2.1 million, driven by the scaling of Ares II shipments and NRE revenues. Non-GAAP operating loss was $32.1 million, which is near flat year over year as we maintained a disciplined approach to capital allocation. Gross cash use, which we have defined as operating cash flow less capital expenditure, was $32.6 million in the quarter.
Sir Rob: Thanks, <unk> and good afternoon to everyone on this call today.
Saurabh Sinha: I would like to review, our Q1 financial results.
Saurabh Sinha: Our revenue in Q1 was $2 1 million driven by scaling of eddies to shipment and NRT revenue.
Saurabh Sinha: non-GAAP operating loss was $32 1 million, which is near flat year over year as we maintained our disciplined approach to capital allocation.
Saurabh Sinha: Gross cash use which we have defined as operating cash flow less capital expenditures was $32 6 million in the quarter.
Saurabh Sinha: We finished Q1 with a total liquidity of $314.3 million, which includes $189.3 million of cash, cash equivalents, and marketable securities and $125 million of available facilities. As a result, we remain in a good position to continue executing with our existing production partners and to build on our growing commercial momentum with additional production program wins. As Soroush mentioned earlier, we are engaged on a number of RFQs which are expected to be decided during this year.
Saurabh Sinha: We finished Q1 with a total liquidity of $314 3 million, which include $189 3 million of cash cash equivalents and marketable securities and a $125 million of available facilities.
Saurabh Sinha: As a result, we remain in a good position to continue executing with our existing production partners and to build on our growing commercial momentum with additional production program win.
Saurabh Sinha: As solution mentioned earlier, we are engaged on a number of RF queues, which are expected to be decided during this year.
Saurabh Sinha: We believe that the combination of our differentiated technology and a strong balance sheet positions us well to execute on our existing programs and win additional programs. With that, let me turn the call back to Soroush for closing remarks. Thank you, sir.
Saurabh Sinha: We believe that the combination of our differentiated technology.
Soroush: And our strong balance sheet positions us well to execute on our existing programs and win additional programs.
Soroush: With that let me turn the call back to <unk> for closing remarks.
Soroush Salehian Dardashti: Thank you, Saurabh. Aeva is off to a great start in 2024. In automotive, we executed the diamond truck milestone and realized strong progress with multiple automotive arts. And in industrial, we were on track with our first industrial SOP later this year with Nikon. I want to thank the Aeva team for enabling these accomplishments and for their continued commitment to Aeva's mission and purpose. Looking ahead, we continue to see strong and growing momentum for the adoption of FMCW technology to bring new levels of capabilities to markets in both automotive and industrial.
Soroush: Thank you Rob Ava is off to a great start in 2024, and automotive we executed to Daimler trucks milestone and realized strong progress with multiple automotive our skus.
Soroush Salehian Dardashti: And in industrial we are on track with our first industrial SLP later this year with Nikon.
Soroush Salehian Dardashti: I want to thank the <unk> team for enabling these accomplishments and for their continued commitment to <unk> mission and partners looks.
Soroush Salehian Dardashti: Looking ahead, we continue to see strong and growing momentum for the adoption of FMC W technology to bring new levels of capabilities to market in both automotive and industrial we continue to position <unk> for greater success, having added leaders in their respective fields and maintaining a solid financial position.
Soroush Salehian Dardashti: We continue to position Aeva for greater success, having added leaders in their respective fields and maintaining a solid financial position. Together with our strong progress on multiple RFQs, we remain confident in executing on our existing programs and securing additional production wins. With that, we will now open the line up for questions.
Soroush Salehian Dardashti: Together with our strong progress on multiple RF queues, we remain confident in executing on our existing programs and securing additional production wins.
Soroush Salehian Dardashti: With that we will now open the lineup for questions.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one on your Touchtone phone, you'll hear a prompt that your hand has been raised should you wish to decline from the polling process. Please press the star followed by the two if you are using a speaker.
Operator: Alan Please lift the handset before pressing any Keith one moment. Please for your first question.
Operator: One moment, please, for your first question. Your first question comes from Shottie Mitt Wally from Craig Collum. Please go ahead.
Operator: Your first question comes from Savi <unk> from Craig Hallum. Please go ahead.
Shani Milwaulee: Hey, this is Shani Milwaukee, Encore, Richard Shannon. Thanks for taking.
Operator: Jamie This is Sean <unk> on for Richard Shannon, Thanks for taking my question.
Shani Milwaulee: Thanks for taking my question. Starting off with the domino win, is Aeva experiencing any halo effects after this win to show other customers that you are ready for a start of production win? Hey, Saurabh.
Shani Milwaulee: Starting off with the dominant way is able experiencing any halo effects. After this win to show other customers that you are ready for startup production wins.
Soroush Salehian Dardashti: This is Soroush. I'm happy to answer that. Yeah, absolutely. Actually, overall, we are seeing a growing interest in our technology, specifically for FMCW, especially on the back and heels of the DT Diamond Truck win and a number of imbalances we announced at CES earlier this year. I think one of the things that's very important is we're also seeing this feedback from the OEMs that the production win we had with Diamond Truck really helped de-risk the OEMs' decision as they're moving to the next-generation platforms, as they're completing the pilot initial deployments, and their decision to move to FMCW, to Frequency Modulated Technology. This win really helped de-risk that. So all the concerns or potential comments around, hey, would FMCW, would FortiLidar happen? Is it an if?
Saurabh Sinha: Hey, sorry out of service as a that yes, absolutely actually overall, we are seeing a growing interest for our technology, specifically for FMC UW, especially on the bag on the heels of the D dimer truck win.
Soroush Salehian Dardashti: And <unk>.
Soroush Salehian Dardashti: Number of imbalance since we have.
Soroush Salehian Dardashti: Announced that SCS earlier this year.
Soroush Salehian Dardashti: I think one of the things Thats very important as we're also seeing this feedback from the Oems that the wind production wind with we had with Daimler truck really helps derisk. The Oems decision as we're as Theyre moving to the.
Soroush Salehian Dardashti: The next generation platforms as they're completing the pilot initial deployment and their decision to move to FMC W. Two frequency modular technology disciplined really helps derisk that so all the.
Soroush Salehian Dardashti: The concerns of potential comments around Haywood with FMC W. Wood 40, Lidar happen is it a F.
Soroush Salehian Dardashti: It's no longer, and I mentioned this on the last call as well, it's no longer really a matter of if, and now it's really a matter of the execution and the timing of how we make this happen, and we're seeing that feedback directly from the OEM, which we're really excited about. And as I mentioned on the call, this is also not just limited to commercial vehicles, especially on the passenger vehicle side.
Soroush Salehian Dardashti: It's no longer and I mentioned this on last call as well as no longer really a matter of if and now it's really a matter of execution and the timing of how we can make this happen and were seeing that feedback directly from the OEM, which is which we're really excited about and as I mentioned on the call. This also is.
Soroush Salehian Dardashti: It's not just limited to commercial vehicles, especially on the passenger vehicle side. We are now engaged in multiple automotive RF skus.
Soroush Salehian Dardashti: We're now engaged in multiple automotive RFQs. As I mentioned earlier, since, you know, it's been about two months only, right, since we introduced this new top-10 passenger vehicle OEM, we have now made significant progress on that side of this RFQ as well. In the past few months, we have completed a comprehensive manufacturing and quality audit, which is now the second time that we've done that. And we have now also been a finalist with this top-10 passenger OEM for the RFQ for the final production award.
Soroush Salehian Dardashti: As I mentioned earlier.
Soroush Salehian Dardashti: Since it's been about two months only right since we.
Soroush Salehian Dardashti: Ed introduced this.
Soroush Salehian Dardashti: The new top 10 passenger vehicle OEM, we have now made significant progress on that side on this <unk> as well.
Soroush Salehian Dardashti: In the past few months we have.
Soroush Salehian Dardashti: <unk> completed a comprehensive manufacturing and quality audit.
Soroush Salehian Dardashti: Which is now the second time that we're doing that.
Soroush Salehian Dardashti: And we have now also been.
Soroush Salehian Dardashti: Finalist on.
Soroush Salehian Dardashti: With this top 10 passenger OEM for the RFP for the for the final production.
Soroush Salehian Dardashti: So this is a significant opportunity. We're on track with the timing of this happening in the next few months, this year, as we talked about earlier. So, you know, on the back of this momentum, we are seeing growing interest across both passenger and commercial vehicles. And that's also why we talked about earlier that we have decided to establish this new Automotive Center of Excellence in Europe and Germany to really help us expand our engineering team to work directly with the OEMs, to be able to provide direct support and really shortcut some of those interactions and timing of the discussions with folks, both in Europe as well as globally. So overall, I would say that we are definitely seeing these tailwinds help us advance on the automotive side, especially on the passenger side as well. Awesome, that's great to hear, and I'm excited.
Soroush Salehian Dardashti: So this is a significant opportunity.
Soroush Salehian Dardashti: We're on track with the timing of this happened in the next few months this year as we talked about that so.
Soroush Salehian Dardashti: and It makes sense. And then just one more follow-up question. I know you currently have one top 10 OEM. Are you able to quantify if any of your other RFQs or RFIs are with the top 10 OEMs?
Soroush Salehian Dardashti: On the back of this momentum we are seeing growing interest across both passenger and commercial vehicle.
Soroush Salehian Dardashti: And that's also why we talked about earlier.
Soroush Salehian Dardashti: We have decided to establish this new automotive center of excellence.
Soroush Salehian Dardashti: Out of Europe, and Germany to really help us expand our.
Soroush Salehian Dardashti: Engineering team to work directly with the Oems to be able to provide direct support and really shortcut some of those interaction and the timing of of the discussions with.
Soroush Salehian Dardashti: With folks both in Europe, as well as globally. So overall I would say that we are seeing definitely these <unk>.
Soroush Salehian Dardashti: <unk>.
Soroush Salehian Dardashti: Help us advance on automotive, especially on the passenger car side as well.
Speaker Change: Awesome, that's great to hear and that makes sense.
Speaker Change: And then just one more follow up question.
Soroush Salehian Dardashti: Yes.
Soroush Salehian Dardashti: Currently one four yes, one top 10 Oems are you able to quantify.
Soroush Salehian Dardashti: Any of the other RF queues or <unk> or with the top 10 Oems.
Soroush Salehian Dardashti: Yeah, look, we obviously haven't talked about, you know, X number of top 10 and X number of top 5 or whatever it is, but I can tell you that at this point, we are engaged in pretty much on a multiple significant scale, and top OEMs are fused. We know there are both, there are folks in different regions, there are passenger vehicles as well as commercial vehicles, but obviously, as we provided the update in this quarter, we are making progress on multiple fronts, but we have also been giving some clear updates on our progress with this specific top 10 passenger OEM.
Soroush Salehian Dardashti: Yes.
Speaker Change: We obviously haven't talked about X number of top 10 in X number of top five or whatever it is but I can tell you that at this point, we are engaged on pretty much at multiple significant.
Soroush Salehian Dardashti: Significant scale in top OEM or Skus.
Soroush Salehian Dardashti: There is.
Soroush Salehian Dardashti: Both there is a.
Soroush Salehian Dardashti: Folks in different regions, there is passenger vehicles as well as commercial vehicles.
Soroush Salehian Dardashti: But obviously as we provided that.
Soroush Salehian Dardashti: Update in this quarter, we are making progress on multiple fronts.
Soroush Salehian Dardashti: But we have been also giving some clear updates on our progress with this to put this.
Soroush Salehian Dardashti: Specific top down passenger Oems. So it's not just one OEM and we are working on that there is multiple.
Soroush Salehian Dardashti: So it's not just one OEM, and, you know, we're working on that. There are multiple across passenger and commercial vehicles, and decisions are happening, multiple of those decisions throughout this year. So that's also the other thing that we're seeing. And overall, from the start of production timing, we also see those to be aligned around the same timeframe with Diamond Truck, maybe a little bit later, but around that timeframe.
Soroush Salehian Dardashti: <unk> passenger and commercial vehicles and decisions are happening.
Soroush Salehian Dardashti: Multiple dose decisions throughout this year. So that's also the other thing that we're seeing in overall from a startup production timing. We also see those to be aligned around the same timeframe.
Soroush Salehian Dardashti: With.
Soroush Salehian Dardashti: Dominic truck, maybe a little bit later, but it's around that timeframe.
Soroush Salehian Dardashti: Awesome. Thanks for the code on that, and that's all for me.
Speaker Change: Awesome. Thanks for the color on that and that's all for me.
Operator: Your next question comes from Colin Roche at Oppenheimer. Please go ahead.
Soroush Salehian Dardashti: Your next question comes from Collyn Roche had open Hymer. Please go ahead.
Colin William Rusch: Thanks so much, guys. You know, now that you've gotten a number of units, tested them out, and you've run your own system on the software side, can you talk about how much compute efficiency you're seeing for customers?
Colin William Rusch: Thanks, so much guys.
Colin William Rusch: Now that you've gotten a number of.
Colin William Rusch: Units test units out.
Colin William Rusch: Run your own system on the software side can you talk about how much compute efficiency, you're seeing for customers because of the real time velocity data.
Colin William Rusch: And then also how important the lower power consumption is in some of their decisions.
Colin William Rusch: May end up seeing later this year from customers.
Soroush Salehian Dardashti: Yeah, thanks, Colin. I'm happy to ask that.
Colin William Rusch: Yes, Thanks, Colin happy to ask them I think one of the things that we are seeing from customers is that.
Soroush Salehian Dardashti: I think one of the things that we are seeing from customers is that, first of all, there is this significant focus on advancing automation towards the highway, on the highway, at highway speeds, right? So, the current solutions are getting on the highway, but they're not quite achieving highway speeds. As we have seen and talked about earlier as well, the new ruling by NHTSA to further expand automatic braking with higher speeds is, I think, very important, and I think this is going to be a tailwind for the LIDAR industry as well.
Soroush Salehian Dardashti: First of all there is this significant focus on advancing automation.
Soroush Salehian Dardashti: Towards the highway on on highway at highway speeds right. So the current solutions are are getting on the highway, but theyre not quite achieving highway speeds.
Soroush Salehian Dardashti: We have seen and we talked about.
Soroush Salehian Dardashti: Earlier as well the new ruling by Nitza to further expand.
Soroush Salehian Dardashti: Automatic braking.
Soroush Salehian Dardashti: With higher speeds.
Soroush Salehian Dardashti: I think is very important is that I think this is going to be.
Soroush Salehian Dardashti: A.
Soroush Salehian Dardashti: Tailwind for our industry as well, we see that for our technology for FMC W.
Soroush Salehian Dardashti: We see that for our technology, for FMCW, a key driving point because, with our technology, we have the ability to see further with velocity, and the perception enabled by that allows some of those computations and calculations and inferences to be reduced and minimized at the system, at the vehicle OEM side. Because of the fact that we effectively are able to bypass a number of inferences and directly measure those things, such as the velocity of dynamic objects, and that helps tremendously, both from a factor of safety standpoint, from a high confidence of object detection and classification, but also on the company side, as you mentioned.
Soroush Salehian Dardashti: A key driving point because with without technology.
Soroush Salehian Dardashti: Have the ability to see further with velocity and the perception enabled by that allows some of those.
Soroush Salehian Dardashti: Compute and calculations and assurances to be reduced a minimized have the system of the vehicle OEM side.
Soroush Salehian Dardashti: Because of the fact that we effectively are able to two.
Soroush Salehian Dardashti: Bypass.
Soroush Salehian Dardashti: <unk> inferences and directly measure those things such as the velocity of dynamic objects and that helps tremendously. Both from this factor of safety standpoint from a high confidence of object detection standpoint in classification, but also on the company side. As you mentioned. So this is something that then we see allows Oems to.
Soroush Salehian Dardashti: So, this is something that, then, allows OEMs to do two things. One, increase their functionality, right, without having to keep adding on significant costs, right? So that's important, which means we can actually reduce maybe some of the costs on super-advanced processing, high-power or high-cost processing nodes, especially important as you go into mass market. And two, it could also allow them to potentially reduce maybe some of the other sensing modalities that are out there.
Soroush Salehian Dardashti: To do two things one.
Soroush Salehian Dardashti: Increase there.
Soroush Salehian Dardashti: Functionality right without.
Soroush Salehian Dardashti: Having to keep adding on significant costs right. So that's that's important which means we can actually reduce maybe some of the cost on super advanced.
Soroush Salehian Dardashti: <unk>.
Soroush Salehian Dardashti: High power high cost processing nodes.
Soroush Salehian Dardashti: Actually important as you go into mass market and two it.
Soroush Salehian Dardashti: It could also allow them to potentially reduce maybe some of the other sensing modalities that that are out there obviously with our technology, because it's either the committed distant and velocity, we see potential opportunity that in some of the mass market opportunities that this could potentially replace some of the other sensor modalities. For example, maybe you still have the radar sensor but.
Soroush Salehian Dardashti: Obviously, with our technology, because of the fact of the immediate distance and velocity, we see potential opportunities that in some of the mass market opportunities, this could potentially replace some of the other sensor modalities. For example, maybe you still have a radar sensor, but you can plug in the 4G radar and reduce the need for an advanced radar or completely replace that.
Soroush Salehian Dardashti: Yeah.
Soroush Salehian Dardashti: Plug in there for the Lidar and reduce the need for an advanced radar are completely completely replace that so thats something that we see potential.
Soroush Salehian Dardashti: So that's something that we see potential as you go into higher volumes where performance over power and performance over cost become super-critical, that this technology is already showing that roadmap for the OEMs. And I think at the end of the day, the biggest thing is that OEMs are looking to, what we hear, really future-proof their stacks, and now they're moving past this pilot stage, right? Now we're moving from a pilot stage where there are lower volumes to really mass-scale.
Soroush Salehian Dardashti: As you go into higher volumes, where performance over power and performance of our cost becomes super critical.
Soroush Salehian Dardashti: That this technology is already showing that roadmap for the Oems then I think at the end of the day. The biggest thing is the Oems are looking to while we're here.
Soroush Salehian Dardashti: Really future proof their stack.
Soroush Salehian Dardashti: And now they're moving past the pilot stage right now moving from the pilot stage with those lower volumes to really mass scale.
Soroush Salehian Dardashti: And we think in the next few years, as our ramp-up with Diamond Truck and market entry, you know, the 26, 27 timeframe hits on the road, that's where those, you know, higher volume opportunities are gonna kick in, and having this capability and then that transition towards this MCW is what we see happening around this timeframe, which brings, you know, brings all of this back together.
Soroush Salehian Dardashti: And we think in the next few years as a ramp.
Soroush Salehian Dardashti: Ramp up with Diamond truck and market entry.
Soroush Salehian Dardashti: Six 2007 timeframe hits on the road.
Soroush Salehian Dardashti: That's where those are higher volume opportunities are going to kick in and having this capability and that transition towards this mcw is where we see happening around this timeframe, which brings it brings all of this back together if that makes sense.
Colin William Rusch: That's incredibly helpful. And then, just outside the automotive space and the transportation space, there's obviously a move towards trying to understand and monetize AI in the physical world. You know, and sensors are an incredibly important part of that. Can you talk a little bit about, not just the metrology opportunity, but other opportunities that you guys are seeing coming your way now that there's some incremental validation on the technology?
Speaker Change: That's incredibly helpful. And then just outside the automotive space in the transportation space Theres, obviously, a move towards trying to understand and monetize AI in the physical world.
Colin William Rusch: And sensors are.
Colin William Rusch: Incredibly important part of that could you talk a little bit about.
Colin William Rusch: Just with the metrology opportunity, but other opportunities that you guys are seeing coming your way now that there is some incremental validation on the technology.
Colin William Rusch: Yeah, you mean on the non-automotive side. Did I hear that right?
Speaker Change: Yes, you mean.
Colin William Rusch: The non automotive side did I hear that right.
Colin William Rusch: Exactly right. Yeah, yeah, so...
Speaker Change: Right Yeah.
Speaker Change: Yes so.
Soroush Salehian Dardashti: Yeah, yeah, so absolutely. First of all, you know, we have significant interest and growing momentum on the automotive side, as you can see and hear from us. But that doesn't mean that we are not doing anything on the industrial side. As a matter of fact, we are fully on track with our, you know, Nikon program later this year, where that's going to start ramping up. And we are seeing, because of the fact that the core innovation of our technology is everything integrated on the lighter optical front into the silicon photonics module, we are utilizing that off the, you know, same technology, different software to be able to achieve very different performances like metrology and precision in other applications.
Speaker Change: Absolutely so first of all.
Soroush Salehian Dardashti: We have significant interest in Angola momentum on the automotive side as you can see and hear from us.
Soroush Salehian Dardashti: But that doesn't mean that we are.
Soroush Salehian Dardashti: Not doing anything on the on the industrial side as a matter of fact, we are fully on track with.
Soroush Salehian Dardashti: Our.
Soroush Salehian Dardashti: Nikon program later, this year, where that's going to start ramping up.
Soroush Salehian Dardashti: We are seeing because of the fact that the core innovation of our technology being everything integrated.
Soroush Salehian Dardashti: Lidar optical front into the Silicon Photonics module.
Soroush Salehian Dardashti: We are utilizing that same.
Soroush Salehian Dardashti: Same technology different software to be able to achieve.
Soroush Salehian Dardashti: Very different performances like metrology and precision of applications. So we are.
Soroush Salehian Dardashti: So, we are engaged with a number of other folks on the industrial side to also expand on this, you know, the backbone of what we're doing with Nikon, if that makes sense. So, and as we have more, of course, we'll talk about that. But I think what we're seeing is, obviously, advancements in robotics manufacturing, advancements with the use of AI for both vision-based as well as now point cloud-based solutions. That's an area where we think our technology could also play a role.
Soroush Salehian Dardashti: <unk> engaged with a number of other folks in the industrial industrial side to also expand on that.
Soroush Salehian Dardashti: On the.
Soroush Salehian Dardashti: The backbone of what we're doing with Nikon if that makes sense. So.
Soroush Salehian Dardashti: And as we have more of course, we'll talk about that but I think with.
Soroush Salehian Dardashti: What we're seeing is with obviously advancements on robotics manufacturing advancements of the use of AI.
Soroush Salehian Dardashti: For both vision based as well as now point cloud based solutions that is an area, where we think our technology could also play a role in.
Soroush Salehian Dardashti: And as we are able to use this, you know, the economies of scale with our production scale for the automotive industry, we think that's going to become a pretty interesting, attractive product for these non-automotive customers to be able to reduce costs while improving efficiency and automation at the factory level, especially on the manufacturing side and kind of robotics side, if that makes sense.
Soroush Salehian Dardashti: And as we are able to use as the economies of scale with our production scale for automotive, we think thats going to become a pretty interesting our traffic product for.
Soroush Salehian Dardashti: These non automotive customers to be able to reduce cost while improve efficiency and automation.
Soroush Salehian Dardashti: At the factory level, especially on the manufacturing side in and kind of robotics side that makes sense.
Speaker Change: Perfect. Thanks, so much guys.
Operator: Our next question comes from Kevin Garrigan from West Park Capital. Please go ahead.
Soroush Salehian Dardashti: Our next question comes from Kevin Garrigan from West Park Capital. Please go ahead.
Operator: Okay.
Kevin Garrigan: Yeah, hey guys, thanks for letting me ask the question. I apologize if I missed this. I know you said you were making progress with more passenger vehicles. Have you gotten more interest from other trucking OEMs as well?
Kevin Garrigan: Yeah, Hey, guys. Thanks for letting me ask the question.
Kevin Garrigan: I apologize if I missed this I know you said you were making progress with more passenger vehicles have you gotten more interest from other trucking Oems as well.
Soroush Salehian Dardashti: Yeah, Kevin, happy to answer that. Absolutely, yes.
Kevin Garrigan: Yes, Kevin happy to answer that absolutely yes.
Soroush Salehian Dardashti: We are at this point engaged in multiple RF skews. This includes.
Soroush Salehian Dardashti: Both passenger as well as commercial vehicles.
Soroush Salehian Dardashti: Programs and.
Soroush Salehian Dardashti: You know, we are, at this point, engaged in multiple RFUs. This includes both passenger as well as commercial vehicle programs. And as I was mentioning earlier, you know, it's always the first wind that sets the foundation for others to follow, right? So what we're hearing and seeing from the OEMs is that, you know, the Daimler truck wind really helps de-risk the decisions of the OEMs as they move from pilot to kind of production deployments and as they make decisions to go to the next generation, especially transitioning to FMCW technology.
Soroush Salehian Dardashti: As I was mentioning earlier.
Soroush Salehian Dardashti: It's always the first one that sets the foundation for others to follow right. So what we're hearing and what we're seeing from the Oems is that.
Soroush Salehian Dardashti: Daimler truck when really helps.
Soroush Salehian Dardashti: De risk their decisions.
Soroush Salehian Dardashti: <unk> as they move from pilot to production deployments.
Soroush Salehian Dardashti: And as they make decisions to go to the next generation, especially transitioning to us Mcw technology, So and that is across the past passenger as well as commercial vehicles. So we are seeing interest in both of that obviously <unk> being the marquee brand and.
Soroush Salehian Dardashti: So, and that is across passenger as well as commercial vehicles. So we are seeing interest in both of those. Obviously, you know, Daimler being the marquee brand and, you know, key customer for the space, but we are seeing others really interested to be able to tap into our technology for their applications, both in kind of high ADAS as well as automated highway applications.
Soroush Salehian Dardashti: Key customer for this space.
Soroush Salehian Dardashti: We are seeing others, who are interested to be able to tap into our technology for their application both in kind of.
Soroush Salehian Dardashti: Hi, Adas as well as automated highway applications.
Soroush Salehian Dardashti: Okay, perfect. And then kind of going off that, can you give us some color on the processes for both trucking and passenger cars, kind of pertaining to not only the RFI and RFQ processes but also the milestones to get to SOP? I would imagine that passenger vehicle OEMs, and I may be wrong about this, but they'd be much more stringent on certain tests or validation processes.
Speaker Change: Okay, perfect and then kind of going off that can you can you give us some color on the processes for both shopping and passenger cars kind of pertaining to not only the RFID and RFP processes, but also the milestone.
Soroush Salehian Dardashti: So P R.
Soroush Salehian Dardashti: I would imagine that passenger vehicle Oems and I may be wrong about this but they'd be much more stringent on certain tests or validation processes.
Speaker Change: Yeah happy to so overall actually in <unk>.
Soroush Salehian Dardashti: Automotive.
Soroush Salehian Dardashti: There is number of activities at a number of standards as number of qualifications. When you deal with some of these top brands.
Soroush Salehian Dardashti: It doesn't actually matter I think in terms of where.
Soroush Salehian Dardashti: Exactly the exact application there is a certain level of.
Soroush Salehian Dardashti: Super stringent requirements on qualification needed for example, a dime or we have to go through a significant.
Soroush Salehian Dardashti: Qualification steps across our manufacturing process quality and development teams and we were audited right and did that.
Soroush Salehian Dardashti: On the trucking side of commercial vehicles that actually some of the some of the requirements on.
Soroush Salehian Dardashti: Performance and reliability.
Soroush Salehian Dardashti: Shock and vibe on lifetime actually is much more stringent ashqar side. So that's.
Soroush Salehian Dardashti: And that's why we see that.
Soroush Salehian Dardashti: Enabling our technology to be really.
Soroush Salehian Dardashti: And.
Soroush Salehian Dardashti: I would think of it as mass-market OEM tested and proven, and in some ways, that makes it easier to also then deploy that into a mass-market consumer or passenger vehicle application. But just remember that at this point, as I mentioned, we have done this now twice. We have completed, you know, last year, early in the year, we introduced, for the first time, the concept of a top 10 OEM. And throughout the year, we've provided updates within, you know, A few months after, within a quarter or so after, we were able to pass a comprehensive audit by that top 10 OEM, and we completed manufacturing and quality audits there.
Soroush Salehian Dardashti: I would take a think of it as mass market OEM tested and proven.
Soroush Salehian Dardashti: And.
Soroush Salehian Dardashti: In some ways that makes it easier to also and then deploy that into.
Soroush Salehian Dardashti: Okay, a mass market consumer a passenger vehicle applications. So.
Soroush Salehian Dardashti: But just remember that at this point as I mentioned at this point, we have done this now twice we.
Soroush Salehian Dardashti: We have completed.
Soroush Salehian Dardashti: Last year.
Soroush Salehian Dardashti: Earlier in the year, we introduced our first time the concept of the top 10 Oems right and throughout the year, we provided updates.
Soroush Salehian Dardashti: And then within six months, we won the program, production went on and became Daimler, and that's when we announced that. So now we are talking about it for a second time, a new top 10 passenger OEM, and the time that we have done this manufacturing and quality audit by this passenger OEM is now faster than what we talked about last time. So we are measuring the maturation of the company, not just the products, of our organization, of our team, of our processes, and we're seeing that significantly across the board, which
Soroush Salehian Dardashti: Within.
Soroush Salehian Dardashti: Ed.
Soroush Salehian Dardashti: A few months after within a quarter or so after we were able to pass a comprehensive audit.
Soroush Salehian Dardashti: That top 10 OEM.
Soroush Salehian Dardashti: And.
Soroush Salehian Dardashti: We completed our manufacturing and quality Auditor and then within six months. We entered we won the program was the production when it became Daimler and Thats, when we announced that right. So now we're talking about a second time, a new top 10 passenger OEM and the time to we have done this.
Soroush Salehian Dardashti: Manufacturing and quality advisors customer OEM is now.
Soroush Salehian Dardashti: Faster than what we talked about last time. So we are we are using the mature <unk> of the company not just the products are of our organization of our team of our processes and we're seeing that significantly across the board.
Soroush Salehian Dardashti: Which gives us added confidence as we go towards.
Soroush Salehian Dardashti: Some of the Finalization of these our Hughes and the net number of months.
Kevin Garrigan: Yep, that makes a ton of sense. Okay, perfect. Thank you for that.
Speaker Change: Yes that makes a ton of sense, okay perfect. Thank you for that.
Operator: Our next question is from Suji DeSilva of Roth MKM. Please go ahead.
Kevin Garrigan: Our next question is from <unk> Silva from Roth km. Please go ahead.
Suji DeSilva: So room nights are up so.
Suji DeSilva: So for Daimler, could you maybe handicap the opportunity to expand beyond, I guess, trucking, which is mainly North America, from what I can tell, to additional geographies and then passengers? Just give us some sense of if work's already been done, and how much those could fall in versus what are realistic expectations? Yeah, sure, Suji. I'm happy to answer that.
Suji DeSilva: So for Daimler could you maybe handicap the opportunity to expand beyond I guess trucking, which is mainly North America and my from what I can tell to additional geographies and then passenger or just give us some sense.
Speaker Change: Work is already done and how.
Speaker Change: How much those good waterfall in versus what a realistic expectation is.
Soroush Salehian Dardashti: So, obviously, you know, with Diamond Truck, we're first, you know, laser-focused on delivering on our first program launch, SOP, for 2026, right? We're acting at Tier 1 as the exclusive supplier for long-range and ultra-long-range lidar for the Cirrus Production Program. We are obviously working across the board on, you know, providing sensors and some of the perception software aspects that we talked about for that program. We're also closely engaged with Torque, which is developing, of course, the autonomy stack.
Speaker Change: Yeah sure so as you head to assets so obviously.
Soroush Salehian Dardashti: With Daimler truck were first.
Soroush Salehian Dardashti: Laser focused on.
Soroush Salehian Dardashti: Delivering on our first program launches Sop for the 2026 right.
Soroush Salehian Dardashti: We actively are acting as tier one.
Soroush Salehian Dardashti: As.
Soroush Salehian Dardashti: The exclusive supplier for long range Ultra long range Lidar for the Cirrus brush a program.
Soroush Salehian Dardashti: Obviously working across the board.
Soroush Salehian Dardashti: On.
Soroush Salehian Dardashti: Providing sensors and.
Soroush Salehian Dardashti: Some of the perception of sulfur.
Soroush Salehian Dardashti: Aspects that we talked about.
Soroush Salehian Dardashti: For that program, but we're also.
Soroush Salehian Dardashti: Closely engaged with the <unk> team, which is developing of course, the autonomy stack and overall.
Soroush Salehian Dardashti: And overall, obviously, we see opportunities in the future to expand this partnership to potentially other markets, other regions, and other applications. The whole point is that we're building a foundation of a technology stack that is really enabling highway autonomy and highway safety. This can be applied to a number of applications. As I mentioned earlier, not just commercial vehicle but now also passenger vehicle OEMs are increasingly looking to expand their operational design domain to higher speeds, and with the NHTSA ruling that requires more than 60 miles per hour automatic emergency braking, we think that's going to be important and kind of a requirement for OEMs, including passenger car makers.
Soroush Salehian Dardashti: Obviously, we see opportunities.
Soroush Salehian Dardashti: In the future to expand this partnership for.
Soroush Salehian Dardashti: For potentially other markets.
Soroush Salehian Dardashti: Other regions and other applications.
Soroush Salehian Dardashti: The whole point is that we're building a foundation of a technology stack, which is really enabling highway autonomy at highway speeds and this can be applied to a number of applications as I mentioned earlier, you can see that.
Soroush Salehian Dardashti: No.
Soroush Salehian Dardashti: Not just commercial vehicle, but now also passenger vehicle Oems are increasingly looking to.
Soroush Salehian Dardashti: Expand their operational design domain to higher speeds and with the Nitsa ruling that requires more than 60 miles per hour.
Soroush Salehian Dardashti: Automatic emergency braking, bringing that's going to be.
Soroush Salehian Dardashti: <unk>.
Soroush Salehian Dardashti: Important and kind of requirement for Oems, including passenger car side. So.
Soroush Salehian Dardashti: The short answer is, bottom line, the developments we're doing are not going to be limited just to a certain use on the commercial vehicle side. We see potential opportunities to expand from there, and as we have more that we can share in the future, if we were able to do that, we would, of course, be talking about it. But we do see opportunity to further expand our partnership here, and we'll continue to work together at exciting events later this month, both with the CEO of Torque Robotics later this week in London, actually, where we're going to be on stage talking about the latest progress with our program on the production side, as well as later this month, at the end of the month, with the Diamond Trucks head of autonomous group at ACT Expo in Vegas, where we' No, that's great, great exposure for you guys, obviously.
Soroush Salehian Dardashti: Short answer is the bottom line.
Soroush Salehian Dardashti: Developments, we're doing is not.
Soroush Salehian Dardashti: Going to be.
Soroush Salehian Dardashti: Limited just to certain use on the commercial vehicle side, we see potential opportunities to expand from there and as we have more that we can share in the future. If we were able to do that we would of course be talking about it but we do see opportunity to further expand.
Soroush Salehian Dardashti: Our partnership here and we will continue to work together as Don mentioned also that.
Soroush Salehian Dardashti: Obviously, we have a couple of.
Soroush Salehian Dardashti: Exciting events.
Soroush Salehian Dardashti: Later this month.
Soroush Salehian Dardashti: Both with the CEO of TORC robotics.
Soroush Salehian Dardashti: Later this week in London, actually where are we going to be on stage talking about the latest progress with our program.
Soroush Salehian Dardashti: On the production side as well as later this month at the end of the month with.
Soroush Salehian Dardashti: The diamond trucks.
Soroush Salehian Dardashti: Head of autonomous group.
Soroush Salehian Dardashti: At <unk> Expo in Vegas, who will have some are signing on to talk about so.
Speaker Change: Feel free to join us at that time.
Soroush Salehian Dardashti: No that's great great exposure for you guys obviously.
Suji DeSilva: I'm going to step back and ask a question about the kind of process that you went through to win the Daimler truck. Maybe you could enumerate three or four key steps in that as you look back on it. And I'm asking the question in trying to understand your pipeline better. Which of those steps did you gain the most confidence that you would win this customer when you passed it? And, you know, in the pipeline, how many potential customers have maybe already passed that phase just to get a qualitative? Sure, good question. So I can give you at a high level, obviously, there are a number of steps, and you know typically, the process could take a number of months.
Soroush Salehian Dardashti: Step back and ask a question about the.
Soroush Salehian Dardashti: [inaudible]
Soroush Salehian Dardashti: The process that you went through to win Daimler truck, maybe three or four key steps in that as you look back on it and I'm asking the question in trying to understand your pipeline are better.
Soroush Salehian Dardashti: Which of those steps did you when you pass that you gained the most confidence that you would.
Soroush Salehian Dardashti: When this customer and in the pipeline how many potential customers are maybe already passed that phase just to get a qualitative sense.
Speaker Change: Sure. Good question. So I can give you at a high level. Obviously, there are number of a number of steps and typically the <unk>.
Soroush Salehian Dardashti: Process.
Soroush Salehian Dardashti: You could take a number of months too.
Speaker Change: One or two years right from the very beginning first conversations but.
Soroush Salehian Dardashti: At a high level there is our Fi RF Q and then of course the final nomination and there are number of steps in between I think one of the key milestones is.
Speaker Change: First of all the transition from RFID to our acute stage, which is which is critical.
Soroush Salehian Dardashti: And that is where the.
Speaker Change: The final commercial bids as well as the key step which is manufacturing call.
Soroush Salehian Dardashti: Manufacturing quality audits happen.
Soroush Salehian Dardashti: There are a few stage and there is kind of a down selection phase, maybe sometimes happening deeper into our key phase in which the finalists are our <unk>. So there is kind of too.
Soroush Salehian Dardashti: Uh huh.
Soroush Salehian Dardashti: Three main but two checkpoints have with <unk> and then two more checkpoints with the audits as well as the down selection.
Speaker Change: And with Daimler truck of course, it's gone through all of those and we were able to.
Speaker Change: Since we introduced it early end of the year last year.
Soroush Salehian Dardashti:
Soroush Salehian Dardashti: Advanced to the RQ stage and then from there.
Speaker Change: Within a quarter or a few months after that we talked about.
Soroush Salehian Dardashti: Passing the.
Soroush Salehian Dardashti: The manufacturing audit and then from there we became a finalist and we wanted just a quarter after that so within two quarters.
Soroush Salehian Dardashti: From our Q2.
Soroush Salehian Dardashti: Manufacturing audits finalists that award.
Soroush Salehian Dardashti: We're now talking about, okay, a number of other programs. There are multiple others, as I mentioned, including passenger commercial vehicles. And, you know, we have advanced on a number of those past this RFQ phase. And, as I mentioned, with this Top 10 Passenger OEM, we have now crossed both the RFQ phase, we have now crossed the manufacturing audit phase, and we have now crossed the finalist, being a finalist on that final phase of the RFQ-2 denomination. So we're, it's been only a couple months, but we've made significant progress on this program, and we're pretty excited. We appreciate that.
Soroush Salehian Dardashti: We're now talking about okay, a number of other programs, there's multiple others as I mentioned.
Suji DeSilva: Appreciate that, Soroush; very detailed. Thank you.
Suji DeSilva: Including passenger and commercial vehicles.
Suji DeSilva: And.
Suji DeSilva: We have advanced on a number of those pass this on a few phase and as I mentioned with a top 10 passenger OEM we have now.
Suji DeSilva: Across both our Q phase, we have now crossed the manufacturing auto phase and we've now crossed the finalist being a finalist on that.
Suji DeSilva: Our final phase of our Q2 the nomination. So we're it's been only a couple of months we've made significant progress on this program and we are.
Suji DeSilva: So we're pretty excited about that.
Suji DeSilva: I appreciate that very detailed thank you.
Operator: There are no further questions. Ladies and gentlemen, this concludes the call for today. Thank you for calling in. Please go ahead and disconnect your lines.
Speaker Change: There are no further questions, ladies and gentlemen, this concludes the call for today. Thank you for calling in and please go ahead.
Operator: Connect your lines.
Operator: Okay.