Q2 2024 Energy Vault Holdings Inc Earnings Call

Speaker Change: [music].

Operator: Good day, and welcome to Energy Vault's second quarter 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Michael Beer, Chief Financial Officer of Energy Vault. Please go ahead. Thank you.

Good day and welcome to the energy book second quarter, 'twenty 'twenty four earnings conference call.

Speaker Change: All participants will be in listen only mode.

Speaker Change: Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone.

Speaker Change: To withdraw your question. Please press Star then two please.

Speaker Change: Please note this event is being recorded.

Speaker Change: I would now like to turn the conference over to Michael <unk>, Chief Financial Officer for Energy Fault. Please go ahead.

Michael Beer: Thank you. Hello, and welcome to Energy Vault's second quarter 2024 Financial Results Conference call. As a reminder, Energy Vault's second quarter earnings press release and presentation are available now on our investor website, and we'll be referring to the presentation during this call. A replay of this call will be available later today on the Investor Relations portion of our website. This call is now being recorded. If you have objected in any way, please disconnect now.

Michael <unk>: Thank you Hello, and welcome to energy both second quarter of 2024 financial results Conference call. As a reminder, energy bolt second quarter earnings press release and presentation are available now on our Investor website, and we'll be referring to the presentation. During this call.

Speaker Change: A replay of this call will be available later today on the Investor Relations portion of our website. This call is now being recorded if you are injecting any way. Please disconnect now.

Unknown Executive: Please note that Energy Vault's earnings release and this call contain forward-looking statements that are subject to risks and uncertainty. These forward-looking statements are only estimates that may differ materially from the actual future events or results due to a variety of factors. Please refer to our 10-Q filing for a list of factors that cause our results to differ from those anticipated in any forecasting data.

Speaker Change: Please note that energy bolts earnings release, and this call contain forward looking statements that are subject to risks and uncertainties.

Speaker Change: These forward looking statements are only estimates and may differ materially from the actual future events or results due to a variety of factors.

Speaker Change: Please refer to our 10-Q filings for a list of factors that cause our results to differ from those anticipated in any thoughts these days.

Speaker Change: We undertake no obligation to publicly update or revise forward looking statements except as required by law. In addition, please note that we will be presenting and discussing certain non-GAAP information. Please refer to the safe Harbor disclaimer and non-GAAP financial measures presented in our earnings release for more details, including a reconciliation to comparable.

Speaker Change: GAAP measures joining me on the call today is Robert Tony Our Chairman and Chief Executive Officer at this time I'd like to hand, the call over to Robert for Kony.

Robert Tony: Great. Thank you Mike.

Robert Tony: And I also want to officially welcome Michael Beer for the first quarterly earnings that he's taking over for our prior CFO, who joined US in April as we announced on our last earnings call. So welcome Michael Great to have you here.

Speaker Change: We're also taking this call from Lugano, Switzerland from our International headquarters here, where we conducted our board meeting last week and our management meetings here this week.

Robert Tony: During our inaugural Investor and Analyst day last quarter in May at the New York Stock Exchange, where we updated investors on our vision strategy and two year financial guidance.

Robert Tony: We outlined a bold plan with the following three strategic tenants.

Robert Tony: First to address the largest and most attractive growth regions primary storage very critically addressing them and the business model that is most cash accretive most profitable and the lowest risk for investors.

Robert Tony: Just to emphasize on this first point as an example, how we address the storage market for example, in China versus Australia versus the U S. Three of the largest markets in the world might be different considering the three factors I just mentioned and allows us to choose from a license royalty model, a build and transfer model or a build.

Unknown Executive: Three of the largest markets in the world might be different considering the three factors I just mentioned and allows us to choose from a licensed royalty model, a build and transfer model, or a build, own, and operate model. A large and important growth region with more coming.

Robert Tony: Own and operate model.

Robert Tony: Secondly.

Robert Tony: We outlined a plan to deliver more predictable and recurring revenue streams.

Robert Tony: Obviously, especially important as a public company as pure play integrators will continue to be subject to the EPC build schedule. The customers. They can move in three to six months increments pending permitting and other external factors that can expose us to lumpy quarters. As we are experiencing here. This year. After the first two years of very strong growth.

Robert Tony: Our unique multi technology and multi business model approach to the market allows us some degrees of freedom to adapt our solution mix of license royalty build transfer build operate to best optimize our future cash flow streams.

Robert Tony: Thirdly offer the high growth and profitability potential within the energy storage segment.

Robert Tony: It really is about how we are optimizing our product mix and business model to drive the high unit economics in our sector.

Robert Tony: Whether from our technology agnostic fit for purpose approach to the solutions, we developed under the umbrella of our AI enabled <unk> platform.

Robert Tony: Or from the ability to utilize the most attractive commercial structures and business model, including project bonding capacity in excess of $1 billion.

Robert Tony: We have multiple levers at our disposal that we're using to deliver growth.

Robert Tony: And above the market gross margins and unit economics, we've outlined.

Robert Tony: As we turn to our second quarter results, we demonstrated progress across all three dimensions of our strategy and in line with our latest 2020 for guidance.

Robert Tony: And ramping revenue later in the year due to the timing on new project starts in the than large concurrent 2025 clients.

Speaker Change: Firstly relative to growth in the largest and most attractive regions, we announced newly booked deals as noted in the press release with two project with Ace and in Australia.

Robert Tony: A large and important growth region with more coming.

Robert Tony: And uniquely in the region with the local industrial presence of investors like Korea Z N V. H P. Two of the largest mining companies in the world in their respective sectors.

Robert Tony: I'll be announcing another new regional expansion for our gravity technology in just a few minutes that had not been previously announced.

Unknown Executive: Secondly, relative to more predictable and recurring revenue streams, we have strong execution progress on the two projects that we will own and operate. I want to give a little more color on some of the commercial highlights from our release, and then we'll turn it back to Michael, our CFO, to review the detailed financials and get to some questions. Regarding the overall sales funnel, we ended the quarter with a solid contribution of new commercial opportunities, aided significantly by the prior second half 2023 and early 2024 successful completion of large-scale battery storage projects at Nevada Energy just outside of Las Vegas.

Robert Tony: Secondly, relative to more predictable and recurring revenue streams, we had strong execution progress on the two projects that we will own and operate.

Speaker Change: First the largest green hydrogen storage project in the United States, and Calistoga, California for Pacific gas and electric California's largest public utility <unk>.

Speaker Change: And the cross trails battery project in Snyder, Texas, both of which we chose to maintain on our balance sheet given the long term IRR attractiveness of recurring high margin revenue streams, which will smooth the topline volatility over time.

Speaker Change: While these choices reduce revenue recognition this year in 2024, they will offer energy vault and investors additional high margin contribution and revenue predictability going forward.

Speaker Change: As you are in the process of implementing project financing on these projects, we are expecting to return more than $40 million to the balance sheet and the Q4 of this year, while increasing the IRR on these projects in the process.

Speaker Change: These projects are expected to be online in Q3 2024.

Speaker Change: Within this quarter, and Q2 2025, respectively and projected to add eight to 10 million and recurring EBIT profit streams annually over the next 10 plus years.

Speaker Change: And thirdly relative to growth and profitability, we reported strong unit economics at 27, 8% gross margin. Despite the lower revenue due to the mix of the projects improving adjusted EBITDA up 12% year over year, which was also positively impacted due to lower cash operating expense.

Speaker Change: Which was reduced by 23% over the prior year due to proactive measures taken by the company in Q4, 2023, and continued vigilance and cost containment operating efficiency and continuing to tune our business model for product and solution realization.

Speaker Change: I wanted to give a little more color on some of the commercial highlights from our release and then we'll turn it back to Michael <unk>, Our CFO to review the detailed financials and get to some questions.

Speaker Change: Regarding the overall sales funnel, we ended the quarter with a solid contribution of new commercial opportunity.

Speaker Change: Aided significantly by the prior second half 2023 in early 2020 for successful completion of large scale battery storage project at Nevada energy just outside of Las Vegas.

Speaker Change: Wellhead and southern California.

Speaker Change: <unk> power in Texas.

Speaker Change: And the recently announced in our Q2 expansion into the Australian market with the two project with Athens totaling 400 megawatt hour.

Speaker Change: In line with our growing our global presence. We have also taken steps to deepen our leadership bench and our investment in our commercial team and that's very pleased to welcome West Buhler as our new global head of sales.

West Buhler: West has built a successful career joining energy bought most recently from Cowen where he delivered on large growth initiatives in North America building upon prior leadership roles of increasing responsibility, it's unfolding Schneider electric and Siemens.

Speaker Change: I know I speak on behalf of our leadership and those employees that are add initial exposure with wet, but it's been a pleasure to get to know him better and he has ramped up here in the last month.

Speaker Change: Clearly brings a significant track record of delivering results in large scale dynamic and high growth environment.

Speaker Change: But perhaps more importantly for us our cultural fit and alignment with our values, how we collaborate and a shared passion to accelerate the world's clean energy transition.

Unknown Executive: Getting back to the numbers, in total, the company ended the quarter with a developed pipeline of $2.8 billion. As we have seen, the actual percentage of completion accounting can create lumpiness from one quarter to the next. While we expect capital markets as well as energy storage trends to remain dynamic, at least. And finally, before I turn it back to Michael, it gives me great pleasure to announce that we are again expanding our regional presence with our first EVX gravity energy source system in Brazil.

Speaker Change: Getting back to the numbers in total the company ended the quarter with the developed pipeline of $2 8 billion.

Speaker Change: Of which over half is associated with project being developed by either existing customers or strategic partners and investors.

Speaker Change: Which obviously gives us a lot of confidence on conversion of that funnel into contract bookings.

Speaker Change: This figure rose about 100 million from our Investor and Analyst day in early May.

Speaker Change: Meanwhile, our backlog of 264 million now reflect the projects with AIDS in Australia, as well as new long term service agreements at Nevada energy, increasing roughly 70, 17% since our analyst day.

Speaker Change: While we expect a substantial portion of the project related work, we recorded over the next 18 months as.

Speaker Change: As we have seen the actual percentage of completion accounting can create lumpiness from one quarter to the next.

Speaker Change: As I highlighted earlier with increased contribution from newly owned and operated assets and a higher mix of software sales and long term service agreements, we expect to improve this visibility while reducing volatility over the medium to long term. The end result, being a more profitable sales mix for the company.

Speaker Change: From a balance sheet and liquidity perspective, we remain in great shape as Michael will cover more in detail with over $110 million in cash and no debt.

Michael <unk>: As mentioned earlier looking at attractive project financing structures for our own projects, which will add cash back for our balance sheet, while improving our ours on these projects.

Speaker Change: From speaking recent late of any of our investors. They have appreciated our stewardship of their investment in our management of our cost structure and cash in what remains a very dynamic and ever changing market environment.

Michael <unk>: And thus avoiding any cost convertible debt or other dilutive financing structures and we will continue to do so.

Speaker Change: While we expect capital markets as well as the energy storage trends will remain dynamic and at least.

Speaker Change: We remain highly encouraged by the structural and secular trends across the energy storage industry, and particularly related to the massive uptick in pure power demand from generative AI data centers.

Speaker Change: And thus downstream requirements for renewable energy storage and backup storage solutions.

Speaker Change: The demand now for economical twenty-four seven renewable solution that's been accelerated five to 10 years in my opinion, it's a.

Speaker Change: The world cannot meet the current and upcoming power demand for renewables.

Speaker Change: The demand for 24, seven renewables is here today, yet no economical solutions to implement exist.

Speaker Change: This not only represents a tremendous opportunity, but it is really core to our mission and founding of the company.

Speaker Change: But he is also an imperative really a moral imperative for our planet and our massive inflection point for renewables and storage.

Speaker Change: It's a world seeks to turn back to all forms of power generation fossil small modular reactor et cetera increasingly as these new chip heat up the data centers. The same data centers will be heating up the world at an accelerated rate.

Speaker Change: Enter therefore innovation and what energy vault and many companies like us are focusing on it is our mission as a company and the passion of our people that will solve it through teamwork innovation courage, fortitude and Pierre will and execution. Despite the obstacles thrown in front of us.

Speaker Change: As we look toward the balance of 'twenty 'twenty four and 2025, we will continue to make progress on our core objective.

Speaker Change: For the local community energy Volte is entering now to accelerate this vision with a new hybrid energy storage system approach to address the unique topology, which includes 500 meter depth mining shafts.

Speaker Change: This unique solution leverage Leverages energy vaults, new modular pumped hydro gravity energy storage technology called the <unk> zero zero by the way because we are returning to some of the original incarnation of our technology using water reservoirs.

Speaker Change: The first full commercial scale <unk> zero units will be delivered to the site in Sardinia, and the next 60 days.

Speaker Change: And then installation testing commissioning and operation will commence and be completed in 2025.

Speaker Change: The gravity system will be complemented by a lithium ion battery with all power charging discharging asset management and economic dispatch orchestrated by energy Volte Volte Oss energy management software platform our EMF.

Speaker Change: This first of a kind hybrid system represents a unique solution to a very specific and unique need to capture energy storage leveraging existing infrastructure. In this case mine shafts and gravity, which is the basis of 90% of all energy storage in the form of pumped Hydro electric dam today.

Michael <unk>: And finally before I turn it back to Michael It gives me great pleasure to announce that we are again, expanding our regional presence with our first E VX gravity energy storage system in Brazil with.

Speaker Change: With Brazil state owned oil and gas conglomerate Petrobras.

Michael <unk>: Basis to $16 9 million.

Speaker Change: GAAP results included a $1 $7 million restructuring charge associated with the reorganization will.

Speaker Change: And realignment as well as other cost I'd measures discussed earlier this year and during the company's investor and analyst day on May nine.

Speaker Change: Along with the $600 million.

Speaker Change: Impairment the.

Speaker Change: Companies moving forward.

Speaker Change: Office in Westlake village, California.

Speaker Change: As a result, the company expects adjusted Opex to be reduced by $3 million to $4 million in the second half or $6 million to $8 million on an annualized basis and be around $15 million per quarter in the second half of 2024.

Speaker Change: The other key noncash items added back in Q2 were $9 5 million of stock based compensation expense and $1 7 million in net interest income manner.

Speaker Change: Management continues to expect adjusted EBITDA within the range of negative $45 million to negative $60 million for the full year.

Speaker Change: From a cash perspective as of June 32024, the company had $113 million in cash cash equivalents and restricted cash, leaving us well positioned to continue our growth strategy and execute on our projects.

Unknown Executive: With that, I'll hand the call back to Rob.

Speaker Change: And you would like to withdraw your question. Please press Star then two.

Speaker Change: And we do ask that you limit questions to one question and one follow up.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Speaker Change: The first question comes from Thomas Boyes with TD Cowen. Please go ahead.

Thomas Boyes: I appreciate you taking the questions first one for me just given the focus on owning and operating specific projects. Following the Investor day are there specific applications of your technology, where you're more likely to own and operate when looking at kind of the graph. The portfolio you have any <unk> system up and running in China, you just said.

Speaker Change: Ounce the ecosystem, where you will also be an owner and operator, we should be you kind of expect more attention for those systems and media E. D y than say additional edf's projects, how do you think about that split.

Speaker Change: Great. Thank you Thomas good good to hear you.

Speaker Change: Yes, there is no specific technology, that's a focus relative to own and operate and I think if you look at the first two that we were already developing on our balance sheet.

Speaker Change: The Calistoga project, which is a combination green hydrogen so ultra long duration with lithium ion there and then the second one is a pure battery energy storage in Texas. So.

Speaker Change: We actually have a team there even on the ground one of our technical teams and support teams are there with <unk> here as we speak actually this week. So we're awaiting that and part of their visit there is to also take the initial performance measurements on a multi slice basis. There. So we're expecting something shortly tomlinson will be.

Speaker Change: Announcing of those performance metrics as we get that from the site.

Speaker Change: Excellent. Thanks, so much ill hop back in the queue.

Stephen <unk>: Thank you. The next question is from Stephen <unk> with Stifel. Please go ahead.

Stephen <unk>: Good good evening, I guess there huh.

Speaker Change: So yes.

Stephen <unk>: So.

Stephen <unk>: A couple of things I think first for me.

Speaker Change: When we think about your sort of two year revenue guidance and I sort of.

Speaker Change: See some of the project announcements you've made in your backlog, but as we sort of try to evaluate that and we think about what.

Speaker Change: Awards, you need can you maybe talk a little bit about sort of a pipeline of opportunities and what we should be looking for to kind of increase the confidence in the revenue guidance for the next sort of the aggregate two year period.

Stephen <unk>: Sure.

Speaker Change: Some of this stuff that you truly want to own and operate because of the long term returns and recurring revenue how do you balance that.

Speaker Change: And by the way it is a balance but it's more of the ladder on how we think about portfolio and.

Stephen <unk>: As we look at the profit pools, and our energy storage ecosystem and that's from sort of the.

Stephen <unk>: Lie and equipment side, all the way up through the integrator side of the house into services and software, but also into an independent power.

Stephen <unk>: And the power ownership in provision.

Stephen <unk>: Back to utilities or to end users. So when you look at that ecosystem. We've done a lot of work and looking at where those profit pools are but as well and as you well know as a public company.

Stephen <unk>: If we were to just play for example, which we don't today, we are a little more diversified than that but if we were just to play in the integrator space, you're you're subject to the lumpiness that we see in even in our large growth. The first two years are first year $148 million, our second year of 345 plus million.

Stephen <unk>: We had quarters that were very lumpy and.

Stephen <unk>: B no no stranger to public companies as you know.

Stephen <unk>: <unk>.

Stephen <unk>: It's tough to maintain that type of.

Rob: Great. No, that's a good color.

Unknown Attendee: Hello, I had a couple questions. I was wondering if you could give some perspective. Now with the announcement about the project in Italy, the former mine site, just as far as the implementation timeframe for an EVX system sort of moving from China, you know, where things stood at the point that that project got kicked off, to Schneider, and now to this project in Italy, I just wondered what's maybe likely to go faster with the subsequent projects and whether there's anything that might go slower, just, I don't know, supply chain or

Unknown Executive: It's a great question, especially as you refer to the project in Sardinia where, as I mentioned, we're actually going to have the full-scale EV0, which is essentially these special So, as a result, to your question on speed, and since we've done testing on this solution for the last 18 months, this has all been done under the radar. We've been testing this new modular pumped hydro system and circulating That's actually now been under accelerated light testing for over ten years of time.

Stephen <unk>: With that I'm, referring to here.

Speaker Change: On the call since you asked for the first time.

Stephen <unk>: We are moving very quickly because in this case if you look at this what we're referring to is a modular pumped hydro system, we have IP around and ultra low cost way to hold liquid in this case water.

Stephen <unk>: And all the other components in our modular pumped hydro system for Dania, where we're going.

Speaker Change: Deep into mine shafts are from existing.

Speaker Change: Infrastructure that utilized and pumped hydro so Penn stock.

Stephen <unk>: Turbine.

Stephen <unk>: So these are things that have been used with pumped hydro electric for 100 years.

Stephen <unk>: As a result.

Stephen <unk>: To your question on speed.

Stephen <unk>: And since we've done testing on the solution.

Stephen <unk>: For the last 18 months. So this has all been done under the radar we've been testing.

Stephen <unk>: This new modular pumped hydro system and circulating it.

That's actually now been under accelerated life testing over 10 years of time.

Unknown Executive: This is a system that's gonna move very quickly, and we'll have applications not only going below ground. So that is something new to the new segment that I think we haven't referred to really yet in the market. There are other sort of fledgling and early seed stage type of gravity companies that have started to target that market, but we're doing it at scale now. And in addition, that same modular pumped hydro system can be utilized, leveraging slopes and mountain sides.

Stephen <unk>: This is a system that's going to move very quickly and we will have applications not only.

Stephen <unk>: Going below ground. So that is something new that's a new segment that I think we haven't referred to.

Yet the market there is other sort of fledgling in.

Stephen <unk>: Early seed stage type of gravity companies that that started to target that market.

Stephen <unk>: Doing it at scale now and.

Stephen <unk>: And in addition that same modular pumped hydro system can be utilized leveraging slopes.

Stephen <unk>: And mountain side, so it was actually.

Unknown Executive: So it was actually designed, and this is public, I'll reference it, but we received an award from Aqua Power, which is half owned by the public fund, the PIF, in Saudi Arabia. So they're a large Middle East CPC.

Unknown Executive: They're also one of the largest operators of desalination plants in the region, and they work in places in Africa. So they awarded us, along with twenty other companies, a technology award for this new EV zero concept. And now we're working in South Africa on the first site and implementation above ground. So, to close on your question, the EV zero, and that this technology and something that's been in development will move quite quickly.

Unknown Executive: I think relative to EVX, for example, that I think you're referencing because that's a project that has been in the eighteen months plus as the first large-scale system in China. And as I just announced in Brazil, we're gonna have a first system with the largest oil and gas player there. So, we've been working on various iterations of our gravity technology. That is one of them It is always great to talk about new products, not just with a product, but to talk about them in terms of customers.

Unknown Executive: And I think the Aqua Power announcement that was made public back in February and March that's public as well as what we just announced today with Petrobras in Brazil is exciting. And then I think Sardinia with the new modular pumped hydro is gonna be a nice reference point and proof point for the technology, as we announced within twenty twenty five.

Unknown Attendee: Okay, great.

Unknown Executive: It's not only a product guide today, but it was the last year, and that's been the basis of what's been operating these systems and also share, before I get to the second part of your question, announced and delivered within 12 months a gigawatt hour, ever, at the very beginning of their first year. And we're building upon that. Now Calistoga is coming online.

Unknown Executive: We have these follow-on projects, not only in Australia but some in the U.S. and others now that are going to be coming up. And it is orchestrating across multiple technologies, and that's exciting. This same platform, by the way, can also orchestrate across generation technologies and not just renewable. So wind, solar, but any fossil-based.

Unknown Executive: So it really brings that asset management component and a lot of the predictive analytics and a lot of the AI capability that gets into the economic dispatching capabilities. And then to the second part of your question, which is absolutely fair, is this something that could be sold standalone? Well, absolutely, since it's productized.

Unknown Executive: And if you look at customer sets that are looking to optimize how they're going to manage the coexistence of generation, the coexistence of different storage technologies. So, very interestingly, up to this point, unless there's a new company announcement today I haven't seen, we're the only energy storage company that's delivering on multiple duration, multiple technologies today under a single platform. And it puts us in a position to solve problems and respond to RFPs with solutions that people weren't even contemplating.

Stephen <unk>: One and respond to Rfps with solutions that.

Stephen <unk>: People aren't even contemplating and I mentioned that because of our Pacific gas and electric was expecting a natural gas solution to solve this problem.

Unknown Executive: And I mentioned that Pacific Gas and Electric was expecting a natural gas solution to solve this problem for the replacing diesel gen in the town of Calistoga. And we responded with something that was actually sustainable, something no one else did, and at a much lower cost than what they were looking at.

Stephen <unk>: For the replacing diesel Gen and that's in the town of Calistoga.

Stephen <unk>: And we responded with something that was actually sustainable and no one else did and.

Stephen <unk>: And much lower cost than what they were looking at and that capability is something.

Unknown Executive: And that capability is something that we want to leverage not only for new storage solutions, but you can imagine, customer sets that have to manage this coexistence of storage, multiple storage technologies that they may be buying piecemeal because they're trying to, you know, solve different problems, different applications. There is no single bullet, or sorry, silver bullet, in storage because the nature of what we're solving for is different, you know, by customer, by application, and by use case.

Stephen <unk>: That we want to leverage not only for new storage solutions, but you can imagine.

Stephen <unk>: Customer sets that have to manage the coexistence of storage multiple storage technologies that they may be buying <unk> because they are trying to.

Speaker Change: Ralph different problems different applications. There is no single bullet, sorry, silver bullet and.

Speaker Change: In storage because of the nature of what we're solving for is different.

Speaker Change: By customer by application and use case.

Unknown Executive: So there's always going to be different and optimal technologies to solve different problems, and I think, uniquely, we've got a lot of the capabilities to solve that. So we are in discussions with customers who are looking at leveraging our software to help them, you know, solve their existing infrastructure needs. We do demonstrations. We have customer sets that allow us to visit their sites that are operating today from the ones we've delivered. And obviously, there's no better way and proof point to a new customer than having them talk to an existing one and have them see things operating in real time.

Speaker Change: So theres always going to be different than optimal technologies to solve different problems and I think uniquely.

Speaker Change: Got a lot of the capabilities to solve that so we are in discussions with customers who are looking at leveraging our software to help them.

Speaker Change: So all of their existing infrastructure needs. We do demonstrations, we have customer sets that allow us.

To visit their sites that are operating in today from the ones that we've delivered in and obviously that there is no.

Speaker Change: Better way and proof point to a new customer than having them talk to an existing one and have them see things operating real time.

Speaker Change: And just to clarify if you had a customer who did elect to install the platform.

Speaker Change: More or less stand alone.

Speaker Change: With a customer like that.

Speaker Change: Pretty willing to be announced as.

Speaker Change: So some of it like your large industrial customers that.

Speaker Change: Want to wait.

Unknown Executive: Yeah, you know, every customer is a little bit different in the timing of when they want to announce something. Some are comfortable with earlier announcements. Others want to wait until something starts operating, and some of them will just, you know, will not announce anything except acknowledge that a system is operating. So it really just depends. But I think as we get into standalone software sales, you'll be hearing more about that.

Speaker Change: Yes.

Speaker Change: Every customer is a little bit different than the timing of when they want to.

Speaker Change: To announce something somewhere comfortable with earlier announcements.

Speaker Change: Want to wait till something to operate and some of them.

Speaker Change: Just.

Speaker Change: Will not announce really anything except to acknowledge that our system is operating so it really just depends but I.

Speaker Change: I think as we get into the Standalone software sales youll be hearing more about that and I think those customers.

Unknown Executive: And I think those customers, depending on if it's a utility or an IPP, or, in this case, there are a lot of industrial customers that are managing, you know, their own electrification or clean energy transition where they don't have the competence or, you know, the prior experience of managing electrons. I guess I'll say, because where they're buying infrastructure in renewable energy and then needing a couple of storage, they So I expect you'll see announcements about that. And we'll try to share as much as we can as we develop those solutions.

Speaker Change: Depending on if it's a utility or IPP or in this case there is a lot of industrial customers that are managing.

They are on electrification, our clean energy transition.

Speaker Change: Where they don't have the confidence or.

Speaker Change: Or the.

Speaker Change: The prior experience.

Speaker Change: Managing electronics, I guess, I'll say, because we're they're buying infrastructure and renewable and then need a couple of storage they really need data across their asset base. So I expect you'll.

Speaker Change: Youll see announcements about that and we'll try to share as much as we can as we as we develop those solutions.

Operator: This concludes the question and answer session. I would like to turn the conference back over to Robert Piconi for any closing remarks.

Speaker Change: This concludes the question and answer session.

Speaker Change: I would like to turn the conference back over to Robert pick Tony for any closing remarks.

Robert Piconi: Thank you, operator. Again, I just want to thank everybody who joined the call here and all of our investors that support the company, and we'll look forward to sharing further updates in the future. Thank you very much.

Speaker Change: Thank you operator again I just want to thank everybody, who joined the call here and all of our investors that support the company and we will look forward to be sharing further updates in the future. Thank you very much.

Speaker Change: Okay.

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

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

Speaker Change: Yeah.