Half Year 2024 Pioneer Power Solutions Inc Earnings Call
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Speaker Change: The New York Times, and the New York Times, the New York Times, and the New York Times
Speaker Change: Greetings and welcome to the Pioneer Solutions Reconference Call. At this time, participants are an illicit only mode. A brief question and answer session will follow the formal presentation.
should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brett Maas, with Hayden Investor Relations. Thank you, you may begin.
Speaker Change: and Chief Executive Officer.
Speaker Change: Chief Financial Officer and Joe Marickan, President of CEO of Pioneer Power Mobility. Fawns and discussion will be a Q&A session, over to Christmas season of the call. We appreciate the opportunity to discuss the recent sale of the company's PCE business unit, as well as our enthusiasm for the remaining critical power and immobility business.
Speaker Change: Before we get started, let me remind you this call to be reported in webcast.
During this call, Andrew will make four-looking statements. These statements are based on current expectations and assumptions in your subject to risk in the cities that could cause actual loss of material. Please refer to the cautionary text regarding four-looking statements contained in the earnings release.
Speaker Change: and I'm going to continue in our 10K, 10Q in our violence. We should try to contact the call. I'd like to now turn to the call for Nathan Mazurek, Chairman CEO. Nathan, please go ahead.
Nathan Mazurek: Thank you, Brett, good afternoon and thank you all for joining us today.
Nathan Mazurek: As we disclose in a press release this morning, we sold our pioneer custom electrical products core business.
Nathan Mazurek: Peace App to milk point capital, a private equity firm located in New York City for essentially $50 million in cash and the assumption of certain liabilities.
Nathan Mazurek: We will talk more about the transaction during this call, our rationale for the sale, what it means for our business going forward and provide investors with an opportunity to ask questions about the transaction.
For some time now, Pioneer has been on the forefront of the energy transition in North America with two fast growing divisions. Peace set!
Nathan Mazurek: Primarily E-Block.
in integrated power and control system originally developed for the distributed generation market.
Nathan Mazurek: and Critical Power.
Primarily our e-boost, mobile power and charging system, we initially unveiled in November of 2021.
Both these businesses are enjoying similar secular tailwinds and the opportunities for continued growth for each or robust and varied.
Nathan Mazurek: Importantly though, the products in each of these lines of business are different in terms of products scope and the markets they serve. And as a result, in our opinion, value for each has been somewhat constrained.
Nathan Mazurek: We determined that the vesting piecepip, primarily the e-block business, will enable each entity to operate more nimble and unlock additional value for their shareholders.
Nathan Mazurek: Constquently we sold our e-block business yesterday, which had already achieved significant scale earlier and had matured earlier than our e-boost business for $15 million in cash to milk point.
Nathan Mazurek: This sale enables us to want, focus on our emobility business, which we believe has a significantly higher ceiling than the E-block business too.
Nathan Mazurek: Finance the growth of that business.
Nathan Mazurek: Without any near-ambitium term shareholder delusion, or the assumption of any external debt or banks financing.
Nathan Mazurek: 3.
Nathan Mazurek: Return, potentially return capital slash value to shareholders in the near term.
Nathan Mazurek: Vaya shared by back indoor, special dividend. And finally, for concurrently engaged in an acquisition and or business combination that we believe will be a creative turnings and continue to enhance shareholder value.
Speaker Change: As detailed in the press release issued this morning, the terms of the agreement are simple and clear. Pioneer sold its P-Sept subsidiary base in Los Angeles for $50 million.
In addition, Pioneer invested $2 million in Millpoint's new Voltares, Power Equipment Platform, in exchange for about 6% of the new entity.
The $2 million equity invests us and investment allows us to participate in the future value and appreciation of the piece that business.
Persuade to a separate press release issued by Milk Point this morning. Voltares holds already added another business to this platform, the Jefferson Transformer Business Soul to it from Irmko, the larger utility.
Nathan Mazurek: Transformer Manufacturer.
Nathan Mazurek: As we noted earlier, what remains in pioneer, pollution, pioneer power solutions is one.
Zero Death. Since August of 2019, we have self-funded all our R&D capital expenditures and increasing work and increased working capital needs, essentially via our own cash generation.
2, it leaves us with cash, both the cash that we had on hand and the additional cash we received from the P-Sept sale.
Nathan Mazurek: Today this is a little bit north of $50 million.
and three, the critical power business, which is essentially our legacy engine generator service business, and since 2021, the E-Booest High Performance Mobile Charging Business.
Nathan Mazurek: and the first quick review of the Genesis of the Ibu's platform.
Nathan Mazurek: We introduced our first e-boost prototype in November of 2021. It was one truck mounted 60KW fast charging solution powered by 150 kilowatt-pro pain-fueled engine mounted on the same truck.
This product line, which has grown significantly since then, in sales and installation base, has been scaled on four main platforms.
Ibu's many a skit-based fast charging solution that could be moved utilizing a fork left.
Ibu's mobile, a trailer-based fast charging solution that can be pulled by a truck or tractor depending on size.
Ibu's Goat GOAT, a truck integrated DC fast charging solution that invokes the Triple A type model.
and finally for people's pot, a high capacity charging system integrated into a shipping container for a rural and extreme weather regions. To date!
The vast majority of the E-Boost units delivered and ordered have been skid or trailer-based units.
Nathan Mazurek: And the last three years, these grid gap solutions have helped catapult the sales and rental of E-Booce units across the US and have made E-Booce an industry synonym for reliable and sustainably powered off grid mobile EV charging solutions.
Nathan Mazurek: Today!
Nathan Mazurek: E. Boost has delivered more than 19,000 unique vehicle charging sessions and more than 600 megawatts of sustainable off-grid power.
We have delivered e-Buz units to electric truck and bus manufacturers, transit authorities, municipalities, charging as a service provider is the gaming industry, Robotaxi providers and many, many others.
We expect the critical power division to generate a bit over $20 million in revenue this year and looks forward to sharing more specific financial information with you on our third quarter earnings call coming up in just about two weeks.
Since 2021, Pioneers also been consistently investing in the E-Boo's business to broaden its suite of solutions and allow us to penetrate even wider markets.
and the last year we have introduced Homeboos.
The first residential market focus solution that runs on existing natural gas lines to homes.
Nathan Mazurek: Unlike the majority of backup generators in the market which are designed to run
for Minimal, Hours Prade and Constricted Hours per year.
The Home Epoost is powered by an EPA-rated Prime Generator.
Nathan Mazurek: which can operate 24-7.
Nathan Mazurek: and comes with all the major components required.
to build the backup system for a home.
Including Options for a Level 2 or Level 3.
Charger with simple all-inclusive delivery and installation that any local contractor can install.
The Homey Boost
Nathan Mazurek: Owner, you know, allows the user to generate their own electric power using their own natural gas connection.
As I noted Pioneers, Design Home E-Boost with the options for level 2 or level 3 fast charging.
and this complete backup and level 3 EV charging option can also address the emerging demand from the Minimole segment. Commonly referred to as neighborhood minimarts for corner retail centers.
These small businesses can utilize the same solution to meet business uptime needs and at the same time with one unit and one installation provide EV charging for their customers.
Pioneer Emobilities deploying additional resources.
The focus on and capitalized on this growing market. We expect our initial market entry with the Home E-Bus product will be made through targeted regional distributors and dealers early in 2025.
In 2024, we also introduced our e-boost Pure Power Units.
with the growth of large battery energy storage systems and deployment of onsite hydrogen fueling stations.
Nathan Mazurek: There was an increasing demand for mobile flexible power to recharge these battery energy storage systems and power of the hydrogen refuelers.
We're reliable and powerful grid connections are not available today or expect it to be available in the near future.
Ebus Pure Power offers quickly deployable, more sustainably powered large power units to support the unsight power needs for the battery energy storage systems and hydrogen customers.
Indeed, we expected deliver over 50 of these units in 2025, up from 5 or 6 in 2024.
Nathan Mazurek: Finally in 2024 we unveiled our Zeb Unit, is Zero Emissions E-Boost, a variation that provides an e-Boost variation that provides up to one megawatt, a zero-emission battery-based mobile power.
for customers and their locations that absolutely must have a zero-mission solution for their mobile charging needs.
Nathan Mazurek: Finally, backlog in our business backlog is a key indicator of future performance to wait on September and sorry on December 31st.
2023, our critical power division backlog with $16.7 million.
and September 30th, 2024, total backlog for critical power alone was $24 million an increase of 40 about 45%
We look forward to discussing e-Buz Financial Performance in 2024 and more specific revenue and profit guidance for 2025 on our third quarter call in only a couple of weeks.
with that we were open the call to questions.
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone ticket pad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.
for participants using speaker equipment and maybe necessary to pick up your hands at before pressing the star keys. One moment please call me Paul's for questions.
Speaker Change: The first question is from Raw Brown from Lake Street Capital Markets. Please go ahead.
Speaker Change: Good afternoon.
Speaker Change: and Gabriel himself.
Thank you.
What a little sense of what you see in terms of your M&A strategy and maybe it's too early to sort of detail it. But what are some of the opportunities you see in M&A can improve the boost sort of segment?
Speaker Change: Yeah, I mean, you know, financially it allows us to get bigger faster and really carry the burden, you know, spread the burden of the overhead among more, larger scale.
With that said, it would have to be something, we've done a lot of work to take e-bos from a real money-loosing business, to something that's close to breaking even to hopefully making significant net profit within the next 12 months.
Speaker Change: So with that in mind it would have to be sizable at least $25 million in revenue in here. It would have to not be bleeding and of course it would have to be related in the hands What we've already built up here.
So it may be a very narrow group of candidates, but that's what we'd be looking for.
and then obviously you're sort of making the decision now as he boost his ramping. But could you give the sense of some of the demand drivers that drove that 50% plus increase in back log and maybe some of the opportunities set out there in that market?
Yeah, that would be great. I'm going to let Gio Mariccan who really lives in breathe as e-boost since its inception. I'm going to let him give probably better color than I would as to what's driving the last year specifically.
Speaker Change: Thank you, Nathan.
Speaker Change: from a growth standpoint, we have been consistent growth in the transit bus sleep electrification market.
Speaker Change: Consistent adoption and growth in the electric bus.
Speaker Change: School District.
Speaker Change: and Jason Markets. Additionally,
We're starting to see the ports or airports adopt electrification and...
One of the major sectors that we have seen growth in and we expect to see much higher growth in our municipality's in general, meaning
Towns and cities that are starting the education process of their fleets, whether they their trash truck, whether it be their delivery service fleet.
and for all of these including utilities who are utilizing and electrifying their...
Service trucks, but they initially utilized for service outages. When they try to electrify those in more remote areas, they need power for those electric vehicles.
Speaker Change: Technology is like hydrogen dispensing.
Speaker Change: and also battery energy storage which require a high amount of energy and power and we're able to provide that in a very clean and sustainable way and a mobile way so that they can reach out into remote areas as well.
Okay, great. Thank you for the overview there.
and I guess the last question on the Home Boost product, you talked about that.
and the first one is launching in early 25. What sort of the Markovap community there you see and I guess what's the working, I'll need that you that that will drive.
Yeah, I mean, like I boost itself, I'm sure that the market will go in a way that it will be
Speaker Change: served channeled in a different way than we initially conceived.
But we're going to be attacking sort of the high end.
Speaker Change: Housing Market, you know, I don't want to call it the McMansion, but you know, you've got to have a house.
of the certain sides and a budget of a certain size.
that the homeowners, there's a value to that homeowner of being able to generate their own level three type charging, they can charge two, two.
Vehicles quickly at the same time giving them 24-7.
Super resiliency for their home or portion of their home.
Speaker Change: Um...
We kind of test marketed, we haven't launched it officially yet into the market.
Speaker Change: and the interesting thing is that the most I guess.
The most interested potential users.
That's just the high in home
but as we said in the script it's sort of the small, the mini-mort or the radiology center that really want.
24-7, they weren't more than a backup generator. They also want the ability to save money on demand charges when they're charging their own electric vehicles. So that's kind of the user and the market for that we're going to initially be working with...
Electrical distributors and wholesalers and the engine generator dealers and contractors.
Speaker Change: and...
and that's in 2025.
I hope I'll be consistent with this, but in a couple of weeks when we give specific guidance for 2025 we'll probably give in guidance with zero baked in for a home boost. So home boost is the gravy to that extent for 2025.
Speaker Change: Okay, thank you, I'll turn it over.
Speaker Change: [inaudible]
Speaker Change: The next question is from Amit Dayal from H.C. Wayne Wright. Let's go ahead.
Thank you, congratulations Nathan. Thank you, I'll have to see some value being unlocked here. You know with respect to some of your targeting, what kind of margins you're targeting for the E-Pose business? Could you give us any color on what the overheads for this segment?
Yeah, yeah
Yeah, so I really, I would like to do that really in the call in a couple of weeks when we actually disclose the third quarter, so we'll have...
Three-quarters of the year and sort of what we'll be able to pick apart each quarter, especially the third, where the e-boost sales have been more robust. What margins did we achieve, what did we try to achieve, and what does the model look like at different revenue levels?
So I prefer to do that on the next call of that's okay, Amit.
You know you were sort of hitting some level of ceiling I guess around you know capacity or available capacity and you have both these businesses of these business segments.
Do you think just now focusing on e-boost, you have, you know, in of capacity at least initially to ramp to your targets for 20-25 at least?
Speaker Change: Yeah, so we've been successful on the E-Boo's site, maybe because we basically started it from nothing.
We've been successful in working and it gets better every few months.
Working with different outsourced partners, we do the more complicated ones, we do the one-off.
We do all the prototypes.
Speaker Change: ourselves in Minneapolis.
But we've established a relationship with one person on the West Coast looking to do that on the East Coast as well. They are ready, of course, after they do a few units, they become more expert.
Speaker Change: and the more sub-contracting, frankly, the better we do in capacity. We're basically keeping the capacity fixed in Minneapolis. It will be able to do X every year and it's sized for that. Everything else we're working with partners on.
Speaker Change: and then I was in the same place. And just maybe last one for me, Nathan, how did you sort of...
Portion out, you know, the team I guess, you know, especially on the sales side, was there any overlap for...
For the same source in terms of selling the e-boost product was the e-block product.
Speaker Change: and how are you situated now, I guess, you know, that's any kind of that would be awesome.
Speaker Change: Yeah, I mean we were all one company so there was of course the was you know some cross selling and and
The salespeople, the dedicated to E-Bus and the dedicated to E-Block.
Sometimes somebody would come up with an opportunity that had both and that person would be incentivized, of course, to pass that along and hopefully a positive and profitable sale emerge from it. It wasn't that much though. Really, really wasn't.
It's a different solution, it's usually a different group.
with in a big user, you think of any hypothetical user that we want to talk about, you know, from Amazon to DHL, to whomever.
and it wasn't very hard to separate them. And frankly, we've run from the beginning of pioneer, we've run almost a division, to self-contained entities.
and if we ever had to sell one, they're treated very separately and that was not an issue. There was no separation problem here.
Speaker Change: Okay.
Good to know that. Yeah, that's all I have to do, it's an old take my
Speaker Change: and I'll see you next time.
Speaker Change: Perfect, thank you, Amit.
Speaker Change: and the next question is from Rob Romano from First Source Bank. Please go ahead.
Thank you for taking my questions. My first question is on E-block. I know the past couple years you've had some pretty big lens with E-block, Walmart.
I know what's the big one is the demand that he blocked his tail off and he felt that was a good time to sell or why was he blocked not the growth engine he thought it was.
So, you block continues to be the growth engine, where we sold a very successful business to a mill point there sophisticated buyers.
Speaker Change: We kind of had to make a choice.
We are, you know, we wanted to avoid serious pollution, we can't continue to fund exponential growth ourselves.
So this is going to be delusion as it's going to be that and we made a choice. The E-block business had matured faster.
It was more available, it was more appealing.
Speaker Change: to a market.
We feel we got an excellent price for it.
It's got a lot more growth to go.
It's going to be packaged now with other businesses.
Making it a much more formidable competitor on a broader scale and we're going to be participating in that growth and value.
I think we did it on all ends. I think this was a good result for us.
Okay, I understand a book. Question on the home e-boost. I know you've had some relationships with Chick-fil-A. Is this a type of solution that can be possible for like a public or...
or a large enterprise like Chick-fil-A for preventing them to go down during some high-pub weather events.
Yes, it would be well suited more to it, more to a Chick-fil-A, their footprint is much smaller. You know, the large, even a big box retailer, the footprint is much larger. And you know, you're talking about a lot more gas.
Flewing Through.
Speaker Change: Much Much larger unit
Speaker Change: Required for that that becomes a much more involved process. That's what we're homeboost is about. Homeboost is really...
Speaker Change: Really targeting that big home, that big mansion or that big...
Extreme Home, and by nature that's the same sort of electrical footprint as these smaller locations. So, Chick-fil-A would be a good example, radiology in...
Speaker Change: and those type of centers MRI type places.
Okay, great, that's helpful. And I need boost. Just trying to get an idea of what this market looks like and the opportunities out there on your pipeline. Is this something you could grow 20, 25% per year? I mean, is that the type of demand this out there?
That's the kind of the demand is much higher. I think that if we were to grow it 25% a year, we'd be an extremely profitable and solid business. We're trying to...
We're trying to not go crazy on the growth and lose profitability, but the demand every month
Speaker Change: The use cases and demand and users, the never cease.
to Amit's Me. And in many cases,
So the users are logical but have spent
The last two years trying all kinds of other solutions and now have come back. Recognizing that this is now a very proven solution much more than it was two years ago. Or as Geo pointed out earlier, you know, you have airports.
Speaker Change: Actualport, Seaports, and so forth. All electrifying, whether it's their equipment and other things, and the demand for mobile, simple, non-permated electrification is super strong. So we're very excited.
and I think I mentioned in my script, but only since about this summer.
We started dealing with the larger charging as a service providers, however their particular business model is.
and they have become the source of the man for us. Very, very fast the man and it keeps going to more, they grow the more we're growing so we're very, very excited.
Speaker Change: Thanks, Nathan, appreciate it.
and the next episode of the show.
As a reminder to ask the question to stress star one.
The next question is from Chip Rally from RIM Investments. Please go ahead. Gentlemen, thanks for taking my call and congratulations on what looks like a very good sale.
The couple questions on corporate expense that you know how quickly can you address that, how much can that come down and it's safe to say that in the meantime.
Speaker Change: Maybe you could pick up short-term money market yield on the 50 million which we kind of cover it. So, you know, is that kind of a washing your term or is there still going to be some drag?
Speaker Change: and then secondly, you touch on the backlog for CP which is good here, we might be a little bit down quarter to quarter. So maybe you could address, at this point, there's still lumpiness in orders and then...
Will that translate into lumpy sales as well? Or do you think you can level load and consistently grow sales?
Yeah, so that's a lot of them that's sure I could be able to address, you know, I can remember everything But we'll go backwards, so you know, it's still a small business, you know, even if let's say hypothetically we projected dot and I'll call it 32 million for 2025.
and I'm saying that. But if it were, it's still a small business and there's going to be some lumpiness to that. We've been pretty good about making it by the end of the year, it all falls and so you are going to have that. As far as corporate overhead.
I think what we issue the guidance or we unveil the guidance.
Speaker Change: in a couple of weeks for 2025.
will deal with that more specifically, you know, what the components of the corporate overhead have been, you know, what's cash, what's not cash like like stock-based compensation has been a big part of.
of Corporal Overhead, what was it in 2023, what will it be in 2024? What have we seen in 2025? And I guess you're right, yes, $50 million today in the bank, even in a morning market account. You can play with whatever rates you want to use. I'm sure you're aware of it.
of about where they are, yeah, short term before any kind of a dividend or anything like that. That's generating yield. I wouldn't call it a wash with the corporate overhead yet, but it's...
It's going to be a significant piece of burning even next year.
Got it. And then I see the use cases, but one thing you didn't talk about is competition or perhaps barriers.
Speaker Change: To the...
Speaker Change: To the market and wondering if you could touch on that is it really just first to market and first to execution or you know, is there something proprietary about what you're doing that that helps a little bit of a barrier to the market. I mean, the last question. Thank you.
Speaker Change: Right now there's no problem. It's a little bit of both GLD one and would dress this a little bit.
Sure, I'd be happy to so.
Speaker Change: Like any market, I think competition validates the market robustness, but what we've seen over the last few years is that we've been able to take a lead in among the competitors that exist.
Speaker Change: We are publicly traded company.
Most of the competitors are smaller startups for businesses that don't have the same type of edge in the market.
Additionally, we have really put in a lot more into the R&D side and customized a lot more solutions.
Speaker Change: in a way that it economically fits the solution that they're looking for as well as functionally fits better.
into the solution the market is looking for. So while there will continue to be competition, we've been able to...
and the American Institute of Technology.
One example of it is that we have melted a lot of...
Speaker Change: Amit.
Speaker Change: Technology from...
Monitoring to proactive servicing and other things that we have built into the product early on that are paying dividends now because they are...
becoming of more value and insight.
for the customers, for instance.
and a large utility customer we've been working with. There's so reason was that...
Speaker Change: We, by far, had data that we could provide them that integrated into their overall.
Monitoring System that allowed them to enhance it and integrate it into their charging system. So those are some of the things that has allowed us to grow.
Great, thank you very much.
The next question is from Dean Coils, a private investor. Please go ahead.
Oh hi, if you could hear me, thanks for...
Dean Coils: Taking my question and all the information so far, I've done a very promising. I think my question and it might be better in two weeks, but maybe it's touch on it now.
in the execution. I heard the number and the pipeline that sounds very promising, but I recall back in April that one of the things that was commented on is...
Order that have been taken by utilities or other customers where it's kind of external to you without your hand, but they've had been
Zellang on taking the orders and to how you guys are looking at that and managing that and any development since then, I'll take my question on me. Thank you.
Thank you for the question. I think you're referring to actually the business that we sold the piece of business.
and the Constantine Battle.
Dean Coils: It also ends up
Speaker Change: You know, given enough time, you know, those things always happen. But yes, there was only a slippage because there was a lot of customers. And in this year was the bad party was particularly utility. They're a great customer but not so good at meeting their own deadlines.
Speaker Change: On the e-boost side, it's frankly the opposite. You know, we can't give it to the market as fast. There's a lot of them. We're already holding...
The reason we hold so many millions of dollars of inventory and engines and alternators and trailers is so forth because even with that,
usually takes us three to six months to do some of these bespoke type units for very discriminating users. If we wouldn't be stocking that much in components, it would be a year, a year as too long. By the time...
In typically, by the time the user decides on this solution, they wanted as quickly as possible.
Dean Coils: So that's good, so not so good sometimes. Initially in 2022 and 2023 when we were first starting the business, we would do anything to try to meet those requirements because we were launching a new business.
The Deploying Compressed
Dean Coils: are margins or in some cases evaporated them.
Dean Coils: and Faberize them. We got much better as the business got bigger and I think when we do the third quarter call.
Thank you again, thank you so much. No problem.
Next question is from Ray Foss, a private investor. Please go ahead.
Dean Coils: it
Speaker Change: and Rachel Aston, Nathan, good work. Thank you, Ray.
Yes, thank you. Nathan, Nathan, I was just thinking about a broad, broad.
and Tom Faket. I've read in some of the available outside information that I'd like you to may be comment on the prospects in general for distributed energy production.
Speaker Change: I've read somewhere and I can't even remember where, but they made a point that the distributed electrical generation could compete with some of the high-tech high-tech.
Dean Coils: All alternatives such as small nuclear reactors. In other words, my grandfather went through the rural and electrification.
and I was back in the 30s and it was something done on a national scale. Do you have any general comments on the prospects for...
Dean Coils: for Distributive Electrical Generation in general. Hope that doesn't put you on the spot, but it's a concern to me, and I appreciate everything you do, Nathan.
Nathan Mazurek: Thank you Ray, and I appreciate your support all these years. I'll give it to you in two minutes and we can talk, you know, Ed Lent, you've broached a massive topic and everything I'm going to say is just my opinion there are many, many experts in this.
Dean Coils: The Stripie de Generation has been talked about since I'm in the industry which is over 30 years. In the last...
5 to 10 years, distributed generation has finally come of age. What form that takes?
Dean Coils: is still kind of evolving.
Dean Coils: Initially, I would say it was almost all natural gas based, whether it be a mini turbine or engine, and so, however you do it.
and that's what it was. In the last few years, as the prices...
Dean Coils: The cost really for battery-based solutions and I think in the future for hydrogen-based solutions as those price coins come down.
That's going to eventually shift in their favor because they are totally zero emissions.
Dean Coils: Do they have other drawbacks? They have other drawbacks. You know, small nuclear is something that's been talked about for a very, very, very long time. Until somebody figures out what to do with even on a small nuclear level, what to do with the waste.
Dean Coils: and that's just...
It's just talk really now. So I think for the next 10 years, it's still going to be natural gas based.
That's what allows the user to save money, have resilience away from the electrical grid. It's a fuel that we have plenty of in the United States, you know, that we're lucky that we have a lot of natural gas.
That's going to eventually shift. We are trying to be ahead of that curve and that's why.
We've already introduced battery only type units. We haven't done anything with hydrogen because it is still not just logistically difficult but it's still price prohibitive, you know, outside of somebody wanting to do a showpiece.
We did on the other side of the business we did a job with Southern California, some sorry Southern California gas
and their H2 project. I know what we sold the switch gear for. What they paid for, the fuel cells and the electrolyzer, I can't even imagine. How much was spent to generate electricity for 22 homes?
So it's not there yet on any kind of a scale. Does this help you at all or?
Yes indeed, Nathan, I'm just looking for your valuable, for perspectives on the topic in general. Thank you and best wishes.
You as well Ray, thank you for calling.
There are no further questions at this time. I would like to turn the floor back over to Nathan Mazurek for closing comments.
Nathan Mazurek: Thank you all for calling in, thank you for the questions and thank you for the support and thank you for the engagement
We look forward to him two weeks as we've put it out discussing the results more in more detail and more specifically and issuing new guidance for 2025 and the rationale behind that guidance. Thank you.
Speaker Change: This concludes Phase Teleconference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: The End