Q3 2024 Complete Solaria Inc Earnings Call
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Speaker Change: So I should induce Hello, My Name's T. J Rodgers said you had to completely cellular comparable earnings release.
Speaker Change: Normally.
Speaker Change: Ah migrate through properly.
Speaker Change: Normally I insist on having Union Inhouse Board meeting.
Speaker Change: Hi, Rajeev.
Speaker Change: Make a couple of days.
Speaker Change: It's actually.
Speaker Change: Our headquarters is now.
Speaker Change: A couple of days ago got sick.
Speaker Change: And tried to fly home my airplane out of bed.
Speaker Change: So I'm home sick with new airplanes.
Speaker Change: So Dan and I are going to handle this call.
Dan: We've got a good report.
Dan: But in the future you should expect to see a boardroom with.
Dan: Me and V piece of it ready to answer questions City Williams handle that with just two of us.
Okay.
Dan: Presentation.
Dan: This is our third quarter report.
Dan: Yeah.
Dan:
Speaker Change: Q3, 24 in Q4 'twenty four forecasts are silos and this is good.
Speaker Change: Eight turns on the euro.
Speaker Change: This is for the around complete some area.
Speaker Change: And there'll be an inflection in the combined company. We've we've been managed for weeks to exit more than months.
Speaker Change: We're looking forward that this is the last official reported complete salariat.
Speaker Change: We've done the acquisition of <unk> assets.
We've taken three divisions newborns Raven deal that talk about that later.
Speaker Change: We'll have a little clearer battle for the rights to the Sunpower branded Chinese strive to take it away from us.
Speaker Change: On that one.
We also have got some power brand.
Speaker Change: We've.
Speaker Change: Taken our company is only 65 people in it now.
Speaker Change: And we just hired a 1200 for some of our employees.
Speaker Change: So it is underway it is not a technical right.
Speaker Change: Way of saying it by Central voice merger, the middle swells the whale.
Speaker Change: And we hired the people we've added with interviews and then.
The new company goes away and in the old Sunpower takes care of this business without us.
Speaker Change: We raised $80 million last quarter through convertible debt offerings to.
Speaker Change: You get the $45 million that we paid for Sunpower that was the stocking horse bid.
In Sunpower chapter 11 bankruptcy.
Speaker Change: And we got out of that in the bank, except for the last $14 million is coming in from Chinese investors, who will be here in early December So we've got the 80 million Bucks.
Speaker Change: To keep the company running.
Speaker Change: So here we have the.
Speaker Change: The official reports I've got GAAP and non-GAAP.
Speaker Change: A complete failure.
Speaker Change: So peony.
Speaker Change: Small company, we're not we were $5 $5 million in revenue.
Speaker Change: We were having a hard time turning back on.
But we're not.
Speaker Change: In a company that is much bigger than that so this is not really that relevant.
Speaker Change: We raised.
Speaker Change: The write offs that led to Ramsey gross margin.
And we raised $79 million.
Speaker Change: It really reached $79 million.
Speaker Change: Due to the effect the the acquisition.
Speaker Change:
Speaker Change: This is the slide the solder website. This is the slide I showed I showed investors.
Speaker Change: This was complete some area, we went into a period of decline win a.
Speaker Change: Private equity cutoff, our funding and we literally couldnt buy panels to put on roofs.
Speaker Change: And this is the last quarter and we didn't really we're focusing on other things, but we didn't really grow from it.
Speaker Change: Eni sure investors. This numbers had this number as possible and today I'm going to report on the number.
Speaker Change: And what it looks like.
Speaker Change: Yes.
The first.
Speaker Change: Five greater plant has done it's been through five revisions.
Speaker Change: And it's what I said.
Speaker Change: 80 million funding in it promised $100 million and we'll update you on that today.
Speaker Change: It also said that we had a startup mentality, where we took the revenue we could get.
Speaker Change: And then we bought the company from it so when we bought the company.
Speaker Change: Actually use <unk> 2800 people is the hiring pool.
There were many of them that worked on jobs that we werent going to carry forward.
Speaker Change: And then in other cases, there given it was a bigger company, we had a really high quality pool to choose from and we interviewed everybody. If we got the best ones. We credited minimum three interviews reach each person.
Speaker Change: We then constructed our company and to have minimal losses operating income in the first quarter of this plan.
Speaker Change: Followed by profitability at mid 25, so relatively low losses on the new company and I will report on that today.
Speaker Change: We then reorganize the company.
Speaker Change: Along the along the lines of a start up that is you got $100 million in revenue.
Speaker Change: Everybody was saying well Gee, some parties $700 million to get that done the investors in Texas root beer, and then actually as Bama who's saying no way no more money we've had it.
Speaker Change: Saturday.
Speaker Change: The remainder yet to do and and I went through a series of planning steps.
Speaker Change: We're not going to fund our customers anymore. There are professional funding companies, we will use them.
Speaker Change: They're sophisticated come.
Speaker Change: Companies that are better than our engineers in the back room in doing financing.
Speaker Change: And it.
Speaker Change: $750 million and sometimes asking for to remain viable 500 was that and then the $5 50, and then they have 200 for operating that was too much too.
That was for $170 million and they couldn't pay it.
Speaker Change: So that caused the chapter 11 bankruptcy.
Speaker Change: My idea, whereas it did.
Speaker Change: Interesting thing is if you're growing distraction run driving distance I can get the sand Hill road.
Speaker Change: And I said.
Speaker Change: With the Sino U.
Speaker Change: You got to name class Sunpower, you got 100 million Bucks in revenue I said I would not need the Jac motors to billings bounce annual Rev. Rec, who had find the funding we needed we're sort of like that is a great deal.
Speaker Change: So that was a deal we're going to do a startup we're going to take the revenue. We can get you were going to build the company around it.
Speaker Change: And that was a very difficult task we had sunpower.
Speaker Change: We had a company clubs, Raven, which sunpower, but had never integrated.
Speaker Change: And listen.
Speaker Change: Utah, which is Samsung who sat lake in is if you wanted to say, let's just let's as San Jose in the Salt Lake.
Speaker Change: Complex of cellular company C you'd pick one.
Speaker Change: And so that companies fairly different different culture than we got sunpower totally different.
Speaker Change: But they've gone to scale. So they knew a lot about how to scale up a company that we didn't know and then you've got complete sort of area.
Speaker Change: Which was the dealer company, we back orders from the dealer network and then as Fathom and tried to make money net debts with complete severity you did.
Speaker Change: I actually invested in a panel company that would compete with Sunpower I felt sunpower the oil sunpower is getting fat.
Speaker Change: And we can take a bunch of business. So we made world class a breath panels.
Speaker Change: And that company I was with for a year and a half we merged with complete solar which is a sales and installation company.
Speaker Change: And that company is called complete saverio coming to join.
Speaker Change: Unfortunately in the second quarter last year.
Speaker Change: The Chinese came out with add back 400 watt panels are right there with us.
Speaker Change: And there are places where the prices were below our cost.
Speaker Change: So that was the end of that one.
Speaker Change: In complete disarray area.
Bonnie.
Speaker Change: Did make panels anymore.
Speaker Change: And we will forever be sunpower blue Raven to form a new company and we're in the process of doing that.
Speaker Change: The picture of the company is here.
Speaker Change: So we've got nine directors, we got real class directors because their presence of companies that that had been associated one way or the other and they stayed with us.
Speaker Change: I wrestled the president I came in to be President I'm 76.
Speaker Change: I've done this before.
Speaker Change: And and I'm, we're in the process of looking for a president Ben terrorists to sound. The same goes to college and it is safe.
I'll be around as CEO.
Speaker Change: And weakness that organization.
Speaker Change: And it turns out that the reason that chart look simple it is because it's.
Speaker Change: Just a lot of work important work and people are in totally different places than they were before and the sport charges.
Speaker Change: And really the goal, it's a silicon valley style.
Speaker Change: Styler chart 70 have Raven.
And theyre staying as a separate division.
Speaker Change: And let me just show you.
Speaker Change: Okay I'll show you I will show you blew Raven.
Speaker Change: The Raven.
He is.
Speaker Change: They do sales direct to customer.
Speaker Change: So they have over 1000 people in your sales force direct and indirect.
Speaker Change: And they said they do have already started with appointments than Santa Rosa.
Speaker Change: Assessment appointment then the closer answer that's the one that makes it all the money closer goes then it gets the order.
Speaker Change: And then we were able to execute with its own people to solve it. So they are a vertically oriented company and their degraded every step of what they do in particular they are extremely good at manufacturing.
Speaker Change: And theyre going to do manufacturing for the company going forward, we're going to collapse the manufacturing.
Speaker Change: <unk> and the other two parts of the company and Blue Raven.
Speaker Change: They are in low cost building. They are all in one building they've got a lot of company spirit.
Speaker Change: And and they can do this job.
Speaker Change: New homes as a part of it another part of Sunpower.
Speaker Change: It is it sounds like with the difference between putting server on somebody's house, and putting cellular and the new house at a development well the answer is totally different.
Speaker Change: In this case your customer as a corporation is drilling 300 houses in Springdale, Nevada.
Speaker Change: And you've got a growing several times to wrap in in the in the in the fit the conduits.
Conduits in the wall.
Speaker Change: When you're growing as fast or in a brand new roof.
Speaker Change: And then you get paid when somebody buys it and they make it part of their mortgage where they have their own financing that yield.
So the cost of selling as much lever because you said the one entity. This corporation are the customers much more demanding because he got a customer who's got economic crowd on yet.
Speaker Change: And the profits are better they're not exceptional but they're better.
Speaker Change: And right now among these three divisions, that's the only one making money blue Raven is not.
Speaker Change: And then we've got dealers.
Speaker Change: And this is a group and this includes the oil company that you've worked with.
Where you go to a dealer and you buy.
Speaker Change: The job.
Speaker Change: So that deal is that a contract that the person signed which doesn't need a lot the museum, 70% chance of actually doing the solar not not 100% chance, even when signed contract.
Speaker Change: Pardon me.
Speaker Change: Sam.
Sam: You go to a dealer and you buy a job.
<unk> contract.
Sam: And a typical a typical system will.
We'll be the little data typically 40000 watts. So I can do the math in my head.
Sam: Typical assessed of euro paid 28% to 32% of the retail value of the system.
Sam: 30% or 40000 deaths, which has trailed grant so the guy who says he gets to have grand.
Out of the 30, and there's 28 left and you got to do everything make money and supported on that 28.
Sam: NASA dealer job.
Sam: And we had to tune the model somehow had a division that did it that way and that was way complete a sale or did it.
Sam: So these are three divisions.
Sam: If you look.
Sam: Now I'm going to show you those so there's.
Sam: Our three divisions.
Sam: I just talked about some foreign complete set of 137 people. So they're division was bigger than ours, we have 65 people and we roughly double the head count.
Sam: To do a dealers.
And they are in Texas in the Philippines.
Sam: And there are different animal than than the other guys. You can see 233 is new homes.
Sam: In Utah.
And in the Philippines, we somehow had a superior Filipino organization are very used to that.
Sam: Cypress suite at Assembly and tests that 1000 people.
Sam: Sunpower, we built our manufacturing plants that actually made wafers for solar cells in the Philippines and automated equipment.
Sam: So I have nothing but good experience with the Philippines and Sunpower. He had a great organization we use it.
Sam:
Sam: Little bit more.
Sam: These guys are bad.
Sam: The same size.
Sam: And then excuse me. These guys are about the same size and we are blue Raven. These are the guys that do the dealer task to keep the money and then do the installation and then do the maintenance after that.
Sam: Can see more than double on a strictly your head count.
Sam: By having a full sales organization.
Sam: But given that youre paying $12000 or you can double head count and in that that's their model right now I can't tell you for a fact, which of these remodels is going to work I know all three of them can work.
Sam: And I know to get our revenue now we're going to work on and we also have assets among them that we can deploy a back and forth. They can help each other.
Sam: That hasn't been the case Blue Raven had been a startup.
They're alone pretty much in Utah.
Sam: And there wasn't any integration between Sunpower Blue Raven.
So are doing that now and it's a.
Sometimes it's not fun.
Sam: They have their own culture, and they don't like being put upon.
Sam: But I'm trying to convince them that I think I'm, making ground to make our company work we've got to integrate.
Bruce: Okay. So Bruce if you look at its 995 people I look at revenue per employee and I look at profitability of each of the groups.
Bruce: Right now.
Speaker Change: Making good money.
And losing a little bit of money for both of these guys. That's 1000 people and asset company.
Speaker Change: Here, we have.
Speaker Change: Executive Vice presidents.
Speaker Change: They're reading independent businesses I don't like to integrate them give earlier said headquarters somewhat to do none of that.
Speaker Change: So that's the business then we've got other slap CFO business development operations and maintenance taken care of stuff.
Speaker Change: All staff Chief administrative officer, running legal HR and quality and then an I T Guy who's on the executive staff with visa service functions here and Theres 209 of us including me.
Speaker Change: And we keep the other 995 running right that's our job and right now there's some friction because they have of our groups aren't doing as well serving the other groups is as we would like but that's about a quarter worth of of.
Speaker Change: Getting things running right.
Speaker Change: So vascular organization.
Speaker Change: You can see the reason for it.
Speaker Change: Legal we dropped from 39 to seven people.
Speaker Change: The headline Sunpower.
Speaker Change: Be a memo said I can run legal free with seven people and you will be using outside lawyers too much.
Speaker Change: <unk> talked a little bit and then she got an offer letter the next day.
Speaker Change: He answered it or people HR same story gravity same story.
Speaker Change: He was the biggest story where.
Speaker Change: The three company said three different very expensive our I T systems. One included both Oracle and Salesforce in one company.
Speaker Change: It was.
Speaker Change: This guy right here.
Speaker Change: And it turns out the Raven.
Speaker Change: Special software it just made for solar really good.
Speaker Change: Describe albatross.
And and we're going to use that for everybody I'm going to get rid of the softer expenses and the other two the another example of synergy a baidu.
Speaker Change: By the way in my prior life in Cyprus, We acquired we acquired 16 companies excuse me 26 companies in 34 years.
Speaker Change: We.
Speaker Change: I actually have spec for doing this.
Speaker Change: So then we have a matrix organization, sometimes we embed our people so you'll have your router and HR rep. There.
Speaker Change: Sometimes we just do service like the service organization in this organization can get profitable and it is good to support 100 million Bucks a quarter revenue.
Speaker Change: Okay. So I already explained that this is the Q3 results. There are no official results for Q3, because our merger close in September 30th.
Speaker Change: So all of it here was add together the results from the two companies.
I did it myself the additives didn't do it.
Speaker Change: And I'm showing it to investors to give you a feeling for what our deployment looks like.
Speaker Change: Sam.
Speaker Change: Complete solar mile company merged into dealer.
Speaker Change: Sunpower company.
And if you added up all the revenue from all three last quarters under 17 million Bucks. So companies have scale and they they know how to do things at scale.
Speaker Change: That's good news.
Speaker Change: The bad news in in would be club non-GAAP numbers.
Speaker Change: The GAAP <unk>.
Ruby: Ruby called GAAP number includes write offs expenses, it's Saturday, but if you get back to what I would report last quarter for the combined companies just adding them together I would even refer to that $40 million loss.
Speaker Change: Okay, well as catastrophic as minus.
Speaker Change: 35% or 30%.
Speaker Change: But there is reasons for it.
Speaker Change: We had.
Speaker Change: Other sources of Bev companies, who had over 2000 and some of our people for the whole quarter last quarter.
Speaker Change: And we had as software et cetera.
Speaker Change: So that that number at all show at the end, it's going to drop is going to get dramatically better going forward.
Speaker Change: So and by the way this $26 million in revenue for the third quarter contains complete set of five point driving 15 from the internal group of Sunpower.
Speaker Change: Uh huh.
Speaker Change: I think a media report I want to make.
Speaker Change: So going.
Speaker Change: I Gotta get my.
Speaker Change: Labels off so I can read it.
So that was a combined revenue 117.
Already told you this.
Speaker Change: Now.
Speaker Change: It turns out the 117 was hotter than our current run rate.
Speaker Change: And that's because sunpower had been shut down for capital serves complete scenario that that those volume numbers are complete so they're reflected private equity shedding is now so bev companies add some errors leftover, but they never were able to install.
Speaker Change: Finally got growing in Q3 got some money and started working where we did 117. So right now that that backlog of orders is gone and we're digging out of those one at a time or 10 at a time with our divisions with new organization.
Speaker Change: So right now if you look at our order generation rate. Our Q4 revenue is expected to be $80 million.
Speaker Change: So I gave you the bad sentiment or go over $100 million quarter company, an ominous establish something underneath it.
Speaker Change: Right now when I look much more carefully than I have been in the past.
Speaker Change:
Speaker Change: And our rental rate in our backlog that we've got in the fab. The number we see is $80 million for the fourth quarter. So that's in a formal expectation changed for you.
Speaker Change: And obviously going downward, but $80 million is not peanuts were $320 million company were solid and we are well organized and we got good people.
Speaker Change: So I presented this plan in Orem.
Speaker Change: By the Red stop for a minute on Orem.
Speaker Change: So south of San Lake is cheaper than Lehigh rule, we are.
Speaker Change: It is an industrial center.
Speaker Change: The industry is I would kind of white collar in terms of.
The buildings they were at a Nobel Microsoft site.
Speaker Change: And there are like 10 buildings, we have one building.
Speaker Change: The billings are nice and if you referred to some new very nice.
Speaker Change: And the Atlanta square feet, and there's lag nine dwelling so as we expand forums that headquarters.
Speaker Change: May I have a bedroom button forum and actually I'd be sitting in a boardroom right now except for the stuff I said.
Speaker Change:
Speaker Change: The operating loss is now expected to drop from 30 million, which is wet rid of Q3, but if you just add it together to $2 million to $11 million in Q4 24.
Speaker Change: No significant head count reductions so that's behind us.
I'm shooting for the two.
Speaker Change: So we're working on it but I'm, giving a wide range here.
Speaker Change: That's where it's going to come out on the top line and my ability to do what I need to do will give this range for a loss we have that cash.
Speaker Change: I'll leave it there.
Speaker Change: So we showed this to orem, Utah.
Speaker Change: They are a big editorial downstairs and everything you have enough square feet that they actually have a real auditorium or it can have an all hands meeting.
Speaker Change: Two over a thousand people the planet I'm showing is the Rev. Five plan. We spent two months working on our plan and I'm telephone plans in a tougher on their format and they're executed globally and we have a real plan Silicon Valley style.
Speaker Change: And like.
Speaker Change: Like I said the way, we cut head count rose not to try to lay off which is terrible to do we.
Speaker Change: We simply hired required with the Noah's Ark plan and there are only so many take us to get on the arc and that said Doug says that's the company you're looking at and also empowers left behind.
Speaker Change: Here's where I said 80 million a second time I didn't want to kind of glass forever because that is down from $100 million wanted to tell you that.
Speaker Change: 80 million as calculated by extrapolating shipments to non customers from orders in mid process in our factory.
Speaker Change: So we're now starting to get a handle on Rev. Rec and what our revenue is going to be and it turns out the three companies all had different processes and different Rev Rec points.
Speaker Change: And we consolidate we've consolidated that and we're now able to start counting better.
Speaker Change: The mitigation side and this is the end of my formal statement.
Speaker Change: We had opex in Q3 24, everybody from both companies and we spent $43 5 million in Opex. Some pad was over staffed beyond belief Raven is chubby.
Speaker Change: A complete celerity is very lean because I lean them out before we went together.
Speaker Change: Our opex is going to $17 million in the next quarter from 43% to 17 and those actions have already been taken in there that things were about to do there are things that are done that is we will start we will have a lower number and that number will get better with each successive quarter.
Speaker Change: So the.
Speaker Change: We are really working in reality this will work in our profitability and our target is higher.
Speaker Change: We have to work on the proper achieving profitability from the gross margin of $80 million as opposed to the gross margin of 100 million and that's a doable thing.
Speaker Change: Broken on that right now.
Speaker Change: Alright, So we got forward looking statements are get reconciliation.
Speaker Change: Before I go to questions I, just want to show you a couple of pictures about Sunpower.
Speaker Change:
Speaker Change: Best Silicon Valley.
Speaker Change: That San Francisco Bay.
Speaker Change: My fellow classmate from the Stanford P. C program across Iowa that snakes wants and he started Sunpower 1985.
Speaker Change: I, just put a brand new roof of British petroleum panels.
Speaker Change: On Cyprus.
Speaker Change: And these are half panels I'm showing here.
Speaker Change: And they were 75 routes each sunpower smaller panels ninety-five, Ross all black pretty.
And that the cell inside of that is what takes Swanson and invented squarely a 300 and I worked with his people we own sunpower at one point of Cypress for bunch of years, and IRA to deck and its people.
Speaker Change: To learn how to make silicon and really make that thing work right.
Speaker Change: Sunpower, whereas a bigger company that installer companies are today that these are sunpower ourselves.
Speaker Change: 20% cells.
Speaker Change: Back in 1999 is 20 years before the Chinese Adam.
Speaker Change: And they worked for the company to make an airplane that was solar power that is it took off lenders on power with solar energy and in flu to an altitude of 96000 feet not bad.
Speaker Change: And by the way to say I understand an F 15 Eagle.
Speaker Change: Party airplane can fly vertical a disservice ceiling on that airplane is 72000 feet.
Speaker Change: We also set up there they have to have these preparers that look like windmills.
Speaker Change: I made this point to the people are blue Raven because they.
Speaker Change: Considered sunpower to be you know the the oppressor from Silicon Valley.
Speaker Change: That was the latest alien.
Speaker Change: And I pointed out that they're working with a company that had a really storied history and they needed to work better together.
Speaker Change: Now there is a set of a crash and that that airplane actually got cut up and they made it they made a flight when the wind was.
Speaker Change: Marginal to fly and they made a decision to fly that didn't work out.
Speaker Change: And I use that as an icon for the solar crash, which is happening.
Speaker Change: In the Salar crashes Sunpower vessel Ninos chapter 11, here's where they're hoping that chapter 11 wasn't real here's the last heartbeat, that's it and the stock is now worth 0.03 cents per share sabre.
Speaker Change: And I pointed out to our folks this could happen to you.
Speaker Change: And then not only distract it wiped out but they've been delisted when.
Speaker Change: S. P. R. S P a W or without the Q becomes available.
Speaker Change: We have we're first in line.
Speaker Change: At least court says that we will see.
Speaker Change: I made this point last week, the peoples center closures and bankruptcies.
Speaker Change: This is a lessons alphabetized.
Speaker Change: And I point Theyre Sunpower there.
Speaker Change: But I pointed out to them. This is a great time to invest in solar because.
Speaker Change: Right now there's a market.
Speaker Change: Where you go out and you say would you guys like a job.
Speaker Change: We will give you stock option Silicon Valley style.
Speaker Change: And you can get people.
Speaker Change: And you can get companies and you therefore can get inorganic growth and that is our plan that I'm going to.
Speaker Change: But when I get our act together, that's going to take me a couple of quarters.
Speaker Change: We can acquire solar companies for very low prices to grow more rapidly.
Speaker Change: The other thing subpar breaks that people don't appreciate enough is his name.
Speaker Change: This is a report called energy Sage they are actually a construction organizing firm the quilt seller. So their data is exactly where solar is this is their last report came out in October.
Speaker Change: So just one slide from this report.
Speaker Change: This is the difference in price per watt.
Speaker Change: <unk> of various kinds of seller.
Speaker Change: And.
Speaker Change: It shows for example, the new Tesla battery, which is good.
Wonderful.
Speaker Change: And in our C panel, which is wonderful. These guys are both trying to take market share and NASA zero a reference point.
If you use the same battery Q says he says legs, a little bit higher price they charge more.
Speaker Change: I see.
Speaker Change: And you go on and here's 51% premium.
So let's say these guys are out here and these are all important people they.
Speaker Change: Kind of set the market. These guys are trying to gain share.
Speaker Change: There's one data point is 20 percentage points above that.
Speaker Change: And you say well Gee.
Speaker Change: They use the Tesla battery or an Enphase battery converter. These are the Tesla battery has embroideries and it says with a battery and an inverted.
Speaker Change: And then you'll have no the sunpower groups well, that's a subpar name if you look under the Hood Dasa Enphase a burden.
Speaker Change: And the Israeli panels, which are NASA have panels from India.
Speaker Change: And yet because of that name right there the 20 percentage points more.
Speaker Change: So my hope is we get this thing to breakeven very quickly and then by that I mean, a few quarters maximum and not lose a lot of money on the way there.
And there's the rate bears is we won this name in court for the U S.
Speaker Change: It will become the new Sunpower.
Speaker Change: And one thing we don't have as we're just the installation company right now, but we have the technologists from Sunpower.
Speaker Change: And I'm a technologist in solar.
Speaker Change: I bet I bet, the fab for Sunpower that made all those panels.
Speaker Change: And we're going to we're going to get some technology going I I have four solar companies I'm working with right now in my venture portfolio.
Speaker Change: So I'm planning on having this be our upside in the point is if I can only get.
Speaker Change: Half the premium in the future that they have historically gotten in this by the way is up two last October that the meeting a month ago two months ago.
Speaker Change:
The way you can make a premium profit.
Speaker Change: Okay.
Speaker Change: One more thing says.
Speaker Change: This is a complete seller network.
Speaker Change: 40, everybody does at the Sun States and a little bit East Coast. This is the Sunpower network also dealer.
Speaker Change: So again Californians sunstates much more concentration plessey of Florida.
Speaker Change:
Speaker Change: To merge the Verde, we've already done it so well.
Speaker Change: To have a smaller but more effective better covering salesforce, that's the vision one.
Speaker Change: Raven.
They have a different strategy, they're going to do the states that don't get covered.
They can get more stable business, they can get a premium price they can build their own name which is.
Speaker Change: Getting well known.
Speaker Change: That's a standalone.
Speaker Change: And then some of our new homes is again different you you see as different kind of deployment, but that's where they're building a new home developments two 300, new homes at a pop.
Speaker Change: And that's that's a standalone business. So we will have three sales forces doing three different things.
Speaker Change: And the new company, and therefore would have a pretty powerful sales force.
Speaker Change: The.
Greg: Opportunity as Greg does the obligatory market side. This one comes from the government.
Greg: And all says is that in the United States.
Greg: Only three 7% of homes.
Greg: Have seller.
Greg: That nobody's hit on penetrated market with 96, 3% potential.
Greg: And then you ask where can it go away in the west.
And this is the whole west so it's not California, California is actually higher than this.
Greg: You've got 9% penetration so theres three X just getting where the other guys already have been.
Greg: And then you see the Midwest or Blue Raven is penetrating northeast It says got lousy utilities like California. So.
Greg: So there are there they've already got more penetration.
Greg: And after that you are talking about dry cleaner stores Walmart Walmart outlets are whatever.
Greg: And David values, because the price of power has gone up.
Greg: <unk> are getting burdened with mandates from government and the utilities are.
Greg: Raising the power prices faster than inflation and that's you got it you got a hub to be beat inflation. These days.
Greg: And that means these guys will be shortly behind so if you add these numbers up.
Greg: You get a market that's a $7 5 billion in 2023.
Greg: With a CAGR of 14% for a long time.
Greg: So.
Greg: We got to make it through the tough times, we got to turn our company into an efficient company.
Greg: Bev Blue Raven, and Sunpower had excellent quality they care about their customers, so they're not going to get kicked out because of that.
Greg: The ramp in fraud, frankly, and in the solar industry. So have we got to do is hanging in there you know the basketball phrase hanging around the rail and the good thing you'll have you'll get the bad stuff into the room.
So that's a marketing plan.
Greg: And I'm done I'm ready for questions.
T J: Thank you T J.
Speaker Change: As a reminder, before we start.
Speaker Change: If you have a question you would like to submit to the queue. Please use the box at the bottom of your screen.
Speaker Change: Type out your question Erinn, just to enter and we'll see it come across.
Speaker Change: Our first question today comes from Derek Soderberg.
Speaker Change: From Cantor Fitzgerald.
Speaker Change: It's a two part question.
Speaker Change:
Speaker Change: Somehow I had about backlog in February of this year of <unk>.
Speaker Change: 37000, new homes, and 15000 retrofit homes in their backlog.
Can you update us on the number of new homes and retrofit and the backlog currently.
Speaker Change: Okay.
Speaker Change: Thanks, Derek you got me read on the very first question, Dan Myers on board here.
Speaker Change: And Meyer he's not on at this time.
Speaker Change: Dan.
Speaker Change: Fine fine.
Speaker Change: Microphone. The answer is we lost some of our new homes business.
Speaker Change: And the number was on the order of <unk>.
Speaker Change: 10 or 20%.
Speaker Change: And we have a an account by account rent are of that.
Speaker Change: A reason was the corporation's freaked out two reasons the corporation's freaked out when some pad went bankrupt.
Speaker Change: It had been in effect their revenues selling a new house to somebody.
Speaker Change: All of sudden if if an amenity.
Speaker Change: The a 20000 dollar amenity like it didn't like and enroll vacuum cleaner for example, chefs you down and selling a 500000 dollar house not good so they shifted some business right away.
Speaker Change: I been a multiple class with new homes are people.
And they are.
Speaker Change: They get it.
Speaker Change: I've had to compromise with them.
Speaker Change: The deal as well.
Speaker Change: We got some batteries, we don't like you need to take care of Mega, they're not my batteries, there's some parts batteries sometimes bankrupt.
Speaker Change: Sunpower.
You Gotta do it I said were not the successor, even though I told you we plan on being to Sunpower. Some headroom bankrupt there four times bigger than us and their bankruptcy could have liked us up.
Speaker Change: Well, let me try this one if you want new business for my company and then that's $45 million a quarter and it's good business, our most profitable business.
Speaker Change: We will do something.
Speaker Change: So I get I understand that logic, and I think I'm going to work on that problem.
Speaker Change: So how Saturday sided to work on it we have actually some.
Speaker Change: It's pretty good solutions going.
A further problem I'll give one example.
Speaker Change: Sunpower made a battery called Sunbelt.
Speaker Change: And somebody else has a good battery the safe.
Speaker Change: It is a software problem.
Speaker Change: In the software and locks up typically and it takes a month.
Speaker Change: And then the batteries it goes into safe mode and shuts down.
Speaker Change: So.
Speaker Change: The re fix it is you have monitoring station you monitor all your batteries and all your panels all the time, some part of that real companies do that.
Speaker Change: And then you see a battery in the E U as testing the battery and the battery says I'm locked up.
Speaker Change: So there's three way Internet you just press the reset button and there's and so that is a little protocol, but it's equivalent to pressing the reset button battery turns back on runs fine.
Speaker Change: So you've got 12500 batteries and the web so you set up your the center.
Speaker Change: And you.
Speaker Change: Look at everyone every day.
Speaker Change: And keep everybody happy Easter.
Speaker Change: We shouldnt have to do that of course, it did like you wouldn't tolerate that in the car.
Speaker Change: But what we did was we worked with another company, we set up a center to and by the way the bankruptcy guys.
Speaker Change: We're happy with Sunpower.
Speaker Change: And they came in and took over the company.
Speaker Change: And they flipped the switch on one 800 sunpower.
Speaker Change: So people couldn't call in and say I'm worried about my bad or in any we're monitoring the battery or the system anymore.
So there's a company called <unk>.
In in Armstrong has the H a S I they're public.
Speaker Change: They are the lender for a bunch of those systems.
Speaker Change: They they acquired or are people, who ran the monitoring system and our technology and our licenses and theyre going to run the monitoring system.
Speaker Change: So I cut a deal with them.
Speaker Change: They wanted some names from US nicely finally got the names I need my other customers get taken care of and they said, Okay, we'll do that.
Speaker Change: And then I said, how about well use a modest payment as opposed to replacing a 7000 or 5000 dollar battery. It was a modest payment to keep the battery serviced.
Speaker Change: And they agreed to it now with partners and now we're going to work on other stuff.
Speaker Change: So there for those customers who have that battery.
Speaker Change: In new homes, we will pay.
Speaker Change: Pay every month for them and I agreed to pay for a year.
Speaker Change: There are several agreements like that where our.
Speaker Change: Our company agreed to pay.
Speaker Change: It's a it's a range depending upon parameters, but the middle numbers 10.1 million plus or minus 1.8 in one year and we're going to pay that.
Speaker Change: And we're going to demonstrate not only to our new homes customers, but to everybody else. We're prepared to take care of the product so right in and I I started I totally for the first year.
Speaker Change: We will pay that.
Speaker Change: Two bucks a month.
Speaker Change: Not that bad.
Speaker Change: So we're working on solutions like that that are economically sane.
Speaker Change: To bring back the the lesser on the oil Sunpower.
Speaker Change:
Speaker Change: No.
Speaker Change: Long answer to your question, we lost Twentyish percent of new homes business, Dan get to a microphone yet.
Speaker Change: Yes, we have Dan here I'm handing him the microphone now alright sedan.
Speaker Change: By the way you get the other product line guys. There if we get another question like that you want to add to what I said.
Speaker Change: Yeah, I would just add that we're seeing a lot of positive response and support from builders, we have a backlog through Q4 and 2025 of over 10000 homes and you know while we've seen some attrition from builders, where our where we're rebuilding the relationships.
Speaker Change: Our Unix or you're sitting next to Dan Foley.
I am.
Speaker Change: You guys are broadcasting Oran picture, you got my picture, there should be Brad guessing their picture.
Speaker Change: Believe it or not actually thank you well fast for a minute I actually have a spec.
Speaker Change: Stan Meyers I actually have a spec.
Speaker Change: Or how to run this TV show and.
Speaker Change: I'm, a little bit unhappy in the way this one's being run, but that'll get fixed Dan Myers Ahmed M. A light dim.
Speaker Change: I invited him to I was going to Oshkosh for for Jazz Festival, My home town and I took them, they're in and wine and dine in a nice guy should recruited him. So he came out of Blu ray when he is one of the executives and blue ribbon that was a really good.
Speaker Change: And I recruited him.
Speaker Change: To stay in the company and then when the new homes opened up.
Speaker Change: I asked him to take that job Anthony was a little bit reluctant to begin with but now is getting the rhizome business newsletter, saying that's really cool.
Speaker Change: And he's really good at it eases a bit as a technical background in supply chain, you know that thing Joe Biden kept complaining about which is really complex.
Speaker Change: That's what he does and in the new homes business is a supply chain business.
Speaker Change: He asked what percent of <unk>.
Speaker Change: Cost because of the bankruptcy.
Speaker Change: Hello.
Speaker Change: Okay.
Speaker Change: Can you hear me.
Speaker Change: Excellent.
Speaker Change: So your estimate of 20% is where we're at right now where we're continually scrubbing that and we've had some builders have moved some communities away and have come back to us because they have been thrilled with what they've seen with the competition I expect we're going to land a little bit higher than 20%, maybe in the 30% range and kind of our trough and we will continue to rebuild that throughout 2020.
Speaker Change: And five as we regained builders trust and show them, we can execute successfully in Q4 and the values are on our side.
Speaker Change: Somehow.
Speaker Change: Somehow my phone number got my my home phone number my cell phone number that got out and.
I remember when we when Sunpower first announced bankruptcy I got a call from.
Speaker Change: Our second second biggest builder.
Speaker Change: Guy with a British accent.
Speaker Change: Kind of Reeves MEO 10 o'clock at night.
Speaker Change: And then at night I tell them, we're going to work on it when we talk to them when we talk to them again.
Speaker Change: Then we talk to him and his boss.
Speaker Change: And.
Speaker Change: Finally, he said.
Speaker Change: Could you guys do anything in Washington State and of course, we can't we don't have people are new Sunpower and the Blue Raven guys sure. We got Washington State. He says I got a deal I want to talk to you about so.
Speaker Change: Their attitude is as long as you care in a truly doing something we want we want to work with you. We don't want our vendor base to be limited not you have you in it so.
Speaker Change: We can do that.
Yeah.
Speaker Change: Next question.
Speaker Change: The next question is for Dan Foley.
Speaker Change: Dan can you talk about a full diluted share count expected exiting 2024, including the expected raise from the Chinese investors.
Speaker Change: And.
Speaker Change: And then the second part of this meeting.
Speaker Change: Yeah, that's inclusive of the raise that we're gonna do you hear from the additional funds from the Chinese investors fully diluted shares outstanding at the end of the quarter will be approximately $143 million.
Speaker Change: And the second part of that question was how much cash do you expect to have on the balance sheet exiting the year.
Speaker Change: Approximately $20 million to $25 million.
Speaker Change: Thank you Lasse.
Speaker Change: Last question here from Derek Soderberg TJ you.
Speaker Change: Mentioned the company can break even in a few quarters what is the revenue run rate you need to achieve them.
Speaker Change: Yeah.
Speaker Change: $80 million.
Speaker Change: So it's a simple we.
Speaker Change: Yeah.
Speaker Change: And last week after we scrubbed, our backlog and started looking at the validity.
Speaker Change: The solar business is common the backlog and you have 30% of evaporate laws on the books at the Guy calls up and says Yeah, you know that solar thing, but I changed my mind and that kind of stuff.
<unk> signed a contract what does that mean, you're going to force the guy to put solar on his house in Denver, Colorado Ain't going to happen.
Speaker Change: So the answer is when you get $80 million.
Speaker Change: North arc.
Speaker Change: We built the company to survive in the revenue, we can make and we will do that so the answer is it's going to be a breakeven in time and in that we'll be at $80 million and by the time, we get there a couple of quarters.
Speaker Change: Then we.
Speaker Change: We will have I hope higher revenue.
Speaker Change: One week later that the one of the problems as we're heading into winter in Q1 of the years in winter quarter, you can't get on roofs, or safety standards, and all that kind of stuff.
Speaker Change: So we're looking out at second quarter next year.
Speaker Change: But we're gonna cut now again more.
Speaker Change: So we can move on about $80 million umbrella ooma.
Speaker Change: I want to make a comment about the 143 million shares.
If you go and look at any of the stock tables right now any divide the market cap They report.
Speaker Change: The share.
Speaker Change: Share price.
Come up with a number like 72 million shares in that that realm.
Speaker Change: And we've gone to 143 now that includes Oliver funding some shares that haven't been issued yet some shelves that are in it.
Speaker Change: The pool for employees that haven't been given to employees yet.
Speaker Change: The et cetera.
Speaker Change: One of the things we're doing.
Speaker Change: As I gave a lecture about silicon valley.
Speaker Change: And I was in a room of Blu ray when people.
Speaker Change: Have your company get bought by Sunpower for 160 million Bucks.
Speaker Change: And I said to them.
Speaker Change: Well.
Speaker Change: How many of you made some money on the Blue Raven and are not a hand went up.
Speaker Change: Okay. So that's not silicon valley.
Speaker Change: Silicon Valley works is you get 20%.
Speaker Change: Of the stock.
Speaker Change: And.
Speaker Change: And then if the company gets sold or you just want a trade it because it's so public stock you're going to make money in this hall Silicon Valley companies get the extra performance they showed them a graph.
Speaker Change: Of the top 10.
Speaker Change: What's that.
Speaker Change: What's the picture I'm looking at SUNS grown weird here.
Speaker Change: So for you just find T J.
Speaker Change: So this guy I'm looking at isn't being broadcast.
Speaker Change: You see your face.
Speaker Change: I didn't ask if you could see my face I ask that the guy I'm looking at can be broadcast or not.
Speaker Change: No he's not broadcasting alright, so that must be my machine here.
Speaker Change: So.
Speaker Change: We have given us the part of our offers where we didnt increase money because we couldn't afford it.
Speaker Change: So we gave out stock and we give that a meaningful amount of stock every employee we hired in that and that is a silicon valley a meaningful it is non trivial it's not an option that kind of.
Speaker Change: Is interesting to have.
Speaker Change: And that ended up being 28 million shares so of the 143 million shares.
Speaker Change: We will give up over the next five years the options vest over five years 28 million shares to employees.
Speaker Change: And the idea is they do what they got to do to make the company run right.
Speaker Change: And we we get.
Speaker Change: Good fix their customer issues and we move forward don't gripe about the fact that you don't have that that company has been cut back.
Speaker Change: And and and you make some meaningful money its new car money New house money Kid goes through expensive school money kind of level for everybody.
Speaker Change: And I.
Speaker Change: Pointed out to them.
Speaker Change: The Blue Raven acquisition of Sunpower, if data on 20% of the stock in their company.
Speaker Change: And look at the number of people out at that time every employee net company would've gotten $64000 worth of stock.
Speaker Change: And those deferred for the highest level of employees, that's what we're talking about with us so.
Speaker Change: Wed like to thank you for your support of employees in Silicon Valley model in Utah, and we are expecting.
Speaker Change: And have that be a competitive weapon that we can use use there.
Speaker Change: So.
Speaker Change: The Astrakhan Atlas, So don't gripe about 143 million shares.
Speaker Change: We got money in the bank and we're not expecting to have to raise more money right now.
Speaker Change: Thank you T. J I did want to highlight we are at the top of the hour, but we do have more questions.
Speaker Change: Keep going like people can leave.
Speaker Change: So we.
Speaker Change: We have a question about C&I commercial industrial does seems to be a lot of opportunities in that segment for growth what are your thoughts about that bar complete seller.
Speaker Change: We will.
Speaker Change: We have actually commercial industrial now.
Speaker Change: They were opportunistic hum.
Speaker Change: Things that one of the companies did for example.
Speaker Change: Starbucks decided to show Green.
Speaker Change: And what they did was they they.
Speaker Change: They put an awning solar on a big one over like the front parkey area.
Speaker Change: Pulse and they use the <unk>.
Speaker Change: They're sick type of panelists that glass on glass. So you can see right through it you can see yourselves.
Speaker Change: And they're pretty.
Speaker Change: So <unk> got this really good knit and these are real systems or 50000 watts theyre not theyre not play systems. So we upgraded 57, Starbucks restaurants, so we've already gotten any commercial industrial more suited for that because.
Speaker Change:
Speaker Change: They are a little bit more formal.
Speaker Change: They they want to have a premium.
Speaker Change: Over market, but the market price in that area is pretty good.
Speaker Change: So yes, we're going to go into that in a I am knock on launch a division or anything like that we will serve them with our current division and will take business Opportunistically and.
Speaker Change: And we already are.
Speaker Change: Thank you we've actually gotten a couple of these.
Speaker Change: Various parts of the same question I'm looking for your thoughts on the impact of the I R. A repeal and president Trump.
Speaker Change: Trump.
Speaker Change: Impact on the industry and complete seller.
Speaker Change: Sharon do you have your comparative stock price graphs.
Speaker Change: I do I don't know that I'd be able to pull them up right now.
Speaker Change: If you try real hard you can I'll talk while you're working on it.
Speaker Change:
Speaker Change: The largest drop in complete seller price since I took over as CEO.
Speaker Change: Happened when Donald Trump got elected cause Donald Trump.
Speaker Change: <unk> about solar energy.
Speaker Change: And how it's not going to support it.
Speaker Change:
Speaker Change: Right now I think the solar energy subsidy.
Speaker Change: Is safe because this is the income tax credit.
Speaker Change: So you do it you spend the money you stimulate the economy and then the next April you can knock some money off your income taxes.
Speaker Change: I don't think that's going to go away, but I'm not an insider in politics.
Speaker Change: And then a significant number of investors felt that and it's already in the share price.
Speaker Change: Yeah.
Speaker Change: Thanks T J I am in the process of pulling that up.
Speaker Change: In the interim.
Speaker Change: Can you speak to future cost reductions how much more do you expect them.
Speaker Change: Sure.
Speaker Change: Yeah.
I can't see the picture, we're broadcasting anymore as my picture is still there.
Speaker Change: Now you know why I insist we go into the boardroom and if one guy who's one arms length choking distance away from me to run these shows.
Speaker Change:
Speaker Change: Are you looking for your slides T J when looking for T. J I just my question was.
Speaker Change: Is my picture being broadcast.
Speaker Change: Yes.
Speaker Change: Okay, then them in my case I brought up the complete set of slides and I can talk to a blank screen no sweat.
Speaker Change:
Speaker Change: Okay, I'm getting old remind me again the question.
Speaker Change: Hello.
Speaker Change: Cost reduction efforts Oh, what further cost do we anticipate.
Speaker Change: Going forward.
Speaker Change:
Speaker Change: So we've cut from 2800 1200 employees.
Speaker Change: We will lose.
Speaker Change: Another couple of hundred.
Speaker Change: Who are redundant for example in our finance group we.
Speaker Change: We started out with 67 employees from <unk> and basically all the finance steep people from all the companies.
Speaker Change: So that we could get our first quarter.
Q3, and our first official quarter Q4 that exactly right and we didn't have any travel knowledge accurately and we will skinny on down that group as.
Speaker Change: And as a matter of fact that I showed you some dramatic cuts in the various groups legal et cetera.
Speaker Change: That's actually our target and and right now we've got some.
Speaker Change: Employees, who are leaving at the end of this quarter and the end of next quarter. So this does cause targets are there.
Speaker Change: We have Lehigh is sort of like the Palo Alto of Salt Lake and we're in an expensive building or out of there we moved out last week.
Speaker Change: Sunpower head.
Speaker Change: As I remember 98 leases all over the United States.
Speaker Change: Including multiple leases in Austin, Texas.
We're moving into one building.
Speaker Change: I don't know, which drilling that is yet Linda to Julie our chief administrative officer is going to work with the people in Texas and ticket.
Speaker Change: I like our location, but I don't need five buildings in Austin, Texas, etcetera, and all of that's just that's going to roll it out over the year, because you don't get out of the lease right away you typically have to sub lease and then you go a couple of years and then then you you get rid of it.
Speaker Change: So the rehab.
Speaker Change: Okay were working with a group called <unk>. They are a spinoff of Mackenzie.
Speaker Change: Spin out of the famous Mckenzie group that operated out of Palo Alto that worked with the solar industry is excuse me silicon industry.
Speaker Change: I've had them do two jobs, one on my own company Cypress.
Speaker Change: Ray told people to scrap.
Speaker Change: That cypress was entirely wrong, because I ran it.
Speaker Change: And then proceeded to come in and find me $30 million a year that I could I could save.
In Ma.
Speaker Change: Most things have my fingerprint on it.
Speaker Change: We were paying too much for wafers instead of looking company because the spec was developed by technology group that I was part of and our spec with special and we didn't follow the industry standard.
Speaker Change: And then we're getting 30% premium because of that after three years. So they specialize in doing stuff like that.
Because they were successful with me ive read them into Enphase.
Speaker Change: <unk> story is well known.
Speaker Change: That how that thing turned around so we've got a five or six of them working full time on it.
Speaker Change: Every little corner are you paying too much to have competitive bids no we didn't.
Speaker Change: Have you looked at.
For example.
Speaker Change: Kidding yourself and buying things cheaply and car retainers versus using distribution the kit and deliver care to the job no we hadn't and we exited bev systems in our company they've analyzed that.
Speaker Change: So.
Speaker Change: We're really embryonic I mean, there's companies like less we never reported their first quarter yet.
Speaker Change: And we have a lot of plans to cut costs that they're done with the help of professional group.
Speaker Change: P. J, we have the flight ready.
Speaker Change: Now.
Speaker Change: Okay, I need to see it how do I do that leader.
Speaker Change: I'm trapped in my own pitch.
Speaker Change: And I need to see what their broad I got it I got it.
Speaker Change: That's T j's pitch.
Speaker Change: I need to go back and see their picture, she's going to shove, something and I'm going to talk about it.
Speaker Change: Okay dirt is good.
Speaker Change: So.
Speaker Change:
Speaker Change: This is the graph we're in the dark line.
Speaker Change: It's approximately from the time I joined.
Speaker Change: Is my era visible here.
Speaker Change: Is my Arab visible here.
Speaker Change: Do you know I don't think so okay. Thank you.
Speaker Change: So.
Speaker Change: There's press releases there.
Speaker Change: A D C term sheet Carlisle debt. So you can see a big pop is a doubling.
Speaker Change: Of stock.
Speaker Change: When we signed the term sheet.
Speaker Change: You can see Trump or when the side so that was negative.
Speaker Change:
Speaker Change: Et cetera.
Speaker Change: So right now were relative to solar industry redoing well people believe we're doing the right stuff to succeed.
Speaker Change: We are in.
After argue over time.
Speaker Change: Well I'm not really mean guy.
Speaker Change: We have to do this for investors.
Speaker Change: I give the lecture about investors on us we have fiduciary responsibility to make money for them and and I sound like a M. Smith.
Speaker Change: When I'm, giving the lecture, but it's taken root.
Speaker Change: Is that the other side you've got.
Speaker Change: Okay.
Speaker Change: Siobhan.
Apologies.
Speaker Change: Is that the only slide you have.
Speaker Change: Yes.
Speaker Change: So I want to point out right, we will have the word change.
Speaker Change: Is a look at what happened the day two days. After we won the subpart of the one the one the stocking horse thing judge rule for us.
Speaker Change: So you can see there coupled in.
Speaker Change: And as long as we bring out good news periodically, which we will lease or intend to.
Speaker Change:
Speaker Change: We'll be okay.
Speaker Change: Cost cutting is part of that.
Speaker Change: Okay. We can go back questions.
Speaker Change: Thank you I have one final question for you T J.
T J: It appears you are close to creating another billion dollar company do you see complete solar doing over $1 billion in annual revenue and how soon could you achieve that.
T J: Yeah.
T J: So this is would you please commit suicide on film and make a promise you can't keep.
Meanwhile, My lawyers have got their tape recorders turned on.
T J: Yeah.
T J: I have a slide I showed shareholders, who can go on our website and not because I don't want to go through the Rigmarole of finding a slide right now.
T J: But.
T J: If we grow only at the rate that the solar market is expected to grow we don't take share.
T J: And if we do revenue of $622 million.
T J: And then two years later.
T J: 2028.
T J: We will have revenue of $900 million.
T J: Now next sentence is based on the $100 million going to 80 million that I told you to today that 622 million is more likely $480 million.
T J: And you have the same compound growth rate I think that takes you up to 700 and change so I see a revenue.
T J: If we grow at the average rate without taking share donor quad or anybody that kind of stuff.
T J: Getting up $700 million.
T J: Right now.
T J: If we're going to do that.
T J: Let me show you a bunch of companies that are going to be on a market, they're going to be viable.
T J: Ultra livestock real stock stocks traded on the stock exchange.
T J: And we'll give you a new people an option and then I'll give you Mr. Fonder some money.
T J: For what she did and and then you can come on and be one of our one of our managers and N V Peace and run this thing.
T J: So we have plans to grow like that.
T J: Yeah.
Speaker Change: Okay, Let me talk about $700 million in 2028 and you realize.
Speaker Change: It's not an ask Paul because I took what we're really going to do this quarter took a reduced version of 2025, and then applied the average server growth rate to it so it's not that way, but let's say a 700 million bucks.
Speaker Change: At that point, if we get a multiple which the top solar companies get a two times sales.
Speaker Change: Got I got $1 4 billion.
Speaker Change: And then you've got you've got the $143 million that you heard earlier.
Speaker Change: <unk>, one 4 billion by 143 million shares is 10 Bucks.
Speaker Change: So that's very doable.
Speaker Change: And and.
Speaker Change: I will have a new CEO when that happens there will be an all star CEO that we will get who will work for me directly until until he or she.
Speaker Change: Understand side around the place because I'm I've learned a huge amount in last couple of years I didn't walk in it's known everything that I've I've really learned a huge amount when what I feel that person's learned a huge amount of work and that's a variable I wont walk or go on the board.
Speaker Change: I am 76, I'll go back to.
Speaker Change: Hassling other Ceos.
Speaker Change: And.
Speaker Change: So that that's my vision of the thing is going to grow I didn't I didn't interrupt my life I've worked.
Speaker Change: All but six sundaes for last year Saturdays again, that's garner I go to a gartner like only four movies in the last.
Speaker Change: Year, So I'll go back to being a having my life back and I'll bring and are present in Israel. That's my plan.
Speaker Change: And Oh by the way my plan that is to take my stock, which is a chunk of stock.
Speaker Change: And I'm gonna donated to charity because I'm, giving away my money right now in big chunks to charities I really like and.
Speaker Change: And then when I do that I'll do it at a high point in the cycle donated to charity.
Speaker Change: And then I'll get income or I'll get tax credit on that and I'll never pay another opinion taxes in my life that that's if you want to know my plan you got my plan right there.
T J: Thank you T J.
Speaker Change: That wraps up all the questions. We have for today did you wish to make any final comments.
Speaker Change: No.
Speaker Change: Thank you.
Speaker Change: Everyone you may now disconnect.