Q2 2025 QuantumScape Corp Earnings Call
Second quarter 2025 earnings conference. Call Dan Conway, Quantum escapes, principal analyst investor relations you may begin your conference
Speaker Change: Thank you operator. Good afternoon and thank you to everyone for joining quantumscape, second quarter, 2025 earnings call
Speaker Change: To supplement today's discussion, please go to our IR website at IR, quantumscape.com, to view our shareholder letter.
Speaker Change: Before we begin, I want to call your attention to the safe harbor provision for forward-looking statements. That is posted on our website. As part of our quarterly update Ford looking statements, generally relate to future events future, technology, progress, or future, Financial or operating performance.
Our expectations and beliefs regarding these matters may not materialize actual results in financial periods, are subject to risks and uncertainties, that could cause actual results to differ materially from those projected.
there are risk factors that may cause actual results to differ materially from the content of our forward-looking statement for the reasons that we cite in our shareholder letter form, 10K, and other FCC filings, including uncertainties posed by the difficulty in predicting future outcomes,
Dr. Psalm: Joining us today will be quantumscape CEO, Dr. Psalm, and our CFO Kevin hatrick,
With that. I'd like to turn the call over to ca
Dan Conway: thank you, Dan.
Speaker Change: Today we announced an expansion of our existing collaboration and Licensing agreement, which works for Google Groups, battery maker power code.
Speaker Change: This upgraded deal sees, Powerco contributing additional payments.
Speaker Change: Of up to 131 million to cues.
Speaker Change: Over the next 2 years to support our joint. Commercialization activities.
Speaker Change: These payments are connected with certain Milestones to be achieved by The Joint scale of d.
Speaker Change: The first Milestones linked to expected payments of more than 10 million dollars.
Speaker Change: Have already been achieved.
Speaker Change: These new payments are additional to the previously announced 130 million that will be due to cues upon satisfactory technical progress, and execution of the full licensing agreement.
Speaker Change: As part of this upgraded deal.
Speaker Change: Cues will prioritize the output of QSC 5 cells from our San Jose pilot line to support our joint activities with power go.
Speaker Change: Though, we maintain our non-exclusive Arrangement and retain the right to provide sales to our other prospective customers.
Speaker Change: This expansion.
Speaker Change: Would allow power code the right under the licensing agreement to produce up to an additional 5. Gigawatts of cues sells annually.
Speaker Change: Including for customers outside, the Volkswagen group, for a total of up to 85 gigawatt hours.
Speaker Change: Power code has also secured the future. Right? To license, certain Advanced cues technology beyond our first generation QSC 5 platform.
Speaker Change: This upgraded power code deal.
Speaker Change: With new cash payments of up to 131 million over 2 years.
Speaker Change: Clearly demonstrates, the value of our solid state lithium metal technology platform to the automotive sector.
Speaker Change: We are extending our cash Runway forecast into 2029.
Speaker Change: A 6-month Improvement relative to our previous guidance.
Speaker Change: Now.
A word on our commercial engagement Beyond Powerco.
We are happy to report that we have now entered into a joint development agreement with another major Global Automotive OEM.
Speaker Change: This jda strengthens the collaboration beyond our initial sampling agreement with this customer with the intent to work towards the commercialization and Licensing deal.
Speaker Change: We continue to collaborate closely.
With existing and new customers. And we see Market traction accelerating as these announcements provide commercial, validation, and increase urgency in the automotive space.
Speaker Change: With respect to our broader cues, ecosystem. Last quarter, we announced an agreement with murata Manufacturing.
To explore collaboration on ceramics production, and this effort is progressing. Well,
Speaker Change: Beyond their world-class Ceramics expertise.
Speaker Change: Marata provides particular value. As a highly respected partner in the Japanese Market where we see strong demand for solid state batteries in automotive applications.
In demonstrating our technology leadership to this Market.
On June 24th. We announced the completion of our first of our annual goals.
Speaker Change: Our next Generation Cobra process has replaced Raptor as our Baseline, separated production process.
Speaker Change: We expect this step change in efficiency and productivity will enable B1 sample shipments this year and we will continue continuously improve all aspects of the Cobra process as we ramp production.
Speaker Change: To keep Pace with this higher rate of separate production, we are installing higher volume cell production equipment.
Speaker Change: And we remain on schedule to meet this second 2025 goal.
Speaker Change: Production ramps are always challenging.
Speaker Change: And as we scale, our self production, we are focused on improving, metrics such as cell, reliability process, stability, and Equipment up time.
Speaker Change: Turning to our launch customer.
Speaker Change: In Q2, we ship QSC 5 cells for pack integration and testing including safety testing.
Speaker Change: These cells were the final Raptor based b0 samples to be shipped.
Speaker Change: Future shipments will be Cobra based B1 samples in line with our third annual goal.
Speaker Change: This launch program is designed to be a low volume. High visibility project that will allow us to put ourselves into a real world vehicle application and generate customer feedback.
Speaker Change: We continue to Target 2026 for the beginning of field testing.
Speaker Change: Last.
Speaker Change: I want to address our strategic Outlook.
Speaker Change: This quarter is a major inflection point in our journey, and we are now firmly in the commercialization phase of our company.
Speaker Change: We believe this expanded deal with power code is an unambiguous demonstration of both the economic value of our solid state platform.
Speaker Change: And the power of our Capital light business model.
Speaker Change: And at this model, we have the ability to monetize development activities early on
Speaker Change: And then collect licensing royalties as our customers ramp production volumes.
We are just getting started.
Speaker Change: We have a long and deep relationships with additional autoims.
And we continue to see these engagements intensify as demonstrated, by our new jda, with an existing Automotive customer.
Speaker Change: We believe a technology platform has the potential to revolutionize the automotive industry as well as other rapidly Emerging Markets.
Amounting to a total addressable Market in the hundreds of billions of dollars annually.
Speaker Change: The challenges of scaling production remains significant.
Speaker Change: And there is still much work left to do.
Speaker Change: But working together with our world-class Partners, we believe we are closer than ever to achieving our long-term goals.
Speaker Change: With that.
Kevin: Let me hand things over to Kevin for a word on our financial Outlook.
Kevin: Thank you, sir.
Kevin: Apple expenditures in the second quarter were 8.3 million.
Speaker Change: Q2 capex, primarily supported facilities and Equipment purchases, as we prepare for higher, volume qc5 B1, sample production using the Cobra separator process.
Speaker Change: We narrow the range of our full-year. Guidance for capex to be between 45 million and 65 million.
Speaker Change: We expect the second half of 2025 to see higher levels of capex investment relative to the first half of the Year consistent with our narrowed guidance.
Speaker Change: Gap, operating expenses and gaap net loss in Q2 were 123.6 million and 114.7 million respectively.
Speaker Change: Adjusted IPO loss was 63 million in Q2, in line with expectations.
The table, reconciling gaap, net loss and adjusted. Eva is available in the financial statement at the end of the shareholder letter.
Speaker Change: We continue to streamline operations in line with the company's Capital light licensing, focus and capture gains from cost reduction initiatives and process Improvement, including the Cobra process.
Speaker Change: We narrow the range of our full year guidance for adjusted debit to loss to be between 250 million and 270 million.
Speaker Change: The amended power Co collaboration agreement features payments up to 131 million over the next 2 years.
Speaker Change: By the cues power Co steering committee.
In Q3 2025, we expect to invoice power code for more than 10 million for development work. Already performed by The Joint team.
Speaker Change: We ended Q2 with 797.5 million in liquidity, and in light of the expanded power code deal and efforts to further streamline operations. Extend, our guidance for cash Runway into 2029, a 6-month improvement over our previous guidance.
Speaker Change: Any additional funds from other customer inflows or Capital markets activity would further extend this cash Runway
Speaker Change: as always, we encourage investors to read more on our financial information, business Outlook, and risk factors in our quarterly, and annual FCC filings on our investor relations website, including today's power Co Amendment press release and 8K with the redacted Amendment,
Speaker Change: Thanks. Kevin. We'll begin. Today's Q&A portion with a few questions we received from investors or that. I believe investors will be interested in.
Sa what is the significance of this expanded agreement with Powerco? How does this fit in with our licensing business model?
Speaker Change: Then building upon what we just announced.
Speaker Change: Our vision for the business model provides 2 sources of cash inflows.
Speaker Change: On the front end.
Speaker Change: We will monetize development activities for our customers.
Speaker Change: To tailor our core technology to meet their specific needs.
Speaker Change: Subsequently.
As the customer Rams production, we realize royalties over the lifetime of the project.
Some of these payments could take the form of Licensing, fees or royalty prepayments as in the power code deal.
Develop further generations of our technology, we will maintain both lines of business to generate consistent and compelling cash flows.
Speaker Change: Payments for development activities, has the benefit of being near them.
Speaker Change: The royalty payments represent the majority of the value capture through a consistent long-term stream of high, gross margin Revenue.
Speaker Change: This business model is unlocked by our highly differentiated technology platform.
Speaker Change: This expanded power code deal is a validation of this vision.
With about a quarter of a billion dollars to bring this technology to Market.
Speaker Change: This program will serve as a proof of concept of the QSC 5 technology.
Speaker Change: And support other programs targeting VW group vehicle applications such as vehicle demo Fleet and other programs under the scope of the overall project covered by the collaboration agreement.
Speaker Change: The intention of the program is to leverage the combined expertise and resources of cues and power code to advance the QSC 5 technology ensuring its Readiness for commercial application in the automotive industry.
Speaker Change: As part of this deal, power core will be contributing up to 131 million dollars to US.
Speaker Change: In order for the join team, in San Jose to accelerate the scale of cues technology.
Speaker Change: The agreement enables earlier power Co engagement in the QSC 5 production and automation efforts.
Speaker Change: Advancing the ramp up of the cues San Jose pilot line.
You can see that this expanded agreement is a clear signal of the growing strategic, Technical and financial alignment between our 2 companies.
Speaker Change: And reflects our shared confidence in QSC, 5, as a game-changing platform for the battery industry.
Thanks, Eva Kevin. Can you expand more on the financial impact of this expanded agreement?
Speaker Change: The most important thing for investors to understand is that these are cash inflows from a customer.
Speaker Change: We expect these payments will reduce our gaap. Net loss, improve our bottom line result and help extend our cash Runway.
Speaker Change: In Q3, we plan to invoice power code for more than 10 million, tied to development activity, already performed by The Joint team.
Speaker Change: Our preliminary assessment is this will not be recognized as Revenue.
Speaker Change: The work to determine the accounting treatment is ongoing. We will provide an update on the Q3 call.
Speaker Change: 1 further Point, our narrowed adjusted ebita guidance is driven by operational improvements, and does not reflect potential upside from the expanded power code deal.
Speaker Change: We'd encourage investors to read our form 10q, including the risk factors, as well as the amended press release 8K and the redacted Amendment for more information.
Thanks. Kevin.
Speaker Change: CA can you elaborate further on the joint development agreement, with the second major Global Automotive customer?
Speaker Change: Then this is 1 of our existing customers with whom we have had a sampling agreement.
Speaker Change: With the intent to progress to a full commercialization and Licensing arrangement with a global automator.
Speaker Change: We are upgrading our relationship.
Deploying our high-tech model to develop a customized solution for their needs.
And ultimately progressing to a full licensing, Arrangement along the same lines as our power code deal.
Speaker Change: Thanks.
Last month, we announced that the Cobra process has been Baseline. Why was that such a significant accomplishment? Then let's look at the big picture.
Speaker Change: We don't believe any Solid State Technology can achieve the kind of no compromise performance in range charging speed safety Etc without a ceramic separator.
Speaker Change: The ceramic separator is a key part of our anode, free graphite free lithium metal architecture.
Speaker Change: Cobra takes this technology differentiation to a whole new level.
Speaker Change: It's really a transformative innovation in Ceramics processing.
Speaker Change: Taking technical ceramic production and improving the heat treatment by more than 200 times.
Speaker Change: Is unheard of in the industry.
Speaker Change: Because of this Advantage, Cobra is the most important technology element.
For gigawatt scale production.
Speaker Change: In the near term.
Speaker Change: This is what we'll be using to produce our B1 samples later this year and over a long term. It's what our ecosystem Partners will be using to ramp their production,
Speaker Change: and as impressive as Cobra is today,
we believe that Cobra has significant Headroom to improve even further.
Now that it's in our Baseline, our systematic and iterative improvement process will allow us to continue to build out and enhance the Cobra technology portfolio.
Speaker Change: Okay, thanks so much. We're now ready to begin the live portion of today's call.
Operator. Please open up the lines for questions.
Speaker Change: Thank you to ask a question. Simply press star. 1 on your telephone keypad. We do respectfully, ask that you limit yourself to 1 question and 1 follow-up. Our first question comes from the line of Winnie donk with Deutsche Bank, please go ahead.
Speaker Change: Hi, uh, thank you for taking my questions. Um, you talked about another Global Auto motive, uh, OEM which um, you now have a JD agreement with. Um, I was wondering if you can elaborate a bit on the agreement, it seems like um you know there are still more steps to take before you know an an official licensing deal is sign. Um can you just elaborate on what else needs to be done? You know what this is looking for um before they sort of go into this whole community.
Speaker Change: We need, thanks for the question.
Speaker Change: so,
Speaker Change: The second deal. We just announced after the uh expanded particular agreement is that we have signed a jda with a global auto uh major OEM
Speaker Change: Here. Our job is to make sure we take our technology platform.
Speaker Change: And adapt it to this customer's needs.
Speaker Change: So the jde does exactly that.
Speaker Change: Make sure that.
Speaker Change: Their specifications.
Speaker Change: The product that they need. We adapt our technology to that.
Speaker Change: Once we get that going.
Speaker Change: The same Playbook that we have used with power code. That same model applies that we as a join team will make sure that we are transferring the technology to them to then ramp in volume.
Speaker Change: so the, The Playbook has
Speaker Change: To be signed with the power code.
Speaker Change: Agreement. And
Speaker Change: Into our our next customer as we had originally planned.
Speaker Change: And we have had this jda now, signed and ready to go.
Got it. Um, thanks for that color and then you mentioned, you know, the first Milestones are linked to you know, initial expected payment of 10 million has already been achieved and you start to to invoice that starting in. Q3 I was wondering if you can maybe delineate or outline some of the details on, you know, 1 of the associated with the next set of
Speaker Change: milestones and then subsequent payments.
Speaker Change: And how should we sort of understand? Um,
Speaker Change: Agreement, with what I do and additional up to 131 million.
Vinnie: Vinnie just to make sure we are clear this 131 million we just announced is distinct.
From the prior 130 million licensing. Prepaid that we had announced that when we achieve certain milestones and we enter into the final licensing agreement, they pay us
Vinnie: This.
Vinnie: Uh expanded agreement is really for the job queues power code scale up team. The team has already here we are together.
Starting to do the industrialization activities. And this is our way of monetizing, those collaboration activities.
Vinnie: So we think in terms of our business model, having 2 cash, flow streams.
The First Cash Flow being what? We just talked about, adapting our technology to our customers needs industrializing and transferring it.
Vinnie: And the second 1 is the longer term licensing, and royalties payment.
Vinnie: These 2 streams, these 2, cash flow streams are distinct and we are now demonstrating the first 1, which is that in the short term. We are starting to monetize our
Vinnie: Joint development activities and getting a cash flow stream out of it. And as this team is already, here we are starting to work together and for some of the work already performed, we are starting to invoice our goal for that money. And there's a joint Powerco Quantum scale steering committee that runs this and based on the statement of work.
Vinnie: This steering committee will approve.
The invoices that will continue to do with Powerco.
Vinnie: and so, this is
Vinnie: A 131 million dollars over.
Vinnie: Uh, 2 years.
Speaker Change: Yeah, and if I can just make 1 in um I think Kevin mentioned, that preliminarily the the 10 million that you will um see to invoice is not going to be treated as Revenue so just talk for future like how do we sort of understand? Um,
Speaker Change: You know what flows through and how how how they the treatment is going to be in life from like a accounting standpoint things.
Speaker Change: Uh, hi. Thank you. Yeah. We, we did mention that we do expect this to improve the bottom line, and not be a revenue on the Q3 call. We'll give more of an update on the accounting treatment.
Speaker Change: Okay, thank you.
Vinnie: Thank you, Vinnie.
Speaker Change: The next question comes from the line of Jed door Meyer with William Blair.
Speaker Change: Hey team, you have the mark shooter on for a Jed door shower. Congrats on the VW expansion. That's great news.
Speaker Change: Dialing in a bit more on that.
Speaker Change: Can you give us some caller on what part of the manufacturing process in which part of the line, you're going to be investing in to increase the pilot capacity and maybe some idea of what you're expecting for the end capacity of the pilot line and a timeline expected for the ramp Mark. Thanks for the question. Uh, just to be clear, we don't intend to be a manufacturing company. We are always going to be a high-tech technology licensing company where we develop.
Speaker Change: The technology and develop an industrialized and then transfer it to our customer.
Speaker Change: Having said that?
Speaker Change: We just announced Cobra, which gives a 25x improvement over Raptor 200 times, uh, over what we had done earlier in 2023.
Speaker Change: And to match that level of separate output, we are increasing the cell build capacity, so we can produce uh, enough samples for us for this activity of industrialization of the core qc5 technology platform, which is what we are going to be doing. And the output of it is primarily going to be used for uh, The Joint activity by this joint scale of team. And the expectation is that I I I want to be a little bit boring here.
Speaker Change: The idea of it being a systematic.
Speaker Change: Methodical.
Speaker Change: Iterative process that we do on our pilot sample production line.
Will be done by this joint or coqs scale of team. And this, uh,
Speaker Change: I don't know. 31 million dollars is geared towards those uh,
Speaker Change: We hoped it would play out after achieving the first goal of Baseline in Cobra production, which we did in Q2 the second goal with that 25x. Higher productivity relative to raptor is to lift the, uh, production capacity of the downstream. Uh, uh, so um, assembly equipment to keep up with that significantly higher flow, uh, coming from the Raptor process.
Speaker Change: That's great. I appreciate the caller. Hope For The increased volumes will allow the iteration process to be the faster. It should be nice. Um I get touching
Speaker Change: That's great.
Speaker Change: The capacity as well. Um,
Speaker Change: The VW agreement continues to expand, which is great.
But now we're sitting at 85 gigawatt hours which is you know double of what Tesla produces.
Speaker Change: At the in the Nevada facility with Panasonic. So at what do you think that VW needs to see?
Speaker Change: To start to invest in a large facility. Um, to start chipping away at at that really large opportunity, you guys have for for licensing.
Speaker Change: Yeah, so I want to be very careful not to speak for my customer.
Speaker Change: Mark um it is Theirs to decide how they are the factory at the rate that they do.
Speaker Change: Having said that?
Speaker Change: this expansion of the the relationship, clearly demonstrates that
Speaker Change: Our.
Speaker Change: Very alignment.
We want to make sure this technology is transferred to them so that they can grab and move very, very quickly. You can go to their site to see all the factories that they are building and
Speaker Change: they are going to be doing it.
Speaker Change: Our, our partnership has been very, very strong, as I keep saying that there is a joint scale of Team physically present in San Jose to accomplish this.
Speaker Change: I appreciate that, thanks, and if I can squeeze 1 last 1 in, I know you don't want to be a manufacturer and I fully appreciate that. But now you do have some capacity in a pilot line in the United States with a high energy density battery. So I'm wondering if you've gotten any
Increased engagement from maybe us defense, contractors or drone manufacturers, given the executive orders uh, of the Trump Administration on drones.
Speaker Change: Yeah, I want to talk about 2 Allied may not be directly answering to you, but but you can see the possibilities here.
Speaker Change: 1 of the limitations of lithium ion, batteries is the presence of graphite.
Graphite.
Comes.
Speaker Change: Like upper 90% from China.
Speaker Change: As you know, there is no major graphite production in that kind of quantities within the within the United States.
Speaker Change: Graphite is inherently dirty. It's a greenhouse disaster. Trying to produce
the best way not to have graphite in your system is not to have an anode.
Speaker Change: Which is what our technology is.
Speaker Change: So we are a US maker.
A lithium metal, anode free.
Technology.
Speaker Change: and,
Speaker Change: The last point I want to make is we are carefully.
Speaker Change: Uh, curating. And creating our ecosystem, the cues ecosystem provides that optionality of how a potential customer can use
Speaker Change: Our technology, and how to ramp.
Speaker Change: we've been very, very careful in expanding our ecosystem to make sure that all of these new applications can also be served
Speaker Change: Thank you very much.
Speaker Change: You're like next question. Comes from the line of been
Speaker Change: With beard, please go ahead.
Speaker Change: With that, that would be helpful. Thank you. Then you're thinking just like what you are thinking, you're absolutely right.
Speaker Change: Um,
Speaker Change: There is an upper limit on how many we are going to be handling at the same time because we want to make sure we protect this technology to chosen customers with whom we can scale and high volume because we want it to be a high Touch model.
Speaker Change: We had mentioned in our last earnings call that we were working with 2 other autoims and we just signed 1 of them.
Speaker Change: We will be careful in choosing, how fast we scale.
Speaker Change: um,
Speaker Change: my name is, and
Speaker Change: You are right that uh we have to be uh making sure that we keep the intellectual property for each of them. Well protected each of our customers and making sure that we are servicing them very very well. We have accounted for all of this in our current plans
Speaker Change: And we will make sure that we can keep updating you as we do sign, more customers.
Speaker Change: Thank you and then just maybe 1 more on the expanded power code agreement. You you mentioned, um, up to, uh, 85 gigawatt hours. Um, and then how it wasn't exclusive, um, I just could you just talk more about, like, how different the process is to make. Keep it not exclusive from what's under the power code, I guess it follows on to the same similar type question from before, uh, with the next customer, uh, is it, you have to change the process or or how much difference is it than what you're doing with with? Um, uh, the power go? Yeah, specifically, uh, we do have a non-exclusive arrangement with power code.
Speaker Change: Powerco has been our first customer and amazing partner. And we are working very well with them.
Speaker Change: Clearly each Auto OEM has their own specifics on how they like their batteries in the for in in the product, specifications that they like to use.
Speaker Change: We have developed a core technology platform, which we then work, with each of them to modify, some can be maybe form factor change. Some of them may be specifications typed in, in 1, way or the other,
Speaker Change: Many such things will be customized for each of them.
Speaker Change: And that's exactly what we are doing right now. The first generation is being customized for power code and the second jda envisions doing the same thing for the second customer.
Great. Thank you guys very much.
Gabriel Gonzalez: Your next question comes from the line of Gabriel Gonzalez with UBS.
Speaker Change: Hey guys, this is Gabriel 1 for Joe. Thanks for taking my questions.
Speaker Change: Um, Kevin just wanted to touch on the original. Um, 130 million prepayment.
Speaker Change: Can you give us some high level color on how that's progressing generally, and what's a ballpark expectation of when that comes to fruition.
Gabe: Thank you, Gabe. As we stated in the press release last year, the joint cues power code team needs to make satisfactory technical progress, towards qc5 industrialization after which we Grant power code of license and they make the 130 million prepayments. Our public goals are aligned with that technical progress and we just need to keep our heads down and keep executing.
Gabe: Understood. Okay, and it's encouraging um with the new 130, mil 131 million upgraded deal from Power code that you extended the cash Runway. Um,
Speaker Change: Into 2029. Uh, however, the the stock has had quite an impressive rally, uh, in recent weeks. So, um, given where we stand now, how are you thinking about, um, sort of tapping into the equity markets here, to, for the shore, up the cash position on the balance sheet?
Speaker Change: Uh, our job as a management team is to set out to do, uh, important things that create value for the, for the company, and to do so systematically methodically and iteratively we value a strong balance sheet, it's a differentiator for the company and we commit to continue to be uh, strategic regarding any Capital markets activity.
Speaker Change: Understood, thanks for the call.
Speaker Change: Your next question.
Speaker Change: Comes from the line of Mark, Delaney.
Speaker Change: Please go ahead.
Speaker Change: Hi. You have a line group on for Mark Delaney? Um,
Speaker Change: Can you talk about the implications from an Opex and capex standpoint? Appreciate the caller on the, on the 1, or the 10 million, not coming through as Revenue. So how should we think about that like hitting on an e bit level? Is there any margin associated with that revenue or just any call? You could provide that would be great.
Speaker Change: Thank you, man. Just to, um, uh, highlight a few things that I mentioned before. So
Speaker Change: In Q3 we plan invoice, power Q for more than 10 million dollars for development activity. Already performed by The Joint scale up team.
Speaker Change: This will Mark the first meaningful non-dilutive cash inflow from a customer expect. We expect this will improve the bottom line.
Speaker Change: Our preliminary conclusion is this will not be accounted for as Revenue.
Speaker Change: And the work to determine the accounting treatment is underway and we plan to provide an update on the Q3 call.
Speaker Change: We would uh, encourage um, uh, investors to read our form 10q, including the risk factors, as well as the press release and the 8K. Uh, the 8K does include a redacted form of the amendment.
All right, so just just to kind of maybe follow up on that. Uh so is there any incremental maybe the phrase it a little better? Is there any incremental Opex or capex under the expanded agreement?
Speaker Change: Where is this? Just kind of.
Speaker Change: Payments for the already, existing Opex and capex. That was planned for. That's a good question. Our long-term operational plans included the
Speaker Change: Bulk of the work and the statement of work. So from that point of view, the, the these inflows are accretive
Speaker Change: Good. And then just, uh, second part of my, the second question would be around this jda. Uh, what are the sort of Milestones? I, I know you spoke about needing to kind of fit the specs to the customer's needs. Any sort of
Speaker Change: Specifics on on what type of.
Speaker Change: Technical Milestones that would look like are time frame in which that would happen and how much kind of to your to the earlier question bandwidth. You have to support that while you're still prioritizing. The power Co agreement under the new deal. Thank you. I'm on I'm on. Um just like Kevin just alluded to
Speaker Change: Uh, these are already in our longer term plans.
Speaker Change: And so, this work is also in our uh, Works elderly.
Speaker Change: And the second jda or something. Obviously, we announced the possibility of in the last quarter and we are following through with it. And so these are well, accounted for in the financials that, uh, we have put out.
Speaker Change: so, we
Speaker Change: As a technology licensing company. Our first job is developed differentiated technology. And as you know, in a licensing business model, there's a lot of operating leverage. We celebrate the opportunity to specialize and to tailor our, our technology to their specific needs, uh, towards that Too Faced cash flow, um, set of cash inflows that that civa mentioned. So to monetize The Upfront, uh tailoring under the collaboration phase uh towards longer term, uh loyalty inflows, as um, we jointly, have success, helping them scale up their factories.
Speaker Change: Yep.
Speaker Change: As a reminder to ask a question, press star 1 on your telephone keypad.
I will now turn the call back over to Silva Silva for closing remarks. Thank you operator.
Silva Silva: I'd like to thank our employees for the dedication.
Speaker Change: Our partners for their trust.
And our shareholders for their continued support. We look forward to updating you on further Pro progress in the months to come. Thank you.