Q2 2025 ECD Automotive Design Inc Earnings Call

Operator: Greetings, and welcome to the ECD Automotive Design second quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Donovan, investor relations. Thank you. You may begin.

Speaker #1: A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press *0 on your telephone keypad.

Speaker #1: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Donovan, Investor Relations. Thank you. You may begin.

Speaker #2: Thank you, operator, and good morning, everyone. Welcome to ECD Automotive Design's second quarter 2025 earnings conference call. Today's date is August 21st, 2025, and I’m joined on the call today from ECD Automotive Design by our co-founder, Chief Executive Officer, and Chairman, Scott Wallace, and Chief Financial Officer, Victoria Hay.

Chris Donovan: Thank you, operator, and good morning, everyone. Welcome to ECD Automotive Design's second quarter 2025 earnings conference call. Today's date is August 21st, 2025, and on the call today from ECD Automotive Design are Scott Wallace, Co-Founder, Chief Executive Officer, and Chairman, and Victoria Hay, Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. For a discussion of such risks and uncertainties, please see ECD Automotive Design's most recent filings with the SEC. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statements to reflect the events that occur after this call.

Speaker #2: Before we begin, I'd like to remind everyone that this call may contain forward-looking statements, as they are defined under the Private Securities Litigation Reform Act of 1995.

Speaker #2: These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. For discussion of such risks and uncertainties, please see ECD Automotive Design's most recent findings with the SEC.

Speaker #2: All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statements to reflect the events that occur after this call.

Speaker #2: Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is included in the press release we issued yesterday morning.

Chris Donovan: Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release we issued yesterday morning. Copies of the press release are available on ECD's investor website, ecdautodesign.com. In addition, ECD Automotive Design's Form 10-K and 10-Qs are also available on the investor relations website. Now I would like to turn the call over to Co-Founder and Chief Executive Officer, Scott Wallace. Scott.

Speaker #2: Copies of the press release are available on ECD's investor website, ecdautomotivedesign.com. In addition, ECD Automotive Design's Form 10-K and 10-Qs are also available on the investor relations website.

Speaker #2: Now, I'd like to turn the call over to Co-Founder and Chief Executive Officer Scott Wallace. Scott?

Speaker #3: Good morning, and thank you for joining us as we review ECD's second quarter results. I'm pleased to welcome our new Chief Financial Officer, Vicki Hay, to her first earnings call with ECD.

Scott Wallace: Good morning, and thank you for joining us as we review ECD's second quarter results. I am pleased to welcome our new Chief Financial Officer, Victoria Hay, to her first earnings call with ECD. While she recently assumed the role, Victoria and her team have already been key members of our finance team over the past several months. I would also like to recognize Benjamin Piggott, who will continue with ECD in a new role as Director of Corporate Development. In this position, Benjamin will focus on strategic initiatives, including M&A, investor engagement, and the company's evolving capital markets and Bitcoin treasury strategy. On behalf of the team, I want to thank him for his many contributions as CFO. ECD Automotive Design is a U.S.-based builder of fully bespoke restored luxury vehicles, combining classic automotive beauty with modern performance and customization.

Speaker #3: While she briefly assumed the role, Vicki and her team have already been key members of our finance team over the past several months. I'd also like to recognize Ben Piggott, who will continue with ECD in a new role as Director of Corporate Development.

Speaker #3: In this position, Ben will focus on strategic initiatives, including M&A, investor engagement, and the company's evolving capital markets and Bitcoin treasury strategy. On behalf of the team, I want to thank him for his many contributions as CFO.

Speaker #3: ECD Automotive Design is a U.S.-based builder of fully bespoke restored luxury vehicles. Combining classic automotive beauty with modern performance and customization, from our 100,000-square-foot Rover Dome headquarters in Kissimmee, Florida, our master certified craftsman, Han, builds each vehicle.

Scott Wallace: From our 100,000 square foot Rover Dome headquarters in Kissimmee, Florida, our master certified craftsmen hand build each vehicle. We also operate a logistics center in the UK that sources vintage vehicles and parts for transformation. Our five core offerings now include Land Rover Defenders, Range Rover Classics, Jaguar E-Types, Ford Mustangs, and Toyota FJs. Each vehicle is designed in partnership with a client through an immersive luxury design process that results in a one-of-one personalized vehicle. To date, we have completed 675 builds for customers who have come to expect only the finest results. With average selling prices between $300,000 and $400,000 USD, and the recent contracts reaching as high as $620,000 USD, ECD delivers gross margins among the best in the luxury automotive sector.

Speaker #3: We also operate a logistics center in the UK that sources vintage vehicles and parts for transformation. Our FICOR offerings now include Land Rover Defenders, Range Rover Classics, Jaguar E-Types, Ford Mustangs, and Toyota FJs.

Speaker #3: Each vehicle is designed in partnership with a client through an immersive luxury design process that results in a one-on-one personalized vehicle. To date, we have completed 675 builds for customers who have come to expect only the finest results.

Speaker #3: With average selling prices between $300,000 and $400,000 US dollars and the recent contracts reaching as high as $620,000 US dollars, ECD delivers gross margins among the best in the luxury automotive sector.

Speaker #3: We participate in a 94 billion global classic car ecosystem and operate a capital-like model with scalable manufacturing and multiple growth channels, including retail and licensing.

Scott Wallace: We participate in a $94 billion global classic car ecosystem and operate a capitalite model with scalable manufacturing and multiple growth channels, including retail and licensing. Supported by strong brand reputation, ECD has the pricing power to consistently achieve high margins. Much like Ferrari, our business model enables us to command premium price points with customization and craftsmanship serving as the core drivers of value. Our second quarter performance demonstrated this advantage, delivering record revenue of $7 million USD on the strength of bespoke demand and manufacturing efficiencies, including a right first-time strategy designed to minimize errors, maximize efficiency, enabling more complex builds with shorter shipping timelines and accelerating the revenue recognition. However, we did have to navigate the current macro environment, including higher costs associated with tariffs, shipping, and customs.

Speaker #3: Supported by strong brand reputation, ECD is the pricing power to consistently achieve high margins. Much like Ferrari, our business model enables us to command premium price points with customization and craftsmanship serving as the core drivers of value.

Speaker #3: Our second quarter performance demonstrated this advantage, delivering record revenue of $7 million on the strength of bespoke demand and manufacturing efficiencies, including a right first-time strategy designed to minimize errors, maximize efficiency, enable more complex builds with shorter shipping timelines, and accelerate revenue recognition.

Speaker #3: However, we did have to navigate the current macro environment, including higher costs associated with tariffs, shipping, and customs. A highlight of the second quarter was the delivery of ECD's first custom Mustang.

Scott Wallace: A highlight of the second quarter for the delivery of ECD's first custom Ford Mustang, a natural extension of our leadership in Land Rover and Jaguar vehicle restoration into the iconic world of American muscle cars. Project Ghost, the first Ford Mustang built entirely in-house by ECD Automotive Design, was a 1967 Fastback that embodies everything ECD stands for: one-of-one personalization, authentic heritage powertrains, and best-in-class craftsmanship. Powered by a Roush-engineered 465 horsepower small block V8 and built on a modern RS spec chassis, Ghost delivers the balance of raw muscle and refined drivability that few in the market can replicate. Our exclusive partnership with Roush Performance allows us to preserve the Ford Mustang's original identity while enhancing reliability, performance, and daily usability.

Speaker #3: A natural extension of our leadership in Land Rover and Jaguar restorations into the iconic world of American muscle cars. Project Ghost, the first Mustang built entirely in-house by ECD, was a 1967 fastback.

Speaker #3: That embodies everything ECD stands for: one-of-one personalization, authentic heritage powertrains, and best-in-class craftsmanship. Powered by a Roush-engineered 465-horsepower small-block V8 and built on a modern RS spec chassis, Ghost delivers the balance of raw muscle and refined drivability that few in the market can replicate.

Speaker #3: Our exclusive partnership with Roush allows us to preserve the Mustang's original identity while enhancing reliability, performance, and daily usability. The Mustang program demonstrates the scalability of our model.

Scott Wallace: The Ford Mustang program demonstrates the scalability of our model, expanding our addressable market, diversifying revenue streams, and delivering high margins, all while leveraging our existing factory and customer journey without incremental CapEx. With multiple commissions already underway, inspired by America's most iconic Ford Mustangs, the program has quickly begun generating excitement beyond our customer base. That momentum was reinforced in July when Project Ghost Ford Mustang won the best of class at the Route 66 Road Fest in Tulsa, and our Jaguar E-Type Project The Wealth Commission earned first place at the Lars Andersen Auto Museum's British Car Day. These national awards validate both the craftsmanship at the heart of ECD and their successful expansion into American muscle, further strengthening our brand reputation among enthusiasts and collectors. At the Summer Wines Dam, we're encouraged by the strong performance of our retail locations.

Speaker #3: Expanding our addressable market, diversifying revenue streams, and delivering high margins—all while leveraging our existing factory and customer journey—without incremental capex. With multiple commissions already underway, inspired by America's most iconic Mustangs, the program has quickly begun generating excitement beyond our customer base.

Speaker #3: That momentum was reinforced in July when Project Ghost Mustang won the Best of Class at the Route 66 Road Fest in Tulsa. Our Jaguar E-Type, Project The Wealth Commission, earned first place at the Lars Andersen Auto Museum's British Car Day.

Speaker #3: These national awards validate both the craftsmanship at the heart of ECD and their successful expansion into American muscle, further strengthening our brand reputation among enthusiasts and collectors.

Speaker #3: As the summer winds down, we are encouraged by the strong performance of our retail locations. Our stores within a store concept at One Driver's Club in West Palm Beach and our pop-up in Nantucket, 10 Easy Street, both prove that immersive, community-centered retail is a powerful complement to our digital sales channel.

Scott Wallace: Our stores within a store concept at One Drivers Club in West Palm Beach and our pop-up in Nantucket 10 Easy Street both prove that immersive community-centered retail is a powerful complement to our digital sales channel. These locations give customers the opportunity to see, touch, and drive our vehicles firsthand while engaging with our design process in a way that online channels simply can't replicate. These stores have contributed to backlog growth, generated ready-to-new sales, and accelerated the conversion of inventory into cash. Just as important, both locations have served as hubs for community engagement that strengthened brand awareness and created new relationships within two of the wealthiest and most influential markets in the U.S. This early success reinforces our conviction that retail is a scalable path to filling our factory and driving cash generation and can be financially justified with as few as two vehicle sales per month.

Speaker #3: These locations give customers the opportunity to see, touch, and drive our vehicles firsthand while engaging with our design process in a way that online channels simply can't replicate.

Speaker #3: These stores have contributed to backlog growth, generated ready-name sales, and accelerated the conversion of inventory into cash. Just as important, both locations have served as hubs for community engagement that strengthened brand awareness and created new relationships within two of the wealthiest and most influential markets in the U.S.

Speaker #3: This early success reinforces our conviction that retail is a scalable path to filling our factory and driving cash generation, and can be financially justified with as few as two vehicle sales per month.

Speaker #3: Both the Mustang program and our expanding retail strategy highlight how ECD can drive high average selling prices by elevating product mix. Without compromising on quality, all the customer journey.

Scott Wallace: Both the Mustang program and our expanded retail strategy highlight how ECD can drive high average selling prices by elevating product mix without compromising on quality or the customer journey. I would now like to touch on two significant financial developments that occurred in June that we believe strengthen ECD's strategic position and long-term growth trajectory. First, we announced a set of proactive initiatives to right-size our cost structure and enhance operational efficiency. Following a comprehensive review of our capital allocation and expense base, we've implemented targeted cost savings, refined inventory management practices to improve working capital velocity, and negotiated a 12-month grace period on debt service obligations with our lenders. These steps were intended to create a leaner, more agile operating model, one that supports disciplined growth, preserves cash, and positions us to execute on our long-term strategy with greater resilience.

Speaker #3: I would now like to touch on two significant financial developments that occurred in June that we believe strengthened ECD's strategic position and long-term growth trajectory.

Speaker #3: First, we announced a set of proactive initiatives to right-size our cost structure and enhance operational efficiency. Following a comprehensive review of our capital allocation and expense base, we've implemented targeted cost savings, refined inventory management practices to improve working capital velocity, and negotiated a 12-month grace period on debt service obligations with our lenders.

Speaker #3: These steps were intended to create a leaner, more agile operating model—one that supports disciplined growth, preserves cash, and positions us to execute on our long-term strategy with greater resilience.

Speaker #3: By streamlining spend and unlocking resources, we are better equipped to invest in the parts of the business that drive revenue growth, margin expansion, and shareholder value.

Scott Wallace: By streamlining spend and unlocking resources, we are better equipped to invest in the parts of the business that drive revenue growth, margin expansion, and shareholder value. Second, we secured a $500 million equity facility earmarked for the strategic accumulation of Bitcoin as our primary reserve asset, alongside funding for growth initiatives and general corporate purposes. This financing option gives us the flexibility to draw capital at our discretion, aligning with our view that Bitcoin is a next-generation store of value. Importantly, it also enables us to further engage the crypto-native customer demographic, a community with significant purchasing power that increasingly seeks to diversify into real-world luxury assets like our custom-built vehicles. Building on our recent partnership with BitPay to accept cryptocurrency payments, we've launched a targeted promotion. The first 21 customers to purchase a new build using Bitcoin will receive a $21,000 credit towards upgrades.

Speaker #3: Second, we secured a $500 million equity facility earmarked for the strategic accumulation of Bitcoin as our primary reserve asset. Alongside funding for growth initiatives and general corporate purposes, this financing option gives us the flexibility to store capital at our discretion, aligning with our view that Bitcoin is the next generation store of value.

Speaker #3: Importantly, it also enables us to further engage the crypto-native customer demographic—a community with significant purchasing power that increasingly seeks to diversify into real-world luxury assets like our custom-built vehicles.

Speaker #3: Building on our recent partnership with BitPay to accept cryptocurrency payments, we've launched a targeted promotion: the first 21 customers to purchase a new build using Bitcoin will receive a $21,000 credit towards upgrades.

Speaker #3: We see this as both a marketing catalyst and a brand differentiator that bridges digital wealth with a high-touch, real-world productive experience. With that, I will now pass the call over to Vicki to review our financial results.

Scott Wallace: We see this as both a marketing catalyst and a brand differentiator that bridges digital wealth with a high-touch real-world productive experience. With that, I will now pass the call over to Victoria Hay to review our financial results. Victoria.

Speaker #3: Vicki.

Speaker #4: Thank you, Scott. It's a pleasure to be here. There are significant opportunities ahead for the company in the coming quarters, and I'm excited to be part of that journey.

Victoria Hay: Thank you, Scott. It's a pleasure to be here. There are significant opportunities ahead for the company in the coming quarters, and I'm excited to be part of that journey. I would also like to thank Benjamin Piggott for his continued support during the transition, and I look forward to working closely with him in his new role. My immediate priorities are clear: gaining and maintaining compliance with our NASDAQ listing, ensuring that the company remains appropriately funded for both current operations and future expansion, and focusing on timely SEC filings while strengthening our internal controls and processes. Coupled with the cost-saving initiatives already underway, these actions should have a positive impact both financially and from a regulatory perspective in the second half of the year.

Speaker #4: I’d also like to thank Ben for his continued support during the transition, and I look forward to working closely with him in his new role.

Speaker #4: My immediate priorities are clear. We're gaining and maintaining compliance with our NASDAQ listing, and ensuring that the company remains appropriately funded for both current operations and future expansion.

Speaker #4: And focusing on timely SEC filings while strengthening our internal controls and processes. Coupled with the cost-cutting initiatives already underway, these actions should have a positive impact both financially and from a regulatory perspective in the second half of the year.

Speaker #4: Now to discuss second quarter results. ECD reported second quarter revenue of $7 million, a $0.5 million increase over Q2 '24, driven by higher revenue build.

Victoria Hay: Now to discuss second quarter results. ECD Automotive Design reported second quarter revenue of $7 million, a $0.5 million increase over Q2 2024, driven by a higher revenue build. This represents the highest quarterly revenue in the company's history. Gross profit for the quarter was $1.4 million, down $0.7 million from Q2 2024. Gross margin was 20% compared to 32% in the prior year quarter. The decline was primarily due to higher shipping and customs fees. We are proactively engaging with vendors to identify efficiencies and potential savings in these areas going forward. Total operating expenses were $4 million, a $1.4 million increase year-over-year, primarily driven by higher G&A expenses. G&A expenses were $3.7 million, but $1.4 million from Q2 2024, largely due to higher non-cash equity compensation expense. Loss from operations were $2.6 million, an increase of $2.1 million from the prior year period.

Speaker #4: This represents the highest quarterly revenue in the company's history. Gross profit for the quarter was $1.4 million, down $0.7 million from Q2 2024. Gross margin was 20%, compared to 32% in the prior year quarter.

Speaker #4: The decline was primarily due to higher shipping and customs fees. We are proactively engaging with vendors to identify efficiencies and potential savings in these areas going forward.

Speaker #4: Total operating expenses were $4 million, a $1.4 million increase year over year, primarily driven by higher G&A expenses. G&A expenses were $3.7 million, up $1.4 million from Q2 '24, largely due to higher non-cash equity compensation expense.

Speaker #4: Loss from operations was $2.6 million, an increase of $2.1 million from the prior year period. Net loss was $4.3 million, compared with $2.0 million in Q2 '24.

Victoria Hay: Net loss was $4.3 million compared with $2.0 million in Q2 2024. This increased loss was primarily driven by the increased operating loss and higher interest expense, partially offset by a gain on the fair value adjustments to warrant and conversion option liabilities and a $0.4 million gain from debt converted into preferred stock. Loss per share was $0.11 compared to $0.06 in the prior year quarter. Regarding our balance sheet and liquidity position, as of June 30, 2025, cash and cash equivalents totaled $0.6 million compared with $1.5 million as of December 31, 2024. For the first six months of 2025, operating activities used $4.2 million of cash, including $1.2 million to fund working capital. Financing activities provided $3.4 million, primarily from the proceeds of the January and June 2025 convertible notes and the April 2025 note payable.

Speaker #4: This increased loss was primarily driven by the increased operating loss and higher interest expense, partially offset by a gain on the fair value adjustments to warrant and conversion option liabilities, and a $0.4 million gain from debt converted into preferred stock.

Speaker #4: Loss per share was $0.11, compared to $0.06 in the prior year quarter. Regarding our balance sheet and liquidity position, as of June 30, 2025, cash and cash equivalents totaled $0.6 million, compared with $1.5 million as of December 31, 2024.

Speaker #4: For the first six months of 2025, operating activities used $4.2 million of cash, including $1.2 million to fund working capital. Financing activities provided $3.4 million, primarily from the proceeds of the January and June 2025 convertible notes and the April 2025 note payable.

Speaker #4: These were partially offset by repayments of the agile and slow loans. During the second quarter, we entered into an amendment in exchange agreement with an institutional investor, allowing the exchange of amounts outstanding under the convertible notes into convertible preferred stock.

Victoria Hay: These were partially offset by repayments of the Agile Lending LLC and floor loans. During the second quarter, we entered into an amendment and exchange agreement with an institutional investor, allowing the exchange of amounts outstanding under the convertible notes into convertible preferred stock. At closing, the holder converted the August 2024 convertible notes, including principal and accrued interest, into 4,000 shares of convertible preferred stock, thereby improving our shareholders' deficit position. I'd like to close by discussing some subsequent developments. Following the close of the quarter, on August 6, we received a delisting notice from NASDAQ as a result of non-compliance of continued listing requirements. Prior to receiving this notice, we had already engaged an advisory firm to help us navigate this process both efficiently and effectively. To regain and maintain compliance and support our broader growth initiatives, we have taken the following additional steps.

Speaker #4: At closing, the holder converted the August 2024 convertible notes, including principal and accrued interest, into $4,000 shares of convertible preferred stock, thereby improving our shareholders' deficit position.

Speaker #4: I'd like to close by discussing some subsequent developments. Following the close of the quarter, on August 6th, we received a delisting notice from NASDAQ as a result of non-compliance with continued listing requirements.

Speaker #4: Prior to receiving this notice, we had already engaged an advisory firm to help us navigate this process both efficiently and effectively. To regain and maintain compliance and support our audit growth initiatives, we have taken the following additional steps.

Speaker #4: In July, we filed an S-1 registration statement to register 300 million shares in connection with our previously announced $500 million equity line of credit.

Victoria Hay: In July, we filed an S-1 registration statement to register 300 million shares in connection with our previously announced $500 million equity line of credit. This facility also provides flexibility to diversify our treasury strategy, including the potential use of Bitcoin for both inbound and outbound transactions. We exchanged $12 million of convertible debt into preferred stock against two separate transactions, and finally, we have raised an additional $1.7 million of equity capital to fund the business and to also improve our shareholder deficit. These steps substantially deleverage our balance sheets, significantly reduce cash interest obligations, and will accelerate our path to positive cash flow. Taken together, these efforts will allow us to regain and maintain compliance with NASDAQ, strengthen our balance sheet, and, combined with the continued G&A expenses streamlining and planned margin improvements, position us strongly as we enter the second half of the year.

Speaker #4: This facility also provides flexibility to diversify our treasury strategy, including the potential use of Bitcoin for both inbound and outbound transactions. We exchanged $12 million of convertible debt into preferred stock through two separate transactions. Finally, we have raised an additional $1.7 million of equity capital to fund the business and to also improve our shareholder deficit.

Speaker #4: These steps substantially deleverage our balance sheets, significantly reduce cash interest obligations, and will accelerate our path to positive cash flow. Taken together, these efforts will allow us to regain and maintain compliance with NASDAQ.

Speaker #4: Strengthen our balance sheet, and combined with the continued G&A streamlining and planned margin improvements, position us strongly as we enter the second half of the year.

Speaker #4: Our focus remains on executing our growth strategy and delivering long-term value to our shareholders. This concludes our prepared remarks. I'll now hand back to the operator to open the line for questions.

Victoria Hay: Our focus remains on executing our growth strategy and delivering long-term value to our shareholders. This concludes our prepared remarks. I'll now hand back to the operator to open the line for questions. Thank you.

Speaker #4: Thank you.

Speaker #1: Ladies and gentlemen, the floor is now open for questions. If you would like to ask a question, please press *1 on your telephone keypad at this time.

Operator: Ladies and gentlemen, the floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Again, that is star one to register a question at this time. Our first question this morning is coming from Theodore O'Neill of Litchfield Hills Research. Please go ahead.

Speaker #1: A confirmation tone will indicate that your line is in the question queue. You may press *2 if you would like to remove yourself from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Again, that is *1 to register a question at this time.

Speaker #1: Our first question this morning is coming from Theodore O'Neill of Litchfield Hills Research. Please go ahead.

Speaker #5: Oh, thanks very much. Scott, I wonder if you could give us some more details on the Mustang rollout and what you see in the pipeline and deliveries for the next 12 months.

Theodore O'Neill: Thanks very much. Scott, I wonder if you could give us some more details on the Mustang rollout and what you see in the pipeline and deliveries for the next 12 months.

Speaker #6: Yeah, the Mustang's been a great learning experience for us, as most new products are, as we introduce them. You know, the blend of introducing classic cars with modern customization and performance is not a challenge many people want to take on, but we kind of thrive in that.

Scott Wallace: Yeah, the Mustang has been a great learning experience for us, as most new products are, as we introduce them. The blend of introducing classic cars with modern customization and performance is not a challenge. Many people want to take on what we kind of thrive in that, and we are fortunate to have 67 technicians that, you know, they kind of like doing this as a thing at the weekend. So this is fun to them. What we faced with some challenges was in terms of the parts supply chain. At first, when we did it, it did not quite fit our production model in terms of the quality, specifically to fit and finish on alignment. So we had to kind of flip the model in real time and pivot quickly. We changed the model to go into a panel model that we fabricate with the technicians in-house now.

Speaker #6: And we're fortunate to have 67 technicians that, you know, they're kind of like doing this as a thing at the weekend. So this is fun for them.

Speaker #6: What we face are some challenges as it pertains to the part supply chain. At first, when we did it, it didn't quite fit our production model in terms of the quality.

Speaker #6: Specifically to fit and finish on alignment, we had to kind of flip the model in real time and pivot quickly. We changed the model to go into a panel model that we fabricate with the technicians in-house now.

Speaker #6: But yeah, I mean, once we got through it, it was a great product. And we didn't honestly expect it. We didn't have anything to do with the award we received.

Scott Wallace: But yeah, I mean, once we got through it, it was a great product, and we did not honestly expect it. We did not have anything to do with the award we received. The client delivered the car and took it to an event, and it won first place. So we were really proud of that, and I am pleased for the technicians who put the efforts in. And yeah, the backlog is building. We have got more in production now. They are in the production lines as we speak. We are pivoting and learning every time we do something to build the Mustang. It took us, I would say, it comfortably took us, you know, three or four years to get the Defender where we really got that nailed down.

Speaker #6: The client took delivery of the car and took it to an event, where it won first place. We were really proud of that.

Speaker #6: And I'm pleased that the technicians have put in the effort. And yeah, the balance building, you know, we've got more in production now. They're in the production lines.

Speaker #6: We speak. We're pivoting and learning every time we do something to build the Mustang. And, you know, it took us, I'd say comfortably three or four years to get the Defender where we really got that nailed down.

Speaker #6: The Mustang will be much further ahead because we're much more involved with the business. We're much more involved in the skill base that's within the team.

Scott Wallace: The Mustang we are much further ahead because we are much more involved with the business. We are much more involved in the skill base that is within the team. So yeah, I think by unit number two or three, you know, we will be turning that into like a fairly streamlined production model.

Speaker #6: So, yeah, I think by unit number two or three, you know, we'll be turning that into a fairly streamlined production model.

Speaker #5: Okay. On the financing question regarding the Bitcoin $500 million financing, is that really more of a marketing tool or a financing tool, or some combination of the two?

Speaker 7: Okay, and on this is a financing question. On the Bitcoin $500 million financing, is that really more of a marketing tool or a financing tool or some combination of the two?

Speaker #4: Thanks, Theo. It's a combination of the two. So obviously, as Scott mentioned in his remarks, we do have a lot of people with a lot of crypto and Bitcoin currencies.

Victoria Hay: Thanks, Theo. It is a combination of the two. So obviously, as Scott mentioned in his remarks, we do have a lot of people with a lot of crypto and Bitcoin currencies. So it is something that we do want to start getting payments in and then obviously building a reserve through this equity line of credit that we have. The equity line of credit will not be used solely for our crypto strategy. It will also be used for expansion of the business, opening new retail units, opening further lines of production as well, so that we can expand the company as well. So it will be a combination effort with the facility once it goes live.

Speaker #4: So it is something that we do want to start getting payments in, and then obviously building a reserve through this equity line of credit that we have.

Speaker #4: The equity line of credit won't be used solely for our crypto strategy; it'll also be used for expansion of the business, opening new retail units, and opening further lines of production as well.

Speaker #4: So that we can expand the company as well. So, it'll be a combination effort with the facility once it goes live.

Speaker #5: Okay. Thanks very much.

Speaker 7: Okay, thanks very much.

Speaker #1: Thank you. At this time, I would like to turn the floor back over to Mr. Wallace for closing comments.

Operator: Thank you. At this time, I would like to turn the floor back over to Mr. Wallace for closing comments.

Speaker #3: We appreciate everyone's time today and your continued interest in ECD. Please visit our website, ecdautomotivedesign.com, to stay up to date on our latest projects.

Scott Wallace: We appreciate everyone's time today and your continued interest in ECD Automotive Design. Please visit our website, ecdautodesign, to stay up to date on our latest projects, and feel free to reach out to our IR site on the same website if you have any questions. Have a great day.

Speaker #3: And feel free to reach out to our IR site on the same website if you have any questions. Have a great day.

Operator: Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.