CYNGN Inc (CYN) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Cyngn's Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference to your host, Ben Mimmack, Head of Investor Relations. Thank you. You may begin.

您好，歡迎參加 Cyngn 2023 年第二季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想請主持人、投資者關係主管本·米馬克 (Ben Mimmack) 主持會議。謝謝。你可以開始了。

Thank you, operator, and thank you to everyone on the call for joining us today. The press release announcing Cyngn's results for the second quarter ended June 30, 2023, is available in the Investors section of the company's website at investors.cyngn.com. A replay of this broadcast will also be made available on the website approximately 1 hour after the conclusion of this call.

謝謝您，接線員，也感謝今天加入我們通話的所有人。宣布 Cyngn 截至 2023 年 6 月 30 日的第二季度業績的新聞稿可在該公司網站 Investors.cyngn.com 的投資者部分獲取。本次通話結束後大約 1 小時，還將在網站上提供該廣播的重播。

Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed herein contain certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as anticipate, believe, expect, future, plan, outlook and will and include, among other things, statements regarding the company's continued development of its commercial products, expectations regarding sales and/or revenues, growth strategy, ability to deliver sustainable long-term value, ability to respond to the changing environment and operational focus.

在開始之前，我想提醒大家，本次電話會議以及此處討論的任何附帶信息均包含 1995 年《私人證券訴訟改革法案》安全港條款含義內的某些前瞻性陳述。這些前瞻性陳述可以通過預期、相信、期望、未來、計劃、展望和意願等術語來識別，其中包括有關公司持續開發其商業產品的聲明、有關銷售和/或收入的預期、增長戰略、能力提供可持續的長期價值、應對不斷變化的環境和運營重點的能力。

Although the company believes that the expectations reflected in its forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct. Information about the risks associated with investing in Cyngn is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision. The company does not assume any obligation to update any forward-looking statements as a result of new information, future events, changes in market conditions or otherwise, except as required by law.

儘管該公司認為其前瞻性陳述中反映的預期截至目前是合理的，但這些陳述存在風險和不確定性，可能導致實際結果與預測結果存在巨大差異。無法保證這些期望將被證明是正確的。有關投資 Cyngn 相關風險的信息包含在其向美國證券交易委員會提交的文件中，我們鼓勵您在做出投資決定之前先查看這些文件。除法律要求外，公司不承擔因新信息、未來事件、市場條件變化或其他原因而更新任何前瞻性陳述的義務。

On today's call, Cyngn's Chairman and CEO, Lior Tal, will discuss recent operating highlights. Chief Financial Officer, Don Alvarez, will follow with a review of the company's financials for the second quarter 2023. Lior will then return to make a few concluding remarks before opening the floor for questions.

在今天的電話會議上，Cyngn 董事長兼首席執行官 Lior Tal 將討論最近的運營亮點。隨後，首席財務官 Don Alvarez 將回顧公司 2023 年第二季度的財務狀況。然後，Lior 將在開始提問之前發表一些總結性言論。

And with that, I will turn the call over to Lior.

然後，我會將電話轉給 Lior。

Thanks, Ben. Good afternoon, everyone. During the second quarter, we made significant progress in all areas of the business, but particularly on a plan to sign up new commercial customers and deployments. In a moment, I'll talk in more detail about the major announcements we've made over the past few weeks. But first, for those new to our story, I want to give a brief overview of Cyngn and the significant opportunity we're delivering on.

謝謝，本。大家下午好。在第二季度，我們在所有業務領域都取得了重大進展，特別是在簽約新商業客戶和部署方面的計劃。稍後，我將更詳細地討論我們過去幾週發布的主要公告。但首先，對於那些剛接觸我們的故事的人，我想簡要概述一下 Cyngn 以及我們正在提供的重要機會。

We're an autonomous vehicle solution company that is focused on addressing industrial uses for autonomous vehicles. Our vehicle agnostic software enables industrial enterprises to harness autonomous driving to overcome labor shortages, increase safety and reduce the costs associated with labor. Our Enterprise Autonomy Suite or EAS, enables vehicles to use artificial intelligence to navigate the world around it. And as one of the pioneering AI development companies, we have been excited to see the increasing perforation of AI into all aspects of life. The use of AI to improve safety, productivity and efficiency in manufacturing, logistics and other industrial sectors is on the cusp of transforming the way work gets done and Cyngn is in the vangaurd of that effort.

我們是一家自動駕駛汽車解決方案公司，專注於解決自動駕駛汽車的工業用途。我們的車輛無關軟件使工業企業能夠利用自動駕駛來克服勞動力短缺、提高安全性並降低與勞動力相關的成本。我們的企業自主套件（EAS）使車輛能夠使用人工智能來導航周圍的世界。作為人工智能開發先驅公司之一，我們很高興看到人工智能日益滲透到生活的各個方面。使用人工智能來提高製造、物流和其他工業部門的安全性、生產力和效率正處於改變工作方式的風口浪尖，而 Cyngn 正是這一努力的先鋒。

Industrial firms today continue to experience significant labor shortages, which are destined to remain a bottleneck of demographic changes and worker sentiment impact the pool of available workers. In fact, in the July jobs report from National Federation of Independent business, 92% of business owners surveyed reported few or no applications for positions they were trying to fill, a 2-point increase from June. Companies are also focused on improving the safety of the workplace environment while improving efficiency to compete with peers who are deploying the latest automation technologies.

如今，工業企業繼續面臨嚴重的勞動力短缺問題，這注定將成為人口變化的瓶頸，而工人情緒也會影響可用工人的數量。事實上，在全國獨立企業聯合會 7 月份的就業報告中，92% 的受訪企業主表示，他們想要填補的職位很少或根本沒有申請，比 6 月份增加了 2 個百分點。公司還致力於提高工作場所環境的安全性，同時提高效率，以便與部署最新自動化技術的同行競爭。

Given these needs and based on the number of industrial vehicles in operation in the world today, we conservatively estimate that the addressable market for self-driving industrial vehicles is over $200 billion today. Cyngn's flexible vehicle agnostic solutions are perfectly designed to penetrate this market, a process we have already started with our initial commercial Stockchaser deployment in the first quarter.

考慮到這些需求並根據當今世界上運行的工業車輛的數量，我們保守估計目前自動駕駛工業車輛的潛在市場超過 2000 億美元。 Cyngn 靈活的與車輛無關的解決方案經過完美設計，可以滲透到這個市場，我們已經在第一季度通過初始商業 Stockchaser 部署開始了這一過程。

During the second quarter, we continued to meet milestones and make progress on our paid NRE contract to adapt DriveMod's proprietary localization technology to a major global heavy industry OEM. In April, we announced that we had successfully completed phase 2 of this multiphase project, which implemented autonomy technology not currently used in the mining industry and would allow an increase in uptime for autonomous mining vehicles with the potential to drive significant operational improvement.

在第二季度，我們繼續實現里程碑，並在付費 NRE 合同方面取得進展，以將 DriveMod 的專有本地化技術應用於全球主要重工業 OEM。今年 4 月，我們宣布已成功完成該多階段項目的第二階段，該項目實施了採礦業目前尚未使用的自主技術，並將增加自動採礦車輛的正常運行時間，從而有可能顯著改善運營。

More recently, we also announced that we partnered with Motrec, a manufacturer of electric industrial vehicles, to integrate Cyngn's autonomy technology into Motrec's MT-160 Tugger. The MT-160 is a robust vehicle offering 6,000 pounds of towing capacity and with the addition of Cyngn's technology, will soon be capable of autonomously and safely hauling goods through various industrial environments. Motrec tuggers operate around the globe for notable customers such as GM, FedEx, Tesla and Walmart. We're very excited to extend our DriveMod autonomy system to another popular vehicle type and offer an even more compelling solution to potential customers who own sizable fleets of multiple industrial vehicle types.

最近，我們還宣布與電動工業車輛製造商 Motrec 合作，將 Cyngn 的自主技術集成到 Motrec 的 MT-160 Tugger 中。 MT-160 是一款堅固的車輛，提供 6,000 磅的牽引能力，加上 Cyngn 的技術，很快將能夠在各種工業環境中自主、安全地牽引貨物。 Motrec 拖車在全球範圍內為通用汽車、聯邦快遞、特斯拉和沃爾瑪等知名客戶提供服務。我們非常高興能夠將我們的 DriveMod 自主系統擴展到另一種流行的車輛類型，並為擁有大量多種工業車輛類型的潛在客戶提供更具吸引力的解決方案。

Turning now to our DriveMod Stockchaser product. At the end of July, we announced an agreement with a Fortune 100 heavy equipment manufacturer to use our DriveMod enabled Stockchaser in one of their many facilities. This customer uses hundreds of stockchasers in facilities across the globe, and the initial deployment -- or second commercial stockchaser deployment has the potential to grow significantly in the future, as we prove out the flexibility and capability of our DriveMod Stockchaser solution. This further confirmation of demand for our autonomous stockchaser is a testament to the market need for a flexible and innovative approach to industrial vehicle autonomy offered by Cyngn.

現在轉向我們的 DriveMod Stockchaser 產品。 7 月底，我們宣布與一家財富 100 強重型設備製造商達成協議，在他們的眾多設施之一中使用我們支持 DriveMod 的 Stockchaser。該客戶在全球各地的設施中使用了數百台 Stockchaser，並且隨著我們證明了 DriveMod Stockchaser 解決方案的靈活性和功能，初始部署或第二次商業 Stockchaser 部署在未來有可能顯著增長。對我們的自動追貨機的需求的進一步確認證明了市場需要 Cyngn 提供的靈活和創新的工業車輛自動駕駛方法。

I look forward to updating you on additional deployments through the remainder of the year.

我期待著向您通報今年剩餘時間內的其他部署情況。

Our biggest recent news occurred just yesterday when we shared the significant development from our autonomous forklifts project and announced that we have secured a preorder of 100 DriveMod enabled autonomous forklifts from Arauco. Arauco is a $7 billion global wood supplier, a leader in the furniture and construction industries and the sponsor of the autonomous forklifts development project we announced last year. Arauco's order resulted from the success of development work will be to adapt BYD forklifts to enable self-driving capabilities. We'll now show a short video that highlights the capabilities of the autonomous DriveMod forklift and demonstrates why Arauco placed the order and why we're already securing firm orders for the product that will be available in 2024.

我們最近最大的新聞發生在昨天，當時我們分享了我們的自動叉車項目的重大進展，並宣布我們已經從 Arauco 獲得了 100 台支持 DriveMod 的自動叉車的預訂。 Arauco 是價值 70 億美元的全球木材供應商、家具和建築行業的領導者，也是我們去年宣布的自動叉車開發項目的讚助商。由於開發工作的成功，Arauco 的訂單將是對比亞迪叉車進行改造，以實現自動駕駛功能。現在，我們將播放一段簡短視頻，重點介紹自動駕駛 DriveMod 叉車的功能，並演示 Arauco 下訂單的原因以及我們為何已經獲得了將於 2024 年上市的產品的確定訂單。

(presentation)

（推介會）

Video. By leveraging Cyngn's proprietary computer vision and AI algorithms, we have already successfully addressed the challenges of automating heavy loads with nonstandard pallet pocket, a task which was previously unmet by other industrial autonomy providers. In addition to improving efficiency, these autonomous forklifts are expected to enhance safety wherever they are utilized, a benefit that is front of mind for the majority of customers and potential customers.

視頻。通過利用 Cyngn 專有的計算機視覺和人工智能算法，我們已經成功解決了使用非標準托盤袋實現重型負載自動化的挑戰，這是其他工業自動化提供商之前無法完成的任務。除了提高效率之外，這些自動叉車還有望在使用時提高安全性，這是大多數客戶和潛在客戶首先考慮的好處。

The progress we have made on commercialization for all our products over the past few months has been transformative to Cyngn. Since I last updated you, we have also seen significant and growing interest in all our current and future commercial products, including requests for pilots for major brands in the automotive and defense industries and we anticipate being able to announce further commercial success in the second half of the year.

過去幾個月我們在所有產品商業化方面取得的進展對 Cyngn 來說是變革性的。自從我上次向您通報以來，我們還看到人們對我們當前和未來的所有商業產品產生了巨大且日益增長的興趣，包括汽車和國防行業主要品牌的試點請求，我們預計能夠在下半年宣布進一步的商業成功今年的。

To make sure we meet the new requirements stemming from the success of this focus on commercialization, we brought on 2 new leaders during the second quarter; Sean Stetson, VP of Engineering; and Felix Singh, our VP of Engineering Services, each has over 20 years of experience of commercializing emerging technologies. Between them, they will be responsible for overseeing hardware, software development, continued commercialization of EAS and the development of our customer success and support functions. Since their appointment in the second quarter of both Felix and Sean has had a significant impact on our development progress and customer offering.

為了確保我們滿足商業化成功所帶來的新要求，我們在第二季度任命了兩名新領導者； Sean Stetson，工程副總裁；我們的工程服務副總裁 Felix Singh 均擁有 20 多年新興技術商業化經驗。他們將負責監督硬件、軟件開發、EAS 的持續商業化以及客戶成功和支持功能的開發。自第二季度任命 Felix 和 Sean 以來，他們對我們的開發進度和客戶服務產生了重大影響。

We intend to continue funding Cyngn in a way to benefit our stakeholders. We keep a close eye on the macro financial situation and stick to balance growth opportunities with a conservative use of cash to ensure long-term success of the company and its shareholders. As part of that process, we filed an S-3 with the SEC, which includes an ATM with Virtu. We did not utilize the ATM during the second quarter.

我們打算繼續為 Cynng 提供資金，讓我們的利益相關者受益。我們密切關注宏觀財務狀況，堅持在增長機會與謹慎使用現金之間取得平衡，以確保公司及其股東的長期成功。作為該流程的一部分，我們向 SEC 提交了一份 S-3，其中包括一台 Virtu 的 ATM。第二季度我們沒有使用 ATM。

We're often asked what our pathway to profitability and cash flow generation looks like. And we are not giving any current forecast at the moment, I think it can be illuminating to lay out the broad stroke calculation. At a current cash burn of approximately $2 million per month, it would require 500 EAS licenses at $4,000 a month to approximately cash flow breakeven. Obviously, this calculation doesn't factor in addition cost of supporting these licenses, but for many of the customers and potential customers we're working with today, operate hundreds of industrial vehicles worldwide, we think the path to profitability is identifiable and achievable for Cyngn.

我們經常被問到盈利和現金流生成的途徑是什麼樣的。目前我們沒有給出任何當前的預測，我認為列出大致的計算結果可能會很有啟發性。按照目前每月約 200 萬美元的現金消耗量，需要 500 個 EAS 許可證，每月費用為 4,000 美元，才能大致實現現金流收支平衡。顯然，這種計算並沒有考慮支持這些許可證的額外成本，但對於我們今天合作的許多客戶和潛在客戶來說，他們在全球範圍內運營著數百輛工業車輛，我們認為盈利之路是可以識別和實現的辛格。

Given the traction we're seeing with our DriveMod Stockchaser solution, the availability of the new Motrec Tugger and considering the firm order of 100 DriveMod forklifts in 2024, which represents only a fraction of the forklifts of Arauco's fleet, are confident in achieving profitability in a reasonable time frame that has only increased in recent weeks.

鑑於我們看到的DriveMod Stockchaser 解決方案的吸引力、新型Motrec Tugger 的可用性以及考慮到2024 年100 台DriveMod 叉車的確定訂單（僅佔Arauco 車隊叉車的一小部分），我們有信心在2024 年實現盈利。這是一個合理的時間框架，最近幾週才有所增加。

There's one more thing I would like to mention before I hand over to Don to go through the financial results. We value the views of our shareholders, and we want to answer any questions you may have. You are welcome to reach out to investors@cyngn.com at any time. But we have also set up a page at sequirecommunity.com, where verified shareholders will be able to post questions for management. Any that we can't cover during this call, we will answer in the next few days. We look forward to engaging with you all.

在交給唐查看財務業績之前，我還想提一件事。我們重視股東的意見，我們希望回答您的任何問題。歡迎您隨時聯繫 Investors@cyngn.com。但我們還在 sequirecommunity.com 上設立了一個頁面，經過驗證的股東將能夠向管理層提出問題。對於本次電話會議中我們無法解決的任何問題，我們將在接下來的幾天內答复。我們期待與大家互動。

And with that, I'll turn it over to Don.

有了這個，我會把它交給唐。

Thanks, Lior. Turning to our financial results for the second quarter and first 6 months of 2023, we booked a $551,000 and $1.4 million in revenue, respectively. The Q2 revenue represents our third consecutive revenue-generating quarter as a public company. Substantially all of the revenue we recorded for the second quarter and the first 6 months of 2023 was related to the 2 nonrecurring engineering contracts that we signed with Arauco and a global heavy industrial equipment OEM to bring new autonomous vehicles to the market.

謝謝，利奧爾。談到 2023 年第二季度和前 6 個月的財務業績，我們的收入分別為 551,000 美元和 140 萬美元。第二季度的收入代表我們作為上市公司連續第三個季度創收。我們在2023 年第二季度和前6 個月錄得的幾乎所有收入都與我們與Arauco 和一家全球重工業設備OEM 簽署的2 份非經常性工程合同有關，這些合同旨在將新型自動駕駛汽車推向市場。

Total costs and expenses in the second quarter were $7 million as compared to $4.6 million in the corresponding quarter of 2022. The increase was due in part to cost of revenue, totaling $463,000 in the second quarter compared to 0 in the second quarter of 2022. Costs and expenses were also higher as a result of a $1.5 million increase in research and development expenses related to an increase in personnel added over the past 12 months to support the development of our technology. We anticipate that R&D expenses will continue to increase for the remainder of 2023.

第二季度的總成本和費用為700 萬美元，而2022 年同期為460 萬美元。增加的部分原因是收入成本，第二季度的成本和費用總計為463,000 美元，而2022 年第二季度為0 。由於過去 12 個月為支持我們的技術開發而增加人員，研發費用增加了 150 萬美元，因此成本和費用也有所增加。我們預計 2023 年剩餘時間內研發費用將繼續增加。

Second quarter G&A expenses were also higher year-over-year as a result of an increase in personnel-related costs, additional marketing and advertising expenses, higher legal and professional fees, and increase in other G&A to support growth in the company.

由於人事相關成本、額外的營銷和廣告費用、法律和專業費用的增加以及其他支持公司增長的一般管理費用的增加，第二季度的一般管理費用也同比增加。

Our second quarter net loss was $6.4 million or $0.19 per basic and diluted share. This compares to a net loss of $4.6 million or $0.15 per basic and diluted share for the second quarter of 2022.

我們第二季度的淨虧損為 640 萬美元，即每股基本股和稀釋股虧損 0.19 美元。相比之下，2022 年第二季度的淨虧損為 460 萬美元，即每股基本股和稀釋股淨虧損 0.15 美元。

Cyngn ended the first half of the year with unrestricted cash and short-term investments totaling approximately $12.1 million. Working capital at the end of the quarter was $11.6 million, with stockholders' equity of $13.9 million.

截至今年上半年，Cyngn 的無限制現金和短期投資總額約為 1,210 萬美元。本季度末營運資金為 1,160 萬美元，股東權益為 1,390 萬美元。

Additional detail on these numbers can be found in our earnings press release that we issued earlier today and the 10-Q, which we anticipate filing with the SEC later this week.

有關這些數字的更多詳細信息，請參閱我們今天早些時候發布的收益新聞稿和 10-Q 報告，我們預計將於本週晚些時候向 SEC 提交。

That concludes our financial commentary. And now I'd like to turn it back to Lior for his final remarks. Lior?

我們的財務評論到此結束。現在我想請利奧爾發表最後的講話。利奧爾？

The last few months have seen some very exciting developments for Cyngn. On our last call, we said that we were focused on commercialization of our products, and we have delivered. Since we spoke to you last, we've announced a partnership with BYD on our autonomous forklift project, launched a new vehicle type following our partnership with Motrec, announced an order for autonomous Stockchasers with a household name in the heavy equipment manufacturing industry to be delivered this summer and announced an order for autonomous forklift with Arauco to be delivered next year.

過去幾個月，Cyngn 取得了一些非常令人興奮的進展。在上次電話會議上，我們表示我們專注於產品的商業化，並且我們已經交付了。自從我們上次與您交談以來，我們宣布了與比亞迪在自動叉車項目上的合作，在與 Motrec 合作後推出了一種新車型，宣布了重型設備製造行業家喻戶曉的自動 Stockchaser 的訂單今年夏天交付，並宣布與Arauco 簽訂自動叉車訂單，將於明年交付。

It is the hard work of everyone at Cyngn that is allowing us to meet our commitment to the market. And I would like to thank everyone at the company for their efforts so far this year. We intend to keep delivering on the opportunities we have created, and I look forward to updating you on our future successes.

正是 Cyngn 每個人的辛勤工作才使我們能夠履行對市場的承諾。我要感謝公司每個人今年迄今為止所做的努力。我們打算繼續抓住我們所創造的機會，我期待著向您通報我們未來的成功情況。

Now I'd like to open the call up for analysts' questions.

現在我想開始徵集分析師提問。

(Operator Instructions) Our first question is from Theodore O'Neill with Litchfield Hills Research.

（操作員說明）我們的第一個問題來自 Litchfield Hills Research 的 Theodore O'Neill。

Congratulations on the good quarter. I first have sort of a general question one -- just about of the challenges of the autonomous EV business in general is the cost of number of sensors needed to operate safely. And I was wondering if you could compare sort of that versus the cost of number of sensors you require to run inside a factory?

祝賀季度業績良好。我首先有一個普遍性的問題——自動駕駛電動汽車業務的總體挑戰是安全運行所需的傳感器數量的成本。我想知道您是否可以將其與工廠內運行的傳感器數量的成本進行比較？

This is Ben Landen here. The -- when you compare to the EV, and I think largely, this is driven by the automotive space and the cost associated with driving at [various speeds] and dealing with everything that needs to be dealt with out in the world. By design, we chose the domains that we work in because they limit a lot of the problem space, which does a few things. One is it lets us have an earlier horizon to having finished products for our customers, which we're seeing now, very different from a situation where you need to be able to pick up anywhere in some city and drop off anywhere in some city. So that goes -- that speaks lead to the product readiness and having a shorter horizon there.

我是本·蘭登。當你與電動汽車進行比較時，我認為這很大程度上是由汽車空間以及以[不同速度]駕駛和處理世界上需要處理的一切相關的成本驅動的。根據設計，我們選擇了我們工作的領域，因為它們限制了很多問題空間，而問題空間可以做一些事情。一是它讓我們能夠更早地為客戶提供成品，我們現在看到的情況與您需要能夠在某個城市的任何地方上車並在某個城市的任何地方下車的情況非常不同。就這樣——這說明了產品的準備情況以及較短的期限。

And the byproduct of that is since we're operating at lower speeds since we're operating around trained personnel, not the general public that can do anything and surprise you out on the open roadway, that means we don't need to, for example, see 200 meters out in front of us so that we can see an object when we're traveling at 65, 70 miles per hour. We have, let's call it, the luxury of being able to enter into failsafe maneuvers because we know the manufacturing facility that we're in, we know that there's not high traffic scenarios. If there is a situation where the brakes needs to be slammed, we can usually do that, which you can't do with a long-haul truck traveling 70 miles per hour, for example.

其副產品是因為我們以較低的速度運行，因為我們是在訓練有素的人員周圍運行，而不是在開放的道路上可以做任何事情並讓你大吃一驚的普通公眾，這意味著我們不需要，因為例如，當我們以每小時 65、70 英里的速度行駛時，我們可以看到前方 200 米處的物體。我們擁有能夠進入故障安全操作的奢侈，因為我們了解我們所在的製造工廠，我們知道交通量並不高。如果出現需要猛踩剎車的情況，我們通常可以做到這一點，但對於時速 70 英里的長途卡車來說，這是無法做到的。

And what that means is less sensors on the vehicle to cover all of the views that we need to operate safely. It means not as intensive of computing required because you're analyzing a smaller space in the 3D world. And so the bottom line ultimately comes back with if you look at the labor costs to a human on a vehicle (inaudible) around a warehouse. When you include the sensor kit, when you include the subscription cost of our EAS licenses, that still offers substantial savings to our customers compared to the old way of doing it, which was the only way to get work done was to have people sit on the vehicles and doing mundane work.

這意味著車輛上的傳感器更少，無法覆蓋我們安全操作所需的所有視野。這意味著不需要密集的計算，因為您正在分析 3D 世界中較小的空間。因此，如果你看看倉庫周圍車輛（聽不清）的人工成本，最終就會得出底線。當您包含傳感器套件時，當您包含我們的EAS 許可證的訂閱成本時，與舊的方式相比，仍然可以為我們的客戶節省大量成本，而舊的方式是完成工作的唯一方法就是讓人們坐在一起車輛和做平凡的工作。

Okay. About the announcement with Arauco. In the August 8 press release, you say it could represent 20% of monthly cash burn, which by my math works out to $4 million or $5 million annually and targeting to start June 2024. So the 2 questions are, one, is my math right? And the second one is about the build plan. Is this sort of a -- do all 100 units go out at once? Or does this go out over a longer time period, say, for a year or more?

好的。關於與 Arauco 的公告。在8 月8 日的新聞稿中，您說這可能佔每月現金消耗的20%，根據我的計算，每年消耗400 萬或500 萬美元，目標是從2024 年6 月開始。所以兩個問題是，一是我的數學正確的？第二個是關於建設計劃的。是不是所有 100 台設備都會同時售出？或者這種情況會持續較長一段時間，例如一年或更長時間？

I'll start backwards. So with the second question and then work to the first. We don't -- we haven't shared guidance as to what the ramp-up will look like for those 100. We, as well as our customer in signing that preorder, have a joint mutual interest in getting those vehicles ramped up and delivering value. So we'll be working as closely as we can with our OEM partners, with the supply chain and with everything that we need to get in place to reach that first order ramp as quickly as it makes sense to do.

我將從倒退開始。因此，解決第二個問題，然後解決第一個問題。我們沒有——我們還沒有分享關於這 100 輛汽車的升級情況的指導。我們以及簽署預購訂單的客戶都對增加這些車輛的共同利益感興趣，並且創造價值。因此，我們將與我們的 OEM 合作夥伴、供應鏈以及我們需要的一切人員盡可能緊密地合作，以盡快實現第一筆訂單的增長。

And that only captures a portion of the fleet. There's quite a lot of room to grow beyond that, which we expect to be a process that will take time to saturate as much of their fleet with automation as we can, presents a very exciting opportunity there. And then in terms of the numbers and your calculation, yes, you're roughly on the right page. That is where that 20% number derives from. So it's based roughly around the current burn rate that we have that's been publicly shared. And so where -- we see the opportunity, and we're excited at the opportunity to grow far beyond that, but to even have the initial order be as meaningful of a chunk as it is into our operating expenses.

而這只捕獲了艦隊的一部分。除此之外，還有很大的增長空間，我們預計這一過程將需要時間來盡可能地讓他們的車隊充滿自動化，這在那裡提供了一個非常令人興奮的機會。然後就數字和你的計算而言，是的，你大致在正確的頁面上。這就是 20% 的數字的來源。因此，它大致基於我們目前公開分享的燃燒率。因此，我們看到了這個機會，我們很高興有機會遠遠超出這個目標，但即使最初的訂單也像我們的運營費用一樣有意義。

Okay. So if this ramps up, it could be 100% of the cash burn?

好的。那麼如果這種情況增加的話，現金消耗可能是 100% 嗎？

Yes, without going as far as providing numbers that are not mine to provide, the initial order represents, let's say, a very small portion of the total opportunity with Arauco in that, yes, I expected that would be a potential future that we would reach where we far surpass 20% and even the current burn rate with just that customer, which is true from -- as you can see from some of the numbers that were provided in Lior's statements as well, on the order of 500 vehicles when you consider a $4,000 blended average of license prices, which we're already taking a substantial chunk out of with Arauco's initial order alone. And that there are precedents from other automation providers who have already surpassed those kinds of volumes. So we're quite positive on that momentum.

是的，在不提供不屬於我的數字的情況下，最初的訂單代表了，比方說，Arauco 的總機會的一小部分，是的，我預計這將是我們的潛在未來達到我們遠遠超過20% 的水平，甚至是當前該客戶的燒錢率，這是真實的——正如您從Lior 聲明中提供的一些數字中看到的那樣，大約500 輛汽車，當您考慮一下4,000 美元的混合平均許可價格，我們已經從Arauco 的初始訂單中扣除了很大一部分。其他自動化提供商也有先例，它們的數量已經超過了這些數量。所以我們對這種勢頭非常樂觀。

Our next question is from Rommel Dionisio with Aegis Capital.

我們的下一個問題來自 Aegis Capital 的 Rommel Dionisio。

You guys have had a really impressive flurry of press releases and contract signings lately. And I wonder, Lior, if you could just give us a little color on what is kind of driving this huge flurry? I mean, are you seeing a technological leap? Is it some new personnel on the marketing front that's really brought a lot of success here near term? I wonder if you could just give us a little more color in terms of how are you seeing such success in a rapid amount of time. Congratulations on that.

你們最近發布了一系列令人印象深刻的新聞稿和合同。我想知道，Lior，你能否給我們一些解釋，說明是什麼推動了這場巨大的混亂？我的意思是，你看到技術飛躍了嗎？是營銷方面的一些新人員在短期內真正帶來了巨大的成功嗎？我想知道您是否可以給我們更多的信息，告訴我們您是如何在短時間內看到如此成功的。對此表示祝賀。

Rommel. It's good hearing from you again. The one is what you alluded to, we grew the team. We brought in some very important key functions, including engineering leadership, both on development and customer support success. We started building a very experienced sales team with years of experience in selling robotic solutions, industrial automation solutions. So a lot of that momentum you're seeing is based on the impact that, that new team that was -- has been added in the last quarter or so I have made on our operation.

隆美爾。很高興再次收到你的來信。正如您所提到的，我們擴大了團隊。我們引入了一些非常重要的關鍵職能，包括在開發和客戶支持方面取得成功的工程領導力。我們開始建立一支經驗豐富的銷售團隊，在銷售機器人解決方案、工業自動化解決方案方面擁有多年的經驗。因此，您看到的很多動力都是基於我在上個季度左右添加的新團隊對我們的運營產生的影響。

But also a lot of it is just the recognition of the market in the opportunity that industrial automation brings to their flexibility, cost structure and ability to compete with other companies. And a lot of it is coming as inbound into the company, the more people see these announcements, the more we're getting interest from new prospective customers.

但很大程度上只是市場對工業自動化給他們帶來的靈活性、成本結構和與其他公司競爭的能力帶來的機會的認可。其中很多都是公司內部的信息，看到這些公告的人越多，我們就越能從新的潛在客戶那裡獲得興趣。

Great. And just a quick follow-up. I know in prior calls, you talked about the opportunity in the mining industry specifically. And I wonder if you could just give us some of your updated thoughts there.

偉大的。只是快速跟進。我知道在之前的電話中，您專門談到了採礦業的機會。我想知道您是否可以向我們提供一些最新的想法。

Yes, of course. So the main focus of the company remains material handling for predominantly logistics, manufacturing facilities. These are usually very large warehouses or industrial complexes. And there you see vehicles that are readily available, stockchasers, the upcoming tugger, and next year's forklift. That still remains the main focus of the company. This is the one that is closer to scaled commercial deployment. Other applications, including heavy industry or the mining are more in R&D phase, and these are the ones that contribute to the NRE-based revenues. But really, where the company is focused is on generating license-based recurring revenues, and this is where the sales team is focused on lining up these additional preorders like Arauco for 2024 and onwards.

是的當然。因此，公司的主要重點仍然是物流和製造設施的物料搬運。這些通常是非常大的倉庫或工業園區。在那裡你可以看到現成的車輛、庫存車、即將推出的拖車和明年的叉車。這仍然是該公司的主要關注點。這是更接近規模商業部署的一種。其他應用，包括重工業或採礦業，更多地處於研發階段，這些應用為基於 NRE 的收入做出了貢獻。但實際上，該公司的重點是產生基於許可的經常性收入，而這也是銷售團隊專注於安排 2024 年及以後的 Arauco 等額外預訂的地方。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，我們感謝您的參與。