Eos Energy Enterprises Inc (EOSE) 2023 Q1 法說會逐字稿

Good morning, and welcome to Eos Energy Enterprises First Quarter 2023 Conference Call. As a reminder, today's call is being recorded, and your participation implies consent to such a recording. (Operator Instructions)

早上好，歡迎來到 Eos Energy Enterprises 2023 年第一季度電話會議。提醒一下，今天的通話正在錄音中，您的參與意味著同意此類錄音。 （操作員說明）

With that, I would like to turn the call over to Laura Ellis, Vice President of Investor Relations. Thank you. You may begin.

有了這個，我想把電話轉給投資者關係副總裁勞拉埃利斯。謝謝。你可以開始了。

Thank you. Good morning, everyone, and thank you for joining us for Eos's Financial Results and Conference Call for the First Quarter 2023. On the call today, we have Eos CEO, Joe Mastrangelo and CFO, Nathan Kroeker.

謝謝。大家早上好，感謝您參加我們的 Eos 2023 年第一季度財務業績和電話會議。在今天的電話會議上，我們有 Eos 首席執行官 Joe Mastrangelo 和首席財務官 Nathan Kroeker。

Before we begin, allow me to provide a disclaimer regarding forward-looking statements. This call, including the Q&A portion of the call, may include forward-looking statements, including, but not limited to, current expectations with respect to future results for our company, which are subject to certain risks, uncertainties and assumptions. Should any of these risks materialize or should our assumptions prove to be incorrect, our actual results may differ materially from our expectations or those implied by these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to are described in our SEC filings.

在我們開始之前，請允許我提供有關前瞻性陳述的免責聲明。本次電話會議，包括電話會議的問答部分，可能包括前瞻性陳述，包括但不限於目前對我們公司未來業績的預期，這些預期受某些風險、不確定性和假設的影響。如果這些風險中的任何一個成為現實，或者如果我們的假設被證明是不正確的，我們的實際結果可能與我們的預期或這些前瞻性陳述所暗示的預期大不相同。我們向美國證券交易委員會提交的文件中描述了前瞻性陳述所涉及的風險和不確定性。

Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law.

前瞻性陳述僅代表我們截至作出此類陳述之日的信念和假設。我們沒有義務更新本次電話會議期間作出的任何前瞻性陳述，以反映今天之後的事件或情況，或反映新信息或意外事件的發生，法律要求的除外。

Today's remarks may also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to U.S. GAAP financial information is provided in the press release. Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

今天的評論可能還包括對非 GAAP 財務指標的引用。新聞稿中提供了其他信息，包括非 GAAP 財務信息與美國 GAAP 財務信息之間的調節。非 GAAP 信息應被視為補充性質，不應孤立地考慮或替代根據 GAAP 編制的相關財務信息。此外，我們的非 GAAP 財務指標可能與其他公司提出的類似非 GAAP 指標不同或不具有可比性。

The conference call will be available for replay via webcast through Eos's Investor Relations website at investors.eose.com. Joe and Nathan will walk you through the company highlights, financial results and business priorities before we proceed to Q&A.

電話會議可通過 Eos 的投資者關係網站 investors.eose.com 進行網絡直播重播。在我們進行問答之前，Joe 和 Nathan 將帶您了解公司亮點、財務業績和業務重點。

With that, I'll now turn the call over to Eos CEO, Joe Mastrangelo.

有了這個，我現在將把電話轉給 Eos 首席執行官 Joe Mastrangelo。

Thanks, Laura. Let's move quickly to Page 3. I mean this is really a capstone page of the progress that the company has made this 15-year history. And really when I sit back and think about my 5 years in the company, and just being able to sit here and talk about discharging a gigawatt hour of energy out the field is very exciting. When you think about that gigawatt of energy out in the field 700-megawatt hours of that came in 2023. And when you put that in perspective, that's the equivalent of powering 140,000 homes for up to 4 hours. I think this is just a lot of work here done by the entire team throughout the history of the company to get to this moment, and it's just one of those modes where you're kind of get the news from the team sit back and reflect how far the companies come, but then also realize how much more work we have to do to move forward around the potential of this product that's delivered this gigawatt of energy to date.

謝謝，勞拉。讓我們快速轉到第 3 頁。我的意思是，這確實是公司在這 15 年曆史中取得的進步的頂點頁面。真的，當我坐下來想想我在公司的 5 年，能夠坐在這裡談論在現場釋放千兆瓦時的能量是非常令人興奮的。當你考慮到 2023 年現場輸出的 700 兆瓦時的 700 兆瓦時的能量時。當你正確看待它時，這相當於為 140,000 個家庭供電長達 4 小時。我認為這只是整個團隊在公司歷史上所做的大量工作，以達到這一刻，這只是其中一種模式，您可以從團隊那裡得到消息，坐下來反思這些公司走了多遠，但隨後也意識到我們必須做多少工作才能圍繞迄今為止提供這種千兆瓦能量的產品的潛力向前發展。

Moving on to Page 4 on the operating highlights. You continue to see good progress. Commercially, I'll go through some more details on the pipeline in a future slide, but we continue to see the opportunity pipeline increase. We booked a large order for $87 million, nearly $87 million, and that brought our backlog up to $535 million with -- representing 2.2 gigawatt hours of power.

轉到第 4 頁的操作要點。你繼續看到良好的進展。在商業上，我將在未來的幻燈片中詳細介紹管道，但我們繼續看到機會管道增加。我們以 8700 萬美元預訂了一個大訂單，接近 8700 萬美元，這使我們的積壓訂單達到 5.35 億美元——代表 2.2 吉瓦時的電力。

To talk about the Discharge Energy, I think another piece of this and Nathan will get into some more details later around revenue, delivering $8.8 million of revenue, a 168% increase over first quarter of 2022, along with seeing the progress of our cost out in the product where you can see in the numbers, revenue coming up the gross margin -- the loss/gross margin coming down and closing the gap on our losses of operating profit.

談到放電能源，我想這是另一部分，Nathan 稍後會詳細介紹收入，實現 880 萬美元的收入，比 2022 年第一季度增長 168%，同時看到我們成本削減的進展在您可以從數字中看到的產品中，收入增加了毛利率 - 損失/毛利率下降並縮小了我們營業利潤損失的差距。

Cash on hand, we closed the quarter with $16 million. That doesn't include the funds that we raised in 2Q, $55 million, and Nathan will walk through later on. Our financing strategy, which I think we put in place that financing strategy over a year ago, we've been very consistent about how we talked about using the different tools, and we continue to use those tools to allow us to position the company for growth and deliver the results that you're seeing and the progress that you're seeing against the overall strategy of becoming a profitable operating company.

手頭現金，我們以 1600 萬美元結束了本季度。這不包括我們在第二季度籌集的 5500 萬美元資金，內森將在稍後討論。我們的融資策略，我認為我們在一年多前製定了該融資策略，我們一直非常一致地談論我們如何使用不同的工具，我們繼續使用這些工具來讓我們為公司定位增長並交付您所看到的結果以及您所看到的與成為一家盈利運營公司的總體戰略相對應的進展。

Now let's move forward and talk about the commercial pipeline and orders backlog. Go to Page 6, where we go to our classic page of how we look at pipeline. We keep the page in the same format, so you don't have to figure out the format when you look at it, and you can focus on the numbers. So focusing on the numbers. Lead generation, once again, these are people coming to us, customers coming to us with ideas of project that stands at over $9.5 billion, 57 gigawatt hours. There's a lot of churn in that $1 billion increase. You have things that drop out, things that move into current pipeline and things that come in.

現在讓我們繼續前進，談談商業管道和訂單積壓。轉到第 6 頁，我們將轉到我們如何看待管道的經典頁面。我們保持頁面格式一致，這樣你看的時候就不用琢磨格式了，你可以把注意力集中在數字上。所以專注於數字。領先一代，再一次，這些人來找我們，客戶帶著超過 95 億美元、57 吉瓦時的項目想法來找我們。增加的 10 億美元中有很多流失。你有一些東西會被丟棄，有一些東西會進入當前的管道，還有一些東西會進來。

Team's doing a great job building relationships with potential new customers and really working through and showing the power of the Eos' technology and how it can help deliver longer duration energy storage, which is critical for the energy transition.

團隊在與潛在新客戶建立關係方面做得很好，並真正研究並展示了 Eos 技術的力量，以及它如何幫助提供更長時間的儲能，這對能源轉型至關重要。

When you look at our current pipeline, current pipeline is up in Q2, and we signed over $500 million of LOIs. Now think again about how we think about the movement through our pipeline. We don't call it current pipeline unless we have a technical use case where we can provide a technical proposal to the customer, which then leads us to giving them a nonbinding financial quote, which that stands at $6 billion in and of itself. Our goal with that combined $7 billion is to then get customers to sign an LOI with us. So we get on the same side of the table with them and close the project out to allow them to generate revenue and allow us to put product out in the field. That stands now at $1.5 billion with 7 gigawatt hours of potential.

當您查看我們當前的管道時，當前管道在第二季度上線，我們簽署了超過 5 億美元的意向書。現在再想一想我們如何看待通過我們的管道的運動。我們不稱其為當前管道，除非我們有一個技術用例，我們可以向客戶提供技術建議，然後我們給他們一個不具約束力的財務報價，這本身就是 60 億美元。我們用這 70 億美元的目標是讓客戶與我們簽署意向書。因此，我們與他們站在同一邊，關閉項目，讓他們產生收入，並允許我們將產品投入實地。目前這一數字為 15 億美元，具有 7 吉瓦時的潛力。

We work through those. And when you think about the timing of LOI to firm commitment, you're working through various different aspects on commercial terms, permitting, land rights and interconnections to be able to get to a firm commitment that then goes into our backlog, which, as I stated earlier, stands at $535 million, up $71 million versus fourth quarter.

我們通過這些工作。當你考慮 LOI 到堅定承諾的時間時，你正在通過商業條款、許可、土地權利和互連方面的各個不同方面進行工作，以便能夠達成一個堅定的承諾，然後進入我們的積壓工作，作為我之前說過，為 5.35 億美元，比第四季度增加 7100 萬美元。

So starting to see some traction on the team closing orders. Starting to see opportunities move into LOI. And I think as we get more clarity around the IRA legislation in the United States, we're going to see more and more orders work through the pipeline opportunities work through this pipeline. While at the same time, you're starting to see Europe looking at their -- what they're calling their green new deal, which is going to drive more activity over in Europe, and we're starting to see pipeline grow there as well and our focus on that -- on the European continent as far as where we can deliver product as they look to diversify their energy mix.

所以開始看到團隊關閉訂單的一些牽引力。開始看到機會進入 LOI。而且我認為，隨著我們對美國 IRA 立法的了解越來越清楚，我們將看到越來越多的訂單通過管道工作，機會通過這條管道工作。與此同時，你開始看到歐洲正在審視他們的——他們稱之為綠色新政，這將推動歐洲的更多活動，我們開始看到那裡的管道增長，因為好吧，我們的重點是——在歐洲大陸，我們可以在歐洲大陸提供產品，因為他們希望使他們的能源結構多樣化。

Moving on to Page 7. This is a page where I wanted to take a look back to our original customers when we first went public nearly 2 years -- over 2 years ago. We had 3, what I would call emerging customers in IEP, EnerSmart and Carson Energy. I mean when you look at what those customers and what we've done, this is really building a relationship back in 2020, creating a letter of intent and booked orders, delivering on some of those booked orders, but also working with the customer from letter of intent into a book-to-order into delivery. I think this just shows that process that I just talked about in real life with real orders that are going to be shipping here in 2023 and early 2024. We're excited about these relationships, and these are the types of customers that we look at the space, you've got to go out and grow with them and find ways for them to grow and find ways for us to deliver profitable solutions for them.

轉到第 7 頁。在這一頁上，我想回顧一下我們首次上市將近 2 年——2 年多以前——我們最初的客戶。我們有 3 個，我稱之為 IEP、EnerSmart 和 Carson Energy 的新興客戶。我的意思是，當你看看這些客戶和我們所做的事情時，這實際上是在 2020 年建立關係，創建意向書和預訂訂單，交付其中一些預訂訂單，同時還與客戶合作意向書變成訂貨變成交貨。我認為這只是展示了我剛剛在現實生活中談到的流程，真實訂單將在 2023 年和 2024 年初運送到這裡。我們對這些關係感到興奮，這些是我們關注的客戶類型空間，你必須走出去和他們一起成長，找到讓他們成長的方法，並找到讓我們為他們提供有利可圖的解決方案的方法。

The bottom of the page talks about some more established customers, Pine Gate, Eastover, that's the project that I showed on the first page. This was a booked order back in 2021. We started delivering it in 2022, that was the focus of ramping up the factory to see that project running cycles around 50-megawatt hours per day is very exciting for the team. And that also will lead us to additional add-on projects under our MSA with Pine Gate as we look to move forward in the future. The California Energy Commission or the CEC, this is something that started back in like 2017, 2018, running pilot projects, CEC relationship started with running individual cells than doing individual pilot projects in California, which then led to a commercial order in 2022, which was the bulk of the revenue that we delivered in first quarter of 2023 with additional shipments to come in the second half of 2023.

頁面底部談到了一些更成熟的客戶，Pine Gate，Eastover，這是我在第一頁上展示的項目。這是早在 2021 年就已預訂的訂單。我們從 2022 年開始交付它，這是擴大工廠規模的重點，我們看到項目運行週期約為每天 50 兆瓦時，這對團隊來說非常令人興奮。這也將引導我們在我們與 Pine Gate 的 MSA 下開展額外的附加項目，因為我們期待在未來向前發展。加州能源委員會或 CEC，這是早在 2017 年、2018 年就開始運行試點項目的事情，CEC 的關係始於運行單個電池，而不是在加利福尼亞州進行單個試點項目，然後在 2022 年達成了商業訂單，這是我們在 2023 年第一季度交付的大部分收入，並在 2023 年下半年增加出貨量。

But an exciting development for us, as you think about developing that relationship and proving out your ability for your technology that deliver the operating needs of customers, which then is going to create additional pipeline for us in California, remains an important market for us as we look to the future.

但對我們來說，這是一個令人興奮的發展，因為你考慮發展這種關係並證明你的技術能夠滿足客戶的運營需求，然後將為我們在加利福尼亞州創造額外的管道，這對我們來說仍然是一個重要的市場，因為我們展望未來。

I talked earlier about Europe Enel, another Enel Green Power is another customer that we've been building a relationship with over time, going back again to pre-public company days to come up with a booked order in 2021 to work through with them to get all the siting and shipping and logistics around getting that project installed in Europe and operating in 2024 with delivery in late 2023. It's exciting for us when you look at what's going to come in Europe and working with a partner like Enel adds credibility to what our technology can and will do out in the marketplace.

我之前談到了 Europe Enel，另一個 Enel Green Power 是另一個客戶，隨著時間的推移，我們一直在與之建立關係，再次回到公司上市前的日子，在 2021 年提出預訂訂單，與他們合作，圍繞在歐洲安裝該項目並在 2024 年運營並在 2023 年底交付而進行所有選址、運輸和物流。當您看到歐洲將要發生的事情並與像 Enel 這樣的合作夥伴合作增加可信度時，我們感到很興奮我們的技術能夠而且將會在市場上取得成功。

We shift now from the commercial side and go into operating excellence. So what I want to leave the commercial section on is the concept of: you're planting seeds to eventually grow trees to eventually create an installed base to eventually create service annuity for our company. That takes time to do that in an industry that's very thoughtful because all of us are users of our product in that when we flip a light switch in our home, we expect the light to come on. So you've got a high hurdle to prove out your technology. And that's what the team here at Eos has been working on every day in the 5 years that I've been here.

我們現在從商業方面轉向卓越運營。所以我想留下商業部分的概念是：你播下種子，最終長出樹木，最終創造一個安裝基礎，最終為我們公司創造服務年金。在一個非常周到的行業中，這需要時間來做到這一點，因為我們所有人都是我們產品的用戶，因為當我們在家裡打開電燈開關時，我們希望燈會亮。所以你有一個很高的障礙來證明你的技術。在我來這裡的 5 年裡，這就是 Eos 團隊每天都在做的事情。

And that really takes us to Slide 9. So when you look at Slide 9, this is the proof point of Eos being able to rapidly scale production in a very cost-effective manner. When you look back at March of 2022, we had an empty building in Turtle Creek with 2 infrared holders in there. When you think about where we were in April of 2023, you wind up with a -- that is a picture of the production line as we deliver the last new units to the field for Gen 2.3. This facility not only ramp up, but it also achieved cost out, which Nathan will talk about. We shipped 208 energy blocks. We produced over 34,000 batteries. And as I talked about, we've run what we believe is one of the largest cycles ever done by a non-lithium ion technology in the world.

這確實將我們帶到了幻燈片 9。因此，當您查看幻燈片 9 時，這是 Eos 能夠以非常具有成本效益的方式快速擴大生產規模的證明。回顧 2022 年 3 月，我們在 Turtle Creek 有一座空蕩蕩的建築，裡面有 2 個紅外支架。當你想到我們在 2023 年 4 月的位置時，你會得到一張生產線的照片，因為我們將最後一批新設備交付給 Gen 2.3 現場。該設施不僅實現了增長，而且還實現了成本節約，Nathan 將談到這一點。我們運送了 208 個能量塊。我們生產了超過 34,000 塊電池。正如我所說，我們已經運行了我們認為是世界上非鋰離子技術有史以來最大的循環之一。

And when you think about documented cycles, as far as we can tell, this might be the largest one, but we've got some more work to make sure that, that's true. But we're proud of the fact that this 47-megawatt hour cycle proves out that the technology can scale. What we did in the factory over the last 12 months proves out our ability to scale our technology and our ability to produce product quality product out into the field.

當你考慮記錄在案的周期時，據我們所知，這可能是最大的一個，但我們還有更多的工作來確保這一點，這是真的。但我們為這個 47 兆瓦時的循環證明該技術可以擴展這一事實感到自豪。過去 12 個月我們在工廠所做的一切證明了我們擴展技術的能力以及我們在現場生產優質產品的能力。

Now that foundation takes us to Page 10, which is the Eos Z3, the next generation of our technology, same proven electrolyte inside of a new mechanical design, inside of a new tube configuration that not only allows us to take cost out, but also improves performance. So where are we in the journey? When you think about what we did in 1Q, deliver those last units for Gen 2.3. Inside of that, that was part and parcel, if you will, with our strategy in 4Q of delivering the product in 2023 to generate the investment tax credits for our customers and the production tax credits for ourselves.

現在這個基礎將我們帶到第 10 頁，這是我們的下一代技術 Eos Z3，在新的機械設計中採用同樣經過驗證的電解質，在新的管配置中，這不僅使我們能夠降低成本，而且提高性能。那麼我們在旅途中的什麼位置呢？當您考慮我們在第一季度所做的事情時，請交付 Gen 2.3 的最後一批產品。其中，如果你願意的話，這是不可或缺的一部分，我們在 2023 年第四季度交付產品的戰略將為我們的客戶產生投資稅收抵免，並為我們自己產生生產稅收抵免。

But what we've been also working on at that same time is getting the discrete manufacturing operations up and running for the Z3 battery. Now we're very excited about what we've done here. We've invested $1 million. The line today could do 110-megawatt hours of annualized capacity. But more importantly, what you do with that $1 million investment is you learn how to make your product. There's a list of little things that we learned that if you would have gone out and put a massive factory in place, you would have tripled the company with the learnings that you had in each individual discrete manufacturing steps.

但我們同時也在努力為 Z3 電池啟動和運行離散製造業務。現在我們對我們在這裡所做的一切感到非常興奮。我們已經投資了 100 萬美元。今天這條生產線的年產能可達 110 兆瓦時。但更重要的是，你用這 100 萬美元的投資所做的是學習如何製造你的產品。有一些我們學到的小事情清單，如果你走出去並建立一個大型工廠，你將通過你在每個單獨的製造步驟中所學到的知識將公司擴大三倍。

So when you think about what we do, first figure out how to get your manufacturing steps correct, then go to a semi-automated manufacturing cells. And that's where we are and what we're doing in Q2. So Q2 is now investing an additional incremental $5 million to $7 million to expand the capacity of that line, get more throughput, take the lessons learned and codify them into our manufacturing processes to start delivering commercial product into the field. Second quarter is a transitioning quarter from us from the Gen 2.3 into the Z3.

所以當你考慮我們做什麼時，首先要弄清楚如何讓你的製造步驟正確，然後再去一個半自動化的製造單元。這就是我們在第二季度所處的位置以及我們正在做的事情。因此，第二季度現在正在額外投資 500 萬至 700 萬美元，以擴大該生產線的產能，獲得更多吞吐量，吸取經驗教訓並將其編入我們的製造流程，以開始向該領域交付商業產品。第二季度是我們從 Gen 2.3 到 Z3 的過渡季度。

Now while we're doing that, when you think about this from a physical location, the pictures I showed you on the prior page, that's the downstairs floor and what is called Building 700 in Turtle Creek. The pictures you see here are the upstairs floor where we're doing the modeling of steps 1 and 2 for the Z3 manufacturing line. At the same time we're doing that, we're taking that downstairs floor that was an empty building in March of last year and emptying it out again to set up a spare part manufacturing line to manufacture batteries for services and start to lay the groundwork for Phase 3 of our scale-up, which is a fully automated manufacturing line, which we're forecasting to bring online by the end of this year. We're very excited. We've got our -- we've picked our automation partner, a proven partner in both the battery space and with a lot of experience in automation.

現在，當我們這樣做的時候，當你從一個物理位置考慮這個問題時，我在上一頁給你展示的圖片，就是樓下的樓層，也就是 Turtle Creek 的 700 號大樓。您在此處看到的圖片是我們正在為 Z3 生產線進行步驟 1 和步驟 2 建模的樓上樓層。同時我們正在這樣做，我們正在把去年 3 月那棟空樓樓下的樓層再次清空，以建立一條備件生產線來製造服務電池，並開始鋪設為我們擴大規模的第 3 階段奠定基礎，這是一條全自動生產線，我們預計將在今年年底前上線。我們非常興奮。我們已經 - 我們已經選擇了我們的自動化合作夥伴，這是一個在電池空間和自動化方面都有豐富經驗的成熟合作夥伴。

And you've got to remember, and I said this before, Page 8 -- Page 9, excuse me, where we talk about Gen 2.3, that's a 90-minute cycle time from components to a finished battery. Phase 3 here on Page 10 is about 90 seconds. So the throughput that we'll get on an asset base is really significantly higher than what we're doing as we go through generation. That's why we've made the transition to the Z3.

你必須記住，我之前說過，第 8 頁 - 第 9 頁，對不起，我們談論 Gen 2.3 的地方，從組件到成品電池的循環時間為 90 分鐘。第 10 頁上的第 3 階段大約為 90 秒。因此，我們將在資產基礎上獲得的吞吐量確實比我們在生成過程中所做的要高得多。這就是我們過渡到 Z3 的原因。

What I would tell you before turning it over to Nathan to walk through the financial results and how we're performing in some roles objectives is, we're really proud of, it gets me excited every day coming into work, is the fact that this is a company where the technology was invented by American mines. It's built with American hands using predominantly American raw materials on American made manufacturing equipment. This proves that in the United States, we can still manufacture product. We can still innovate and we can still lead the next generation of energy technology. So it's an exciting time, with a lot of work to do still, and you have a team that's committed to delivering that. And I'll turn it over to Nathan now to walk us through the financials. Thanks.

在將它交給 Nathan 來介紹財務結果以及我們在某些角色目標中的表現之前，我會告訴你的是，我們真的很自豪，這讓我每天上班都很興奮，事實是這是一家技術由美國礦山發明的公司。它是由美國人在美國製造的製造設備上主要使用美國原材料建造的。這證明在美國，我們仍然可以製造產品。我們仍然可以創新，我們仍然可以引領下一代能源技術。所以這是一個激動人心的時刻，還有很多工作要做，而且你有一個致力於實現這一目標的團隊。我現在將其交給內森，讓我們了解財務狀況。謝謝。

Thanks, Joe. Good morning, everyone. I want to begin by walking you through the first quarter financial performance, discuss our liquidity position and capital structure, and then provide progress against our 2023 company objectives. Overall, a strong performance by the team as we finished the last production of the Gen 2.3 energy blocks that were shipped in the quarter, and now we're beginning to transition the factory to Z3 production. Revenue for the quarter was $8.8 million, almost 3x our revenue from 1 year ago, driven by increased production and deliveries over last year.

謝謝，喬。大家，早安。我想首先向您介紹第一季度的財務業績，討論我們的流動性狀況和資本結構，然後提供我們 2023 年公司目標的進展情況。總體而言，團隊表現出色，我們完成了本季度交付的 Gen 2.3 能量塊的最後一次生產，現在我們開始將工廠過渡到 Z3 生產。本季度的收入為 880 萬美元，幾乎是 1 年前收入的 3 倍，這主要得益於去年產量和交付量的增加。

Cost of goods sold for the quarter was $26.9 million, a decrease of $8.6 million compared to the first quarter of 2022, primarily driven by a 25% reduction in unit product costs and all of this in a world that's characterized by supply chain disruption and high inflation. As we've said previously, we have a number of clearly defined product cost-out initiatives that fall into 3 primary categories: better pricing and quality from our supply chain, increased energy density and improved manufacturability of our battery systems. While we have made very good progress on our cost out initiatives to date, despite deferring some of our Q4 shipments into 2023 in order to take advantage of the IRA credits, we expect unit costs to continue to trend down going forward as we implement incremental changes and realize further savings.

本季度的商品銷售成本為 2690 萬美元，與 2022 年第一季度相比減少了 860 萬美元，這主要是由於單位產品成本降低了 25%，而所有這一切都發生在供應鏈中斷和高成本的世界中。通貨膨脹。正如我們之前所說，我們有許多明確定義的產品成本削減計劃，這些計劃分為 3 個主要類別：我們供應鏈的更好定價和質量、更高的能量密度以及我們電池系統的可製造性。儘管我們迄今為止在成本削減計劃方面取得了很好的進展，儘管為了利用 IRA 信貸將我們的一些第四季度發貨推遲到 2023 年，但我們預計隨著我們實施漸進式變革，單位成本將繼續呈下降趨勢並實現進一步的節約。

R&D investment was $5.4 million, a slight increase compared to the first quarter last year as we've made product and process design improvements in anticipation of manufacturing the Z3 battery. It's important to note that $400,000 was noncash-related items. SG&A for the quarter was $14.0 million, including $3.1 million of noncash items, which is $300,000 lower than the first quarter of the prior year, driven primarily by reduced third-party spend as we brought much of our initial startup overheads in-house at a lower cost. We continue to focus on managing our corporate overhead expenses that 85% of our 300-plus employees are directly involved in designing, building, selling or commissioning our battery systems.

研發投資為 540 萬美元，與去年第一季度相比略有增加，因為我們為製造 Z3 電池而對產品和工藝設計進行了改進。重要的是要注意 400,000 美元是非現金相關項目。本季度的 SG&A 為 1,400 萬美元，其中包括 310 萬美元的非現金項目，比去年第一季度減少 300,000 美元，這主要是由於第三方支出減少，因為我們以更低的花費。我們繼續專注於管理我們的公司管理費用，我們 300 多名員工中有 85% 直接參與設計、建造、銷售或調試我們的電池系統。

Interest expense was $18.6 million for the quarter, of which $4.8 million was driven by the senior secured term loan with Atlas and the equipment financing facility with Trinity Capital. The other $13.8 million was related to the interest expense and amortization from our convertible notes. The resulting operating loss was $38.3 million with a net loss of $71.6 million. This translates to $38.6 million in net loss when you exclude $33 million in noncash items. The primary noncash items are the interest that we pick on our convertible notes, the change in fair value of our derivatives, stock compensation and depreciation. This compares to $48.5 million in net loss adjusted for noncash items in 1Q of 2022, which represents a 20% improvement year-over-year.

本季度的利息支出為 1860 萬美元，其中 480 萬美元來自 Atlas 的高級擔保定期貸款和 Trinity Capital 的設備融資機制。其他 1380 萬美元與我們的可轉換票據的利息支出和攤銷有關。由此產生的營業虧損為 3830 萬美元，淨虧損為 7160 萬美元。當您排除 3300 萬美元的非現金項目時，這相當於 3860 萬美元的淨虧損。主要的非現金項目是我們從可轉換票據中提取的利息、衍生品公允價值的變化、股票補償和折舊。相比之下，2022 年第一季度非現金項目調整後的淨虧損為 4850 萬美元，同比增長 20%。

Now turning to Slide 13. I want to provide some insight into how we're positioning ourselves to fund the future growth of our manufacturing capabilities in order to meet our increasing backlog of demand. While capital markets have been challenging in general, we've been working hard to provide funding optionality to best position Eos for further growth and capture the opportunity that sits in front of us as the market is accelerating and overall demand for long-duration energy storage continues to increase.

現在轉到幻燈片 13。我想提供一些見解，說明我們如何定位自己以資助未來製造能力的增長，以滿足我們日益積壓的需求。雖然資本市場總體上一直充滿挑戰，但我們一直在努力提供資金選擇權，以使 Eos 處於最佳位置以實現進一步增長，並抓住我們面前的機遇，因為市場正在加速發展，對長期儲能的整體需求繼續增加。

Year-to-date, we've raised $90 million, utilizing a variety of different financing instruments. In the first quarter, we raised $35 million, which is $13.75 million raised through convertible notes with existing investors, $21.25 million under our standby equity purchase agreement that we have in place with Yorkville. And then most recently, in April, we announced a $40 million registered direct offering in private placement. These funds will support our ongoing operations as well as enable us to begin constructing the automated line for Z3. I'll take this opportunity to reiterate that if these investors exercise their warrants after they become exercisable in October, we could receive up to $50 million in additional proceeds.

年初至今，我們已經利用各種不同的融資工具籌集了 9000 萬美元。第一季度，我們籌集了 3500 萬美元，其中 1375 萬美元是通過與現有投資者的可轉換票據籌集的，其中 2125 萬美元是根據我們與 Yorkville 簽訂的備用股權購買協議籌集的。最近，在 4 月，我們宣布了 4000 萬美元的註冊直接私募。這些資金將支持我們的持續運營，並使我們能夠開始為 Z3 構建自動化生產線。我將藉此機會重申，如果這些投資者在 10 月份可以行使認股權證後行使認股權證，我們可以獲得高達 5000 萬美元的額外收益。

You can see from the middle column on this slide that we have capital flexibility, and we'll continue to use our financing facilities on an as-needed basis to capture market share and deliver on customer commitments. As a reminder, Eos has an effective S-3 shelf registration filed with the SEC for up to $300 million of common stock, preferred stock and/or debt securities. $100 million of this is allocated to our ATM, $75 million to the SEPA and $40 million for the registered direct offering that we just announced in April. I do want to clarify how these tools work.

您可以從這張幻燈片的中間欄看到我們具有資本靈活性，我們將繼續根據需要使用我們的融資工具來佔領市場份額並兌現客戶承諾。提醒一下，Eos 已向美國證券交易委員會提交了有效的 S-3 貨架登記，最多可購買價值 3 億美元的普通股、優先股和/或債務證券。其中 1 億美元分配給我們的 ATM，7500 萬美元分配給 SEPA，4000 萬美元用於我們剛剛在 4 月份宣布的註冊直接發售。我確實想闡明這些工具的工作原理。

The ATM is one of our most cost-effective ways to raise equity capital. However, it is subject to blackout periods, market demand and daily trading volumes. The issuance of convertible notes under supplements to the SEPA is similar to the ATM, but also provides us with the key benefit of certainty in the amount raised with each issuance. While our most recent capital raise was equity, we continue to see significant interest from debt investors and we'll continue to evaluate these options for future capital needs.

ATM 是我們籌集股本的最具成本效益的方式之一。然而，它受制於禁售期、市場需求和每日交易量。根據 SEPA 的補充發行可轉換票據類似於 ATM，但也為我們提供了每次發行籌集的金額確定性的關鍵好處。雖然我們最近的融資是股權，但我們繼續看到債務投資者的濃厚興趣，我們將繼續評估這些選項以滿足未來的資本需求。

In addition to debt and equity markets, we continue to pursue other opportunities for funding and leveraging the incentives for U.S. clean energy companies so that we can continue to accelerate our competitiveness in the marketplace. We expect to secure state and local incentives alongside federal support.

除了債務和股票市場，我們繼續尋求其他機會為美國清潔能源公司提供資金和利用激勵措施，以便我們能夠繼續加快我們在市場上的競爭力。我們希望在聯邦支持的同時獲得州和地方的激勵措施。

You may have noticed that we recorded an $800,000 benefit in our Q1 financials related to the IRA tax credits. And while the industry continues to wait on additional clarity on how and when these can be monetized, we expect this number to grow as we scale up production. We have substantially completed the due diligence for our Department of Energy loan and are actively negotiating the final provisions of a term sheet with the loan program office.

您可能已經註意到，我們在與 IRA 稅收抵免相關的第一季度財務中記錄了 800,000 美元的收益。雖然業界仍在等待關於如何以及何時可以將這些貨幣化的更多明確信息，但我們預計隨著我們擴大生產規模，這個數字將會增長。我們已經基本完成了對能源部貸款的盡職調查，並正在與貸款計劃辦公室積極協商條款清單的最終條款。

The combined federal, state and local industrial policy tools that have come together in recent years is allowing the U.S. to be competitive in the clean tech space, and we believe this will help accelerate our own competitiveness. In addition, we are forming a consortium of community leaders, universities and supply chain partners in anticipation of pursuing grants issued under the Bipartisan Infrastructure Law. The application process for these grants is currently expected to open in early summer with awards being announced early next year.

近年來聯合起來的聯邦、州和地方產業政策工具使美國在清潔技術領域具有競爭力，我們相信這將有助於提高我們自己的競爭力。此外，我們正在組建一個由社區領袖、大學和供應鏈合作夥伴組成的聯盟，以期獲得根據兩黨基礎設施法頒發的贈款。這些贈款的申請流程目前預計將在初夏開放，獎項將於明年初公佈。

In summary, we believe we have significant capital flexibility, and we will continue to use these financing facilities on an as-needed basis to capture the market and deliver on customer commitments. We believe we are well positioned to capture a once-in-a-generation opportunity.

總之，我們相信我們擁有顯著的資本靈活性，我們將繼續根據需要使用這些融資工具來佔領市場並兌現客戶承諾。我們相信我們有能力抓住千載難逢的機會。

Now turning to Slide 14. We want to provide an update on our progress against the full year 2023 company objectives. The first quarter reflects a strong performance by the team as we're shifting the manufacturing process from Gen 2.3 to Z3. While we are off to a good start, there's still a lot of work for us to do in order to reach these full year goals. In the first quarter, we increased our opportunity pipeline by $1 billion, and we booked over $86 million with 2 new orders. The first is with one of the largest operators of energy storage in the U.S., and the second is an additional project with one of our existing customers. We also signed 3 new letters of intent for a total of 850-megawatt hours. We continue to see market demand surging, and we expect to convert these letters of intent into booked orders in the coming quarters.

現在轉到幻燈片 14。我們想提供我們在 2023 年全年公司目標方面的最新進展。第一季度反映了團隊的強勁表現，因為我們正在將製造流程從 Gen 2.3 轉移到 Z3。雖然我們有了一個良好的開端，但要實現這些全年目標，我們還有很多工作要做。第一季度，我們增加了 10 億美元的機會管道，並且我們通過 2 個新訂單預訂了超過 8600 萬美元。第一個是美國最大的儲能運營商之一，第二個是我們現有客戶之一的額外項目。我們還簽署了 3 份總計 850 兆瓦時的新意向書。我們繼續看到市場需求激增，我們希望在未來幾個季度將這些意向書轉化為預訂訂單。

Next, we are on track for our $30 million to $50 million revenue target. In the first quarter, we had revenue of $8.8 million. And as we think about 2023, we expect the revenue to be back-end weighted as Q2 is very much a transitional quarter for us as we make the shift for manufacturing Gen 2.3 batteries to the Z3 cubes. Securing adequate funding will allow us to rapidly scale capacity in the next 12 months, and we expect our first fully automated line in the fourth quarter of this year.

接下來，我們有望實現 3000 萬至 5000 萬美元的收入目標。第一季度，我們的收入為 880 萬美元。當我們考慮 2023 年時，我們預計收入將被後端加權，因為第二季度對我們來說是一個非常過渡的季度，因為我們將製造 Gen 2.3 電池轉移到 Z3 立方體。獲得足夠的資金將使我們能夠在未來 12 個月內快速擴大產能，我們預計今年第四季度將推出第一條全自動生產線。

Lastly, while all of this is occurring, one of our main priorities continues to be to take cost out of the product. We have identified 7 key projects to increase energy density, improve our supply chain and streamline the manufacturability of our product, and we believe we should realize a 15% product cost reduction from the current expected launch cost of the Z3 product. As a reminder, with the delivery of a couple of recent cost-out projects, the Z3 battery is expected to launch at half the launch cost of the Gen 2.3 product back in 2020.

最後，儘管所有這一切都在發生，但我們的主要優先事項之一仍然是降低產品成本。我們已經確定了 7 個關鍵項目來提高能量密度、改善我們的供應鍊和簡化我們產品的可製造性，我們相信我們應該實現比 Z3 產品目前預期的發布成本降低 15% 的產品成本。提醒一下，隨著最近幾個成本超支項目的交付，Z3 電池有望在 2020 年以 Gen 2.3 產品的一半成本推出。

We have seen clear advantages with Z3 over the Gen 2.3 product in efficiency, energy density, material quality and overall manufacturability, and we're excited to scale this product and deliver it to the market.

我們已經看到 Z3 在效率、能量密度、材料質量和整體可製造性方面優於 Gen 2.3 產品的明顯優勢，我們很高興能夠擴展該產品並將其推向市場。

With that, I want to thank everybody for their time today and listening into our call. I would now like to turn it over to the operator for questions. Operator, please open the line for questions.

有了這個，我要感謝大家今天抽出時間來聽我們的電話。我現在想把它交給接線員提問。接線員，請打開問題線路。

(Operator Instructions) Our first question comes from the line of Christopher Souther with B. Riley.

（操作員說明）我們的第一個問題來自 Christopher Souther 和 B. Riley 的對話。

Maybe just starting off on the DOE loan process. Any additional color you can share around timing and the term sheet negotiation process, I think, would be pretty helpful.

也許剛剛開始 DOE 貸款流程。我認為，您可以就時間安排和條款清單談判過程分享的任何其他顏色都會非常有幫助。

Sure, Chris, it's Nathan. It's good to hear your voice. I will tell you, I mean, we can't say a lot more than what we've already said publicly. I'll just let you know that I've spent time in DC several times over the last couple of weeks. I would reiterate, we are making good progress. We feel positive about where we're at. Unfortunately, the size of the organization we're dealing with this process is taking longer than we would like. The overall size of the loan hasn't changed from what we've said previously, 250 plus. And we're optimistic that we'll have something to announce in the near future.

當然，克里斯，是內森。很高興聽到你的聲音。我會告訴你，我的意思是，我們不能說比我們已經公開說過的更多的話。我只想告訴你，在過去的幾周里，我在 DC 呆過幾次。我要重申，我們正在取得良好進展。我們對自己所處的位置感到樂觀。不幸的是，我們處理這個過程的組織規模比我們希望的要長。貸款的總體規模與我們之前所說的 250 多美元沒有變化。我們很樂觀，我們將在不久的將來宣布一些事情。

Got it. Okay. That's helpful. And then maybe just on the cost of goods sold decline, could you give us a walk for the first quarter. It's nice to see the reduction along with the big uptick in revenue, but it seem like a good chunk of deployments may have been in inventory at year-end. So just wondering to get a sense of what the fixed portion of COGS looked like in the quarter and the cadence of that as we transition in 2Q and then ramp up in the second half. I think you called out launch costs being half what they were for 2.3, but maybe you could just provide a little bit more color there.

知道了。好的。這很有幫助。然後也許只是銷售成本下降，你能給我們介紹一下第一季度嗎？很高興看到隨著收入的大幅增加而減少，但似乎很大一部分部署可能在年底時已經存入庫存。所以只是想了解一下本季度 COGS 的固定部分是什麼樣的，以及我們在第二季度過渡然後在下半年增加的節奏。我想你說的發布成本是 2.3 的一半，但也許你可以提供更多的顏色。

Yes. I don't know that I can give you the walk quarter-to-quarter, but just -- like you know, 40% of COGS is materials and freight directly related to manufacturing; 15%, 16% is the labor cost associated with building and installing and commissioning batteries. 15% of it is depreciation. And then the other 30% is all the other little stuff.

是的。我不知道我能否按季度向您介紹情況，但正如您所知，40% 的 COGS 是與製造直接相關的材料和運費； 15%、16%是與建造和安裝調試電池相關的人工成本。其中 15% 是折舊。然後其他 30% 是所有其他小東西。

And Chris, the only thing I would add on your question here is, this is flowing through the cost out work that we did all of last year into the income statement. We didn't ship out of inventory in 1Q. We built the product, and that was the strategy that we laid out last year in 4Q to manufacture product in 1Q to get advantage of the IRA incentives and you see those incentives, which we reported that, that manufacturing generated $780,000 in initial production tax credits under the IRA.

克里斯，我想在這裡對你的問題補充的唯一一件事是，這是通過我們去年所做的全部成本工作流入損益表。我們沒有在第一季度出貨庫存。我們製造了產品，這就是我們去年第四季度製定的戰略，即在第一季度製造產品以利用 IRA 激勵措施，你會看到這些激勵措施，我們報告說，製造業產生了 780,000 美元的初始生產稅收抵免根據愛爾蘭共和軍。

Our next question comes from the line of Martin Malloy with Johnson Rice.

我們的下一個問題來自 Martin Malloy 和 Johnson Rice 的台詞。

Congratulations on the transition here to Z3 and the backlog build. I wanted to just ask about the procurement, raw materials components as you ramp up. Are there any raw materials or components that might be more of a concern as you ramp up? And maybe you could talk about the availability of zinc bromide. I think you're purchasing a lot of it from TETRA, are they able to supply what you need? Or are there other suppliers available?

祝賀您在這裡過渡到 Z3 和積壓構建。我只想問一下採購、原材料組件的問題。隨著您的升級，是否有任何原材料或組件可能更值得關注？也許你可以談談溴化鋅的可用性。我想你們從 TETRA 購買了很多，他們能提供你需要的東西嗎？或者還有其他供應商嗎？

So Marty, yes, they can supply to our demand, and they have capacity greater than what we're planning on manufacturing in 2023. From the standpoint of the bill of materials, when you look out at the ramp that we're going to go through, we're ramping into a new production process, as I talked about on the Z3. What I would say is like everyone, and we've talked about this every quarter, there are the normal supply chain blips and risks that you have to mitigate against, that are consistent with other manufacturers that you see, and that's around your power electronics equipment, your chips, for BMS, but we feel like we've secured that supplier. We just have to manage through that. The core raw materials to build batteries and enclosures, we've got partners that are able to deliver to the demand, and we just got to work through that demand curve where the focus for us is getting the timing right of receiving the material as we ramp production.

所以馬蒂，是的，他們可以滿足我們的需求，而且他們的產能比我們計劃在 2023 年製造的產能還要大。從物料清單的角度來看，當你看到我們將要建造的坡道時通過，我們正在進入一個新的生產過程，正如我在 Z3 上談到的那樣。我想說的是像每個人一樣，我們每個季度都討論過這個問題，你必須減輕正常的供應鏈波動和風險，這與你看到的其他製造商一致，並且圍繞著你的電力電子產品設備，你的芯片，用於 BMS，但我們覺得我們已經找到了那個供應商。我們只需要解決這個問題。製造電池和外殼的核心原材料，我們有能夠滿足需求的合作夥伴，我們只需要通過需求曲線來工作，我們的重點是在我們收到材料的時候獲得正確的時間坡道生產。

Okay. And my second question, just wanted to -- from your customer conversations, are customers waiting for clarification on some of the provisions of the IRA before they're placing orders with you all, is there some pent-up demand do you think it's related to waiting for the clarification of some of the key domestic content, et cetera, provisions in the IRA?

好的。我的第二個問題，只是想從你的客戶談話中，客戶是否在向你們下訂單之前等待對 IRA 的某些規定的澄清，是否有一些被壓抑的需求，你認為它是相關的等待IRA中的一些關鍵內容等國內條款的澄清？

Yes, Marty, I think 100% agree with your question. I think that's why you see the buildup in LOIs with customers, where customers are saying, I've got a project, Eos is my technology. I want to lock in the technology and my delivery, but I want to work through and see where the guidance comes out on. What I'm hopeful for on this -- on the domestic content part, which I think is one of the more important provisions that we all need to understand.

是的，馬蒂，我認為 100% 同意你的問題。我認為這就是為什麼你會看到與客戶的 LOI 增加，客戶說，我有一個項目，Eos 是我的技術。我想鎖定技術和我的交付，但我想完成並查看指南的出處。我對此抱有希望 - 在國內內容部分，我認為這是我們都需要了解的更重要的條款之一。

Everybody gets 30% investment tax credit for installing storage. Then there's a 10% if you install it in an energy transition zone. So going to places where there were former coal plants that are now being transitioned into renewable energy, you get another 10% for that, and we're seeing a lot of projects that tie into that 10%. Then there's a 10% of Made in America. And what we have been pushing for and what we continue to say is, Made in America needs to be manufactured in America, not assembled in America using batteries manufactured overseas. So we're hopeful that, that will come through and that will be a big differentiator.

每個人都可以獲得 30% 的安裝存儲投資稅收抵免。如果您將其安裝在能源轉換區，則有 10%。因此，去到那些以前的燃煤電廠現在正在轉變為可再生能源的地方，你會再得到 10%，我們看到很多項目都與這 10% 相關。然後是 10% 的美國製造。我們一直在推動並繼續說的是，美國製造需要在美國製造，而不是使用海外製造的電池在美國組裝。所以我們希望，這會通過，這將是一個很大的區別。

What I would say, though, is around those tax credits, I think it's going to be a significant uptick in demand, but we don't plan the business around having to have it. It's something that will help us and incentivize customers to buy from us. But the underlying fundamentals outside of the IRA for demand, are still there that fit in with the product. So the Made in America, not only is it a tax incentive, but it's a security of supply chain when you think about what's happened over the last 2 years. The market shift in the longer duration of energy storage and our product being able to deliver that variation of flexibility of operation and then the long life of the product.

不過，我要說的是圍繞這些稅收抵免，我認為這將是需求的顯著增長，但我們不會圍繞必須擁有它來計劃業務。這將幫助我們並激勵客戶向我們購買。但 IRA 之外的潛在基本面需求仍然存在，適合該產品。所以美國製造，它不僅是一種稅收激勵，而且當你考慮過去兩年發生的事情時，它是供應鏈的安全。市場轉向更長的儲能持續時間，我們的產品能夠提供操作靈活性的變化以及產品的長壽命。

We've got fundamentals underneath that need a market demand that's only going to be accelerated with the IRA. But I do agree with you that there is a little bit of pent-up demand as people are waiting for guidance.

我們的基本面需要市場需求，而 IRA 只會加速這種需求。但我確實同意你的看法，因為人們在等待指導，所以存在一些被壓抑的需求。

(Operator Instructions) Our next question comes from the line of Joseph Osha with Guggenheim.

（操作員說明）我們的下一個問題來自古根海姆的約瑟夫奧沙。

My compliments on the progress. A couple of questions. First, you were talking about the 45X manufacturing credits. Is there a plan to monetize those other than from just waiting on the IRA. I'm curious what your plan is for those? And then I have a follow-up.

我對進步的讚美。幾個問題。首先，您在談論 45X 製造積分。除了等待愛爾蘭共和軍之外，是否有計劃將這些貨幣化。我很好奇你的計劃是什麼？然後我有一個後續行動。

Yes. We're looking at options, Joe, on how we can monetize those and when we can monetize those. We're still working through the detail and nothing more definitive that we want to share at this point in time.

是的。喬，我們正在考慮如何將這些貨幣化以及何時可以將其貨幣化的選項。我們仍在研究細節，此時我們不想分享更明確的信息。

Okay. And I assume you are taking direct pay, right?

好的。而且我假設您正在接受直接付款，對嗎？

Yes, yes.

是的是的。

Okay. Second question, just wondering if you can update us a little bit on what you see as you undertake the transition to Gen 3, what's some of the key manufacturing challenges are key attributes of that new assembly process that we as analysts should be focused on.

好的。第二個問題，只是想知道您是否可以向我們介紹一下您在向 Gen 3 過渡時所看到的情況，一些關鍵的製造挑戰是我們作為分析師應該關注的新裝配過程的關鍵屬性。

Yes. Thanks, Joe. Yes, so inside that slide that we showed on Page 10, that Phase 1 of developing discrete manufacturing, we've worked through a lot of the details and bugs that come up when you're starting a manufacturing process. As we move forward, you're basically -- this is going from like the minor leagues into the big leagues and to the All-Star game as to how I think about it and the pace of how you're trying to do it accelerates on every step. So we have a process that allows us to build a quality battery that performs today. The next phase of this, as we transition into Phase 2 and semi-automated manufacturing is stepping up the speed at which we do that. And you got to make sure that, that speed still delivers the quality that you've got under Phase 1. So that is a piece that we look at.

是的。謝謝，喬。是的，所以在我們在第 10 頁上展示的那張幻燈片中，即開發離散製造的第 1 階段，我們已經解決了在您開始製造過程時出現的許多細節和錯誤。隨著我們的前進，你基本上 - 這是從小聯盟到大聯盟，再到全明星賽，關於我的想法以及你如何嘗試加速的步伐在每一步。因此，我們有一個過程可以讓我們製造出今天運行的優質電池。下一階段，隨著我們過渡到第二階段，半自動化製造正在加快我們這樣做的速度。而且你必須確保，這種速度仍然可以提供你在第一階段獲得的質量。所以這是我們關注的一部分。

And then the third one is how you pull that together as we get into the second half of the year and fourth quarter with the automated line. Again, taking that down to that 90-second target cycle time to be able to deliver product off the line. So to me, when I look at this, I think we have figured out the equipment that we're going to use, the discrete manufacturing process that we're going to use, the next phase of this is, how do you want to lay out your line, how do you want to staff your line, how do you want to increase the throughput and then getting to automation. Now the reality is on the automation side, this is our first automated line -- this is our first automated manufacturing line that we've had in years.

然後第三個是當我們進入今年下半年和第四季度時如何通過自動化生產線將它們整合在一起。同樣，將其降低到 90 秒的目標週期時間，以便能夠下線交付產品。所以對我來說，當我看到這個時，我認為我們已經弄清楚了我們將要使用的設備，我們將要使用的離散製造工藝，下一階段是，你想如何佈置你的生產線，你想如何為你的生產線配備人員，你想如何增加吞吐量然後實現自動化。現在現實是在自動化方面，這是我們的第一條自動化生產線——這是我們多年來擁有的第一條自動化生產線。

We believe we've got a great partner that's done this before in the industry and also has done a lot of work in the automotive industry that will help us. But what I've learned in my 5 years here is you don't know until you actually know as crazy as that statement sounds. So we just have to manage them one by one. I think what we've done is we set up a process where we go through this on a working level every day and then 3 times a week entire leadership team going through what are the lessons learned and challenges we have and just knock them off 1 by one.

我們相信我們有一個很好的合作夥伴，它以前在這個行業做過這件事，並且在汽車行業做了很多工作，這將對我們有所幫助。但我在這裡的 5 年裡學到的是，你不知道，直到你真正知道這句話聽起來很瘋狂。所以我們只需要一個一個地管理它們。我認為我們所做的是我們建立了一個流程，我們每天在工作層面上經歷這個過程，然後整個領導團隊每週 3 次回顧我們所吸取的教訓和麵臨的挑戰，然後將它們解決 1一個。

Okay. And just on the back of that, what can you say about how you see your path to positive gross margin at this point?

好的。就在這一點的背後，你能說說你如何看待你在這一點上實現正毛利率的道路嗎？

Yes. I think, Joe, we're confident that we'll see positive gross margin as soon as we get this fully automated line implemented and running. The exact timing of that, we're not communicating because it is dependent on the DOE funding and additional capital raising. But I'm very confident that we'll be gross margin positive when we get this fully automated line.

是的。我認為，喬，我們有信心，一旦我們實施並運行這條全自動生產線，我們就會看到正的毛利率。確切的時間，我們沒有溝通，因為它取決於能源部的資金和額外的融資。但我非常有信心，當我們獲得這條全自動生產線時，我們的毛利率將會是正的。

all right. So that's very helpful there. That toggle to positive gross margin does depend on getting this fully automated facility up and running.

好的。所以這在那裡非常有幫助。向正毛利率的轉變確實取決於讓這個完全自動化的設施啟動和運行。

Yes.

是的。

And I'm currently showing no further questions at this time. I'd like to hand the call back over to Joe Mastrangelo for closing remarks.

我目前沒有進一步提問。我想將電話轉回給 Joe Mastrangelo 作結束語。

Thanks. Look, I think the team -- we continue to make progress here, and it's progress that you can see and measure in the numbers. And I think one thing that we -- that I'd like to hit on is, I'd like to take -- we talk about revenue growth, we talk about gross margin growth, cost out of the product. But what I'd like to take a moment on is just kind of flip this and look at this on how I think about the performance as also an investor in Eos. Our earnings per share, if you look at the EPS numbers year-over-year, we were at $0.85 loss last year, and we were in an $0.82 loss this year. But I think we got to peel back the onion and think about how we run the company. We really run this company on a cash basis. So if you take those same numbers and strip out the noncash numbers in that EPS loss, you would have been at $0.90 loss in 1Q last year. If you take out the noncash items, which were principally driven by the increase in our stock price as it's tied to our convertible notes that we had for capital raise.

謝謝。看，我認為團隊——我們在這裡繼續取得進步，而且你可以在數字上看到和衡量這種進步。我認為我們——我想強調的一件事是，我想——我們談論收入增長，我們談論毛利率增長，產品成本。但我想花點時間談談這個，看看我作為 Eos 的投資者如何看待它的表現。我們的每股收益，如果你看一下同比每股收益數字，我們去年虧損 0.85 美元，今年虧損 0.82 美元。但我認為我們必須剝開洋蔥，思考我們如何經營公司。我們確實以現金為基礎經營這家公司。因此，如果您採用相同的數字並剔除該 EPS 損失中的非現金數字，那麼去年第一季度您將損失 0.90 美元。如果你去掉非現金項目，這主要是由我們的股價上漲推動的，因為它與我們用於融資的可轉換票據相關。

Our loss on earnings per share basis goes down to $0.44. So it's half of what it was a year ago that shows the journey of where we want to get to and gives me the confidence that we have the team, the plan and we've got a lot of risk and opportunity that we got to manage to get there. But you're starting to see in our third year here being public, the road map of how we're going to get to profitability with a lot of risk inside of it and a lot of things we still have to do but you're starting to see that -- those numbers tying back to the vision that we laid out 3 years ago. That's also why I really wanted to include in there our commercial page to talk about, this is not a sell it, ship it market where it's very easy. It's a winding road where you've got to develop long-term relationships in an industry where the customers want to make sure they get it right the first time. So you've got a high bar to prove yourself.

我們的每股收益損失降至 0.44 美元。因此，它是一年前的一半，顯示了我們想要到達的地方的旅程，並讓我相信我們擁有團隊、計劃以及我們必須管理的大量風險和機會到那裡。但是你開始看到我們在這裡公開的第三年，我們如何實現盈利的路線圖，其中有很多風險，還有很多我們仍然需要做的事情，但你開始看到這一點——這些數字與我們 3 年前製定的願景有關。這也是為什麼我真的很想在我們的商業頁面中包含要討論的原因，這不是出售它，將它運送到市場非常容易的地方。這是一條曲折的道路，您必須在客戶希望確保他們第一次就做對的行業中發展長期關係。所以你有很高的標準來證明自己。

And we're challenging ourselves every day to meet that high bar, both on how we win out in the marketplace and how we deliver the product and drive this company to become profitable over time. And we're continuing to be committed on that. I want to thank everybody for their time this morning and look forward to keeping you updated on the journey as we move forward from here.

我們每天都在挑戰自己以達到這個高標準，包括我們如何在市場上取勝以及我們如何交付產品並推動這家公司隨著時間的推移實現盈利。我們將繼續致力於此。我要感謝大家今天早上的時間，並期待在我們從這裡向前邁進的過程中讓您了解最新的旅程。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。