Eos Energy Enterprises Inc (EOSE) 2023 Q2 法說會逐字稿

Good morning, and welcome to Eos Energy Enterprises Second Quarter 2023 Conference Call. As a reminder, today's call is being recorded, and your participation implies consent to such recording. (Operator Instructions) With that, I would like to turn the call over to [Liz Higley,] Acting Director of Investor Relations. Thank you. You may begin.

早上好，歡迎參加 Eos 能源企業 2023 年第二季度電話會議。謹此提醒，今天的通話正在錄音，您的參與即表示您同意此類錄音。 （操作員指示）接下來，我想將電話轉給投資者關係代理總監 [Liz Higley]。謝謝。你可以開始了。

Thank you. Good morning, everyone, and thank you for joining us for Eos' financial results and conference call for the Second 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 年第二季度財務業績和電話會議。今天的電話會議上，我們有 Eos 首席執行官 Joe Mastrangelo；和首席財務官內森·克羅克(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）可能包含前瞻性陳述，包括但不限於對我們公司未來業績的當前預期，這些預期受到某些風險、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結果存在重大差異。我們向 SEC 提交的文件中描述了前瞻性陳述所面臨的風險和不確定性。

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. This conference call will be available for replay via webcast through Eos' 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.

前瞻性陳述僅代表我們截至做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所做的任何前瞻性陳述，以反映今天之後的事件或情況，或者反映新信息或意外事件的發生，除非法律要求。本次電話會議將通過 Eos 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，喬和內森將向您介紹公司亮點、財務業績和業務重點。

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

現在，我將把電話轉給 Eos 首席執行官 Joe Mastrangelo。

On behalf of the 300-plus employees at Eos, I want to welcome everyone to our Q2 earnings call. It's a very important moment in time for both Eos and for our industry. As I said before, I've been in the energy industry for nearly 30 years, and Eos has been in existence for 15 years. We're at an important inflection point as you look at what the world needs to power its future.

我謹代表 Eos 的 300 多名員工歡迎大家參加我們的第二季度財報電話會議。對於 Eos 和我們的行業來說，這都是一個非常重要的時刻。正如我之前所說，我在能源行業已經近30年了，Eos已經存在15年了。當您審視世界需要什麼來推動其未來時，我們正處於一個重要的轉折點。

When you look right now in the United States, the Texas, the ERCOT market is operating at record highs. California is experiencing high temperatures, which is straining their ability to produce on the grid. You see numerous fires on energy storage projects, which has caused a significant concern about how we can deliver and integrate renewables safely into our grid. Nathan is going to go through later on the details around our order pipeline, backlog and some specific customer examples. But what I wanted to talk about is what's required to truly grow our business and ultimately what's required to help decarbonize our energy grid.

現在看看美國德克薩斯州，ERCOT 市場正以歷史新高運行。加州正經歷高溫，這對電網的生產能力造成了壓力。您會看到能源存儲項目發生了多起火災，這引起了人們對如何安全地輸送可再生能源並將其整合到電網中的嚴重擔憂。內森稍後將詳細介紹我們的訂單管道、積壓訂單和一些特定客戶示例。但我想談談的是真正發展我們的業務需要什麼，以及最終幫助我們的能源網脫碳需要什麼。

What's important here is not just the intent of decarbonization, it's having the policies in place to deliver that. At the same time, as you have the policy framework in place, which I believe we do in the United States with the IRA legislation, it's then taking those policies and acting. And where we need to work upon as an industry and as a company is acting and moving faster to deliver on that demand.

這裡重要的不僅僅是脫碳的意圖，還有實現這一目標的政策。與此同時，當你制定了政策框架時，我相信我們在美國通過 IRA 立法就做到了這一點，然後它就會採取這些政策並採取行動。作為一個行業和一家公司，我們需要採取行動並更快地滿足這一需求。

What the world is asking for right now is not a 2-hour energy storage solution, but a flexible energy storage solution that provides the safety and reliability that we all demand from our power grid. We believe that we have that solution over time to deliver into that market. And it's no more evidenced by that number on the lower left-hand side of the page, the fact that we've discharged 1.4 gigawatt hours of energy over the lifetime of our product.

現在世界所要求的不是2小時的儲能解決方案，而是一種靈活的儲能解決方案，能夠提供我們對電網所要求的安全性和可靠性。我們相信，隨著時間的推移，我們將擁有能夠進入該市場的解決方案。頁面左下角的數字也不再證明這一點，即我們在產品的整個生命週期內釋放了 1.4 吉瓦時的能量。

We still have work to do. We still have things that we need to fix, improve and refine, but we have a technology that can deliver upon the need in the marketplace that we see every day and talk about every day. At the same time, we're focused on being able to deliver that product out of the state-of-the-art factory that we like to say, it's a technology that was designed with American mines. It's built with American hands, using predominantly American materials on American manufacturing equipment. That's important to note as we talk about also energy security and our ability to deliver the future growth of our country.

我們還有工作要做。我們仍然有一些東西需要修復、改進和完善，但我們擁有一種技術，可以滿足我們每天看到、每天談論的市場需求。與此同時，我們專注於能夠從最先進的工廠交付該產品，我們想說，這是一項與美國礦山設計的技術。它是由美國人親手建造的，主要使用美國材料和美國製造設備。當我們談論能源安全和我們實現國家未來增長的能力時，值得注意這一點。

If you flip to Page 4, look, a picture tells a thousand stories. Here's a picture of our semi-automated manufacturing line in Turtle Creek, Pennsylvania with our employees manning their stations and building batteries. Now we are in early days of commercial production, but we feel really good about where we are, and we are very proud of what the team is doing and delivering on a day-by-day basis.

如果你翻到第四頁，你看，一張圖片講述了一千個故事。這是我們位於賓夕法尼亞州 Turtle Creek 的半自動化生產線的照片，我們的員工正在操作他們的工作站並製造電池。現在我們正處於商業生產的早期階段，但我們對自己的處境感到非常滿意，我們對團隊每天所做的和交付的工作感到非常自豪。

So if we move to Page 5. I just want to hit on 3 core concepts here as to why we feel like we have a product that can deliver the future needs of our industry and the world. First one is, we've taken a product that has been around for 15 years. We've used the basic same core chemistry. And our challenge technologically has always been, how do you do that and seal that battery so that the battery can perform over a 20-year lifespan? How do you do that at a cost where you can deliver a product? And how do you do that at a cycle time that you can scale into a fast-growing market.

因此，如果我們轉到第 5 頁。我只想在這裡提出 3 個核心概念，解釋為什麼我們覺得我們擁有一種可以滿足我們行業和世界未來需求的產品。第一個是，我們採用了一款已經存在 15 年的產品。我們使用了基本相同的核心化學成分。我們在技術上面臨的挑戰一直是，如何做到這一點並密封電池，使電池的使用壽命超過 20 年？您如何以可以交付產品的成本做到這一點？以及如何在可以擴展到快速增長的市場的周期內做到這一點。

We've learned a lot over the various generations of our technology. And at every step of the way, we've incorporated that into this new Z3 design. This new Z3 design that the team has developed, the initial results are very promising, but you have to realize like what the technological team was able to do in Edison, New Jersey is take out the highest cost component in our battery, that being titanium, and replacing it with conductive polymer; learning from the sealing challenges that we had on leaking batteries and taking that and incorporating it into the design of the Z3 battery, which enables us to both reduce cycle time and improve performance.

我們從不同代的技術中學到了很多東西。在每一步中，我們都將其融入到這款全新 Z3 設計中。該團隊開發的這款新 Z3 設計，初步結果非常有希望，但您必須意識到，就像技術團隊在新澤西州愛迪生所做的那樣，就是去掉電池中成本最高的組件，即鈦，並用導電聚合物代替；我們從電池洩漏的密封挑戰中汲取經驗，並將其納入 Z3 電池的設計中，這使我們能夠縮短循環時間並提高性能。

If you move to the center of the page, our initial battery performance is very promising. Now here, I think what we have to do is take an insider's view of what performance means. So I've heard people say and talk about, well, Eos' round-trip efficiency is lower than lithium ion. And that's true. We sacrifice a couple of points of round-trip efficiency for the safety and to reduce the fire risk around our technology that you see in lithium-ion. At the same time, if you measure us at 2 hours of energy delivery against lithium-ion, we also need to then take lithium-ion and measure them at 4, 6, 8, 10 and 12 hours discharge time. That same performance that an Eos battery can do with that same round-trip efficiency without requiring the HVAC systems to be able to operate, you get that with an Eos solution.

如果您移至頁面中央，我們的初始電池性能非常有希望。現在，我認為我們要做的是從內部人士的角度來看待性能的含義。所以我聽到人們說，Eos 的往返效率低於鋰離子。確實如此。為了安全起見，我們犧牲了一些往返效率，並降低了我們在鋰離子技術中看到的火災風險。同時，如果你以鋰離子2小時的能量傳遞來測量我們，那麼我們還需要以鋰離子4、6、8、10和12小時的放電時間來測量它們。 Eos 電池可以提供相同的性能和相同的往返效率，而無需 HVAC 系統能夠運行，您可以通過 Eos 解決方案獲得這一點。

And that's important when you think about these systems are operating in higher temperature environments. That's why you have the high power demand here this summer. So you need something that's going to be safe, that doesn't require sophisticated complex cooling systems to allow them to perform. That's the product that the team has been able to develop.

當您考慮這些系統在更高溫度的環境中運行時，這一點很重要。這就是為什麼今年夏天這裡的電力需求很高。因此，您需要一些安全的東西，不需要復雜的冷卻系統來讓它們發揮作用。這就是該團隊能夠開發的產品。

And when you look at the performance of 9 modules, so this is a small subset of technology, but that technology is performing exactly as it was designed in the lab. Now there are going to be challenges as we move forward. I've done numerous new product introductions throughout my 30-year career. You don't know what you don't know until you start building and executing on your road map. But what we've seen from our initial performance is really promising as we look to deliver in the future.

當您查看 9 個模塊的性能時，您會發現這只是技術的一小部分，但該技術的性能與實驗室設計的完全一樣。現在，我們前進的過程中將會遇到挑戰。在我 30 年的職業生涯中，我推出了無數新產品。在開始構建和執行路線圖之前，您不會知道自己不知道什麼。但我們從最初的表現中看到的確實是充滿希望的，因為我們希望在未來實現這一目標。

And then on the far right-hand side of the page, you don't sell an individual battery cell. You don't even sell an individual battery. You sell a system. And inside that system, you got to look at how you make that cost effective and how you make that operate. And the team here has done a fantastic job of coming up and simplifying our system. Our whole goal here is reduce the amount of wires that you have out in the field, reduce the complexity that you have on the field, allow more energy cubes to operate off of the same power electronics to reduce cost, to simplify the system and allow it to perform in a difficult operating environment and deliver what's expected of the industry and of this product.

然後在頁面的最右側，您不出售單個電池。您甚至不出售單個電池。你賣一個系統。在該系統內部，您必須考慮如何使其具有成本效益以及如何使其運作。這裡的團隊在提出和簡化我們的系統方面做得非常出色。我們的總體目標是減少現場的電線數量，降低現場的複雜性，允許更多的能量立方體在相同的電力電子設備上運行，以降低成本，簡化系統並允許它能夠在困難的操作環境中執行並滿足行業和該產品的期望。

So if we take those 3 fundamentals and then flip to Page 6 and talk about our line launch. Look, I'm proud to say that I work at Eos. I'm proud to be a part of this team. The team amazes me every day with the work that they do. And if you start off on the left-hand side of this page, that day 1 of commercial production that happened a few weeks ago, now we've been very purposeful about turning on commercial production because of the speed that you manufacture. If you have an inherent problem inside your battery, inside the production process, the compounding cost that it would be to shareholders of cash burn. And we've been very, very cautious about how we've launched this product to make sure that we're spending every dollar we have wisely. And we've learned at every step of the way how to improve how we build the battery.

因此，如果我們了解這 3 個基本原理，然後翻到第 6 頁並討論我們的產品線發布。看，我很自豪地說我在 Eos 工作。我很自豪能成為這個團隊的一員。該團隊每天所做的工作都讓我感到驚訝。如果您從本頁左側開始，即幾週前發生的商業生產的第一天，現在我們非常有目的地開啟商業生產，因為您的製造速度很快。如果你的電池內部、生產過程中存在固有問題，股東的複合成本將會被燒毀。我們對於如何推出這個產品一直非常非常謹慎，以確保我們明智地花掉我們擁有的每一塊錢。我們在每一步中都學會瞭如何改進電池的製造方式。

We started off, you'll remember, I've said this before, Gen 2.3 had a 90-minute cycle time to build a battery. First day we built batteries, we're at 4 minutes on the semi-automated line, and we believe we have a path to take that down to 2 minutes of cycle time as we move forward. And this initial production comes with less than 1% scrap. And the batteries that are coming off of the line are performing like the ones that we showed on the prior page, meeting specification. Now we're going to put these batteries to the test. We're going to get them out in the field and start operating them. But what the team is doing out in Turtle Creek is nothing short of amazing in my viewpoint.

你會記得，我們一開始就說過，Gen 2.3 的電池製造週期為 90 分鐘。我們製造電池的第一天，半自動化生產線上的生產時間為 4 分鐘，我們相信，隨著我們的前進，我們有辦法將循環時間減少到 2 分鐘。最初的生產中廢品率不到 1%。下線的電池的性能與我們在前一頁上展示的電池一樣，符合規格。現在我們將對這些電池進行測試。我們將把它們帶到現場並開始操作。但在我看來，團隊在 Turtle Creek 所做的事情簡直令人驚嘆。

At the same time, I talked about this before, you don't just sell batteries, you sell an overall system. And we call that Eos Z3 cube. If you look at that middle picture, that's us starting to run our strings inside of a cube that would go out into the field. Now we're finding out, we spent a lot of time here again in Edison, New Jersey in our R&D facility and our software facility, developing a simpler battery management system. We do differently than other technologies as we allow our battery to operate across a wide temperature range. We allowed to operate charging discharge of over a wide number of hours, but we do that with a very simple battery management system that allows flexibility for the end users.

同時，我之前也談到過，你不只是賣電池，你賣的是整個系統。我們稱之為 Eos Z3 立方體。如果你看中間的圖片，那就是我們開始在一個立方體內運行我們的字符串，該立方體將進入​​該領域。現在我們發現，我們再次在新澤西州愛迪生的研發設施和軟件設施中花費了大量時間，開發更簡單的電池管理系統。我們的做法與其他技術不同，因為我們允許電池在很寬的溫度範圍內運行。我們允許進行長時間的充電放電，但我們使用非常簡單的電池管理系統來實現這一點，為最終用戶提供了靈活性。

And what we've been trying to do and the whole trick here is reduce voltage in the system to increase throughput and to decrease output of the system. It's not just about what your individual battery does, but how your system perform. The team has spent a lot of time doing that. At the same time, I get a lot of questions about where are we on the state-of-the-art manufacturing process.

我們一直在嘗試做的事情以及這裡的整個技巧是降低系統中的電壓以增加吞吐量並減少系統的輸出。這不僅與您的單個電池的功能有關，還與您的系統的性能有關。團隊花了很多時間來做這件事。與此同時，我收到了很多關於我們在最先進的製造工藝方面處於什麼位置的問題。

Well, the far right, that's the design of the new line that's going to go into our factory in Turtle Creek. We're in the midst of developing the software and controls logic around that. We've made some purchases of long lead items around robotics. We feel really good about the progress that we're making around this. But this all comes back to, again, how we manage the timing of investment in that line versus the timing and spend on getting product out in the field.

嗯，最右邊，這就是我們位於 Turtle Creek 工廠的新生產線的設計。我們正在開發軟件並圍繞它控制邏輯。我們購買了一些與機器人相關的長周期產​​品。我們對我們在這方面取得的進展感到非常滿意。但這一切又回到了我們如何管理該產品線的投資時機以及將產品投入實際應用的時機和支出。

What everybody has to remember here before I turn this over to Nathan and talk about becoming profitable and the commercial pipeline is this is an industry where you have to prove yourself out in the field. It's not to prove yourself in the laboratory. So we've got to get the Z3 out in the field to operate in customer sites. And at the same time, perfect what we're doing, then automate, then scale, and we're trying to do that in a very compressed cycle time. I feel really good about where we are. We'll keep everyone updated on the challenges as we move forward, but I want to turn it over to Nathan, who's going to walk you through some more details around our pipeline, around our path to profitability and then also around the financials for the second quarter. Thanks for listening today.

在我將這個問題交給內森並談論盈利和商業渠道之前，每個人都必須記住，這是一個你必須在現場證明自己的行業。並不是要在實驗室裡證明自己。因此，我們必須將 Z3 帶到現場，以便在客戶現場運行。與此同時，完善我們正在做的事情，然後自動化，然後規模化，我們正試圖在非常壓縮的周期時間內做到這一點。我對我們所處的位置感覺非常好。隨著我們前進，我們將讓每個人都了解最新的挑戰，但我想把它交給內森，他將引導您了解有關我們的管道、我們的盈利之路以及財務狀況的更多細節。第二季度。感謝您今天的收聽。

Thanks, Joe. Good morning, everybody. I want to take a moment to explain how we're thinking about our path to profitability. Not only are we improving our bottom line, but we are also focused on improving our top line.

謝謝，喬。大家早上好。我想花點時間解釋一下我們如何考慮盈利之路。我們不僅要提高我們的利潤，而且還專注於提高我們的利潤。

As you know, the first step to profitability is getting to positive gross profit. From this point, we can begin to cover our operating expenses, which tend to be more fixed in nature as we achieve economies of scale.

如您所知，盈利的第一步是獲得正的毛利潤。從這一點開始，我們可以開始支付我們的運營費用，隨著我們實現規模經濟，這些費用在本質上往往更加固定。

Looking at this graph, what you see here is sales prices are currently expected to increase over time. This is a result of increased market demand for long-duration storage, combined with a shortage of manufacturing capacity in the market. Some of these price increases are already baked into our backlog and are expected to be realized following the delivery of some of the earlier projects, which were sold at lower prices in order to secure a foothold in a lithium-dominated marketplace.

查看此圖表，您可以看到目前的銷售價格預計會隨著時間的推移而增加。這是市場對長期存儲需求增加以及市場製造能力短缺的結果。其中一些價格上漲已經納入我們的積壓訂單中，預計將在一些早期項目交付後實現，這些項目以較低的價格出售，以確保在鋰主導的市場中立足。

As we establish our technology and credibility in the market and secure the needed financing to expand our manufacturing capacity, we expect to see our pricing increase over time. The IRA's 10% domestic content bonus credit is an added tailwind. With our domestic content levels, we expect customers to see this benefit not only for their storage assets, but potentially in helping their overall projects to qualify for this added 10% credit.

隨著我們在市場上建立技術和信譽並獲得擴大製造能力所需的融資，我們預計我們的定價會隨著時間的推移而上漲。 IRA 的 10% 國內內容獎勵積分是一個額外的推動力。憑藉我們的國內含量水平，我們希望客戶不僅能看到其存儲資產的優勢，而且有可能幫助他們的整體項目獲得額外 10% 的積分。

Moving on to COGS. While sales prices are increasing, one of the top priorities of the company is to continue focusing on taking cost out of the product. With our planned cost-out initiatives in place, we expect to reach gross profit breakeven as we scale our first automated line. This would enable higher throughput, allowing us to absorb more of our fixed costs and gain operating leverage.

繼續討論銷貨成本。雖然銷售價格不斷上漲，但該公司的首要任務之一是繼續專注於降低產品成本。隨著我們計劃的成本削減計劃到位，我們預計在擴大第一條自動化生產線時將實現毛利潤盈虧平衡。這將實現更高的吞吐量，使我們能夠吸收更多的固定成本並獲得運營槓桿。

Our cost program for 2023 includes 7 discrete projects that are anticipated to either lower our supply costs, increase energy density or improve the manufacturability of our product. All 3 of these goals are essential to getting Eos to profitability.

我們 2023 年的成本計劃包括 7 個獨立項目，預計這些項目將降低我們的供應成本、提高能量密度或提高我們產品的可製造性。所有這 3 個目標對於使 Eos 實現盈利至關重要。

On top of taking cost out, another benefit available to us is the $45 per kilowatt hour production tax credit. As we produce storage systems, we are able to realize this benefit as an offset to COGS, which we have already begun accounting for in the first half of the year. While this $45 tax credit will help to accelerate our path to breakeven, we do not believe it is essential to achieve profitability. We believe this business makes economic sense even without the tax credit, but it certainly acts as an added benefit to us over time.

除了降低成本之外，我們可以獲得的另一個好處是每千瓦時 45 美元的生產稅收抵免。當我們生產存儲系統時，我們能夠實現這一收益，作為銷貨成本的抵消，我們已經在今年上半年開始核算。雖然這 45 美元的稅收抵免將有助於加速我們實現盈虧平衡，但我們認為這對於實現盈利並不是必需的。我們相信，即使沒有稅收抵免，這項業務也具有經濟意義，但隨著時間的推移，它肯定會給我們帶來額外的好處。

Despite the progress we are making on improving our backlog and driving out costs, we still expect to see negative margins as we come down our cost curve and deliver on early backlog orders.

儘管我們在改善積壓訂單和降低成本方面取得了進展，但隨著我們降低成本曲線並交付早期積壓訂單，我們仍然預計會出現負利潤。

Moving on to Slide 9. I'm now going to walk you through our classic pipeline page that I'm sure many of you are familiar with. This page is broken out into 3 key buckets: lead generation, current pipeline and backlog.

轉到幻燈片 9。我現在將向您介紹我們的經典管道頁面，我相信你們很多人都熟悉該頁面。此頁面分為 3 個關鍵部分：潛在客戶生成、當前渠道和待辦事項。

Starting on the left side of the page is lead generation, which, at the end of the quarter, was $10.9 billion, representing 59 gigawatt hours of storage, up $1.2 billion from the previous quarter. You should think about this stage as customers coming to us with an idea for a project in which they do not yet have a technical use case for us to quote on. We do not count lead generation in our current pipeline. And generally, there is a lot of churn here as things drop out or progress into our pipeline.

從頁面左側開始是潛在客戶生成，截至本季度末，該金額為 109 億美元，相當於 59 吉瓦時的存儲量，比上一季度增加 12 億美元。您應該將此階段視為客戶向我們提出一個項目想法，但他們還沒有可供我們報價的技術用例。我們不將潛在客戶的產生計算在當前的渠道中。一般來說，當事情退出或進入我們的管道時，這裡會有很多流失。

Moving to the right, we get to our pipeline. And we define pipeline in 3 segments. One, does it have a technical use case? Two, have we provided a nonbinding quote? And three, do we have a signed letter of intent? We do not call something 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 quote.

向右移動，我們到達管道。我們將管道定義為 3 段。第一，它有技術用例嗎？第二，我們是否提供了不具約束力的報價？第三，我們有簽署的意向書嗎？我們不會將某些東西稱為當前管道，除非我們有一個技術用例，可以向客戶提供技術建議，然後我們向他們提供不具約束力的報價。

Our goal from there is to then get customers to sign an LOI with us, which represents a nonbinding agreement. And if the project materializes, they plan to choose Eos as their technology.

我們的目標是讓客戶與我們簽署意向書，這是一份不具約束力的協議。如果該項目得以實現，他們計劃選擇 Eos 作為他們的技術。

Our current pipeline is now at $9.7 billion and is up $1.1 billion from the prior quarter. We have $1.6 billion in signed LOIs, an increase of $93 million versus last quarter, representing over 7 gigawatt hours. From there, the intention is to materialize projects into booked orders, which then get added to our backlog. We currently expect roughly 30% to be converted from LOIs into booked orders over time.

目前，我們的產品線規模為 97 億美元，比上一季度增加了 11 億美元。我們簽署了 16 億美元的意向書，比上季度增加了 9300 萬美元，相當於超過 7 吉瓦時。從那裡，我們的目的是將項目具體化為預訂訂單，然後將其添加到我們的積壓訂單中。目前，我們預計隨著時間的推移，大約 30% 的訂單將從意向書轉化為預訂訂單。

The backlog stands at $534 million as of June 30, including some long-term service revenue, which represents less than 6% of the total value of our backlog. We expect to grow service revenue as more projects become operational in the field. During Q2, we booked a new industrial order in California, and we removed 2 small projects that no longer met our qualifications to be considered in backlog. While we didn't see a large increase in orders during the quarter, we continue to feel our pipeline is strong, and we believe many potential customers may be waiting to see our state-of-the-art factory in operation as well as additional clarity on the IRA tax credits.

截至 6 月 30 日，積壓訂單金額為 5.34 億美元，其中包括一些長期服務收入，占我們積壓訂單總價值的不到 6%。隨著更多項目在該領域投入運營，我們預計服務收入將會增長。第二季度，我們在加州預訂了新的工業訂單，並刪除了 2 個不再符合我們積壓條件的小項目。雖然我們在本季度沒有看到訂單大幅增加，但我們仍然感覺我們的管道很強大，我們相信許多潛在客戶可能正在等待看到我們最先進的工廠投入運營以及其他IRA 稅收抵免的明確性。

Each quarter, we assess the health of our reported backlog. Doing so requires us to exercise judgment about uncertain factors. We sometimes come to a view that a project that was booked in the past is unlikely to materialize or a change order has been executed, in which case, we may adjust our backlog. This assessment has resulted in projects being removed from our backlog in each of the last 2 quarters.

每個季度，我們都會評估報告的積壓工作的健康狀況。這樣做需要我們對不確定因素做出判斷。我們有時會認為過去預訂的項目不太可能實現，或者變更訂單已經執行，在這種情況下，我們可能會調整積壓的訂單。這項評估導致過去兩個季度每個季度都有項目從我們的積壓工作中刪除。

While we've previously shipped products to 12 customers, our current backlog consists of 13 customers representing 2.2 gigawatt hours, which includes a mix of utilities, developers, IPPs and industrial customers. Over 50% of our backlog is in the California and ERCOT markets, with the remaining 50% spread across other U.S. and international markets. Now let's take a deeper dive on a few of the larger customers that we have in our backlog, beginning with Bridgelink.

雖然我們之前已向 12 家客戶發貨，但目前的積壓訂單包括 13 家客戶，總容量為 2.2 吉瓦時，其中包括公用事業公司、開發商、獨立發電廠和工業客戶。我們超過 50% 的積壓訂單位於加州和 ERCOT 市場，其餘 50% 分佈在其他美國和國際市場。現在，讓我們更深入地了解積壓訂單中的一些較大客戶，首先是 Bridgelink。

We first signed an MSA with Bridgelink Commodities LLC back in March of last year. This was a multiyear MSA where Bridgelink locked in the price of 240-megawatt hours of storage over a 3-year period and then increased the overall size of the MSA to 1 gigawatt hour in June of last year. Bridgelink is a developer of solar and storage projects and has informed us that it has [projects] in its pipeline and some of these projects have received interconnects, while others are well into the interconnection queue.

去年 3 月，我們首次與 Bridgelink Commodities LLC 簽署了 MSA。這是一項多年期的 MSA，Bridgelink 在 3 年內鎖定了 240 兆瓦時的存儲價格，然後在去年 6 月將 MSA 的總體規模增加到 1 千兆瓦時。 Bridgelink 是一家太陽能和存儲項目開發商，並通知我們其正在籌備中的[項目]，其中一些項目已獲得互連，而其他項目則已進入互連隊列。

This is important because an interconnect approval is essential for a project to be able to deliver power to the grid. In today's environment, an interconnect can take years to secure, meaning that these types of projects have a certain amount of intrinsic value, and we believe a number of them will ultimately be built.

這很重要，因為互連批准對於項目能夠向電網供電至關重要。在當今的環境中，互連可能需要數年時間才能確保安全，這意味著此類項目具有一定的內在價值，我們相信其中許多項目最終將會建成。

We were informed by Bridgelink management that its affiliate has reached a confidential settlement with its lender, and the related assets were not sold at auction. Bridgelink recently confirmed that they are actively seeking alternative financing for these projects.

Bridgelink 管理層告知我們，其附屬公司已與其貸方達成秘密和解，相關資產未在拍賣中出售。 Bridgelink 最近證實，他們正在積極為這些項目尋求替代融資。

Moving on to IEP. In 2020, we entered into an agreement to supply 1 gigawatt hour of storage, which was added to the pipeline as a letter of intent. Of this, we have 2 Texas projects totaling 100-megawatt hours in the backlog, with the remaining 900-megawatt hours included in LOIs. Control of the 2 Texas projects was transferred to a large North American infrastructure fund, and we currently anticipate breaking ground on the first project later this summer with delivery scheduled for Q4 of this year.

繼續進行個別化教育計劃 (IEP)。 2020年，我們簽訂了供應1吉瓦時存儲的協議，該協議已作為意向書添加到管道中。其中，我們有 2 個德克薩斯州項目處於積壓狀態，總計 100 兆瓦時，其餘 900 兆瓦時包含在意向書中。德克薩斯州的兩個項目的控制權已轉移給一個大型北美基礎設施基金，我們目前預計第一個項目將在今年夏天晚些時候破土動工，併計劃於今年第四季度交付。

Carson Hybrid is another significant customer for us. We have a project in California that is co-located with an active gas turbine peaker plant that is delivering power to the California grid to meet the high summer demand. Construction is expected to begin this fall as soon as we can access the construction site to deliver our products. In addition, we have a 300-megawatt hour project with Carson that has recently received its interconnection approval and is included in our backlog. We have received the deposit or down payment on both contracts.

卡森混合動力公司是我們的另一個重要客戶。我們在加利福尼亞州有一個項目，與一個活躍的燃氣輪機調峰發電廠位於同一地點，該發電廠正在向加利福尼亞電網供電，以滿足夏季的高需求。一旦我們能夠進入施工現場交付我們的產品，施工預計將於今年秋天開始。此外，我們與卡森合作的一個300兆瓦時項目最近已獲得併網批准，並已列入我們的積壓訂單中。我們已收到兩份合同的定金或定金。

Next, we have a confidential customer that is a leading Northeast developer of solar and storage projects that has signed a multiyear MSA with us to lock in the price of our storage systems. The customer is actively pursuing permitting in New York. And given the safety of our product relative to other alternatives and the recent fires that have been in the news, we currently expect this market to have significant growth potential. We anticipate cash coming in as POs are issued and production schedules are set under this MSA.

接下來，我們有一位機密客戶，他是東北地區領先的太陽能和存儲項目開發商，該客戶已與我們簽署了一份多年期管理協議，以鎖定我們存儲系統的價格。客戶正在積極尋求紐約的許可。考慮到我們產品相對於其他替代品的安全性以及最近新聞中出現的火災，我們目前預計該市場將具有巨大的增長潛力。我們預計隨著採購訂單的發出和根據該 MSA 制定生產計劃，將會收到現金。

And finally, we have another confidential customer that has a very large utility and one of the largest operators of energy storage in the U.S. This utility has signed a long-term framework agreement for up to 4 gigawatt hours of energy storage volume, which is included in our pipeline in the LOIs/firm commitment category, along with the PO for their first 47-megawatt hour project, which is in our backlog, and we expect to deliver later this year. This is an important project for the team as it represents our opportunity to demonstrate the capability of Eos' technology to one of the largest utilities in the world.

最後，我們還有另一個保密客戶，該客戶擁有一家非常大的公用事業公司，也是美國最大的儲能運營商之一。該公用事業公司簽署了一項高達4 吉瓦時儲能容量的長期框架協議，其中包括在我們的意向書/堅定承諾類別的管道中，以及他們的第一個47 兆瓦時項目的採購訂單，該項目處於我們的積壓工作中，我們預計將在今年晚些時候交付。對於團隊來說，這是一個重要的項目，因為它代表了我們向世界上最大的公用事業公司之一展示 Eos 技術能力的機會。

The balance of our backlog is a combination of smaller deals, both front of the meter and behind the meter with developers, IPPs and investment-grade utilities.

我們的積壓訂單的餘額是較小的交易的組合，包括與開發商、獨立發電廠和投資級公用事業公司的表前和表後交易。

Now moving on to Slide 10. This is a page where we want to walk through the structure of our standard form customer contract as it relates to expected cash flows going forward. In order to offset the high working capital needs of the business, we strive to receive cash early to fund raw material purchases. Generally speaking, our template customer supply contracts are structured so that as we begin to manufacture and deliver storage systems, we expect to receive approximately 60% of cash prior to customer delivery. Amounts received are, of course, subject to the final negotiated terms in each individual agreement.

現在轉到幻燈片 10。在這一頁中，我們希望了解標準格式客戶合同的結構，因為它與未來的預期現金流量相關。為了抵消業務的高營運資金需求，我們努力儘早收到現金，為原材料採購提供資金。一般來說，我們的模板客戶供應合同的結構使得當我們開始製造和交付存儲系統時，我們預計在客戶交付之前收到大約 60% 的現金。當然，收到的金額取決於每個單獨協議中最終協商的條款。

Now looking at the page, I want to walk you through the process of what we generally see from a signed letter of intent, all the way to commercial operation on the right-hand side of the page. As mentioned earlier, a letter of intent represents the last stage in our pipeline before a deal gets into backlog. You should think about this stage as a nonbinding agreement that aligns our interests with the customers and has us on the same side of the table, especially in the case of a developer as they pursue projects out in the marketplace. If the customer wins, Eos wins. To clarify, LOIs never meet our criteria for a booked order.

現在看這個頁面，我想引導您完成我們通常從簽署的意向書中看到的過程，一直到頁面右側的商業運營。如前所述，意向書代表了交易積壓之前管道中的最後階段。您應該將此階段視為一項不具約束力的協議，使我們的利益與客戶保持一致，並使我們站在談判桌的同一邊，特別是對於開發商在市場上尋求項目的情況。如果客戶贏了，Eos 就贏了。需要澄清的是，意向書從來不符合我們的預訂訂單標準。

What you see next is that an LOI or any active proposal can be formalized into a master supply agreement or MSA. Alternatively, a customer can skip the MSA and go directly to a definitive supply agreement with a PO, which sometimes happens for smaller, more discrete projects. MSAs and POs can be considered booked orders provided they meet certain internal qualifications, and each agreement can have different cash milestones, which are detailed in the contract. We typically require each of our customers to pay a deposit or down payment before they are allocated a slot in our production schedule.

接下來您會看到，意向書或任何有效的提案都可以正式形成主供應協議或 MSA。或者，客戶可以跳過 MSA，直接與 PO 簽訂最終供應協議，這種情況有時會發生在較小、更離散的項目中。如果 MSA 和 PO 滿足某些內部資格，則可以將其視為預訂訂單，並且每個協議可以有不同的現金里程碑，這在合同中進行了詳細說明。我們通常要求每個客戶在我們的生產計劃中分配一個時段之前支付押金或預付款。

You should think of an MSA as a multiyear agreement that defines a commitment to a specific amount of storage capacity being purchased over a defined period of time. As time progresses and specific projects are identified, individual POs would then be executed under those MSAs. We often get a small deposit of up to 5% and/or a cancellation fee with our multiyear MSAs. Even if an MSA does not have a specific project identified, it helps us with long-term capacity planning.

您應該將 MSA 視為一項多年期協議，它定義了在規定的時間段內購買特定數量的存儲容量的承諾。隨著時間的推移和具體項目的確定，各個採購訂單將根據這些管理服務協議執行。對於我們的多年期 MSA，我們通常會收取高達 5% 的小額押金和/或取消費。即使 MSA 沒有確定具體項目，它也可以幫助我們進行長期容量規劃。

In the case of multiyear MSAs, POs are then issued when individual projects materialize. When we receive a purchase order, we usually expect to receive 10% to 30% of the total contract price as a down payment. We expect such payments to be a significant source of cash to offset increased working capital needs of some portion of our active proposals, LOIs and MSAs eventually result in purchase orders.

對於多年期管理服務協定，採購訂單會在個別項目實現後發布。當我們收到採購訂單時，我們通常期望收到合同總價的 10% 至 30% 作為首付款。我們預計此類付款將成為重要的現金來源，以抵消我們部分積極提案、意向書和管理服務協議最終導致採購訂單增加的營運資金需求。

Next, we expect to receive another 20% to 30% of the contract price during the manufacturing stage. During this stage, we're sourcing the raw materials, and we ask that our customers pay a cash milestone prior to manufacturing their systems and/or additional cash when the product is ready to ship.

接下來，我們預計在製造階段將再收到合同價格的20%至30%。在此階段，我們正在採購原材料，並要求客戶在製造系統之前支付里程碑現金和/或在產品準備發貨時支付額外現金。

Revenue recognition does not necessarily follow the cash flows or the manufacturing cycle, but rather is determined based on our fulfillment of obligations to the customer. A meaningful portion of revenue is recognized when control passes to the customer, again, determined by the specific terms of the applicable agreement.

收入確認不一定遵循現金流量或製造週期，而是根據我們履行對客戶的義務來確定。當控制權轉移給客戶時，收入的一個有意義的部分會被確認，這同樣由適用協議的具體條款決定。

Next, we expect to receive another 25% to 30% when systems are fully delivered. At this point, Eos begins site installation and commissioning, and the last 5% to 10% would be received after commissioning is complete and the system is placed in operation.

接下來，當系統完全交付時，我們預計還會收到 25% 到 30% 的收益。至此，Eos開始現場安裝調試，調試完成、系統投入運行後，即可收到最後5%到10%的費用。

I'd like to point out that an item we have mentioned briefly in the past is the opportunity for long-term service revenue. While our contracts generally offer a standard 2-year warranty, we also provide customers with the option to purchase a long-term service agreement, which can go out as long as 20 years. As we begin to get more systems in operation, we expect this to be an increasing source of cash and revenue in the future.

我想指出的是，我們過去簡單提到的一個項目是長期服務收入的機會。雖然我們的合同通常提供標準的 2 年保修，但我們還為客戶提供購買長期服務協議的選項，該協議的有效期可達 20 年。隨著我們開始讓更多系統投入運行，我們預計這將成為未來不斷增加的現金和收入來源。

Now let's move into our second quarter financial results. Overall, the second quarter was an important quarter for the team, and I'm very proud of our employees as we continue to keep our heads down and focus on getting the Z3 systems into the market. Each day, we become better than the day before, and we expect our financials to begin to reflect these improvements over time.

現在讓我們進入第二季度的財務業績。總的來說，第二季度對團隊來說是一個重要的季度，我為我們的員工感到非常自豪，因為我們繼續埋頭苦幹，專注於將 Z3 系統推向市場。每一天，我們都比前一天變得更好，並且我們期望隨著時間的推移，我們的財務狀況將開始反映出這些改進。

Revenue for the quarter was $0.2 million as we recognized revenue on our last Gen 2.3 systems before beginning the transition of our factory to Z3 production. Cost of goods sold for the quarter was $11.2 million, of which $2.3 million is a noncash-related item, a decrease of $25.6 million compared to the second quarter of 2022, primarily driven by a decrease in unit volume, partially offset by increases in commissioning costs associated with the Pine Gate project.

本季度的收入為 20 萬美元，因為我們在工廠開始向 Z3 生產過渡之前就確認了最後一代 2.3 系統的收入。本季度的銷售成本為 1120 萬美元，其中 230 萬美元為非現金相關項目，與 2022 年第二季度相比減少了 2560 萬美元，主要是由於單位數量的減少，部分被調試的增加所抵消與Pine Gate 項目相關的成本。

R&D investment was $5 million, a slight decrease compared to the second quarter last year, driven by a reduction in third-party services, partially offset by ongoing Z3 development. $0.3 million was noncash stock compensation and depreciation.

研發投資為 500 萬美元，較去年第二季度略有下降，原因是第三方服務減少，但部分被正在進行的 Z3 開發所抵消。 30 萬美元是非現金股票補償和折舊。

SG&A for the quarter was $13.1 million, including $2.2 million of noncash items, which is $6 million lower than the second quarter of the prior year, driven primarily by decreases in outside consulting expense as we brought several of these functions in-house.

本季度的 SG&A 為 1,310 萬美元，包括 220 萬美元的非現金項目，比去年第二季度減少了 600 萬美元，這主要是由於我們將其中一些職能納入內部，從而減少了外部諮詢費用。

Interest expense was $19.6 million for the quarter, of which $4.9 million was driven by the senior secured term loan and the equipment financing facility with Trinity Capital. The other $14.8 million was noncash related to the interest expense and amortization from our convertible notes. The resulting operating loss was $34.6 million with a net loss of $131.6 million or $28.9 million, excluding noncash items, which is a year-over-year improvement of 44%.

本季度利息支出為 1,960 萬美元，其中 490 萬美元來自高級擔保定期貸款和 Trinity Capital 的設備融資便利。另外 1,480 萬美元是與可轉換票據的利息支出和攤銷相關的非現金。由此產生的營業虧損為 3460 萬美元，淨虧損為 1.316 億美元或 2890 萬美元（不包括非現金項目），同比增長 44%。

Lastly, I will give you an update on our progress against our full year company objectives. Second quarter was very much a transitional quarter, and there's still a lot of work for us to do in order to reach our goals. We increased our opportunity pipeline by $1.1 billion in the second quarter. And during the first half of 2023, we had $86.9 million in booked orders with 3 customers.

最後，我將向您介紹我們全年公司目標的最新進展情況。第二季度在很大程度上是一個過渡季度，為了實現我們的目標，我們還有很多工作要做。第二季度我們的機會渠道增加了 11 億美元。 2023 年上半年，我們為 3 個客戶預訂了 8690 萬美元的訂單。

While 3 customers may not sound like a lot, the largest order was with a repeat customer and another one was for an initial project accompanied by a larger framework agreement of up to 4 gigawatt hours which is included in our pipeline.

雖然 3 個客戶聽起來可能不是很多，但最大的訂單是一個回頭客，另一個訂單是一個初始項目，附帶高達 4 吉瓦時的更大框架協議，該協議已包含在我們的管道中。

We also signed 5 new letters of intent for a total of 1.2 gigawatt hours during the first half of 2023.

2023 年上半年，我們還簽署了 5 份新意向書，總計 1.2 吉瓦時。

We believe there is a line of sight to achieving our booked orders objective for 2023 with nearly $10 billion in our pipeline. If we receive a positive outcome on our loan application, we expect to see increased customer confidence in our product and our ability to deliver long-duration energy storage projects.

我們相信，我們有望實現 2023 年的預定訂單目標，我們的儲備訂單金額接近 100 億美元。如果我們的貸款申請獲得積極結果，我們預計客戶對我們的產品以及我們交付長期儲能項目的能力的信心將會增強。

Next, we remain on track towards our $30 million to $50 million revenue objective. If you recall, we said that the upper end of the range was contingent on getting our automated line up and running in Q4, while the lower end was if the automated line pushed into next year. We are now tracking for the lower end of the range.

接下來，我們將繼續朝著 3000 萬至 5000 萬美元的收入目標邁進。如果您還記得的話，我們說過該範圍的上限取決於我們的自動化生產線在第四季度的啟動和運行，而下限則取決於自動化生產線是否推到明年。我們現在正在追踪該範圍的下限。

In the first half of 2023, we had revenue of $9.1 million. As we think about the rest of the year, we currently expect remaining revenue to be back-end weighted in Q4. With the majority of our revenue recognition occurring at the time of delivery as opposed to when product is produced, our revenue objective for the year can be somewhat binary depending on the exact delivery timing of 1 or 2 large projects. While we believe we will be able to achieve our revenue objective for the year, the specific revenue recognition criteria could potentially push some of this revenue into early 2024.

2023 年上半年，我們的收入為 910 萬美元。在我們考慮今年剩餘時間時，我們目前預計剩餘收入將在第四季度進行後端加權。由於我們的大部分收入確認發生在交付時而不是產品生產時，因此我們今年的收入目標可能有些二元化，具體取決於 1 或 2 個大型項目的確切交付時間。雖然我們相信我們將能夠實現今年的收入目標，但具體的收入確認標準可能會將部分收入推遲到 2024 年初。

Lastly, the team continues to stay focused on cost out. And while we have discussed the key projects for 2023, it should be noted, we have line of sight into further cost-out initiatives that will come in 2024. Thus far, we have achieved 2 of 7 key projects for our year-end cost objective, and we believe we remain on track to hit this metric.

最後，團隊繼續關注成本削減。雖然我們已經討論了 2023 年的關鍵項目，但值得注意的是，我們還著眼於 2024 年將採取的進一步成本削減計劃。到目前為止，我們已經實現了 7 個年終成本關鍵項目中的 2 個目標，我們相信我們仍有望實現這一指標。

With that, I want to thank everybody for their time and for listening today. I would now like to turn it over to the operator for questions.

在此，我要感謝大家今天抽出時間來聆聽。我現在想把它交給接線員詢問。

Operator, please open the line for questions.

接線員，請開通提問線路。

(Operator Instructions) Our first question comes from Joseph Osha with Guggenheim.

（操作員說明）我們的第一個問題來自古根海姆的 Joseph Osha。

This is actually Hilary on for Joe. I just wanted to first touch on some of your earlier comments on the transition to the Z3. And if you could just share any more detail on kind of key learnings, thus far. If there's been any kind of key manufacturing challenges that you've come across.

這實際上是希拉里為喬做的。我只是想首先談談您之前關於過渡到 Z3 的一些評論。到目前為止，您是否可以分享有關關鍵知識的更多細節。如果您遇到過任何類型的關鍵製造挑戰。

Look, yes, I mean, look, at every phase of this, there's been learnings. I think what's accelerated the development of the Z3 and, at the same time, at a lower cost position was doing the discrete manufacturing processes first. So if you look at where we started on our line and -- like building our bipolars, integrating the bipolars into the tub and then filling the battery, we've changed each one of those technologies as we've gone through.

看，是的，我的意思是，看，在這的每個階段，都有教訓。我認為加速 Z3 開發並同時以較低成本定位的因素是首先進行離散製造工藝。因此，如果你看看我們的生產線是從哪裡開始的——比如製造我們的雙極，將雙極集成到浴缸中，然後給電池充電，我們已經改變了我們所經歷的每一項技術。

So as we learn things, we found other technologies that either gave us a higher process capability or a better yield coming out of the overall process at a faster cycle time. So we made a lot of changes there. And then inside of this was a lot of the design work that the technology team has done. A lot of that work is done here in Edison where we're prototyping product.

因此，當我們學習時，我們發現了其他技術，這些技術要么為我們提供了更高的工藝能力，要么以更快的周期時間從整個工藝中獲得了更好的產量。所以我們在那裡做了很多改變。其中包括技術團隊所做的大量設計工作。很多工作都是在愛迪生完成的，我們在那裡製作產品原型。

When you bring it out and do it at production scale, you start learning things when you're trying to transport batteries. So there were certain things in the way that we design the tops of the bipolars that were causing a potential slashing, where electrolyte could go between cells and causing imbalance in the batteries when you're transporting it on truck or by sea that we wind up having to fix.

當您將其拿出來並進行大規模生產時，您在嘗試運輸電池時就開始學習一些東西。因此，我們設計雙極電池頂部的某些方式可能會導致潛在的劃傷，當您用卡車或海上運輸電池時，電解液可能會進入電池之間，導致電池不平衡，最終導致電池失衡。必須修復。

And then the last one, which is the most important one, is as you lay out the material flow in the factory, we start to learn of where do you want people positioned, where do you want the material positioned, how much [batch] do you want to have going into each one of your manufacturing processes to reduce cycle time. So as we've gone through and done this, as I said that -- because we said on the page, the continuous flow of the battery to the line is 4 minutes. We think we can half that on the semi-automated line with some of the things that the team is finding.

然後最後一個，也是最重要的一個，就是當你在工廠佈置物料流程時，我們開始了解你希望人員定位在哪裡，你希望物料定位在哪裡，多少[批次]您是否希望深入到每一個製造流程中以縮短週期時間？正如我們已經完成並完成的那樣，正如我所說，因為我們在頁面上說過，電池到線路的連續電流為 4 分鐘。我們認為，通過團隊發現的一些東西，我們可以在半自動化生產線上將這一數量減少一半。

So it truly is where every shift, we start off and end with what did you learn? What do we need to change? What do you need to make your job better? Because this is truly a learning process. I mean we've only been at commercial production here for a little bit over a week when you really think about in earnest. So every day, where you're going to learn the most from the people on the factory floor that are building the batteries, and that's going to make us better.

所以，這確實是我們每次輪班開始和結束的地方，您學到了什麼？我們需要改變什麼？你需要什麼來讓你的工作變得更好？因為這確實是一個學習的過程。我的意思是，當你真正認真思考時，我們才在這裡進行商業製作一個多星期。因此，每天，你都會從工廠車間製造電池的人們那裡學到最多的東西，這將使我們變得更好。

Great. And then just as you look to transition to the [buying] and execute on some of the cost down initiatives, I was just wondering if you could provide some context for how quickly we'll see that start to drive positive gross margin.

偉大的。然後，正當您希望過渡到[購買]並執行一些降低成本的舉措時，我只是想知道您是否可以提供一些背景信息，說明我們將多快看到開始推動正毛利率。

So sure, happy to elaborate on that a little bit. If you look at the different cost out initiatives that we've got identified, really touch on 3 different areas. It's supply chain and some efficiencies in our supply chain. It's improving the energy density of the battery, and then also improving the manufacturability. And some of these, we are putting into effect now, like we said, with 2 of these have already been accomplished. And specifically, it's around volume discounts on our cube. So that's a supply chain-related item.

當然，很高興對此進行詳細說明。如果您查看我們已確定的不同成本支出計劃，您會發現實際上涉及 3 個不同的領域。這是供應鍊和我們供應鏈中的一些效率。它提高了電池的能量密度，進而提高了可製造性。其中一些，我們現在正在實施，正如我們所說，其中兩項已經完成。具體來說，是關於我們的立方體的批量折扣。這是一個與供應鏈相關的項目。

Second one is improving the overall power density of the battery. So that falls in the second category of improving the energy efficiency. These are things that we can do now even on our semi-automated line. There are other cost-out initiatives that are dependent on getting to a fully automated line. You won't really see us fully achieving cost out into (technical difficulty) we've got that (technical difficulty) next year.

第二個是提高電池的整體功率密度。因此，這屬於提高能源效率的第二類。這些是我們現在甚至可以在半自動化生產線上完成的事情。還有其他成本削減計劃取決於是否採用全自動生產線。你不會真正看到我們明年完全實現（技術難度）成本。

And Hilary, the only other thing I'd add that I always tell the team here at Eos, right? So prior to Eos, working at General Electric, right? I was managing product lines that were hundreds of years old. And you are getting 4% to 5% cost out productivity every year on a very mature product. This -- here, as we go through this, we're going to be learning every day and finding ways and updating our cost out pipeline, looking at cycle time reductions and productivity ideas. So this is going to be an iterative process where it's a funnel, right?

希拉里（Hilary）是我唯一要補充的，我總是告訴 Eos 團隊的另一件事，對吧？那麼在 Eos 之前，在通用電氣工作，對吧？我管理的產品線已有數百年曆史。對於一個非常成熟的產品，您每年可以獲得 4% 到 5% 的成本生產率。這——在這裡，當我們經歷這個過程時，我們將每天學習，尋找方法並更新我們的成本支出管道，研究週期時間縮短和生產力想法。所以這將是一個迭代過程，它是一個漏斗，對吧？

You bring ideas in, and you want to realize ideas off the back end of this. And I think we're starting to see, as you actually start building and operating the product, you start to find more and more ideas on how to take cost out. We just got to stay -- keep our nose to the grindstone and just keep finding ways to improve the competitiveness of what we put out in the field.

你引入想法，並希望在後端實現想法。我認為我們開始看到，當你真正開始構建和運營產品時，你開始找到越來越多關於如何降低成本的想法。我們必須留下來，埋頭苦幹，不斷尋找方法來提高我們在該領域推出的產品的競爭力。

As I was listening, Joe, I realized I didn't fully address your question. You were asking about gross margin breakeven. I would say, we won't achieve gross margin breakeven until we get the efficiencies of the fully automated line.

喬，當我在聽的時候，我意識到我沒有完全回答你的問題。您問的是毛利率盈虧平衡點。我想說，在我們獲得全自動生產線的效率之前，我們不會實現毛利率盈虧平衡。

Yes.

是的。

So that's how I would think of it in terms of timing. And the timing of that is somewhat dependent on capital raise.

這就是我在時間安排方面的想法。其時機在某種程度上取決於融資情況。

Our next question comes from Christopher Souther with B. Riley Securities.

我們的下一個問題來自 B. Riley Securities 的 Christopher Souther。

Maybe just following up on that with the initial Z3 ramp, can you please frame some of the metrics you called out here for the semi-automated manufacturing? How do those 4-minute cycle times and less than 1% scrap rate compared to what we saw with this stage with Gen 2.3? And can you update us on how the BOM cost today compared to Gen 2.3? And what the reduction would be post the 3 cost initiatives you called out for 2023? This is all kind of prior to the full automation that you talked about.

也許只是跟進最初的 Z3 升級，您能否列出一些您在這裡提出的半自動化製造指標？與我們在 Gen 2.3 的這個階段看到的相比，4 分鐘的循環時間和低於 1% 的廢品率如何？您能否向我們介紹一下目前的 BOM 成本與 Gen 2.3 相比如何？在您提出的 2023 年 3 項成本舉措之後，削減幅度是多少？這一切都發生在您談到的完全自動化之前。

Right, right. So Chris, look, I mean this is night and day. The team of people that went through Gen 2.3, there's days where, at the end of the day, we're sitting in our -- we're sitting in an office talking and we'll say, "Do you remember where we were at the same time with Gen 2.3?" And it's just a 9-day difference. I mean like when you think about Gen 2.3 at the end of the first week of commercial production, our yields were in the 50% range on a good day for the first month as we were trying to perfect the infrared welding process.

是的是的。所以克里斯，聽著，我的意思是這是白天和黑夜。經歷了 Gen 2.3 的團隊，有時候，在一天結束的時候，我們坐在辦公室裡談話，我們會說，“你還記得我們在哪裡嗎？”與 2.3 代同時進行？”而這僅僅相差9天。我的意思是，就像當你在商業生產第一周結束時考慮 Gen 2.3 時，我們的產量在第一個月的好日子里處於 50% 的範圍內，因為我們正在努力完善紅外焊接工藝。

When you look at the stack up, I think it's important thing that we talked about was you were doing 41 infrared welds, which we were doing this. We were doing those 41 welds. It was the largest surface area that has been done as an infrared weld, and it was also the most continuous weld. So doing -- the size of the battery we're doing for 41 welds, no one else is doing that. But you don't get paid by doing technological marvels.

當您查看堆棧時，我認為我們討論的重要一點是您正在進行 41 次紅外焊接，我們正在這樣做。我們正在做那 41 個焊接。這是迄今為止面積最大的紅外焊縫，也是最連續的焊縫。我們正在對電池的尺寸進行 41 次焊接，沒有其他人這樣做。但你不會通過創造技術奇蹟來獲得報酬。

So doing what we're doing now with 1, the cycle time being at 4 minutes, you're probably talking about -- you're saving 90 -- more than 1.5 hours per battery as you go through and do this with a lot less material handling.

因此，按照我們現在使用 1 進行的操作，循環時間為 4 分鐘，您可能會談論 - 您節省了 90 - 每個電池超過 1.5 小時，因為您經歷並使用了很多電池更少的材料處理。

On the -- and then I think -- look, I think we can actually get better from where we are as we go through and look at the scrap rates and the performance. I think the thing that we've done is our new manufacturing operations leader, he's got visual management boards hour by hour that the entire team is focused on, what they have to do in each one of their stations. We've used the time here in the last 3 months to prepare ourselves to grow the company, and it's paying dividends here in the start-up. So it is totally different than what we had on Gen 2.3.

然後我認為，看，我認為當我們仔細研究廢品率和性能時，我們實際上可以從現在的情況變得更好。我認為我們所做的事情是我們新的製造運營領導者，他每小時都有可視化管理板，整個團隊都專注於他們在每個工作站必須做的事情。我們利用過去 3 個月的時間為公司的發展做好準備，並在初創公司中獲得紅利。所以它與我們在 Gen 2.3 上的完全不同。

Now what I would say is, we learned a lot on Gen 2.3. I think the biggest thing that we all need to remember on Gen 2.3, from a manufacturing standpoint and a product design standpoint, we learned a lot about sealing technology of sealing the battery and having a good cell-to-cell, not having cell-to-cell leakage of electrically going from one cell to the other. So what we learned on that sealing, allowed us to come up with the mechanical design on Z3.

現在我想說的是，我們在 Gen 2.3 上學到了很多東西。我認為我們大家在Gen 2.3 上需要記住的最重要的事情是，從製造的角度和產品設計的角度來看，我們學到了很多關於密封電池的密封技術，並擁有良好的電池到電池，而不是電池-從一個電池到另一電池的電流洩漏。因此，我們在密封方面學到的知識使我們能夠對 Z3 進行機械設計。

At the same time, getting Gen 2.3 containers out in the field and operating, we learned a tremendous amount around softwares, controls and managing and optimizing performance. And that's very important. Like we take a -- we spend a lot of time talking about the battery. But what we really provide to the field, as I said, is a system, and that system with the Z3 is much more efficient. Our software and technology leader, [Pranesh Rao] . What he and his team have done on the battery management system and how we've been able to introduce this and have it work, coming off of the -- out of prototype development is nothing short of amazing.

與此同時，通過將 Gen 2.3 容器投入現場並進行操作，我們在軟件、控制以及管理和優化性能方面學到了大量知識。這非常重要。就像我們花了很多時間討論電池一樣。但正如我所說，我們真正向該領域提供的是一個系統，而使用 Z3 的系統效率更高。我們的軟件和技術領導者，[Pranesh Rao]。他和他的團隊在電池管理系統方面所做的工作，以及我們如何能夠引入該系統並使其發揮作用，從原型開發中走出來，簡直令人驚嘆。

So we have a lot of work to do. You don't know -- we still -- there's still unknowns. We're going to be challenged with as we move forward, but it's very exciting for us to think about where we started and how we did the development on this product and how it's really going.

所以我們還有很多工作要做。你不知道——我們仍然——仍然存在未知數。隨著我們的前進，我們將面臨挑戰，但對於我們來說，思考我們從哪裡開始、我們如何開發這個產品以及它的實際進展是非常令人興奮的。

And when you think about it, Chris, like we had our first production prototype battery, if you will. It was less than 12 months ago. And to be in production 12 months later with the way we're doing this, with 300 people, that's why I say the team amazes me, and that's why I also say I'm proud to work for this company.

克里斯，如果你願意的話，當你想一想時，就像我們擁有了第一個生產原型電池一樣。那是不到12個月前的事了。 12 個月後，我們以 300 名員工的方式投入生產，這就是為什麼我說這個團隊讓我感到驚訝，這就是為什麼我也說我為在這家公司工作感到自豪。

Got it. And just on the BOM cost.

知道了。而且只是 BOM 成本。

Yes...

是的...

Maybe versus -- more meaningful today versus kind of that post the 3 cost initiatives you called out for this year? Like what is the reduction you think you can get? And where does it stand today?

也許與您今年呼籲的 3 項成本舉措相比，今天更有意義？比如你認為你能得到多少折扣？如今它又處於什麼位置呢？

Really, I think the picture hasn't changed from what we've said historically, which is this battery -- or actually this entire system on a kilowatt hour basis was designed at half the cost of where we started with Gen 2.3. Since then we've got 7 cost-out initiatives that we're focused on for this year, 2 of which are completed. And when we say completed like in the case of the containers, I mean, we've negotiated the (technical difficulty) don't fully realize those savings coming through our P&L until our (technical difficulty) but -- so there's -- those types of things that are going to roll in over time.

確實，我認為情況與我們過去所說的沒有改變，那就是電池——或者實際上整個系統以千瓦時為基礎的設計成本是我們從 2.3 代開始時的一半。從那時起，我們今年重點關注了 7 項成本削減計劃，其中 2 項已經完成。當我們說像集裝箱的情況一樣完成時，我的意思是，我們已經協商了（技術難度），直到我們的（技術難度）才完全實現通過我們的損益表節省的費用，但是 - 所以有 - 那些隨著時間的推移，將會出現的事情類型。

And then as Joe mentioned, I mean, this is a continuous improvement process. We'll have significant efficiencies when we get to full automation. But even after that, we continue (technical difficulty) improvements, either supply chain design improvements, et cetera, going forward.

正如喬提到的，我的意思是，這是一個持續改進的過程。當我們實現完全自動化時，我們將獲得顯著的效率。但即使在那之後，我們仍會繼續（技術難度）改進，無論是供應鏈設計改進等等。

But specifics on the BOM, I mean, that's as much granularity as we can get into at this point.

但我的意思是，BOM 的具體細節是我們目前所能了解的盡可能多的粒度。

Yes, I mean, I think it's fair to say that your starting point of the launch is significantly lower than where we were at Gen 2.3, just on the form factor of the battery and the fact that we have no titanium. The 7 projects that Nathan is talking about, they get at the core of what we do to build the battery. So like, Chris, what -- as you look at the 7, right, this is something else, like so a 300-person company going out, building a pipeline of opportunities, building this battery, bringing a factory online.

是的，我的意思是，我認為可以公平地說，你們的發布起點明顯低於我們在 Gen 2.3 時的起點，僅就電池的外形尺寸以及我們沒有鈦金屬這一事實而言。 Nathan 所說的 7 個項目是我們製造電池的核心。就像，克里斯，當你看到 7 時，對吧，這是另一回事，就像一家 300 人的公司走出去，建立機會管道，建造電池，使工廠上線。

The third piece of this is building an American supply chain. So there's a tremendous [cost] opportunity here with us, working with companies like TETRA on electrolyte and coming up with ways to optimize the formula to optimize the mixing and delivering of that, to then look at what are we doing from the manufacturing of other components to really reduce the total supply chain cost, both material cost, logistics cost.

第三部分是建立美國供應鏈。因此，我們這裡有一個巨大的[成本]機會，與TETRA 這樣的公司合作開發電解液，並想出優化配方的方法來優化電解液的混合和輸送，然後看看我們在其他電解液的製造中做了什麼零部件真正降低供應鏈總成本，無論是材料成本、物流成本。

But going out and saying like, "Here we are, a 300-person entity in an environment where people say, can America innovate and can American manufacture?" And you know what I'd say, I'd say, "Yes, we can." Because 300 people are doing it.

但走出去並說，“我們是一個擁有 300 人的實體，人們在這樣的環境中說，美國可以創新，美國可以製造嗎？”你知道我會說什麼，我會說，“是的，我們可以。”因為有300人在做這件事。

Got it. And maybe just kind of [success towards] the focus on American made and all that, everything in your kind of commercial activity [flag is grown] except for the order backlog, and you called out people seeing the factory and the like -- but can you give us a sense -- do you guys get a sense that the current -- people in the current pipeline are waiting for the DOE loan [demand] order commitment before kind of moving forward? Like what are customers saying as far as kind of the DOE loan process?

知道了。也許只是[成功]關注美國製造等等，除了訂單積壓之外，你的商業活動中的一切[旗幟都在增長]，你叫人們看到工廠之類的東西——但是您能給我們一種感覺嗎？你們是否感覺到當前管道中的人們正在等待能源部貸款[需求]訂單承諾，然後才能繼續前進？就 DOE 貸款流程而言，客戶有何評價？

Absolutely, Chris. I mean we've had a number of conversations anecdotally where they're saying exactly that, right? We want to -- we like the technology. We've seen it. We've done a bunch of research but we just want to make sure that you guys are well capitalized and you're going to be here to deliver the product and also be here to deliver on the long-term service agreements on the back end. And so I think capital is important.

當然，克里斯。我的意思是，我們進行過很多次談話，他們都這麼說，對吧？我們想要——我們喜歡這項技術。我們已經看到了。我們已經做了很多研究，但我們只是想確保你們資本充足，並且你們將在這裡交付產品，並在這裡交付後端的長期服務協議。所以我認為資本很重要。

I think just as important is as we get Z3 product out in the field and cycling and customers can go out and see it and test it and look at the data and the successes, I think that's very important.

我認為同樣重要的是，當我們將 Z3 產品帶到現場並騎車時，客戶可以出去查看並測試它並查看數據和成功，我認為這非常重要。

And then the third piece that customers are mentioning is just additional clarity around domestic content, IRA credits. There's still a lot of discussion around that in folks we're talking to. So I think as those 3 -- as we have clarity on those 3 things, we should see a significant increase in customers moving through our commercial pipeline.

然後，客戶提到的第三件事是對國內內容、IRA 積分的進一步明確。在與我們交談的人們中，仍然有很多關於這個問題的討論。因此，我認為，隨著我們對這三件事有了明確的認識，我們應該會看到通過我們的商業渠道流動的客戶數量顯著增加。

And Chris, I'd add -- I mean I think Nathan's kind of gave you the technical, how we get their response. Like the way I've always thought about this in my 30-year career is that when someone decides to place a purchase order with the company, they're making a bet on you. And when we're talking about these types of projects, and like -- and I'm very passionate about the fact that we've got to start speeding up and doing things faster to meet the demand of this market.

克里斯，我想補充一下——我的意思是，我認為內森向你提供了技術方面的信息，以及我們如何得到他們的回應。就像我在 30 年職業生涯中一直思考的方式一樣，當有人決定向公司下採購訂單時，他們就在你身上下了賭注。當我們談論這些類型的項目時，我非常熱衷於這樣一個事實：我們必須開始加快速度，更快地做事，以滿足這個市場的需求。

When you're looking at projects where someone is making a purchasing decision today, and if they're lucky, they're going to get their grid connection in 2 to 3 years. So they're sitting there, making this decision and saying, "I'm making my bet on this company and these people for something that's going to happen 2 to 3 years from now."

當您查看某人今天做出購買決定的項目時，如果他們幸運的話，他們將在 2 到 3 年內實現並網。所以他們坐在那裡，做出這個決定並說：“我把賭注押在這家公司和這些人身上，因為從現在起兩到三年後將會發生一些事情。”

So we need to do is, as Nathan said, secure the financing to scale the factory and show them that we're going to be there to deliver that project. And yes, bringing them and showing them the manufacturing of the product and how the product works helps. But we've got to also show them that we're going to stand by the commitments that we make, and we're going to deliver on those commitments as we move forward. And that's as important as anything of having the underlying financials. It's both things. It's the -- being able to be there from a financing standpoint and being able to be there from a reliable partner that delivers, and we're doing both.

因此，正如內森所說，我們需要做的是確保融資以擴大工廠規模，並向他們表明我們將在那裡交付該項目。是的，帶他們過來並向他們展示產品的製造過程以及產品的工作原理會有所幫助。但我們還必須向他們表明，我們將信守我們做出的承諾，並且我們將在前進的過程中兌現這些承諾。這與擁有基礎財務狀況一樣重要。這是兩件事。能夠從融資的角度做到這一點，並且能夠從可靠的合作夥伴那裡做到這一點，而我們正在兩者兼而有之。

Our next question comes from Vincent Anderson with Stifel.

我們的下一個問題來自文森特·安德森和斯蒂菲爾。

So just maybe to get it out of the way, it sounds like you've completed everything you needed to on your end of the loan process, which I believe would include the term sheet. If that's the case, did the 30-day clock start on the treasury OMB approval process? Or does that still wait until the loan goes through this new, call it, pre-conditional commitment review?

因此，也許為了解決這個問題，聽起來你已經完成了貸款流程結束時所需的一切，我相信其中將包括條款清單。如果是這樣的話，財政部 OMB 審批流程是否已開始 30 天計時？或者仍然要等到貸款通過這個新的，所謂的，先決條件承諾審查？

Yes. Vincent, I would say, yes, we're definitely in a 30-day window. We have been responding to some questions over the last couple of weeks. They're getting fewer and further in between and easier to answer. So we've been working through, which makes me feel like we're at the very final stages of answering questions.

是的。 Vincent，我想說，是的，我們肯定處於 30 天的窗口期。過去幾週我們一直在回答一些問題。他們之間的距離越來越少，也更容易回答。所以我們一直在努力，這讓我覺得我們正處於回答問題的最後階段。

There are multiple approvals that have to occur in this process. And it's not necessarily clear from the outside looking in exactly what that process is, but we do believe and we've been informed we're in the very final stages of that. So we're hopeful that by Labor Day, we've got some great news to talk about. But like I said, we can't control the exact timing of it.

在此過程中必須進行多項批准。從外部來看，這個過程到底是什麼，並不一定很清楚，但我們確實相信，而且我們已經被告知，我們正處於這個過程的最後階段。因此，我們希望在勞動節之前，我們能聽到一些好消息。但就像我說的，我們無法控制它的確切時間。

Okay. No, that's helpful, though. And then actually, Nathan, thanks for the deep dive on the pipeline. I was actually hoping we could go back to like a 10,000-foot view of the industry really quick. So as far as your customers go, you have companies like blue-chip utility companies that are going to be self-funding these projects, but you have a very different structure in a lot of the renewables market in terms of both the structure and the financing. So I was hoping maybe you could just kind of talk about how those projects would compare to something like a large-scale utility customer.

好的。不，但這很有幫助。事實上，內森，感謝您對管道的深入研究。我實際上希望我們能夠很快回到 10,000 英尺的行業視角。因此，就您的客戶而言，像藍籌公用事業公司這樣的公司將為這些項目自籌資金，但在許多可再生能源市場中，無論是在結構還是在融資。所以我希望你能談談這些項目與大型公用事業客戶之類的項目相比如何。

And then just kind of ancillary to that, you hinted a couple of times that the interconnect, they might not want to call them delays, but they feel like delays to me. Is that having any impact on the pace of leads moving through the pipeline or the funding of those projects?

然後，作為輔助，您多次暗示互連，他們可能不想稱其為延遲，但對我來說，它們感覺像是延遲。這是否會對線索通過管道的速度或這些項目的資金產生任何影響？

Yes. So Vincent, I'll take something that Nathan can fill in. So on the last part of the question, look, the news that came out about the new FERC processes is great news for the industry, right? And we've got to get projects through the pipeline of projects and projects on to the grid performing.

是的。 Vincent，我將接受 Nathan 可以填寫的內容。因此，在問題的最後部分，您看，有關新 FERC 流程的消息對行業來說是個好消息，對嗎？我們必須讓項目通過項目管道並進入網格執行狀態。

Like you look at Texas, it looks like in the last week, it's almost like every other day, they set a record output for their grid. California going into a highs, like I said earlier, going into a very hot time period here and straining on their reserve margins. So we need these projects, and we need to move quickly here to make this happen, to make the new energy future a reality, right?

就像你看看德克薩斯州，看起來在上週，幾乎每隔一天，他們就為電網創造了創紀錄的輸出。正如我之前所說，加利福尼亞州進入了一個高點，進入了一個非常炎熱的時期，他們的儲備利潤率變得緊張。所以我們需要這些項目，我們需要快速行動來實現這一目標，讓新能源的未來成為現實，對嗎？

And that process of getting through, it slows down the project in the sense of you're not breaking ground on the project, you're not installing assets and you're not charging and discharging on the grid while you're waiting for approval. So we got to find a way to be faster as that. And the we -- the entire industry, including policy and government approvals and state approvals that need to happen to get the projects through.

在等待批准的過程中，這個過程會減慢項目的速度，因為你沒有在項目上破土動工，沒有安裝資產，也沒有在電網上充電和放電。所以我們必須找到一種更快的方法。我們——整個行業，包括項目通過所需的政策和政府批准以及國家批准。

On your question like blue-chip customers, we see more and more of those coming in and putting us through our paces and working through the pipeline and being in both some of the backlog confidential customers that Nathan talked about and also in our LOI pipeline. But on the other part of this market, like you -- and look, you could spend your time and just look in Google or read any of the trade magazines to see the number of developers out there coming up with storage projects.

關於藍籌客戶的問題，我們看到越來越多的客戶進來，讓我們完成我們的步伐，完成管道工作，並進入內森談到的一些積壓的機密客戶以及我們的意向書管道中。但在這個市場的另一部分，就像您一樣，您可以花時間在 Google 上查找或閱讀任何行業雜誌，看看有多少開發人員提出了存儲項目。

And the way these projects work are, in general, you're doing project development, so you're going out and saying, here's where I want to do my project. I'm going to spend some money to do development and get permitting, get things online. Then once I do get all that done, I'm going to go out and finance my project with either debt or equity. So you're making a partnership with people that have to go out and work through that process and then get through the permitting and then do their projects.

一般來說，這些項目的工作方式是，你正在進行項目開發，所以你出去說，這就是我想做我的項目的地方。我將花一些錢進行開發並獲得許可，將東西放到網上。然後，一旦我完成了所有這些工作，我就會出去用債務或股權為我的項目融資。因此，您正在與必須走出去並完成該流程的人建立合作夥伴關係，然後獲得許可，然後完成他們的項目。

When we were (inaudible) company, those are the types of people that wanted -- we had entrepreneurs who saw an opportunity, a great American story, by the way. I see an opportunity to have an idea, let's do this together. And those guys have come back, and we've developed and worked through this and are now getting ready to install assets. So you've got to work through that process side by side. It's a bumpy road.

當我們（聽不清）公司成立時，我們需要這樣的人——我們的企業家看到了機會，順便說一句，這是一個偉大的美國故事。我看到了一個提出想法的機會，讓我們一起來做吧。這些人已經回來了，我們已經開發並解決了這個問題，現在準備安裝資產。所以你必須並肩完成這個過程。這是一條崎嶇不平的路。

Look, it's a bumpy road when you're at Eos, and it was a bumpy road when I was at GE, like where you've got to work through these. Like you look at the big players, that's why there was, at the time, a GE Energy Financial Services or there's a Siemens Financial Services because people know that to accelerate some of these projects, you got to help and get them through their financing to get them online.

看，當你在 Eos 時，這是一條崎嶇的道路，當我在 GE 時，這是一條崎嶇的道路，就像你必須克服這些問題一樣。就像你看大公司一樣，這就是為什麼當時有通用電氣能源金融服務公司或西門子金融服務公司，因為人們知道，要加速其中一些項目，你必須幫助他們通過融資來實現讓他們上網。

We do that more on the technology side and then try to bring in people that we know from our backgrounds, whether that be Nathan's background in the industry, my background in the industry. We've got Jeff Bornstein on our Board, who would -- who was the CFO of GE and the CFO of GE Capital, that we have all these contacts, and we're trying to put together the deal to take these LOIs and these opportunities, turn them into backlog.

我們在技術方面做得更多，然後嘗試引進我們背景中認識的人，無論是內森的行業背景還是我的行業背景。我們的董事會中有傑夫·伯恩斯坦(Jeff Bornstein)，他是通用電氣的首席財務官和通用電氣資本公司的首席財務官，我們擁有所有這些聯繫人，我們正在努力整合交易以接受這些意向書和這些機會，將其轉化為積壓。

And backlog is not a guarantee of sense. Backlog just means we believe we have a project that's firm enough that we're going to start doing capacity planning around it. Then you got to translate that into revenue. And that's where the real hard work starts.

而且積壓並不能保證意義。積壓只是意味著我們相信我們有一個足夠堅定的項目，我們將開始圍繞它進行容量規劃。然後你必須將其轉化為收入。這才是真正艱苦工作的開始。

But you've got to be a partner all the way through. It goes back to where I started before on Chris' question where somebody is giving you an order, they're taking -- they're betting their career on your ability to deliver, and you've got to put 100% in to deliver that project, and we're going to do that at Eos.

但你們必須自始至終都是合作夥伴。這又回到了我之前開始討論克里斯的問題，有人給你下訂單，他們接受——他們把自己的職業生涯賭在你的交付能力上，而你必須投入 100% 的精力來交付。那個項目，我們將在Eos 進行。

There are no further questions. I'd like to turn the call back over to Joe Mastrangelo for closing remarks.

沒有其他問題了。我想將電話轉回給喬·馬斯特蘭傑洛（Joe Mastrangelo）做結束語。

Thank you. Thanks, everyone, for listening today. Exciting time. A lot of work going on, but extremely energizing. Energizing, and I say that as a -- with a dual meaning of what happens every day, whether that be in Edison or in Turtle Creek or out in the field, but also exciting to think about the future of the company, what we have to build here. And we're going to continue to be focused on the long-term value creation for our shareholders by bringing a product to market that the market demands, making it as competitive as possible and helping to power the new energy future, and we're excited to be able to do that.

謝謝。謝謝大家今天的收聽。激動人心的時刻。有很多工作正在進行，但非常充滿活力。充滿活力，我說的是每天發生的事情的雙重含義，無論是在愛迪生、在海龜溪還是在野外，但也令人興奮地思考公司的未來，我們擁有什麼在這裡建造。我們將繼續專注於為股東創造長期價值，將市場所需的產品推向市場，使其盡可能具有競爭力，並幫助推動新能源的未來，我們很高興能夠做到這一點。

And again, I'll end the call the same way I started. On behalf of the 300-plus people that come into work every day at Eos to make this great company. Thank you for your time today.

再說一次，我會像開始時一樣結束通話。我代表每天在 Eos 工作的 300 多名員工，共同打造這家偉大的公司。感謝您今天抽出時間。

Thank you for your participation. This does conclude the program. You may now disconnect. Everyone, have a great day.

感謝您的參與。這確實結束了該程序。您現在可以斷開連接。大家，祝你有美好的一天。