Eos Energy Enterprises Inc (EOSE) 2024 Q1 法說會逐字稿

Good day and thank you for standing by, welcome to Eos Energy's first-quarter 2024 earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.

美好的一天，感謝您的耐心等待，歡迎參加 Eos Energy 2024 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Ms. Higley, Director of Investor Relations. Please go ahead.

我現在想把會議交給今天的發言者，投資者關係總監希格利女士。請繼續。

Good morning, everyone, and thank you for joining us for Eos financial results and conference call for the first-quarter 2024. On the call today, we have Eos's CEO, Joe Mastrangelo; and CFO, Nathan Kroeker.

大家早安，感謝您參加我們的 Eos 2024 年第一季財務業績和電話會議。今天的電話會議由 Eos 執行長 Joe Mastrangelo 主持。和財務長內森·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 and outlook for our company and statements regarding our ability to secure final approval of a loan from the Department of Energy LPO or our anticipated use of proceeds from any loan facility provided by the US Department of Energy, which are subject to certain risks, uncertainties and assumptions.

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和前景的當前預期，以及有關我們獲得財政部最終批准貸款的能力的陳述能源LPO 或我們對美國能源部提供的任何貸款融資的收益的預期用途，受到某些風險、不確定性和假設的影響。

Should any of these risks materialize or should our assumptions prove to be incorrect our actual results may differ materially from our expectation of those implied by these forward-looking statements. The risks uncertainties that forward-looking statements are subject to are described in our SEC filings. 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.

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對這些前瞻性陳述所暗示的預期有重大差異。我們向 SEC 提交的文件中描述了前瞻性陳述所面臨的風險不確定性。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做出的任何前瞻性陳述以反映今天之後的事件或情況，或反映新資訊或發生的情況除法律要求外的意外事件。

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.

此電話會議將透過 Eos 投資者關係網站 Investors.eose.com 進行網路直播重播。在我們進行問答之前，喬和內森將向您介紹公司亮點、財務表現和業務重點。

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

現在，我將把電話轉給 Eos 執行長 Joe Mastrangelo。

Thanks Liz, welcome, everyone, thanks for taking the time here this morning. Let's jump right into what I think is the biggest news of the session here today. Last week, we successfully completed the factory acceptance test for the state of the art line one with our automation partner, ACRO automation in Wisconsin, really a tremendous achievement by the combined team of the two companies to get the FAT completed in the way that we got a completed and we got through final system debugging and integration in six weeks, the total cycle time on the line is a battery moving through stations around twelve seconds.

謝謝莉茲，歡迎大家，謝謝您今天早上抽出時間。讓我們直接進入我認為今天會議上最大的新聞。上週，我們與我們的自動化合作夥伴威斯康辛州 ACRO Automation 成功完成了最先進的第一條生產線的工廠驗收測試，這確實是兩家公司聯合團隊取得的巨大成就，以我們的方式完成了 FAT完成後，我們在六週內完成了最終的系統調試和集成，生產線上的總週期時間是電池在各個站點之間移動的時間約為12 秒。

We really have a couple of stations that we need to tune in. The majority of the stations are running at the 10 second target. We've got a clear line of sight to get to that 10-second cycle time (sic - see slide 3 "12-second cycle time") It's very impressive to watch the batteries go through the manufacturing process and see how far we've come and see the quality that's able to come off of the line.

我們確實有幾個電台需要收聽。大多數站點都以 10 秒的目標運行。我們有一個清晰的視線來實現 10 秒循環時間（原文如此 - 請參閱幻燈片 3“12 秒循環時間”），看到電池完成製造過程並看看我們能走多遠，真是令人印象深刻。讓我們來看看能夠實現的品質。

Now when you take a look at that and think about what's next, first equipment arriving today and Turtle Creek to then start being installed in our factory here in building 700 here where we've been manufacturing on the semi-automated line. Pretty exciting time here, the operators have been trained on the state of the art line.

現在，當您查看並思考下一步時，第一批設備今天抵達 Turtle Creek，然後開始安裝在我們 700 號大樓的工廠中，我們一直在半自動化生產線上進行製造。這裡真是令人興奮的時刻，操作員接受了最先進生產線的訓練。

During FAT and then our installation and commissioning is on-plan per schedule. And I think this is very important for us as a company and a couple of areas. One, we continue to execute to the plan that we laid out at our strategic outlook session in December. The second piece is getting through the FAT is a critical step as we think about customers wanting to see our ability to execute on large projects.

在 FAT 期間，我們的安裝和調試按計劃按計劃進行。我認為這對我們公司和幾個領域來說非常重要。第一，我們繼續執行我們在 12 月戰略展望會議上製定的計劃。第二部分是透過 FAT 是關鍵的一步，因為我們認為客戶希望看到我們執行大型專案的能力。

And three, as we talked about, this is also SAT is a critical milestone as we current -- as we continue to work with the Department of Energy on our loan program office conditional commitment. So really great job by the team to achieve the schedule, great job to really start positioning now for SAT and truly ramp up production here as we go forward.

第三，正如我們所談到的，這也是 SAT 的一個重要里程碑，因為我們將繼續與能源部就貸款計劃辦公室的有條件承諾進行合作。團隊在完成時間表方面做得非常出色，現在就開始為 SAT 做好準備，並在我們前進的過程中真正提高產量。

If we switch to the next page and just talk about where we are running the business operationally versus the targets that we laid out in December. We talked about continuing to improve the performance of the Z3 module. Nathan will talk through in his section some of the cost out and work that we've done that we talked about in December.

如果我們切換到下一頁，只討論我們的業務運作與我們 12 月制定的目標相比。我們談到了繼續提高Z3模組的性能。Nathan 將在他的部分中討論我們在 12 月討論過的一些成本支出和工作。

We cut in a New Year's Z3 in-line cube, which improves the overall power density of the product out in the field. We also transitioned over to lower cost, higher energy density, Z3 battery module. This will allow us to reduce overall product costs and manufacturing costs to bring the product to market on our path to profitability, which is our overriding goal as you think about where we are in 2024.

我們切入了 New Year 的 Z3 直插式立方體，這提高了產品在現場的整體功率密度。我們也轉向成本更低、能量密度更高的 Z3 電池模組。這將使我們能夠降低整體產品成本和製造成本，從而將產品推向市場並實現盈利，這是我們在 2024 年的首要目標。

We've secured 55% of our direct material cost out target of phenomenal job by the team to be able to do this. More importantly, I think when you think about this in the context of the overall market, we believe that we're above 90% of US content while achieving that cost out. So once again, like one of our core tenets is to allow our customers to maximize their benefits under the investment tax credit of the IRA, continuing to do that while driving down cost of our product is a testament to our belief that we can still build competitive products here in the United States.

為了實現這一目標，我們團隊的出色工作已經實現了 55% 的直接材料成本目標。更重要的是，我認為當你在整個市場的背景下考慮這一點時，我們相信我們的美國內容超過 90%，同時實現了成本節約。因此，我們的核心原則之一是讓我們的客戶在 IRA 的投資稅收抵免下獲得最大利益，繼續這樣做，同時降低我們產品的成本，證明了我們的信念，即我們仍然可以建立在美國這裡有競爭力的產品。

Field data -- field operating data, the next critical component. We've shipped over 110 Z3 tubes to five different customers. We're beginning commissioning on three of those projects. I'll talk about them on a subsequent page. But that's going to be the critical next milestone when you think about where the Z3 evolves to is getting those assets up and running for customers out in the field.

現場數據－現場操作數據，下一個關鍵組成部分。我們已將 110 多個 Z3 管運送給五個不同的客戶。我們正在開始調試其中三個項目。我將在下一頁討論它們。但當您考慮 Z3 的發展方向時，這將是下一個關鍵的里程碑：為客戶在現場安裝和運行這些資產。

We have one of the three that are getting very close to start operating with the other two starting operations in early third quarter. Commercial momentum, the big announcement of extending our MSA with Pine gate renewables, very big recurring customer, our largest installation is with Pine gate, so a testament to our ability to execute out in the field. We are working on 1.2 gigawatt hours of late-stage opportunities to continue to convert into orders.

我們的三個工廠之一即將開始運營，另外兩個工廠將於第三季初開始運作。商業勢頭，用 Pinegate 可再生能源擴展我們的 MSA 的重大公告，非常大的經常性客戶，我們最大的安裝是 Pinegate，因此證明了我們在該領域的執行能力。我們正在研究 1.2 吉瓦時的後期機會，以繼續轉化為訂單。

I think again, going back to the previous page, that conversion into orders really is going to start to see momentum as people can come and see the line to be able to look at a battery coming off the line every ten seconds and be able to say that Eos is capable to deliver at scale. I think that's critical as we start to see projects getting bigger in size, people want to be able to see that you can deliver not just the small dispo -- prove out a technical concept, but be a true scaled operating company and that's the path that we're on as a team.

我再次認為，回到上一頁，訂單轉換確實將開始看到勢頭，因為人們可以來看看生產線，能夠看到每十秒就有一個電池從生產線上脫落，並且能夠說Eos 有能力大規模交付。我認為這一點至關重要，因為我們開始看到專案規模越來越大，人們希望看到您不僅可以提供小型處置方案——證明技術概念，而且可以成為一家真正的規模化營運公司，這就是道路我們作為一個團隊。

We continue to improve our overall digital capability, we've taken a lot of the lessons learned from the Gen 2.3 product down the field and rolled that into the logic around our BMS. If you go back and look at what we said in December, around state of health, state of charge overall operating and optimizing performance for customers, using that data and applying it to the Z3 is just going to make those purchases that customers are making a Z3 more valuable as they get out in the field and installed.

我們繼續提高我們的整體數位化能力，我們從 Gen 2.3 產品中吸取了很多經驗教訓，並將其融入我們的 BMS 的邏輯中。如果你回顧我們在 12 月所說的關於健康狀況、整體營運狀況和優化客戶表現的內容，那麼使用這些數據並將其應用到 Z3 只會讓客戶購買的商品變得更便宜。安裝後更有價值。

On a liquidity front, nathan will walk through where we are on monetizing our production tax credits and bringing in that capital to the company and allow us to keep operating and we continue to work to achieve our DOE loan requirements and continue to work with the LPO to get to loan closing and feel really good about also the operational aspects of the business and being able to bring capital being able to bring cash into the business through delivering on project milestones and be able to invoice and collect cash as we execute on those projects for those 110 cubes that we've already put out in the field.

在流動性方面，內森將介紹我們如何將生產稅收抵免貨幣化，並將這些資本引入公司，使我們能夠繼續運營，我們將繼續努力實現能源部的貸款要求，並繼續與 LPO 合作完成貸款，並對業務的運營方面感到非常滿意，能夠帶來資本，能夠通過實現項目里程碑將現金帶入業務，並能夠在我們執行這些項目時開具發票和收取現金對於我們已經在現場投放的110 個立方體。

Go to the next page, just our normal operating highlight page commercial pipeline standing at above $13 billion, 49 gigawatt hours of opportunities. Booked orders, $125 million last quarter which is the Pine Gate, MSA extension. Our orders backlog now stands above $600 million that's 2.4 gigawatt hours of backlog. If you think about where we are on the initial introduction of the state of the art line.

轉到下一頁，只是我們正常運營的亮點頁面商業管道價值超過 130 億美元，即 49 吉瓦時的機會。上季預訂訂單金額為 1.25 億美元，其中包括 MSA Pine Gate 擴建項目。我們的積壓訂單現已超過 6 億美元，即 2.4 吉瓦時的積壓訂單。如果你想想我們在最初引進最先進的生產線時所處的位置。

That's two years of capacity of the state of the art line. When you really think about some of the things Nathan will talk about when he gets in there. We've already started thinking about how do we take that state-of-the-art line, get it up and running at the 1.25 gigawatt hours that we've talked about, but then increase that to allow us to continue to grow the business as we see our pipeline accelerating discharge energy.

這是最先進生產線兩年的產能。當你真正考慮內森進入那裡時會談論的一些事情時。我們已經開始思考如何採用最先進的生產線，讓它以我們談到的 1.25 吉瓦時的速度運行，然後增加該產量，使我們能夠繼續增長我們看到我們的管道正在加速釋放能量。

This is probably one of the other biggest milestones that we have in the presentation were above 3 gigawatt hours of discharge energy with 2.6 gigawatt hours of that coming in customer sites out in the field. Our revenue of $6.6 million, 100% of that coming from the Z3 production. I think what we see and when you really look at this and look at it on the basis of quarter-over-quarter performance, you're really starting to see the aspect of being able to manufacture the product at scale and being able to see the cost work that we've been doing come through and when you look at our cost of goods sold.

這可能是我們在演示中實現的其他最大里程碑之一，放電能量超過 3 吉瓦時，其中 2.6 吉瓦時來自現場客戶現場。我們的收入為 660 萬美元，其中 100% 來自 Z3 的生產。我認為我們所看到的，當你真正審視這一點並根據季度環比表現來審視它時，你真的開始看到能夠大規模製造產品並能夠看到的方面當你查看我們的銷售成本時，我們一直在做的成本工作就會顯現出來。

And lastly, cash on hand was around $32 million at the end of the quarter. It doesn't include restricted cash that we hold for our Atlas debt that we have on the balance sheet. Shifting as we move into commercial, the commercial opportunity pipeline, the orders backlog, to go to page 7, first want to start off with, I think, is a really valuable and page from the value that the team is creating around Eos in the energy storage field.

最後，截至本季末，手頭現金約為 3,200 萬美元。它不包括我們為資產負債表上的阿特拉斯債務而持有的限制性現金。當我們進入商業領域時，商業機會管道、訂單積壓，轉到第 7 頁，首先要開始，我認為，這是一個非常有價值的頁面，來自團隊圍繞 Eos 創造的價值儲能領域。

Left hand side of the page shows the discharge energy coming off of our systems that dark green line, our energy discharge out in the field. When you just think about what we've done, we've discharged 1.4 gigawatt hours of energy in the first four months of 2024, and we've discharged 400 megawatt hours in the last three weeks. So you really think about the assets being able to operate the technology, being able to work out in the field.

頁面左側顯示了從我們的系統中排出的深綠線能量，我們的能量在場中釋放。只要想想我們所做的事情，我們在 2024 年前四個月就釋放了 1.4 吉瓦時的能源，在過去三週內釋放了 400 兆瓦時的能源。所以你真正考慮的是能夠操作技術、能夠在現場工作的資產。

We're learning every day. We're improving the performance every day, but you can see the durability and the flexibility of the product as customers use that on the field. That's mostly energy being generated off of Gen 2.3. I just wanted to be clear on when you look up in the top 2.6 coming from the field, 2.2 gigawatt hours as FAT I just want to be clear that's factory acceptance, testing of cubes and containers prior to being shipped from the factory not associated with the factory acceptance testing that has been done on state of the art line one for the Z3.

我們每天都在學習。我們每天都在提高性能，但當客戶在現場使用產品時，您可以看到產品的耐用性和靈活性。這主要是 2.3 世代產生的能源。我只是想澄清一下，當您查看來自現場的頂部 2.6 時，FAT 為 2.2 吉瓦時，我只是想澄清一下，這是工廠驗收、在從工廠發貨之前對立方體和容器進行的測試，與Z3的工廠驗收測試已在最先進的第一生產線上完成。

And then there is around 0.2 gigawatt hours on the lab that holds up the 3 gigawatt hours. Now on the right hand side of the page and another important proof point, when you think about proof points in the market and showing years its ability to grow into the demand that we see on the field.

實驗室中還有大約 0.2 吉瓦時的電量可以容納 3 吉瓦時的電力。現在，在頁面的右側，還有另一個重要的證據點，當您考慮市場中的證據點並展示多年來其增長到我們在現場看到的需求的能力時。

First proof point we talked about today is the ability to be able to manufacture at scale, a big milestone and being able to deliver the factory acceptance testing on state-of-the-art line one. Second proof point is the left-hand side of this page, which talks about assets, operating discharging energy out in the field and showing that the technology works.

我們今天討論的第一個證明點是能夠大規模製造，這是一個重大里程碑，並且能夠在最先進的生產線上進行工廠驗收測試。第二個證據點是本頁的左側，其中討論了資產、在現場釋放能量的操作以及表明該技術的有效性。

The right-hand side of the page, I think is the third important point, which is Z3 operating out in the field. You could see three projects that are currently installed out in the field, one of which completing it's commissioning the other two scheduled to complete their commissioning here in the beginning of the third quarter.

頁面的右側，我認為是第三個重要點，這是Z3在外地的操作。您可以看到目前正在現場安裝的三個項目，其中一個已完成調試，另外兩個項目計劃在第三季初完成調試。

That will then start generating and adding to that line on the left-hand side of the page, which will no longer just be jumped 2.3 will become Gen 2.3 plus Z3 operating out in the field, which is another critical proof point and how we grow the company for the future, which takes me to page 8, which is our current pipeline, our traditional pipeline page that we talk about.

然後，它將開始生成並添加到頁面左側的該行，該行將不再只是跳轉 2.3，將成為 Gen 2.3 加 Z3 在現場運行，這是另一個關鍵的證明點以及我們如何成長面向未來的公司，這將我帶到第8 頁，這是我們當前的管道，我們談論的傳統管道頁面。

You'll see there's been a lot of flow in the pipeline during the quarter. Now lead generation continues to grow there. So you have to realize like we're showing net numbers, there's always ins and outs in every bucket, but we continue to add really strong core lead generation, which will then go into this commercial opportunity pipeline, which is technical proposals, non-binding quotes and LOI firm commitments.

您會發現本季管道中有大量流量。現在，潛在客戶的產生持續成長。所以你必須意識到，就像我們顯示的淨數字一樣，每個桶中總是有來龍去脈，但我們繼續增加真正強大的核心潛在客戶生成，然後將進入這個商業機會管道，這是技術建議，非-具有約束力的報價和意向書堅定承諾。

You see LOI firm commitments being down from prior quarter. That's a lot of that has to do with the signing of the Pine Gate order. There's also some changes in projects that we have as far as sizing of projects and projects that didn't materialize, even though we had a binding or an LOI and a firm commitment from our customers.

您會看到意向書的堅定承諾比上一季下降。這在很大程度上與松門訂單的簽署有關。儘管我們有約束力或意向書以及客戶的堅定承諾，但我們在專案規模和專案方面也發生了一些變化，但這些變化並未實現。

Now inside of that, we talked about late stage opportunities last quarter that stands at 1.2 gigawatt hours. The change in that number is, again, Pine Gate moving over into the booked order side and then one project where the sizing of the project got smaller as the customer looked at their ability to generate profit off of a project and balancing the land available, the financing available and the need for the power. So that takes that to 1.2 gigawatt hours.

在這之中，我們討論了上個季度的後期機遇，即 1.2 吉瓦時。這個數字的變化再次是，Pine Gate 轉移到預訂訂單方面，然後是一個項目，項目規模變小，因為客戶著眼於他們從項目中產生利潤的能力並平衡可用土地，可用的融資和電力需求。這樣就達到 1.2 吉瓦時了。

We continue to work across that portfolio to be able to continue to grow the right-hand side of the page, which is that backlog, which stands at $602 million today with 2.4 gigawatt hours, up 13% from where we were last quarter.

我們繼續在該投資組合中開展工作，以便能夠繼續增長頁面右側的訂單，即積壓訂單，目前已達 6.02 億美元，容量為 2.4 吉瓦時，比上季度增長 13%。

So, continue to make progress here, continue to have to work through putting the proof points on the board to three important proof points that I think about operationally that lead to taking this pipeline page to booked orders, which eventually translates into revenue. Having the line up and running, showing that the product works out in the field and then ultimately for shareholders is working through the cost out equation to get the company to profitability.

因此，繼續在這裡取得進展，繼續努力將板上的證明點放到我認為可操作的三個重要證明點上，這些證明點會導致將此管道頁面用於預訂訂單，最終轉化為收入。讓生產線投入運行，顯示產品在現場運作良好，最終為股東提供成本計算公式，使公司獲利。

With that, I'll turn over to Nathan, who will walk you through the progress that the team has made here since we last spoke for year end earnings. Thanks.

接下來，我將轉向內森，他將向您介紹自我們上次談論年終收益以來團隊在這裡取得的進展。謝謝。

Thanks, Joe. Thanks, everybody, for joining us this morning. I will spend the rest of the time walking through where we are on our cost-out roadmap, along with our first quarter performance and an outlook for the rest of 2024.

謝謝，喬。謝謝大家今天早上加入我們。我將用剩下的時間來介紹我們的成本支出路線圖，以及我們第一季的業績和 2024 年剩餘時間的展望。

Moving to slide 10, I just want to spend some time on two programs that are critical to our cost-out program and part of the manufacturing cutover that we undertook last month. And as we discussed back in December. If you look on the left, what you see here is the new lower cost, higher energy density module that was designed for further cost out, as well as being uniquely designed in anticipation of our automated line.

轉到幻燈片 10，我只想花一些時間討論對我們的成本削減計劃和我們上個月進行的製造轉換的一部分至關重要的兩個計劃。正如我們在 12 月討論的那樣。如果您看左邊，您會看到這裡是新的成本更低、能量密度更高的模組，該模組專為進一步降低成本而設計，並且針對我們的自動化生產線進行了獨特設計。

If you remember from our last call, Joe talked about increasing the surface area of the felt on the bi-polars and replacing the terminal electrodes with conductive plastic. Having more felt surface area means you have the ability to retain more energy, which has resulted in 15% more energy per module. Further, you can see the differences in the lids on these two images.

如果您還記得我們上次通話，喬談到了增加雙極毛氈的表面積並用導電塑膠替換端子電極。氈表面積越大意味著您能夠保留更多能量，從而使每個模組的能量增加 15%。此外，您還可以看到這兩個圖像上蓋子的差異。

The design has evolved as we replaced the titanium stud in the old design with a tab that is yielding place with potting compound to improve manufacturability and reduce cost in the automated line. All of these enhancements take cost out of the product and improve the performance, both of which were key components of our cost-out road map that we laid out in December.

隨著我們將舊設計中的鈦螺柱替換為帶有灌封材料的凸片，該設計不斷發展，以提高可製造性並降低自動化生產線的成本。所有這些增強功能都降低了產品成本並提高了效能，這兩者都是我們 12 月制定的成本削減路線圖的關鍵組成部分。

Now switching to the in-line cube. We are very proud of the team that has taken a concept and brought it to reality in just four months. This design was created with the intent of capitalizing on the value propositions of our Z3 battery technology and by working with customers and incorporating their suggested enhancements that they value as our projects get larger in scale.

現在切換到內聯立方體。我們為這個團隊感到非常自豪，他們在短短四個月內就提出了一個概念並將其變為現實。創建此設計的目的是利用我們 Z3 電池技術的價值主張，並與客戶合作，並納入他們在我們的專案規模不斷擴大時所重視的增強功能建議。

The new in-line cube has benefits in terms of the speed of loading batteries into the cube in our facility in Turtle Creek. But perhaps more importantly, it also has benefits for our customers as it simplifies site set up and site energy density as the new in-line cubes can be placed directly next to each other rather than leaving spaces between each cube.

在我們位於 Turtle Creek 的工廠中，新型直列式立方體在將電池裝入立方體的速度方面具有優勢。但也許更重要的是，它也為我們的客戶帶來了好處，因為它簡化了站點設置和站點能量密度，因為新的直列立方體可以直接彼此相鄰放置，而不是在每個立方體之間留出空間。

The design enhancements seen in both of these programs is testament to the hard work and dedication of our talented team, particularly in our research and development departments and they have been instrumental to our cost-out program. Our cube now has an energy density of up to 695 kilowatt hours for longer duration applications and we have scheduled to further increase energy density in Q4 with the projects that Francis laid out back in December.

這兩個計劃中的設計改進證明了我們才華橫溢的團隊的辛勤工作和奉獻精神，特別是我們的研發部門，他們對我們的成本支出計劃發揮了重要作用。我們的立方體現在的能量密度高達 695 千瓦時，適用於較長時間的應用，我們計劃在第四季度透過 Francis 在 12 月部署的專案進一步提高能量密度。

Now flipping to the next page. We continue to see progress on our cost road map that we have been talking about for the last couple of quarters. When you look at the left-hand side, you see, we started off at 100% when we first launched the product and we're now down to 59%, and we continue on our way to 20%, which would represent 80% cost-out from product launch to manufacturing at scale.

現在翻到下一頁。我們繼續看到過去幾季我們一直在討論的成本路線圖的進展。當你看左邊的時候，你會發現，當我們第一次推出該產品時，我們的比例是100%，現在已經下降到59%，並且我們將繼續朝著20% 的方向前進，這相當於80%從產品發佈到大規模製造的成本節約。

A lot of this has to do with ramping up the line, but also acceleration of our direct material reductions as we transition to the lower-cost design and continue to negotiate strategic supply agreements with larger US suppliers as Joe discussed earlier. As of March 31, we have locked in 55% of our direct material cost out target, and we expect to see these benefits flow through our financials in the second half of the year.

這在很大程度上與擴大生產線有關，但也與我們向低成本設計過渡以及繼續與較大的美國供應商談判戰略供應協議有關，正如喬之前討論的那樣，我們加速了直接材料的減少。截至 3 月 31 日，我們已鎖定直接材料成本支出目標的 55%，我們預計這些效益將在下半年反映在我們的財務狀況中。

You can also see on the page that we had lower overhead absorption from the prior quarter, which we discussed on the Q4 call. You will recall this was expected as we cut in some design enhancements into our semi-automated manufacturing line at the end of Q1 and into Q2 as part of the implementation of our newly designed product as we talked about earlier.

您還可以在頁面上看到，與上一季相比，我們的管理費用吸收量較低，我們在第四季度的電話會議上對此進行了討論。您會記得這是預期的，因為我們在第一季末和第二季對半自動化生產線進行了一些設計增強，作為我們之前討論的新設計產品實施的一部分。

We expect to continue to have lower overhead absorption in the second quarter, as we have scaled back production volumes in anticipation of the transition to the new state of the art line. We feel really good about where we're at and as we begin to ramp up in the back half of the year, we believe we will continue to see benefits through scale production, improving both our overhead and direct labor efficiencies.

我們預計第二季的管理費用吸收將繼續降低，因為我們已經縮減了產量，以過渡到新的最先進的生產線。我們對目前的狀況感到非常滿意，隨著我們在下半年開始加速，我們相信我們將繼續透過規模生產看到效益，提高我們的管理費用和直接勞動力效率。

Now moving to slide 13. Before getting into the first quarter financial results, I will start with an update on our cash position, as we continue to make progress on securing our long-term financing. We ended the quarter with $31.8 million in cash on the balance sheet, not including $14.5 million of restricted cash, which is primarily related to our senior secured loan.

現在轉到投影片 13。在介紹第一季財務業績之前，我將首先介紹我們現金狀況的最新情況，因為我們在確保長期融資方面繼續取得進展。本季結束時，我們的資產負債表上有 3,180 萬美元的現金，不包括 1,450 萬美元的限制性現金，這主要與我們的優先擔保貸款有關。

We are very focused on minimizing cash burn and optimizing working capital to support our ongoing operations and strategic objectives. As a proactive measure to conserve capital, we made the strategic decision to scale back production volumes in the second quarter and prioritize shipping new product from our automated line.

我們非常注重最大限度地減少現金消耗和優化營運資本，以支持我們的持續營運和策略目標。作為節省資本的積極措施，我們做出了策略決策，在第二季度縮減產量，並優先從自動化生產線運送新產品。

While the unit economics of the new line are better as a result of better labor and overhead absorption, we still expect to be at negative contribution margins in the short term, but we do have a clear path to positive unit margins as we ramp up over the next few months. We have also been taking measures to increase cash flow and enhance our liquidity as we monetize our tax credits and collect on customer milestone payments.

雖然由於更好的勞動力和管理費用吸收，新生產線的單位經濟效益更好，但我們仍然預計短期內貢獻利潤率將為負，但隨著我們的產能增加，我們確實有一條通往正單位利潤率的明確道路。我們也一直在採取措施增加現金流並增強我們的流動性，因為我們將稅收抵免貨幣化並收取客戶里程碑付款。

On April 22, we finalized our first transaction to monetize our production tax credit in an agreement with Banyan Software. The sale was executed at a 10% discount to the face value of the credits, which was in line with our expectations and resulted in a cash infusion of $2.3 million. Going forward, we expect to take a more accelerated approach to monetizing these tax credits on a regular basis in an effort to offset our cash usage from operations and strengthen our balance sheet.

4 月 22 日，我們與 Banyan Software 達成了協議，完成了第一筆將生產稅收抵免貨幣化的交易。此次出售以積分面額 10% 的折扣進行，符合我們的預期，並帶來了 230 萬美元的現金注入。展望未來，我們預計將採取更快的方式定期將這些稅收抵免貨幣化，以抵消我們營運中的現金使用並加強我們的資產負債表。

With that, let's get into our financial results. In the first quarter, revenue was $6.6 million, flat to last quarter and down roughly 25% from the prior year on 18% lower unit volumes as we transition to Z3 combined with a slightly lower average selling price. In the quarter, we delivered Z3 systems to two customers and completed our final shipment to a key customer owned by a large North American infrastructure fund in Orchard, Texas, just outside of Houston.

接下來，讓我們來看看我們的財務表現。第一季的營收為 660 萬美元，與上一季持平，比去年同期下降約 25%，因為我們過渡到 Z3，單位銷量下降了 18%，平均售價也略有下降。在本季度，我們向兩個客戶交付了 Z3 系統，並完成了對一家大型北美基礎設施基金所擁有的關鍵客戶的最終發貨，該客戶位於休士頓郊外的德克薩斯州果園。

Cost of goods sold was $28.2 million, a 5% increase versus prior year, despite having 28% higher manufacturing volumes. Even though we saw a slight increase in COGS, we are beginning to see the benefits of Z3 product as we had higher manufacturing volumes this quarter compared to Q1 of 2023 when we were producing the Gen 2.3 product. The decrease in gross margins was driven by specific project revenue recognition timing, combined with the switch to Z3 cube manufacturing.

儘管製造量增加了 28%，但銷售成本為 2,820 萬美元，較上年增長 5%。儘管我們看到 COGS 略有增加，但我們開始看到 Z3 產品的好處，因為與 2023 年第一季我們生產 2.3 產品時相比，本季的製造量更高。毛利率下降是由於特定項目收入確認時間以及轉向 Z3 立方體製造。

Looking at quarter-over-quarter results, we saw a 9% improvement in gross margins as we continue to see the benefits of recent cost-outs improved manufacturability, and we expect to see continued improvements once we transition to our new line.

從季度環比業績來看，我們看到毛利率提高了9%，因為我們繼續看到最近的成本削減所帶來的好處，提高了可製造性，並且我們預計一旦我們過渡到新生產線，毛利率將繼續改善。

Operating expenses for the quarter were $19.5 million, a 3% decrease from prior year, resulting from slightly higher payroll expenses, offset by slightly lower R&D spend. Total operating expenses included $3.1 million or 16% in noncash items, including stock-based compensation, depreciation and amortization.

該季度的營運支出為 1,950 萬美元，比上年同期下降 3%，這是由於工資支出略有增加，但研發支出略有減少所抵消。總營運支出包括 310 萬美元或 16% 的非現金項目，包括股票薪酬、折舊和攤提。

Our operating loss was $41.1 million for the quarter compared to $38.3 million in the prior year, driven primarily by the decrease in revenue that we discussed earlier. Excluding noncash items such as stock-based compensation, depreciation and amortization and PP&E write-offs, operating loss was $36.6 million. Net loss for the quarter was $46.7 million, a 35% improvement versus the prior year.

本季我們的營運虧損為 4,110 萬美元，而上年同期為 3,830 萬美元，這主要是由於我們之前討論的收入下降所致。不包括股票薪酬、折舊和攤提以及固定資產、廠房設備沖銷等非現金項目，營業虧損為 3,660 萬美元。本季淨虧損為 4,670 萬美元，較上年同期減少 35%。

Now let's turn to page 14 and look at how we're planning to grow the business as we scale capacity. We continue to believe this to be a very capital-efficient business, as we are forecasting approximately $50 million in CapEx for over 2 gigawatt hours of production capacity, which is less than $25 million per gigawatt hour.

現在讓我們翻到第 14 頁，看看我們計劃如何在擴大容量的同時發展業務。我們仍然相信這是一項資本效率非常高的業務，因為我們預計超過 2 吉瓦時的產能的資本支出約為 5000 萬美元，即每吉瓦時不到 2500 萬美元。

As we've discussed previously and in line with our original expectations, it requires approximately $30 million in CapEx to get to 1.25 gigawatt hours of annualized capacity. This includes CapEx related to the [Acro] automation line and the related investment for injection molding tooling. As of March 31, we have spent a little over $21 million and have roughly $8 million to go for the remainder of 2024.

正如我們之前討論的，根據我們最初的預期，需要大約 3000 萬美元的資本支出才能達到 1.25 吉瓦時的年化容量。這包括與 [Acro] 自動化生產線相關的資本支出以及注塑模具的相關投資。截至 3 月 31 日，我們已花費略高於 2,100 萬美元，並有約 800 萬美元用於 2024 年剩餘時間。

These dollars are expected to be spent over the next three quarters with payment terms driven by progress milestones. Further, we are carefully evaluating our investment priorities to ensure that every dollar spent on capital expenditures has a direct impact on streamlining operations and improving productivity.

這些資金預計將在未來三個季度內支出，付款條件由進度里程碑決定。此外，我們正在仔細評估我們的投資優先事項，以確保用於資本支出的每一美元都能對簡化營運和提高生產力產生直接影響。

Looking at the bottom left-hand side of the page, we are forecasting an additional $20 million in spend, which is in line with our original estimates to further expand capacity and increase the throughput of our first line to reach over 2 gigawatt hours of annualized capacity. We expect the majority of this spend to be in the back half of this year and into the first part of 2025.

查看頁面左下角，我們預計將額外支出 2000 萬美元，這與我們最初的估計一致，旨在進一步擴大產能並提高第一條生產線的吞吐量，以達到年化超過 2 吉瓦時的目標容量。我們預計大部分支出將在今年下半年和 2025 年上半年進行。

This investment would include automating the subassembly processes on the front and back end of the automated battery line, as well as increasing the injection molding tooling capacity to keep up with the increase in production volumes. Automating the subassembly process is aimed to enhance operational efficiency, reduce labor costs and minimize scrap.

這項投資將包括自動化電池生產線前端和後端的組件流程自動化，以及提高注塑模具產能以跟上產量的成長。自動化分裝流程旨在提高營運效率、降低勞動成本並最大限度地減少廢品。

Today, the bipolar subassembly is one of the more labor-intensive areas of our semi-automated manufacturing process, as we have teams of people manually cutting and pressing felt into the plastic bipolar with a manually operated heat press. Automating this portion of the process is expected to increase our labor efficiency by approximately 87%, significantly reducing our direct labor costs.

如今，雙極組件是我們半自動化製造流程中勞動密集的領域之一，因為我們有團隊使用手動熱壓機手動切割毛氈並將其壓入塑膠雙極。這部分流程的自動化預計將使我們的勞動效率提高約 87%，從而顯著降低我們的直接勞動成本。

While we look to increase capacity and automate certain processes, we may adjust investment timing as it will be tied to securing long-term funding. And finally, let's shift our focus to our 2024 outlook on the next slide. Regarding our revenue estimates for 2024, we continue to expect to realize between $60 million and $90 million based on our current production plan and anticipated customer delivery schedules, which assumes that we will be running the semi-automated manufacturing line through the second quarter and then transitioning to production of battery modules on the new state of the art manufacturing line.

雖然我們希望提高產能並實現某些流程的自動化，但我們可能會調整投資時機，因為這與確保長期資金有關。最後，讓我們將注意力轉向下一張投影片中的 2024 年展望。關於我們對 2024 年的收入預測，根據我們目前的生產計劃和預期的客戶交付時間表，我們繼續預計實現 6000 萬至 9000 萬美元的收入，假設我們將在第二季度運行半自動化生產線，然後過渡到在最先進的新生產線上生產電池模組。

As previously mentioned, we do expect our second quarter revenue to be lower than initial expectations as we transition to the new lower-cost battery module and scaled back production volumes to better optimize our cost roadmap and conserve precious capital. Aligning our cost roadmap with production volumes and critical customer commitments continues to be a key priority.

如前所述，我們確實預計第二季的收入將低於最初的預期，因為我們轉向新的低成本電池模組並縮減產量，以更好地優化我們的成本路線圖並節省寶貴的資本。將我們的成本路線圖與產量和關鍵客戶承諾保持一致仍然是關鍵優先事項。

This decrease is not indicative of a decline in overall performance, but rather a strategic shift from one period to another as a way to realize better unit economics, as we transition to our automated line. We also continue to expect to achieve positive contribution margin in the fourth quarter of this year, which is defined as revenue less direct labor and direct materials, including the benefit of the production tax credits.

這種下降並不表示整體績效下降，而是從一個時期到另一個時期的策略轉變，作為我們過渡到自動化生產線時實現更好的單位經濟效益的一種方式。我們也繼續預期今年第四季將實現正貢獻邊際，其定義為收入減去直接勞動力和直接材料，包括生產稅收抵免的好處。

The entire team is laser focused on executing the cost-out program that we detailed in December through a combination of increased production and improving operating leverage, as well as direct material cost as that simultaneously improve battery performance and energy density. We continue to expect to reduce our total unit production costs in 2024 by approximately 76% from initial commercial launch with further cost out to be achieved when we continue to increase our capacity in the beginning of 2025.

整個團隊專注於執行我們在 12 月詳細介紹的成本削減計劃，透過增加產量和改善營運槓桿以及直接材料成本相結合，同時提高電池性能和能量密度。我們仍然預計，到 2024 年，我們的總單位生產成本將比最初的商業發布降低約 76%，當我們在 2025 年初繼續增加產能時，將進一步降低成本。

Once we achieve positive contribution margin in Q4, we intend to increase our production significantly with every incremental unit that we produce helping to cover our fixed costs. We believe this disciplined manufacturing approach will allow us to conserve capital because, we work on securing long-term funding and then lead to positive contribution margins in Q4 of this year.

一旦我們在第四季度實現正的邊際貢獻，我們打算大幅增加產量，生產的每個增量單位都有助於涵蓋我們的固定成本。我們相信，這種嚴格的製造方法將使我們能夠節省資本，因為我們致力於確保長期資金，然後在今年第四季實現積極的邊際貢獻。

To conclude, we are incredibly confident in the roadmap that we have outlined and the entire team is committed to meeting these benchmarks as we deliver both for our customers and the broader stakeholder community.

總而言之，我們對我們概述的路線圖充滿信心，整個團隊致力於在為客戶和更廣泛的利害關係人社群提供服務時滿足這些基準。

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

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。操作員？

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Chris Souther, B. Riley.

克里斯·索瑟，B.萊利。

Thank you for taking my question and congrats on the progress here with the factory acceptance testing. I just wanted to get a sense what are the areas we're still working on to hit 10 second cycle times, which you think you could kind of walk through some of those areas that are a little bit slower in line today and then maybe walk through the steps needed from operational and or financial we need with state acceptance testing in order to close the DOE facility as we see it today.

感謝您提出我的問題，並祝賀工廠驗收測試的進展。我只是想了解我們仍在努力實現 10 秒循環時間的領域，您認為您可以步行穿過今天排隊速度稍慢的一些區域，然後也許可以步行通過我們需要的運營和/或財務步驟以及國家驗收測試，以便關閉我們今天看到的能源部設施。

Hey, Chris morning. So, on the underlying cycle time. But there's two stations what I would call the backend of the line that we need to work on speeding up the production of those individual stations, not I would call from a level of complexity, not highly complex, just a matter of working through the control logic and how you pulse the batteries through the different stations.

嘿，克里斯早上好。所以，關於基本的周期時間。但是有兩個站，我稱之為生產線的後端，我們需要加快這些單獨站的生產速度，而不是我所說的複雜程度，不是高度複雜，只是通過控制進行工作的問題邏輯以及如何使電池脈衝通過不同的站點。

I think the team has a path on that. So, we'll just continue pushing this forward. I mean, again, like with any production line, we're never going to stop making this thing better and improving upon this intense, not 10, it's not the end, 10 is the starting line to then find productivity yea- over-year as we go through this.

我認為團隊在這方面有一條道路。因此，我們將繼續推動這項進程。我的意思是，就像任何生產線一樣，我們永遠不會停止讓這件事變得更好，並在如此激烈的基礎上進行改進，不是 10，這不是結束，10 是起點線，然後逐年提高生產力當我們經歷這一切時。

So that's just a natural evolution. What I'm particularly proud of is the front end the line running at ten seconds on every station. I mean that's been an amazing amount of work being done really by three companies, you know, EOS, Acrow and Rockwell Automation, just really pulling this together and when you stand there and watch it's pretty impressive.

所以這只是一個自然的演變。我特別自豪的是前端線路每站運行十秒。我的意思是，這確實是由 EOS、Acrow 和 Rockwell Automation 這三家公司所做的大量工作，他們將這些真正整合在一起，當你站在那裡觀看時，你會感到非常印象深刻。

From an efficacy standpoint. Look, we're sitting off the shop floor here and building 700 in the first truck is here, and they're unloading the first pieces of equipment onto the line as we speak is going to be rebuilding that line here on the factory floor and then running as a key to get through a successful test, which we're confident on given where we are from a schedule and we put a lot of planning into disassembly and the logistics around how things are arriving and how we're going to build out the mine on the floor.

從功效的角度來看。看，我們坐在車間外，第 700 棟大樓的第一輛卡車就在這裡，他們正在將第一批設備卸載到生產線上，正如我們所說，將在工廠車間重建該生產線，然後運行作為通過成功測試的關鍵，考慮到我們在計劃中的位置，我們對此充滿信心，並且我們在拆卸和後勤方面進行了大量規劃，圍繞物品如何到達以及我們將如何建造地板上的礦井。

The team has spent the past month or so, just getting the floor ready. We're wiring and prepared for electrolyte tanks to be installed to be able to get through on the throughput. So, we're pretty excited about getting through that per the plan by the end of Q2.

團隊花了大約一個月的時間來準備場地。我們正在佈線並準備安裝電解液罐，以便能夠通過吞吐量。因此，我們非常高興能在第二季末按照計劃完成這項工作。

On other things, like again, like we haven't talked about well, the other CPs that we have around closing the loan, but we're confident that we're dialing in with those and working with the LPO to get to a successful close here after SAT.

在其他事情上，就像我們還沒有很好地討論過一樣，我們在關閉貸款方面還有其他 CP，但我們有信心我們正在與這些 CP 進行溝通，並與 LPO 合作，以取得成功SAT 後關閉這裡。

That's great. And then on the incremental $20 million CapEx spend line, one capacity, the 2 gigawatt hours. Would that be funded potentially up cross by the deal, we like, I think you've talked about for future lines or would that be a back end like we've seen on the first 1.2 gigawatt hours, and I'm curious. Do we need that assembly automation to hit positive contribution margins later this year or not?

那太棒了。然後，在增量 2000 萬美元的資本支出支出中，一項容量為 2 吉瓦時。這是否會透過交易獲得潛在的交叉資助，我們喜歡，我想你已經談到了未來的線路，或者這會是像我們在前 1.2 吉瓦時看到的那樣的後端，我很好奇。我們是否需要組裝自動化來在今年稍後實現積極的邊際貢獻？

Chris, just to clarify, that's not one of the positive contribution margins our goal for the year as a company. It's not tied to the funding of the loan. I mean, when you think about the purpose of LPO, it's a bridge to bankability. So, that's not one of the conditions that we have, but every LPO loan has the same mechanism and that is a reimbursement of cost. So, you would invest that cost and that cost will be reimbursed.

克里斯，我想澄清一下，這不是我們公司今年的目標之一。它與貸款資金無關。我的意思是，當你思考 LPO 的目的時，你會發現它是通往銀行融資的橋樑。所以，這不是我們擁有的條件之一，但每筆 LPO 貸款都有相同的機制，那就是成本償還。因此，您將投入該成本，並且該成本將得到償還。

If you remember, we talked about the loan closing. We got the maximum amount of reimbursement at 80%. So, you would spend that capital and then be reimbursed 80% of the capital spent to be able to do that work.

如果你還記得的話，我們討論過貸款結束的事。我們得到了最高80%的報銷金額。因此，您將花費該資本，然後獲得完成該工作所花費資本的 80% 的補償。

Okay.

好的。

Chip Moore, Roth.

奇普摩爾、羅斯。

Morning, thanks for taking the question. I guess congrats on factory acceptance as well. I think, Joe, you did a good job on unless a question there. Maybe you can expand on sort of what you learned during that process? And I guess would you say that site acceptance is fairly de-risked here, just given some of those things you talked about in terms of planning for installation here?

早上好，感謝您提出問題。我想也祝賀工廠接受。我認為，喬，除非有問題，否則你做得很好。也許你可以擴展你在這個過程中學到的東西？我猜你會說，光是考慮到你在規劃安裝方面談到的一些事情，這裡的現場驗收風險就相當低了？

Yes, so, thanks, Chip, morning. Look, we look, we've learned a lot through this process, right? So, going through and really when, I can't say enough about the Acrow, the Acrow team and the way that we pulled together to get through this, I mean, I feel like this was literally run in the morning, sit down, do like an after action report out, come back in the afternoon, run again, see where we improved and just continuously dialing in how material moved and how the individual stations work. Really like what we've learned as we've gone through this.

是的，所以，謝謝，奇普，早安。看，我們看，透過這個過程我們學到了很多東西，對吧？所以，經歷過，真的，我無法對 Acrow、Acrow 團隊以及我們齊心協力度過難關的方式說得太多，我的意思是，我覺得這實際上是在早上進行的，坐下來，就像行動後報告一樣，下午回來，再次運行，看看我們在哪裡改進，並不斷調整材料的移動方式以及各個站的工作方式。真的很喜歡我們在經歷這件事時所學到的東西。

It's just the consistency that you get from an automated line of how you produce and just watching that time come down. We started off on this. Individual cycle times were above twenty seconds when we started and you're basically, I mean, this is like running a marathon, right? You started off your training and you're not running as fast as you want, but the more you run, the more you run in the better you get.

這只是您從生產方式的自動化生產線中獲得的一致性，並且只是看著時間的流逝。我們就從這個開始。當我們開始時，個人循環時間超過二十秒，我的意思是，這基本上就像跑馬拉松，對吧？當你開始訓練時，你的跑步速度並沒有達到你想要的速度，但是你跑得越多，你跑得越多，你的成績就越好。

And I think we learned a lot about component, quality, how we feed the lines, how the individual stations worked. I think it's just pretty exciting to really think about executing this next phase of the installation like, we had a plan that said, get through FAT successfully, start taking apart this part at least individual portions of the line, get it on trucks and get trucks at Turtle Creek.

我認為我們學到了很多關於組件、品質、我們如何為生產線供電以及各個站點如何運作的知識。我認為真正考慮執行下一階段的安裝是非常令人興奮的，就像我們有一個計劃說，成功地通過 FAT，開始拆解這部分，至少是生產線的各個部分，將其裝上卡車並得到龜溪的卡車。

And first, as I said earlier, first ones here next to arrive, and we'll have three trucks worth of equipment arriving. There's a team from Acrow on site. If you come and look at the parking lot, there's [Wisconsin] license plates out in the parking lot because, they're here with us helping us put the line back together.

首先，正如我之前所說，接下來的第一批設備將抵達，我們將有三卡車的設備抵達。現場有來自 Acrow 的團隊。如果你來看看停車場，停車場裡有[威斯康辛州]的車牌，因為他們和我們在一起，幫助我們把線路重新連接起來。

One of the things that we did do was, we had our line operators in Acrow last week for the FATs. They've run the line when we were building the line, we had our maintenance team there helping to build the line. That's a learning curve that as things arrive here. We'll know how to put the equipment back together again because, we've done it once before.

我們所做的一件事是，上週我們在阿克羅安排了生產線操作員進行 FAT。當我們建造生產線時，他們已經運行了生產線，我們有維修團隊在那裡幫助建造生產線。當事情到達這裡時，這是一個學習曲線。我們會知道如何將設備重新組裝起來，因為我們以前已經做過一次了。

So, I feel good about where we are. And again, like we've got a fairly detailed daily plan of how we have to work through this. We'll just continue to work through this and let everyone know when we get through SAP where we are. I mean, I feel confident, but never feel like you've won the game and see across the finish line. And I think that's what we're focused on getting across the finish line.

所以，我對我們現在的處境感覺很好。再說一遍，我們已經制定了一個相當詳細的每日計畫來說明如何解決這個問題。我們將繼續解決這個問題，並讓大家知道我們在 SAP 上的進展。我的意思是，我感到自信，但從來沒有感覺自己已經贏得了比賽並看到了終點線。我認為這就是我們衝過終點線的重點。

It's great. That's helpful color. And if I could ask about liquidity, I think you talked about PTC monetization. I think maybe being able to accelerate efforts there. And then anything you can give us on line of sight on milestone cash payments or anything else on liquidity?

這很棒。這是有用的顏色。如果我可以詢問流動性問題，我想您談到了 PTC 貨幣化。我認為也許能夠加快那裡的努力。那麼您可以向我們提供有關里程碑現金支付或其他有關流動性的信息嗎？

Yeah, so on the PTC, we, it was a significant amount of work to get the first deal done as you know, the marketplace is still fairly new, but we do have a counterparty that has an appetite for more tax credits. And we've already worked through all the legal documentation to get one done. So, I do feel like we could monetize every quarter much quicker going forward and that's our plan in order to do that.

是的，所以在 PTC 上，正如您所知，我們完成第一筆交易需要做大量的工作，市場仍然相當新，但我們確實有一個對更多稅收抵免有興趣的交易對手。我們已經完成了所有法律文件以完成一項工作。所以，我確實覺得我們每季都可以更快地獲利，這就是我們的計畫。

From a liquidity standpoint, look, I mean, it's consistent with what we've talked about previously, which is focused on getting the SAT completed here at the end of the quarter, meeting the final conditions for long term financing and in the short term continue to manage cash outflows as efficiently as possible, while still hitting critical customer delivery dates.

從流動性的角度來看，我的意思是，這與我們之前談到的一致，即重點是在季度末完成 SAT，滿足長期融資和短期融資的最終條件繼續盡可能有效地管理現金流出，同時仍能滿足關鍵的客戶交付日期。

And then in trying to pull in customer milestone payments and deposits. So, kind of balancing that in the short term as we focus on getting the line implemented and long-term funding secured.

然後試圖吸引客戶里程碑付款和存款。因此，在短期內平衡這一點，因為我們專注於實施該產品線並確保長期資金安全。

Thanks Nathan. Maybe one just one last one on that incremental $20 million to get to 2 gigawatts on automated bi-polar subassembly process. I think you mentioned sort of timing on that tied to securing longer-term funding. Is does that imply that, that's not a DOE loan is not contingent upon that? Thank you.

謝謝內森。也許這只是最後一項，即增加 2000 萬美元，以實現 2 吉瓦的自動化雙極組件製程。我認為您提到了與確保長期資金相關的時機。這是否意味著，這不是能源部的貸款並不取決於此？謝謝。

DOE loan is not contingent on that. That would be a future event, just like line two or line three and that we would spend the money apply for reimbursement and get reimbursed. Joe touched on the mechanics of the loan a little bit earlier.

美國能源部的貸款並非以此為條件。這將是未來的事件，就像二號線或三號線一樣，我們將花這筆錢申請報銷並獲得報銷。喬早些時候談到了貸款的機制。

I mean, once you get through the first reimbursement, that money goes into an account and kind of recycles inside the mechanism to where we can use that to pay for the next round of costs and then submit for reimbursement again. So, once you get through the first closing and funding that money kind of recirculate within the cap stack, if you look.

我的意思是，一旦你完成第一次報銷，這筆錢就會進入一個帳戶，並在機制內循環利用，我們可以用它來支付下一輪的費用，然後再次提交報銷。因此，一旦你完成了第一次交割和融資，資金就會在資本池內循環，如果你仔細觀察的話。

Perfect, thank you for the clarification. Thanks.

完美，謝謝您的澄清。謝謝。

James West, Evercore.

詹姆斯·韋斯特，埃弗科。

Hey, good morning, guys,

嘿，早安，夥計們，

Hey, James, good morning

嘿，詹姆斯，早安

So, congratulations on getting the line running. As you guys, you get more experience and ramp further here. Any changes to the strategy for one, two, three, four and expanding capacity further? And then did I hear correctly that this what you have in the backlog should take up most of the capacity, if not all, one for the next one to two years?

那麼，恭喜該生產線投入運作。身為你們，你們會在這裡獲得更多經驗並進一步進步。一、二、三、四的策略有什麼變化，進一步擴大產能嗎？然後，我是否正確地聽到，您積壓的這些內容應該佔用未來一到兩年的大部分容量（如果不是全部的話）？

Yes, if we just stayed at online one. Yes, James, I think underlying your question, if you look at what's happening in the marketplace, the market continues to accelerate to bigger projects with longer duration, energy storage and a somewhat demand of domestic or US-produced technology for energy security.

是的，如果我們只待在網路上的話。是的，詹姆斯，我認為在你的問題的基礎上，如果你看看市場上發生的事情，市場將繼續加速向更大的項目發展，這些項目需要更長的工期、能源儲存以及對國內或美國生產的能源安全技術的一定需求。

All three of those things, I think EOS meets all three of those criteria. So, as you look at the strategy for expansion, the strategy for expansion is going to continue to be expanding as we get backlog. I think what we've learned going through line with with Acrow online one is we can convert these lines in relatively quickly, and we're only going to add that capacity as we see the backlog firming up and the end of the pipeline firming up to be able to reduce.

所有這三件事，我認為 EOS 符合所有這三個標準。因此，當你審視擴張策略時，隨著我們積壓的訂單增多，擴張策略將繼續擴張。我認為我們透過使用 Acrow 在線線了解到的是，我們可以相對較快地轉換這些生產線，並且只有當我們看到積壓訂單增加和管道末端穩定時，我們才會增加該容量。

We don't want to have is, really want to avoid capacity chasing orders versus orders wanting to get in front of capacity and us investing our capital when we have the orders to be able to deliver and that will continue to be the strategy now.

我們不想的是，真的希望避免產能追逐訂單與想要超越產能的訂單，當我們有訂單能夠交付時，我們會投資我們的資本，這將繼續是現在的策略。

What I think we're seeing is a building storm, if you will, inside of what we're trying to do in the country and also looking and starting to see Europe and India and other in that in Australia and other places go through the same acceleration that we're seeing in the US. I think demand signals will continue to strengthen the entire philosophy of how we came up with our manufacturing capacity strategy was build it in lines, make the lines incrementals, spend capacity as you need it and if you have demand signals that come from other places, you would then expand into other buildings.

我認為我們看到的是一場建築風暴，如果你願意的話，在我們試圖在國內做的事情中，也在尋找並開始看到歐洲和印度以及澳大利亞和其他地方的其他地方經歷了我們在美國看到了同樣的加速。我認為需求訊號將繼續強化我們如何提出製造能力策略的整個理念，即在生產線中建構它，使生產線增量，根據需要支出產能，如果你有來自其他地方的需求訊號，然後你會擴展到其他建築物。

So, this isn't like, I don't think our strategy has never been a 10 gigawatt hour factory in Pennsylvania, its build-out project Amaze in Pennsylvania then look where you can reduce logistics cost by co-locating a factory near demand, and that will be the next phase of growth as we get through this first part here of getting the line up and running and delivering.

所以，這不像，我認為我們的策略從來都不是在賓州建造 10 吉瓦時工廠，而是在賓州建造 Amaze 項目，然後看看在哪裡可以透過在需求附近建立工廠來降低物流成本，這將是下一階段的成長，因為我們完成了第一部分的建立、運作和交付。

Okay, makes sense. And so for to push go on kind of a Line two is would you need to have it totally sold out, have sold out? What's kind of the gating factor or the data point you need to see before you commit to it?

好吧，有道理。因此，為了推動二號線的繼續發展，您是否需要將其全部售完，是否已售完？在做出承諾之前，您需要查看什麼樣的限制因素或數據點？

So, I think we look forward on a rolling basis, 6, 12, 18 months. You're going to be looking at on the 12 to 18 months demand signal and [1.5]. In my view, you're going to want to be close to that 50% mark because, you can absorb that and continue them and make profit off the line.

所以，我認為我們會滾動地期待 6、12、18 個月。您將關注 12 至 18 個月的需求訊號以及[1.5]。在我看來，你會希望接近 50% 的水平，因為你可以吸收它並繼續它們並從中獲利。

When you look at it, just if I take back your question, James on a link it back into like our second quarter numbers. If you look at what happened in the quarter to us on the page where Nathan walk some cost out. We don't want to have capacity sitting there under absorbed that drags down the performance of the company.

當你看到它時，如果我收回你的問題，詹姆斯就會將其連結回我們的第二季數據。如果你看看我們這個季度發生的事情，內森（Nathan）走了一些費用的頁面。我們不希望產能被吸收，進而拖累公司的表現。

So, like when you look out, let's say, if I get to 50% online, I can absorb that capacity and still get to breakeven positive on a contribution margin basis and that's how we'll make the investment decisions, but at the same time you're going to be weighing the opportunity pipeline and what's out there for conversion into orders over that 12 month time period to take that 50% that you're locked in on and increase that as you go as you move forward. And I think that's going to be the best way for us to continue effective utilization of capital and deliver a company that has profitable growth.

因此，就像你觀察時那樣，假設我的線上利用率達到 50%，我可以吸收該容量，並且仍然可以在邊際貢獻的基礎上實現盈虧平衡，這就是我們做出投資決策的方式，但同時您將權衡機會管道以及在12 個月的時間內有哪些內容可以轉換為訂單，以獲取您鎖定的50% 並在前進過程中不斷增加。我認為這將是我們繼續有效利用資本並實現公司獲利成長的最佳方式。

Okay. Got it. Thanks Joe.

好的。知道了。謝謝喬。

Thanks.

謝謝。

Joseph Osha, Guggenheim.

約瑟夫‧奧沙，古根漢。

Thanks. Good morning, everybody. I did want to return quickly to this issue on the DOE side. I guess I had gotten the impression that site acceptance was the, really the major thing that we had to deal with prior to the initial draw and that might be reasonable to expect that to conclude by the end of Q2.

謝謝。大家早安。我確實想快速回到能源部方面的這個問題。我想我的印像是，現場驗收確實是我們在初次抽籤之前必須處理的主要問題，並且可以合理地預期這將在第二季末結束。

So, I guess I'm asking a, are any of these other CPs really material hurdles in your view? B would be are you still comfortable telling us that we should get there by the end of Q2 in terms of the initial drop?

所以，我想我是在問，在您看來，這些其他 CP 中的任何一個真的是實質障礙嗎？B 您是否仍願意告訴我們，就初始下降而言，我們應該在第二季末實現這一目標？

I think there's some. So, you asked a couple of questions in there. One, we're on schedule to get SAT done by the end of the second quarter. That is a significant CP in terms of the DOE. There's obviously, you know, we've got to submit our eligible expenses. They've got to review, they've got a process, they've got to reimburse. We've been led to believe that's probably a 30 day turnaround time.

我想有一些。所以，你在那裡問了幾個問題。第一，我們按計劃在第二季末完成 SAT 考試。對於能源部來說，這是一個重要的 CP。顯然，你知道，我們必須提交符合條件的費用。他們必須審查，他們有一個流程，他們必須償還。我們被引導相信這可能是 30 天的周轉時間。

And so, there's other smaller CPs, but we've always been focused on the SAT. I think that is the, that's the big one we've got to focus on. And so I would anticipate closing funding several weeks after that.

因此，還有其他較小的 CP，但我們一直專注於 SAT。我認為這就是我們必須關注的大問題。因此，我預計幾週後就會結束融資。

So, I guess let me try at a different way. Do you believe that you're going to be in a position then to give the LPO the relevant documentation by the end of the quarter?

所以，我想讓我嘗試不同的方式。您是否認為您能夠在季度末之前向 LPO 提供相關文件？

So, Joe, they'll be part of the SAT process.

所以，喬，他們將成為 SAT 流程的一部分。

Okay.

好的。

As they have been all the way through this. I'm not going to make a commitment on the cycle time and the processing time of an external entity. But we feel like we'll be able to show them that the line is running to the performance that we signed up to in the loan and then from there, as Nathan said, we have to go through the process of reimbursement of the cost, review of the cost.

因為他們已經經歷了這一切。我不會對外部實體的周期時間和處理時間做出承諾。但我們覺得我們將能夠向他們展示這條線正在按照我們在貸款中簽署的績效運行，然後從那裡，正如內森所說，我們必須完成費用報銷的過程，審查成本。

Okay. All right. Thanks. That's helpful. I have some more, but I'll take it offline for later.

好的。好的。謝謝。這很有幫助。我還有一些，但稍後我會將其離線。

All right. Thanks, Joe.

好的。謝謝，喬。

Martin Malloy, Johnson Rice & Company.

馬丁·馬洛伊，約翰遜·賴斯公司。

Hi, good morning and congratulations on all the progress you've made, including the cost out initiatives. My first question, I just wanted to ask about customer conversations over the last couple of months and if they've changed. We're hearing in the press a lot more about utility companies increasing there, expectations for demand and data center power needs increasing in them wanting power as quickly as possible and reliability. Can you, maybe talk about anything you're seeing with respect to that maybe has changed with customer conversations or new customers in last couple months?

大家好，早安，恭喜您所取得的所有進展，包括成本削減計劃。我的第一個問題，我只是想詢問過去幾個月的客戶對話以及它們是否發生了變化。我們在媒體上聽到更多有關公用事業公司在那裡增加的消息，對需求和資料中心電力需求的期望不斷增加，他們希望盡快獲得電力和可靠性。您能否談談您在過去幾個月中看到的與客戶對話或新客戶可能發生變化的任何事情？

Well, Martin, I think you see it in the growth of the opportunity pipeline on a quarter-over-quarter, year-over-year basis. Yes. I mean, there's a lot there. There are conversations we're having on the data center side. We feel like we've got a really good solution for data centers and we always remember data centers, there's two types of energy they're looking for. There's the emergency response, which we are not. And then there is the operating and providing the energy for the data center, which I think we have a good fit for.

嗯，馬丁，我認為您可以從季度環比、同比增長的機會管道中看到這一點。是的。我的意思是，那裡有很多東西。我們正在資料中心方面進行對話。我們覺得我們已經為資料中心提供了一個非常好的解決方案，並且我們始終記得資料中心，他們正在尋找兩種類型的能源。這是緊急回應，但我們不是。然後是資料中心的營運和能源提供，我認為我們非常適合。

We continue to work through with multiple customers and multiple opportunities and just see that this is an emerging realization of there's a lot more power demand out there and long-duration energy storage can help fit and deliver that demand requirement and we have a solution that fits really well.

我們繼續與多個客戶和多個機會合作，發現這是一個新興的認識，即存在更多的電力需求，而長期儲能可以幫助滿足和滿足這一需求，我們有一個適合的解決方案真的很好。

Great. And for my follow-up question, just wanted to ask about, maybe initial thoughts on the impact on EOS from the tariffs that were announced yesterday and how that might benefit the EOS and domestic content that you have?

偉大的。對於我的後續問題，我只是想問一下，也許是對昨天宣布的關稅對 EOS 影響的初步想法，以及這可能對 EOS 和你們擁有的國內內容有何好處？

Okay. I mean, Martin, I think from the standpoint of wanting to bring manufacturing back to the United States and wanting to invest in manufacturing and one into, not just bring it back, but also incentivize the growth of companies like EOS. I think, it's a great piece of legislation, both not just for energy storage, but also for EVs.

好的。我的意思是，馬丁，我認為從希望將製造業帶回美國並希望對製造業進行投資的角度來看，不僅僅是將其帶回美國，而且還要激勵像 EOS 這樣的公司的成長。我認為，這是一項偉大的立法，不僅適用於能源存儲，也適用於電動車。

I think the timing of when it comes in for energy storage, times well to when we'll be up at scale and running as it gets into 2026. I think when you take the combination of the tariffs, the fact that we're above 90% on US content. So, the investment tax credit that the customers get and the energy security piece of this, let's not downplay that. I think you now have a really good conditions for companies like EOS to grow in the future.

我認為，進入能源儲存領域的時機，恰逢我們在 2026 年規模化並投入運作。我認為當你考慮關稅的組合時，我們的美國含量超過 90%。因此，客戶獲得的投資稅收抵免以及其中的能源安全部分，我們不要低估這一點。我認為現在對於像 EOS 這樣的公司未來的發展來說，有非常好的條件。

And I've said many times, we're going to need more than one EOS to be able to meet this demand. We're going to, we've been positioning the company very purposefully for the timeframe that we're talking about as far as (inaudible).

我已經說過很多次了，我們將需要多個 EOS 來滿足這項需求。我們將在我們正在討論的時間框架內非常有目的地定位公司（聽不清楚）。

And I think, Martin, the other piece that I'd like to talk about is, go back (inaudible) your two questions together in my, nearly six years here with the company, the overall industry has changed dramatically. And I think when you look at when I first came here, we were talking about energy storage for minutes, maybe if we get two hours, four hours being the goal to now talking about plus hours large scale.

我想，馬丁，我想談的另一件事是，回到（聽不清楚）你的兩個問題，在我在公司工作近六年的時間裡，整個產業發生了巨大的變化。我想當你看到我第一次來到這裡時，我們討論了幾分鐘的能量存儲，也許如果我們有兩個小時，四個小時是現在談論加小時大規模的目標。

When you look at what the team has been able to do here in transitioning from Gen 2.3, which six years ago would have been a product that could have met that market that was much smaller with a much more bounded use case to coming out with the Z3 and the work that the team continues to do it positions you perfectly for the market, for the future of the market, for the market's going to be in the future, not where it is today.

當你看看團隊在從 Gen 2.3 過渡時所做的事情時，六年前，Gen 2.3 可能是一個可以滿足市場規模小得多、用例更加有限的產品，但現在推出了Z3 和團隊繼續所做的工作使您能夠完美地適應市場、市場的未來、市場的未來，而不是現在的情況。

And I think we're just going to keep working on that and keep improving we have and keep driving costs down and keep getting a US supply chain to deliver the energy security in a competitive product that meet the future demand that we have for energy.

我認為我們將繼續努力，不斷改進我們現有的技術，不斷降低成本，不斷讓美國供應鏈以具有競爭力的產品提供能源安全，滿足我們未來的能源需求。

Great. Thank you. I'll turn it back.

偉大的。謝謝。我會把它轉回來。

Thanks, Martin.

謝謝，馬丁。

Thomas Boyce, TD Cowan.

托馬斯·博伊斯，TD·考恩。

Appreciate you taking the questions. You just two quick ones. Great to hear that you're at 90% for domestic content. Can you get to 100% at some point? Is that the ultimate goal or there may be something just can't ultimately be in-sourced fully, even on the longer term?

感謝您提出問題。你們只是兩個快點的人。很高興聽到您對國內內容的支持率達到了 90%。你能在某個時刻達到100%嗎？這是最終目標嗎？

So, yes, you can get to 100%. It's a goal we put out there for ourselves. I think when you look at like the core portion of what we do, the components in the battery, the software and the BMS, yes, 100%. That's the goal. Other ancillary things or maybe some hardware and fans and other things that might not come from the US, but we're marching to as a team is how close can we get to 100%.

所以，是的，你可以達到 100%。這是我們為自己設定的目標。我認為，當你看看我們所做的核心部分、電池中的組件、軟體和 BMS 時，是的，100%。這就是目標。其他輔助的東西，或者可能是一些硬體和風扇以及其他可能不是來自美國的東西，但我們作為一個團隊正在向我們邁向 100% 的目標邁進。

And again, like part of that also is, making our supply chain simple, making it easy to work and control and get quality from our suppliers versus adding the complexity of trying to do this globally when you're a small company.

同樣，這也是其中的一部分，使我們的供應鏈變得簡單，使工作和控制變得容易，並從我們的供應商那裡獲得質量，而不是在您是一家小公司時增加嘗試在全球範圍內做到這一點的複雜性。

I mean, I think the fact that we went with the strategy of let's look at really when we started it was North America and then hone down into the US. It's made our ability to grow the company and switch over to the Z3. It's enabled us to be able to do that because, everybody is close by you can actually talk to people face-to-face and go to their facilities and they can come to our facility and it just allows you to innovate, innovation requires getting in a room together and working through the challenges to get to an innovative product and having it local makes it simpler and faster.

我的意思是，我認為事實上我們採取的策略是讓我們在開始時真正專注於北美，然後深入美國。它使我們有能力發展公司並轉向 Z3。它使我們能夠做到這一點，因為每個人都在附近，您實際上可以與人們面對面交談並前往他們的設施，他們可以來到我們的設施，這只是讓您能夠創新，創新需要參與一起在在一個房間裡，共同克服挑戰，獲得創新產品，並將其在地化，讓一切變得更簡單、更快捷。

Excellent. I appreciate the insight there. And maybe just the last question. When you're expanding capacity for line one. Do you need to kind of pause production at some point, so that work can be done or can it occur concurrently with operations? It sounds like it can based on kind of what you have (inaudible) on the call, but I wasn't sure.

出色的。我很欣賞那裡的洞察力。也許只是最後一個問題。當您擴大一號線的產能。您是否需要在某個時候暫停生產，以便可以完成工作，或者可以與操作同時進行？聽起來它可以基於您在通話中所擁有的內容（聽不清楚），但我不確定。

It's concurrent. So, it's not, it's feeding parts into the main line. And we've been working on this, as far as getting a conceptual design done and doing some pilot testing and then we'll launch the full automation of the bipolar production. That happens as an input into the line now on the line itself.

是並發的。所以，事實並非如此，它正在將零件送入主線。我們一直在努力做到這一點，完成概念設計並進行一些試點測試，然後我們將啟動雙極生產的完全自動化。這發生在線路本身的輸入上。

Appreciate it. I hop back in queue.

欣賞它。我跳回隊列。

Thanks.

謝謝。

Vincent Anderson, Stifel.

文森安德森，史蒂菲爾。

Good morning. It's been said already a few times, but I think it was barely a year ago when I was out in Turtle Creek watching you use a cherry rig teacher pressed for prototyping disease resell. So, to go from that to an automated production line and fairly, yes, really honestly, impressive.

早安.這句話已經說過好幾次了，但我想那是大約一年前的事，當時我在 Turtle Creek 看到你使用櫻桃裝備老師來製作疾病轉售的原型。因此，從這一點轉向自動化生產線，相當，是的，說實話，令人印象深刻。

So, I wanted to EOS the congratulations just one more time. You settled on ramping wind once 2 gigawatt hours. Can you just maybe talk me through what led you to that decision versus building out a second line first, and then you touched on this already, but maybe just the initial feedback from your automation partners on the subassemblies step?

所以，我想再次向 EOS 表示祝賀。您決定以 2 吉瓦時的速度增加風力。您能否告訴我是什麼導致您做出了這個決定，而不是先建立第二條生產線，然後您已經談到了這一點，但也許只是您的自動化合作夥伴對子組裝步驟的初步反饋？

So, on that, so let me start at the end there, and I'll work my way back, Vincent. And so on the subassembly work, we feel confident that we'll be able to do this. Like I said, there's been some pilot work done. You know, part of we've already automated, I'd say on our terminal manufacturing, we've already automated that process.

所以，關於這一點，讓我從最後開始，然後我會繼續努力，文森特。對於分裝工作，我們有信心能夠做到這一點。正如我所說，已經完成了一些試點工作。你知道，我們的一部分已經實現了自動化，我想說的是，在我們的終端製造方面，我們已經實現了流程的自動化。

So, that is a very similar manufacturing process. We feel like automating the other sub assembly is going to give us better, obviously, consistency of parts coming off of the line. We feel confident that we have a layout and solution that we can execute on and we've done some testing on individual process.

所以，這是一個非常相似的製造過程。我們覺得自動化其他子組裝將為我們帶來更好的、明顯的、下線零件的一致性。我們相信我們擁有可以執行的佈局和解決方案，並且我們已經對各個流程進行了一些測試。

So, we follow the same playbook that got us where we are, which is get your discrete processes within the manufacturing, get them working on an automated fashion and figure out how to move things between their individual stations and that's really what we're working on now with Acrow for the subassembly piece of it. That's going to help us.

因此，我們遵循讓我們達到目前位置的相同劇本，即讓製造過程中的離散流程，讓他們以自動化方式工作，並找出如何在各個工作站之間移動物品，這就是我們真正正在做的事情現在使用Acrow 來製作它的子組件。這對我們有幫助。

I think like on your question of why not go for a second line. You need the subassembly to feed two lines, you need the subassemblies up and operating at that line rate. We've always known, we've always planned that. And I think that would be a fast follow depending on where we are with the backlog to launching the second line and getting the profitability where it needs to be. And I think the main goal, if you go back to what we said in December, Vincent is like continuing to drive the cost out program. We're making good progress on bill of material cost.

我想就像你問的為什麼不去第二行的問題。您需要子組件為兩條生產線供電，需要子組件啟動並以此生產線速率運作。我們一直都知道，我們一直都有這樣的計畫。我認為這將是一個快速跟進，具體取決於我們的積壓情況，以推出第二條線並獲得所需的盈利能力。我認為，如果你回到我們 12 月所說的，文森特的主要目標就是繼續推動成本削減計劃。我們在材料成本方面取得了良好進展。

As Nathan laid out in his page, it's now about utilizing your labor and your capacity to its fullest to get to position the company to become contribution margin positive and then go into cash flow positive as we get into 2025. The line two launch comes down to allocation of capital and us getting the company to where we're generating the cash to be able to do that tied in with the funding from the DOE loan.

正如 Nathan 在他的頁面中指出的那樣，現在的重點是充分利用您的勞動力和能力，使公司的邊際貢獻率達到正值，然後在進入 2025 年時實現正現金流。第二條線的推出歸結為資本分配，我們讓公司能夠產生現金，以便能夠與能源部貸款的資金掛鉤來做到這一點。

The thing I would add, Vincent is just efficient use of capital, right? The first [one and a quarter] gigawatt hours was $30 million for an incremental [20], we can effectively double that. Within our existing footprint, within our existing square footage. So, from a capital efficiencies, more efficient to just increase the capacity of the first line then to go and build the sector line.

我要補充的是，文森只是有效利用資本，對嗎？第一個[四分之一]吉瓦時的增量費用為 3000 萬美元[20]，我們可以有效地將其翻倍。在我們現有的足跡內，在我們現有的平方英尺內。因此，從資本效率來看，只增加第一條生產線的產能，然後再建造部門生產線，效率更高。

Okay. That's perfect. I appreciate it. And I know we're coming up on time here, but I had a few questions, all kind of related to the commercial side of things. I'm just trying to speed run them. When I think about the cubes that are being installed or they are installed. Hopefully they'll start up soon. When I think about the marketing value of the data, they're going to to spit out. Are we thinking about this as those customers that have received those cubes are going to turnaround with that data and hopefully put in more orders? Or is this more about EOS collecting that data and having to point to other customers in the pipeline in order to generate additional orders?

好的。那很完美。我很感激。我知道我們會準時到達這裡，但我有幾個問題，都與商業方面有關。我只是想加快他們的速度。當我想到正在安裝或已安裝的立方體。希望他們很快就能啟動。當我想到數據的行銷價值時，他們就會吐槽出來。我們是否會考慮這一點，因為那些收到這些立方體的客戶將利用這些數據扭轉局面，並希望下更多訂單？或者這更多是關於 EOS 收集這些數據並必須指向管道中的其他客戶才能產生額外的訂單？

Yes, I think both. Yes (multiple speakers) That's exactly how that's going to work.

是的，我認為兩者都有。是的（多名發言者）這正是它的運作方式。

Okay. And then, Joe, maybe I'm misinterpreting or over interpreting this, but you specifically pointed to FAT rather than site acceptance testing is being staged that was really important to your potential customers. I am curious, did you have potential customers come in and view the line, while that was at Acrow as part of their diligence to help accelerate the pipeline conversion?

好的。然後，Joe，也許我誤解或過度解釋了這一點，但您特別指出 FAT 而不是正在進行的現場驗收測試，這對您的潛在客戶來說非常重要。我很好奇，您是否有潛在客戶進來查看生產線，而那是在 Acrow，作為他們努力幫助加速管道轉換的一部分？

We've had customers go visit Acrow. I think, my point, Vincent is like, you know, when part of the challenge of this road that we're on is there's been people before us that have tried and haven't gotten there. So, when you talk about being able to automate production, a lot of people question, can you do it because, you've seen a lot of other companies try and not get there.

我們有客戶去參觀 Acrow。我認為，我的觀點是，文森特就像，你知道，當我們走上這條道路的部分挑戰是在我們之前有人嘗試過但還沒有到達那裡。因此，當您談論能夠實現生產自動化時，很多人會問，您能做到嗎？

Being able to say come out and let's watch it, stand there with a stopwatch in time the individuals stations and when people start timing it and maybe they use a stopwatch or maybe it's kind of like flag football where they're counting 10 Mississippi's and saying, right, that's ten seconds.

能夠說出來，讓我們看一下，拿著秒錶站在那裡，及時記錄個人的站位，當人們開始計時時，也許他們使用秒錶，或者可能有點像腰旗橄欖球，他們數著10 個密西西比州，然後說，對，就是十秒。

I mean, it proves out that people like this can really happen. It's not just a concept and there's a lot of people (inaudible) kind of where you started on the call, which is I came to Turtle Creek, I could see the potential of where you can take this to, while you're doing it. And this is great.

我的意思是，事實證明這樣的人真的可以發生。這不僅僅是一個概念，而且有很多人（聽不清楚）就是你在電話會議中開始的地方，即我來到Turtle Creek，我可以看到你可以在做這件事時將其帶到哪裡的潛力。這太棒了。

And I think that's just you know, it's a show-me game. I've said this many times like, we've got to show people and earn the right to grow this company and showing people (inaudible) and when I talk to customers about, it's along the lines of, we've created a line, do you think we can take it apart and put it back together again? And that's where we are when I think about SAT.

我想這只是你知道的，這是一個向我展示的遊戲。我已經說過很多次了，我們必須向人們展示並贏得發展這家公司並向人們展示的權利（聽不清楚），當我與客戶談論時，我們已經創建了一條產品線，你認為我們可以把它拆開然後再裝回去嗎？當我想到 SAT 時，這就是我們的處境。

Perfect. And then just one last one here for you, Joe, your alma mater there at of over GE (inaudible). It's now kind of through the distraction of becoming an independent entity. Just curious where you view them in kind of your value chain, particularly given their position in wind energy and if that's a pretty actionable partnership opportunity going forward?

完美的。最後，喬，你的母校在通用電氣公司（聽不清楚）。現在是透過成為一個獨立實體來分散注意力。只是好奇您在價值鏈中如何看待它們，特別是考慮到它們在風能領域的地位，以及這是否是一個相當可行的未來合作機會？

Yes, I mean, look, I mean, congratulations to Scott Krasik and the team there. Having done it on a much smaller scale. I can only imagine how excited they are to be able to be focused on the energy industry. There's always opportunities to partner with anybody that has production, whether it be wind turbines, whether it be solar modules, whether it be gas turbines, there's ton of opportunity to be able to do that. I won't comment on a specific conversations with any players, but there's a lot of opportunity here as we, as the market starts to evolve and we continue to put the proof points out in the product.

是的，我的意思是，聽著，我的意思是，祝賀斯科特·克拉西克和那裡的團隊。在小得多的規模上做到了這一點。我只能想像他們能夠專注於能源產業是多麼興奮。總是有機會與任何有生產能力的人合作，無論是風力渦輪機、太陽能組件還是燃氣渦輪機，都有大量的機會可以做到這一點。我不會評論與任何玩家的具體對話，但隨著市場開始發展，我們將繼續在產品中提出證據，這對我們來說有很多機會。

All right, excellent. Thanks again. All for me.

好吧，太棒了。再次感謝。一切都是為了我。

Thanks.

謝謝。

Thank you. And I would now like to hand the conference back to Joe Mastrangelo for closing remarks.

謝謝。現在我想將會議交還給喬·馬斯特蘭傑洛（Joe Mastrangelo）致閉幕詞。

Hey, thanks, everyone, for being on the call today. I really appreciate the time. Again, proud of the team and the work that they've done. Really we've got to continue executing and the challenge now is taking what has been a very detailed logistical plan and turn that into a line on the factory floor, that's pushing batteries off that line every ten seconds, and continuing to get product out in the field commissioned and up and running and just continue to show the value that Z3 brings to the market and the needs that it fulfills in the future energy demands for the world.

嘿，謝謝大家今天接電話。我真的很感激這段時間。再次為團隊和他們所做的工作感到自豪。事實上，我們必須繼續執行，現在的挑戰是製定一個非常詳細的物流計劃，並將其變成工廠車間的一條生產線，每十秒將電池從該生產線上推出一次，並繼續在該現場調試、啟動和運行將繼續展示Z3 為市場帶來的價值以及它滿足世界未來能源需求的需求。

And we're just going to keep working on that every day. There's a lot of work left to do, and that's what makes the job, both challenging and fun at the same time and there's a group of people here that I couldn't be prouder of calling my colleagues because of the energy, enthusiasm and dedication they put into building a successful company.

我們每天都會繼續努力。還有很多工作要做，這就是這項工作既具有挑戰性又充滿樂趣的原因，這裡有一群人，他們的精力、熱情和奉獻精神讓我非常自豪地稱他們為同事他們致力於打造一家成功的公司。

This concludes today's conference call. Thank you for participating, and 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。