Flux Power Holdings Inc (FLUX) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Flux Power Holdings second quarter fiscal year 2024 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to hand the call over to Maria Rica, Marketing Manager.

您好，歡迎參加 Flux Power Holdings 2024 財年第二季財務業績電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。我現在想將電話轉交給行銷經理瑪麗亞·里卡 (Maria Rica)。

Thank you, operator. Your host today Ron Dutt, Chief Executive Officer, and Chuck Scheiwe, Chief Financial Officer, will present results of operations for the fiscal second quarter ended December 31, 2023. A press release detailing these results crossed the wires this afternoon at 4:01 PM Eastern. It is available in the Investor Relations section of our company's website, fluxpower.com.

謝謝你，接線生。今天的主持人執行長 Ron Dutt 和財務長 Chuck Scheiwe 將介紹截至 2023 年 12 月 31 日的第二財季營運表現。東部時間今天下午 4:01 發布了詳細介紹這些結果的新聞稿。您可以在我們公司網站 Fluxpower.com 的投資者關係部分找到這些資訊。

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation, please keep in mind that we are not obligated or we are not obligating ourselves to revise or publicly release the results of any revision. These forward-looking statements in light of new information or future events.

在我們開始正式演示之前，我想提醒大家，電話會議和網路廣播中的陳述可能包括預測、估計或其他可能被視為前瞻性的資訊。雖然這些前瞻性陳述代表了我們目前對未來的判斷，但它們受到風險和不確定性的影響，可能導致實際結果出現重大差異。請您注意不要過度依賴這些前瞻性陳述，這些陳述僅反映我們截至本簡報發布之日的意見，請記住，我們沒有義務或我們自己沒有義務修改或公開發布結果任何修訂。這些前瞻性陳述是根據新資訊或未來事件做出的。

Throughout today's discussion, we'll attempt to present some important factors relating to our business that may affect our predictions. You should also review our most recent Form 10-K for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. At this time, I will turn the call over to Flux Power's Chief Executive Officer, Ron Dutt.

在今天的討論中，我們將嘗試提出一些與我們的業務相關、可能影響我們的預測的重要因素。您還應該查看我們最新的表格 10-K，以更完整地討論這些因素和其他風險，特別是在「風險因素」標題下。此時，我會將電話轉給 Flux Power 的執行長 Ron Dutt。

Thank you, Maria, and good afternoon, everyone. I'm pleased to welcome you to today's fiscal second quarter 24 financial results conference call. Firstly, please note that on slide 3, if you're following the deck for those of you new to our story, there is a short reminder of what we do. We are powering your transition to sustainable lithium ion battery technology. We are powering material handling, airport, ground support, solar energy storage, Port Authority equipment and other applications with new and clean technology. Our products and services are focused on the growing demand for large nationwide fleets that are pursuing a better return on investment and a positive environmental impact compared to lead acid batteries. We are the leading supplier to the large material handling fleets who required the best, both now and with future deliveries and product technology, service and ease of doing business. Our reputation and brand are critical as we target top-tier customer and OEM. names, which I'll point out shortly. We must have a strong reputation and solid track record to reliably satisfy these large fleets that have hundreds of facilities and need their batteries for new equipment and existing equipment delivered on time without difficulty Fortune 100 companies demand suppliers that are transparent, experienced and trustworthy as they transition their fleets to new and clean technologies, which puts us in a very strong position in the clean energy market. And we have the trend note on average, adding two large new customers per quarter and at the same time without losing any of our installed base of customers.

謝謝瑪麗亞，大家下午好。我很高興歡迎您參加今天 24 日舉行的第二財季財務業績電話會議。首先，請注意，在投影片 3 上，如果您是剛接觸我們故事的人，請注意投影片 3 上有一個關於我們所做工作的簡短提醒。我們正在幫助您向永續鋰離子電池技術過渡。我們利用新型清潔技術為物料搬運、機場、地面支援、太陽能儲存、港務局設備和其他應用提供動力。我們的產品和服務專注於滿足全國大型車隊不斷增長的需求，與鉛酸電池相比，這些車隊追求更好的投資回報和積極的環境影響。我們是大型物料搬運車隊的領先供應商，他們需要最好的，無論是現在還是未來的交付和產品技術、服務和營商便利性。當我們瞄準頂級客戶和 OEM 時，我們的聲譽和品牌至關重要。名稱，我很快就會指出。我們必須擁有良好的聲譽和良好的業績記錄，才能可靠地滿足這些大型車隊的需求，這些車隊擁有數百個設施，需要用於新設備和現有設備的電池，按時交付，毫無困難。財富100 強公司要求供應商透明、經驗豐富且值得信賴，因為他們將他們的船隊轉向新的清潔技術，這使我們在清潔能源市場中處於非常有利的地位。我們有平均趨勢記錄，每季增加兩個大型新客戶，同時不會失去任何客戶群。

Our business priority this past year focused on progress to cash flow breakeven while continuing to capture market share for the increasing demand for lithium batteries. We continue to be highly encouraged by our momentum towards cash flow breakeven and profitability. Given the underlying demand of our products we have made progress on a number of our growth initiatives that have near term and long-term impacts. Our new series of heavy duty models will be added to most of our product set by segment. And along with that, a new top five forklift OEM private label program, both of which will address the strong market demand beginning in early 2020 calendar year and our automated assembly of cell modules tracking well, we plan to launch the first the industry's first integrated telematics fleet wide program for the Fortune 100 customer later in 2024 this year that combines the telemetry data of both the forklift and the battery. We believe that our leadership in telematics will serve as a continuing platform to introduce new features for operating performance and asset management that are highly desired by our customers. Also, we are exploring with partners opportunities for fast charging technology and international sales opportunities. Its second fiscal quarter of 2024 also saw ongoing momentum momentum to both the top and bottom lines as we continue to move steadily towards profitability, while reaching record quarter revenue of $18.3 million during the quarter. We do continue to see lumpiness due to the timing of deliveries of customer new forklift orders and higher interest rate impacts. We improved gross profit up 38% in the second quarter to $5.7 million and gross margin expansion of 700 basis points to 31% compared to the year ago period and also up from our fiscal first quarter of $4.3 million and 29%, respectively, with ongoing initiatives focused on strategic supply chain and profitability improvement, lower costs and higher volume purchasing. We are targeting gross margin improvement to continue toward 35% in the short term, we are highly focused on achieving cash flow breakeven during this fiscal year 2024, we made good progress during the second fiscal quarter, delivering positive adjusted EBITDA of $300,000, an improvement of 1.2 million from an adjusted EBITDA loss of $900,000 in the second fiscal quarter of 2023 and a sequential improvement from a loss of $1.2 million in the first fiscal quarter of 2024. Key drivers of the improvement include gross margin expansion and steady operating leverage from modest growth in operating expenses over the year. Our cost and pricing initiatives contributed to gross margin improvements that I just mentioned to 31% in Q2 '24. Also, while our inventory balances have been stable, reflecting better management of supply chain sourcing and higher inventory turns from improved operational processes and lean manufacturing implementation. Taken together, we are executing operational efficiencies on our strategy for cash flow breakeven beginning in this fiscal year 2024 and increasing profitability beyond as we continue to drive expansion of our product lineup, operational efficiencies and service network. In the longer term, our strategy revolves around building scale to sell our products to large fleets, building on our momentum in revenue, gross margin and operating leverage. Currently, we are growing organically within our capital resources, but have begun to explore and develop strategies, including those already mentioned to build partnerships that can leverage our revenue growth, our technology and our profitability and achieve our goal of building scale to meet the needs of our top tier customers. Our efforts on increasing revenue and margin improvement, specifically for adjusted EBITDA are shown on slide 7, reflecting the upward trend over the past two fiscal years and our momentum towards sustained breakeven. The increase in Q2 fiscal 24 is directly attributed to the improved gross margin.

過去一年我們的業務重點是實現現金流損益平衡，同時繼續佔領不斷增長的鋰電池需求的市場份額。我們持續對現金流損益平衡和獲利能力的動能感到高度鼓舞。鑑於我們產品的潛在需求，我們在許多具有短期和長期影響的成長計劃方面取得了進展。我們的新系列重型型號將按細分市場添加到我們的大部分產品集中。同時，一項新的前五名堆高機OEM 自有品牌計劃，這兩項計劃都將滿足2020 年初開始的強勁市場需求，並且我們的電池模組自動化組裝跟踪良好，我們計劃推出第一個業界第一個整合的將於今年稍後為財富 100 強客戶推出遠端資訊處理車隊範圍計劃，該計劃結合了堆高機和電池的遙測數據。我們相信，我們在遠距資訊處理領域的領導地位將成為一個持續的平台，推出客戶高度期望的營運績效和資產管理新功能。此外，我們正在與合作夥伴探索快速充電技術的機會和國際銷售機會。隨著我們持續穩定獲利，2024 年第二財季的營收和利潤也呈現持續成長勢頭，同時本季營收達到創紀錄的 1,830 萬美元。由於客戶新堆高機訂單的交貨時間和較高的利率影響，我們確實繼續看到波動。與去年同期相比，我們第二季的毛利成長了 38%，達到 570 萬美元，毛利率成長了 700 個基點，達到 31%，也高於第一財季的 430 萬美元和 29%。措施的重點是策略供應鏈和獲利能力的提高、降低成本和增加採購量。我們的目標是在短期內繼續將毛利率提高到35%，我們高度重視在2024 年本財年實現現金流收支平衡，我們在第二財季取得了良好進展，實現了30 萬美元的正調整EBITDA，有所改善2023 年第二財季調整後 EBITDA 虧損 90 萬美元，虧損 120 萬美元，比 2024 年第一財季虧損 120 萬美元較上季改善。業績改善的主要驅動因素包括毛利率擴張以及全年營運費用小幅成長帶來的穩定營運槓桿。我們的成本和定價措施促進了毛利率的提高，我剛才提到，24 年第二季毛利率提高了 31%。此外，雖然我們的庫存餘額一直穩定，但這反映出供應鏈採購管理的改善以及改進的營運流程和精實製造實施帶來的更高的庫存週轉率。總而言之，我們正在執行從 2024 財年開始的現金流收支平衡策略，以提高營運效率，並隨著我們繼續推動產品陣容、營運效率和服務網路的擴張，進一步提高獲利能力。從長遠來看，我們的策略圍繞著擴大規模，向大型車隊銷售我們的產品，以我們在收入、毛利率和營運槓桿方面的勢頭為基礎。目前，我們正在我們的資本資源範圍內有機成長，但已經開始探索和製定策略，包括已經提到的建立合作夥伴關係，這些合作夥伴關係可以利用我們的收入成長、我們的技術和我們的獲利能力，並實現我們擴大規模以滿足需求的目標我們的頂級客戶。我們在增加收入和提高利潤率方面所做的努力，特別是調整後的 EBITDA，如幻燈片 7 所示，反映了過去兩個財年的上升趨勢以及我們實現持續盈虧平衡的勢頭。24財年第二季的成長直接歸因於毛利率的提高。

Gross profit sorry, from gross margin expansion and revenue growth. We believe our trajectory to profitability is built on a strong foundation of lean implementation and ISO 9,001 processes. Additional enablers include expansion of high demand models and continued operational and volume-related supply chain cost reductions. Our current and potential pipeline of customers continues to expand with more new customers this past quarter and eight new customers in the calendar year 2023. Our full product line caters to large fleets to seek an ongoing long-term relationship partner to meet current and future needs, not just a onetime transactional purchase engagement. These customers represent well known household names, adding large fleets who require high performing suppliers. Our forklift growth rate has historically been single digit. The adoption of lithium ion batteries is growing at a much higher rate driven by the compelling value proposition of lithium compared to lead acid, especially for the larger multi shift operations. The material handling sector is not unaffected by economic downturns, but it is critical too transport goods and provide services throughout the business cycle. Our strategy has included adjacent verticals such as airport ground support equipment, and we continue to assess other possible adjacencies to leverage our core competencies and capabilities. The trajectories of our revenue and gross margin.

毛利抱歉，來自毛利率擴張和收入成長。我們相信，我們的獲利軌跡建立在精實實施和 ISO 9,001 流程的堅實基礎上。其他推動因素包括高需求模型的擴展以及持續營運和與數量相關的供應鏈成本降低。我們目前和潛在的客戶管道繼續擴大，上個季度新增了更多客戶，2023 年新增了 8 家客戶。我們的完整產品線可滿足大型車隊的需求，尋求持續的長期合作夥伴來滿足當前和未來的需求，而不僅僅是一次性的交易性購買活動。這些客戶代表了家喻戶曉的名字，並增加了需要高性能供應商的大型車隊。我們的堆高機成長率歷來都是個位數。與鉛酸電池相比，鋰離子電池的採用率正在以更高的速度增長，這是由於鋰電池具有令人信服的價值主張，特別是對於較大的多班操作。物料搬運產業並非不受經濟衰退的影響，但它在整個商業週期中運輸貨物和提供服務也至關重要。我們的策略包括機場地面支援設備等相鄰垂直領域，並且我們將繼續評估其他可能的相鄰領域，以利用我們的核心競爭力和能力。我們的收入和毛利率的軌跡。

On slide 9 speak for themselves. We have taken actions to restore our gross margin trajectory that was interrupted by the pandemic, our highest priority now of achieving sustained profitability this fiscal year. Our ongoing improvement initiatives include a number of actions that are now impacting gross margin, and we'll continue to do so. First, price increases to offset commodity pieces, increase pack clients, more competitive shipping costs, lower cost, more reliable and secondary suppliers have key components, expanded manufacturing capacity and production processes, and finally, transition of product lines to a new modular platform, which has more efficient design for assembly and service. All these initiatives are part of our plan to accelerate gross margins as our target is to reach a gross margin at 40%.

第 9 張投影片不言自明。我們已採取行動恢復被疫情中斷的毛利率軌跡，這是我們當前的首要任務是在本財年實現持續獲利。我們正在進行的改進舉措包括許多目前正在影響毛利率的行動，我們將繼續這樣做。首先，提高價格以抵消商品件，增加包裝客戶，運輸成本更具競爭力，成本更低，更可靠，二級供應商擁有關鍵部件，擴大製造能力和生產流程，最後，產品線過渡到新的模組化平台，具有更有效率的組裝和服務設計。所有這些舉措都是我們提高毛利率計劃的一部分，因為我們的目標是將毛利率提高到 40%。

Slide 10 highlights our backlog and inventory level trends, which are reflecting a more predictable pattern in recent periods, reflecting the growth of the business as of February first, our backlog was $30 million for new customers during the quarter, including a winery that is the largest wine producer in the world. Our run rate of backlog does vary at any point in time. That has a pattern of running from 20 million to 38 million depending on the time of the orders received beyond our backlog of open orders, we're working on a pipeline of high probability orders well over 100 million, which does stretch. Beyond our current fiscal year ending June 30th, we monitor the multibillion dollar addressable material handling market for economic trends, new entrants and customer demand trends. And we believe this market to provide a very positive growth environment for a strong, stable undercurrent, especially given the recognize it double digit growth of lithium-ion solutions in the sector.

投影片10 突顯了我們的積壓訂單和庫存水準趨勢，這反映了最近時期更可預測的模式，反映了截至2 月1 日的業務成長，本季我們的新客戶積壓訂單為3000 萬美元，其中包括一家釀酒廠世界上最大的葡萄酒生產商。我們的積壓運轉率在任何時間點都會有所不同。其模式是從 2000 萬到 3800 萬個，具體取決於收到訂單的時間，超出了我們積壓的未結訂單，我們正在研究遠遠超過 1 億個高機率訂單的管道，這確實是一個延伸。在截至 6 月 30 日的本財年之後，我們將監控價值數十億美元的可尋址物料搬運市場的經濟趨勢、新進業者和客戶需求趨勢。我們相信這個市場將為強勁、穩定的暗流提供非常積極的成長環境，特別是考慮到該行業鋰離子解決方案的兩位數成長。

Our strategic initiatives also include improving sourcing actions to mitigate parts shortages, supply chain efficiencies and increasing inventory churn.

我們的策略性措施還包括改善採購行動，以緩解零件短缺、提高供應鏈效率和增加庫存流失。

With that, I will now turn it over to Chuck Scheiwe, our Chief Financial Officer, to review the financial results for the quarter ended December 31, 2023.

現在，我將把它交給我們的財務長 Chuck Scheiwe，以審查截至 2023 年 12 月 31 日的季度的財務業績。

Thanks, Ron. Now turning to review our financial results in the quarter ended December 31st, 2023, as Ron mentioned, revenue for the fiscal second quarter of 2024 increased by 7% to $18.3 million compared to $17.2 million in the fiscal second quarter of 2023. This was due to a higher number of packs sold during the quarter as well as price increases for certain packs sold. Gross profit for fiscal Q2 of 2024 increased to 5.7 million compared to a gross profit of $4.1 million in fiscal Q2 of 2023. Gross margin was 30.9% in fiscal Q2 of 2024 as compared to 23.9 in fiscal Q2 of 2023. So it's reflected higher gross profit and lower cost of sales as a result of the gross margin improvement initiatives we've talked about, and this will help us achieve our profitability.

謝謝，羅恩。現在回顧我們截至2023 年12 月31 日的季度的財務業績，正如Ron 提到的，2024 年第二財季的收入增長了7%，達到1830 萬美元，而2023 年第二財季的收入為1720 萬美元。這是由於本季銷售的包裝數量增加以及某些銷售包裝的價格上漲。2024 年第二財季的毛利增加至 570 萬美元，而 2023 年第二財季的毛利為 410 萬美元。2024 年第二財季的毛利率為 30.9%，而 2023 年第二財季的毛利率為 23.9%。因此，由於我們談到的毛利率改善舉措，這反映出更高的毛利和更低的銷售成本，這將有助於我們獲利。

Selling and administrative expenses were $4.6 million in fiscal Q2 2024, up slightly from $4.3 million in the previous year quarter is primarily attributable staff related expenses, some higher professional service fees and stock-based comp was also partially offset by decreases in outbound shipping costs, recruiting costs and consulting fees.

2024 財年第二季的銷售和管理費用為460 萬美元，略高於去年同期的430 萬美元，主要歸因於員工相關費用、一些較高的專業服務費和股票補償也被出境運輸成本的下降部分抵消。招聘費用和諮詢費。

Research and development expenses increased slightly to $4.3 million in fiscal Q2 of 2024 as compared to $1.2 million in fiscal Q2 of 2023 was primarily due to additional engineering projects to support our new products adjusted EBITDA improved to a positive $300,000 in fiscal Q2 of 2024 from a loss of 900,000 in fiscal Q2 of 2023 and this was mostly driven by the improved gross margins. Our continued initiatives with our continued initiatives, business growth and operating leverage all contribute to drive this trajectory. Net loss for fiscal Q2 of 2024 was 800,000 compared to a net loss of $1.7 million in fiscal Q2 of 2023. The improvement principally reflected increased gross profit, and that was offset by increased operating expenses and interest expense.

2024 年第二財季的研發費用小幅增加至430 萬美元，而2023 年第二財季的研發費用為120 萬美元，這主要是由於支持我們新產品的額外工程項目，調整後的EBITDA 從2024年第二財季的30 萬美元增至正數30 萬美元。2023 財年第二季虧損 90 萬，這主要是由於毛利率提高所致。我們持續的舉措、業務成長和營運槓桿都有助於推動這一軌跡。2024 年第二財季的淨虧損為 80 萬美元，而 2023 年第二財季的淨虧損為 170 萬美元。這一改善主要反映了毛利的增加，但被營運費用和利息費用的增加所抵消。

Cash was $1.6 million at December 31, 2023 as compared to $2.4 million at June 30th of 2023. And this is mostly based on just timing of utilizing our credit line. And when we borrow net cash used in operating activities decreased by $2.1 million to $1 million in the three months ended December 31st, 2023, as compared to $3.1 million in the three months ended September 30th, 2023, and available working capital includes our line of credit as of January 31st, 2024. That's under our 60 million credit facility from Gibraltar business capital that has a remaining available balance of $6 million. And we also have our $2 million available under the subordinated line of credit with Cleveland capital our credit line with Gibraltar provides for expansion for up to 20 million. Now I'd like to pass it back to Ron to offer some closing remarks.

截至 2023 年 12 月 31 日，現金為 160 萬美元，而截至 2023 年 6 月 30 日，現金為 240 萬美元。這主要取決於我們使用信用額度的時間。截至2023 年12 月31 日止三個月，我們借入用於經營活動的淨現金減少210 萬美元，至100 萬美元，而截至2023 年9 月30 日止三個月為310 萬美元，可用營運資金包括我們的截至 2024 年 1 月 31 日的信用。這是我們從直布羅陀商業資本獲得的 6,000 萬信貸額度的一部分，剩餘可用餘額為 600 萬美元。我們也擁有克里夫蘭資本次級信貸額度下的 200 萬美元，我們與直布羅陀的信貸額度可擴大至 2,000 萬美元。現在我想將它轉回羅恩以提供一些結束語。

Thanks, Chuck. Looking at the positive momentum of our existing customer base and new customer acquisitions. We are confident that we are on a trajectory toward reaching sustained profitability during the current fiscal year. Our steady ongoing gross margin improvement reflects our goal to reach 40% gross margin, leveraging our operating and pricing, operational and pricing initiatives as we establish consistent and increasing profitability this year, we look to implement revenue growth initiatives that we are currently exploring and developing. Our strategy continues to focus on the strong demand in the market for sustainable energy, especially in our industrial sector. We do not rely on government incentives, but only a compelling value proposition and ROI. We believe the combination of existing customer orders and the acquisition of new customers who want the benefits of lithium-ion technology can drive continued revenue growth. We are seeing strong progress with our growth strategy, including the introduction of new heavy duty models to be launched. This year and a second private label program expected to launch with a major forklift OEM may also have a exit, but we are exploring a partnership with a fast charging proprietary technology firm, and we look to additional revenue potential from establishing the industry's first telematics integration for an entire nationwide fleet with a Fortune 100 company and our current production facility should support annual revenue up to $150 million given our facility footprint, a second chip build-out and or an implementation of lean manufacturing. As I mentioned previously, we have an improved capital structure. That includes increased working capital line of credit of $16 million, with Gibraltar business capital to support planned growth with provisions to increase to 20 million and a 2 million subordinated credit facility with Cleveland capital as an extended maturity to August 15th, 2025.

謝謝，查克。看看我們現有客戶群和新客戶獲取的正面動力。我們有信心在本財年能持續獲利。我們持續穩定的毛利率改善反映了我們達到40% 毛利率的目標，利用我們的營運和定價、營運和定價舉措，隨著我們今年建立一致且不斷增長的盈利能力，我們希望實施我們目前正在探索和開發的收入成長舉措。我們的策略持續關注市場對永續能源的強勁需求，特別是在我們的工業領域。我們不依賴政府激勵措施，而只依賴令人信服的價值主張和投資報酬率。我們相信，現有客戶訂單和收購想要受益於鋰離子技術的新客戶的結合可以推動收入的持續成長。我們看到我們的成長策略取得了巨大進展，包括推出即將推出的新重型車型。今年，預計與主要堆高機OEM 合作推出的第二個自有品牌計劃也可能會退出，但我們正在探索與快速充電專有技術公司建立合作夥伴關係，並且我們希望透過建立行業首個遠程信息處理集成來獲得額外的收入潛力考慮到我們的設施佔地面積、第二個晶片擴建和/或精益製造的實施，對於財富100 強公司的整個全國車隊和我們當前的生產設施來說，應支持高達1.5億美元的年收入。正如我之前提到的，我們的資本結構有所改善。其中包括將營運資金信貸額度增加到1,600萬美元，直布羅陀商業資本將撥備增加至2,000萬美元，以支持計畫的成長，並將克里夫蘭資本的200萬美元次級信貸額度延長至2025年8月15日。

In summary, we are well positioned to execute our growth strategy as we offer customers deep experience as first movers in the sector and validation by Fortune 100 customers through and trust migration of their fleets to lithium-ion solutions. I look forward to providing our shareholders with further updates in the near term as we strengthen our leadership position in lithium-ion technology solutions with our growing list of new and very large customers.

總而言之，我們有能力執行我們的成長策略，因為我們作為該行業的先行者為客戶提供豐富的經驗，並透過財富 100 強客戶的驗證和信任將他們的車隊遷移到鋰離子解決方案。我期待在短期內向我們的股東提供進一步的最新信息，隨著我們不斷增加的新客戶和超大型客戶名單，我們將鞏固我們在鋰離子技術解決方案方面的領導地位。

I thank you all for attending. And now I'd like to hand the call over to the operator to begin our question and answer session. Operator?

我感謝大家的出席。現在我想將電話轉交給接線員以開始我們的問答環節。操作員？

(Operator Instructions) Rob Brown, Lake Street Capital Markets.

（操作員說明）Rob Brown，Lake Street Capital Markets。

Good afternoon and congratulations on a strong quarter.

下午好，恭喜季度表現強勁。

Thanks, Rob.

謝謝，羅布。

I guess first question here is on the order environment there very strong orders in the quarter. I know the business can be a bit lumpy, but what are you seeing in terms of customer activity? And how do you see the order environment for that couple quarters?

我想這裡的第一個問題是關於訂單環境，本季訂單非常強勁。我知道業務可能有點不穩定，但您在客戶活動方面看到了什麼？您如何看待這幾季的訂單環境？

Yes, Rob, that's really a good question. You know, we spent a lot of time looking at that are particularly our salespeople are working with our industry and customers and the OEMs on that. The industry is has largely recovered from the pandemic, but there's still some lumpiness out there. And orders. We have not seen any backing off or reduction of orders for many of our customers, but we have seen some deferral out toward the end of the year and in some cases beyond as they just manage the timing of replacing forklifts. And and then there must be some effect on highest this release because we see that happening a lot in other sectors, and we haven't lost any customers. So we see no back off in the managing of our installed base and adding new customers. But we are dealing with that lumpiness up to lead times, you know, in a normal stable times could be two months or so. And you can kind of see that reflected somewhat in our open sales orders, but there are a couple of lines with one of our largest OEM customers of forklifts delay. So a large percentage of our business over 90 is for put on new forklifts, although the growing our business on replacing lead acid batteries at the end of life is certainly beginning to grow on that that can affect our timing. So we have an ongoing strategy as a growth company and talk about it all the time and the initiatives to accelerate growth there currently is a strong is in our part to reduce the concentration in our biggest customers and stake as a public company. So we can have a more predictable trajectory on our orders.

是的，羅布，這真是個好問題。你知道，我們花了很多時間來研究這一點，特別是我們的銷售人員正在與我們的行業、客戶和原始設備製造商合作。該行業已基本從疫情中恢復過來，但仍存在一些不穩定性。並下令。我們沒有看到許多客戶的訂單出現任何退縮或減少，但我們看到一些訂單被推遲到年底，在某些情況下甚至更晚，因為他們只是管理更換堆高機的時間。然後，這個版本一定會對最高版本產生一些影響，因為我們看到這種情況在其他領域發生了很多，而且我們沒有失去任何客戶。因此，我們在管理現有客戶群和增加新客戶方面不會有任何退縮。但我們正在處理這種混亂的交貨時間，你知道，在正常的穩定時間內可能是兩個月左右。您可以看到這在我們的未結帳銷售訂單中有所反映，但我們最大的堆高機 OEM 客戶之一的幾條生產線出現了延誤。因此，我們 90 歲以上的業務很大一部分是安裝新堆高機，儘管我們在使用壽命結束時更換鉛酸電池的業務不斷增長，這肯定會開始成長，這可能會影響我們的時機。因此，作為一家成長型公司，我們有一個持續的策略，並且一直在談論它，目前加速成長的舉措是我們的重點，以減少對我們最大客戶的集中度和作為上市公司的股份。這樣我們的訂單軌跡就更可預測。

I'd just add, though, that like a lot of companies, I think a lot of customers are going after a look at how deep and broad It began with some of these Fortune 51 hundred customers because that really does provide the validation to others that are looking at this adoption and migration.

不過，我想補充一點，就像很多公司一樣，我認為很多客戶都在關注它的深度和廣度，它是從財富 5100 強客戶中的一些客戶開始的，因為這確實為其他人提供了驗證正在關注這種採用和遷移。

So on in your response to the orders that that's a that's going around from the wagons pretty well. Does that help?

因此，在您對訂單的回應中，馬車上的情況非常好。這樣有幫助嗎？

Excellent?

出色的？

Yes.

是的。

Thank you.

謝謝。

That was a great overview and answer some of my other questions along the way so that's fantastic. And then on the margin trends, obviously good progress there. How come how much further to go is there in terms of some of these initiatives you put in place. Are there other initiatives in place that that really matter set to show through in the numbers? I think you mentioned a 35% gross margin. That's a near term target, but a sense of how confident you are in achieving the margin improvement that you've worked?

這是一個很好的概述，並回答了我一路上的一些其他問題，所以這太棒了。然後在利潤趨勢方面，顯然取得了良好的進展。你們實施的一些措施還有多遠的路要走？是否還有其他真正重要的措施可以透過數字體現出來？我想你提到了 35% 的毛利率。這是一個近期目標，但您對實現利潤率改善的信心有多大？

Yes. You know, you hit on another hot topic here. We we work with on a on a constant basis for the last well, three or four years from when we had negative margin depends in large part because of low low volumes. But we have established an infrastructure at Cadence, a war room mentality on margins going up after them in all the high-potential areas, supply chain sourcing getting better pricing from higher, higher volumes on the design side of improving our designs for quality and reducing warranty. And then also from the pandemic with the price increases we had to catch up on on pricing because we had to honor long-lead purchase orders with some of these customers. So the benefit of the aggravation of that supply chain was it forced us to really build a stronger, robust infrastructure and to reduce cost, make all of our processes more efficient and also be taking a hard look at products we have and making sure the pricing is right. I mean, after all, we in a dozen or so. Others that are in this sector are really buying new ground and learning more all the time about that. So I think those are that is a net those areas of initiatives that have momentum with. So when we target cash flow breakeven and a big part of that is margin, it's helped by growing volume. But the efforts on those are ongoing. Our goal is not just to breakeven. And our goal is to achieve the margin that a manufacturing company like us should achieved, which we've talked about. And we have a lot of confidence that we have in place and you know what I could loosely call the infrastructure too continue that momentum.

是的。你知道，你在這裡觸及了另一個熱門話題。我們在最後一口井中一直與我們合作，從我們出現負利潤的三、四年起，很大程度上取決於低產量。但我們已經在Cadence 建立了基礎設施，一種作戰室心態，在所有高潛力領域的利潤率都在不斷上升，供應鏈採購從設計方面的更高、更高的產量中獲得更好的定價，從而提高了我們的設計品質並減少了成本。保固。然後，由於疫情的影響，價格上漲，我們必須跟上定價的步伐，因為我們必須履行與其中一些客戶的長期採購訂單。因此，供應鏈惡化的好處是，它迫使我們真正建立一個更強大、穩健的基礎設施，並降低成本，使我們所有的流程更加高效，並認真審視我們擁有的產品並確保定價是正確的。我的意思是，畢竟我們有十幾個人。這個領域的其他人確實在尋找新的領域，並一直在了解更多相關知識。所以我認為這些都是有動力的舉措領域。因此，當我們的目標是現金流損益平衡（其中很大一部分是利潤）時，銷售量的成長會有所幫助。但這些方面的努力仍在繼續。我們的目標不僅僅是實現收支平衡。我們的目標是實現像我們這樣的製造公司應該達到的利潤，我們已經談到了這一點。我們對我們已經到位的基礎設施充滿信心，你知道我可以粗略地稱之為基礎設施，也將繼續保持這一勢頭。

Okay, great. And then my last question is around kind of the working capital cash flows. Do you have some seasonality there and you expect the working capital kind of, I guess, use of cash flow to diminish?

好的，太好了。我的最後一個問題是關於營運資金現金流的。您那裡是否有一些季節性，並且您預計營運資金（我猜）現金流的使用會減少？

Yes.

是的。

Well, a lot of the changes right now since you're right on that edge of zero adjusted EBITDA, Frank, a known close to that level, a lot of the changes in capital is just it's working capital, inventory purchases and customer payments. So for us, it can bounce around a lot when you have payments coming, whether they come in this week or the next week, you're going to see that bounce around a little bit. So I think our focus really on the cash side is holding inventory down and utilizing the balance sheet to keep us close to zero.

嗯，現在有很多變化，因為你正處於零調整 EBITDA 的邊緣，弗蘭克，已知接近這個水平，資本的許多變化只是營運資本、庫存採購和客戶付款。因此，對我們來說，當您收到付款時，無論是本週還是下週付款，您都會看到一點反彈。因此，我認為我們真正關注現金方面的是控制庫存並利用資產負債表使我們接近零。

Okay.

好的。

In the big picture, guys, I'll turn it over.

從大局來看，夥計們，我會把它翻過來。

Thanks, Rob.

謝謝，羅布。

Sameer Joshi, H.C. Wainwright.

薩米爾‧喬希 (Sameer Joshi)，H.C.溫賴特。

Thanks, Ron. Congratulations on the positive adjusted EBITDA. Now that you have the math here on the and heavy-duty models that are expected to be launched later this year. Have you received the UL listing for that? And part two of that question is, have you already sort of scope of prospective customers and is there a pipeline behind that?

謝謝，羅恩。祝賀調整後 EBITDA 實現正值。現在您已經對預計今年稍後推出的重型型號進行了計算。您已收到 UL 清單嗎？這個問題的第二部分是，您是否已經了解了潛在客戶的範圍以及背後是否有管道？

Those ones?

那些？

You know, our heavy duty model that we have planned to roll out or have UL certification achieved and material handling sectors. One, our customers almost always want that UL listing to top tier customers. They know it's there and they want it in this platform. We've been rolling out. So we do have a ground support equipment that customers who don't require the UL listing. So we have sent some of those evil packs out to them. But what we're what we are working on right now is getting the <unk> top tier OEN.s to approve these new packs in their trucks and the <unk>, our scenario has shifted over the past few years from them doing the proven themselves, which can be a fairly quick turnaround, having third parties do that, which is a longer turnaround. And so that's why the rollout of our US sales of our heavy duty, our models have have taken a little bit longer than expected. We have a project in now with our largest OEM partner, and it will be forthcoming through approval in May in the coming several months. And so our salespeople are certainly eager for these packs to be able to sell because for some time we've seen we've learned and come across much more app of many more applications where the heavy duty pack is just just the right answer. So it does matter whether, you know, we offer the 24, 36, 48 volts. It doesn't matter whether you're moving potato chips or engine bond as well. So we want to cater to that entire line.

您知道，我們計劃推出或已獲得 UL 認證的重型型號以及物料搬運行業。第一，我們的客戶幾乎總是希望頂級客戶獲得 UL 認證。他們知道它就在那裡並且他們希望它出現在這個平台上。我們一直在推出。因此，我們確實為不需要 UL 認證的客戶提供地面支援設備。所以我們已經向他們發送了一些邪惡的包。但我們現在正在做的事情是讓 頂級 OEN.s 批准在他們的卡車上安裝這些新包裝，而 在過去的幾年裡，我們的情況已經從他們做的事情發生了轉變證明自己，這可能是一個相當快的周轉時間，而讓第三方這樣做，這是一個更長的周轉時間。這就是為什麼我們在美國銷售重型車型的時間比預期要長一些。我們現在與最大的 OEM 合作夥伴有一個項目，該項目將於未來幾個月內於 5 月獲得批准。因此，我們的銷售人員當然渴望這些包能夠銷售，因為一段時間以來，我們已經了解到並遇到了更多應用程序，其中重型包正是正確的答案。因此，我們是否提供 24、36、48 伏特電壓確實很重要。無論您是要移動薯片還是引擎黏合劑都沒關係。所以我們想迎合整個產品線。

Understood.

明白了。

Thanks.

謝謝。

Thanks for that color. On the integrated telematics, I know you said you will launch it later again in this later in calendar 2024. Do we know what kind of revenues or cash flows we can expect from that.

謝謝那個顏色。關於整合遠端資訊處理，我知道您說過您將在 2024 年稍後再次推出它。我們是否知道我們可以從中獲得什麼樣的收入或現金流？

And do you expect the several of your customers to adopt it are and just a few?

您預計您的客戶會採用它嗎？僅僅是少數嗎？

Well, the telematics we've offered telematics for several years and is I would characterize it as the first generation is really born out of our engineers having a tool to assess this data, help troubleshoot our models and we start, we start selling that is selected our customers know buy over the past year or two. And what we found is that many of the operations in both material handling and GSC. had operated for many, many years without telematics on the battery and just didn't think if they didn't understand the real benefit of it for asset management state health managing their packs and what they found as as they pilot and tried these, they're very, very excited. So worse rate, I think we're going to see a continuing more rapid growth and rollout of this. Now we we charge an amount to install the telematics, and we're also recently beginning to charge a monthly fee to provide services to support those people with customized reports and our other other support services. So we've got the initial fixed fee and the monthly fee, and we see that evolving to the point of being a huge leverage point to offer new features and capability the needs for our customers to manage their fleet. They have locations all over the country. They have lots of forklifts, lots, lots of battery packs, of course, with that and managing the live forklifts do different jobs with telemetry, they can they can swap the batteries to extend the life. Everyone is into extending asset life because that's that's USD cents. The other thing and probably the more important or into reducing downtime. So with telemetry, which is channeled through the cloud to the customers and us we can provide downloads and repair for fax our local tax to do repair work where a hands on approach is needed, all of which can reduce the amount of downtime, which is critical for these high performance operations. And what we're seeing as we introduce these into the steel plants and others, it has been very, very well received.

嗯，我們提供遠端資訊處理技術已經好幾年了，我將其描述為第一代，它實際上誕生於我們的工程師，他們擁有一個工具來評估這些數據，幫助排除我們的模型故障，然後我們開始，我們開始銷售，這是選擇我們的客戶知道在過去一兩年購買過。我們發現物料搬運和 GSC 中的許多操作都是如此。在沒有電池上的遠端資訊處理的情況下運行了很多很多年，只是不認為如果他們不了解它對資產管理、狀態健康管理他們的包的真正好處以及他們在試點和嘗試這些產品時發現的東西，他們我們非常非常興奮。更糟的是，我認為我們將看到這種技術持續更快速的成長和推出。現在我們收取一定的費用來安裝遠端資訊處理，最近我們也開始收取月費來提供服務，以透過客製化報告和我們的其他支援服務來支援這些人。因此，我們獲得了最初的固定費用和月費，我們看到它發展成為一個巨大的槓桿點，可以提供新的功能和功能，滿足我們的客戶管理其車隊的需求。他們在全國各地都有分支機構。他們有很多堆高機，很多很多電池組，當然，透過遙測管理現場堆高機做不同的工作，他們可以更換電池以延長使用壽命。每個人都熱衷於延長資產壽命，因為這就是美元。另一件事可能更重要，或者是減少停機時間。因此，透過雲端傳輸給客戶和我們的遙測技術，我們可以提供下載和維修服務，以便傳真我們當地的稅務部門，以便在需要親自動手的地方進行維修工作，所有這些都可以減少停機時間，對於這些高性能操作至關重要。當我們將這些引入鋼鐵廠和其他工廠時，我們看到，它受到了非常非常好的歡迎。

Lastly, I'd say look this is software and data. It's kind of like RI. phone zone where you get downloads over time, improving this new versions and iPhone 14, 15 and so forth. And that's the path I see for this U.S. telemetry. And we're very, very excited about it because it's a source not only of some income, but I think it's even even larger than that it's a source of new business and a differentiation for our company for a first mover in this. There are others doing it, but it represents a source for us to get new business, it's also a beneficial beneficial for for pricing.

最後，我想說看看這是軟體和數據。這有點像 RI。手機專區，您可以隨著時間的推移進行下載，改進新版本以及 iPhone 14、15 等。這就是我所看到的美國遙測的路徑。我們對此感到非常非常興奮，因為它不僅是一些收入的來源，而且我認為它甚至比它更重要，它是新業務的來源，也是我們公司在這方面的先行者的差異化。還有其他人在這樣做，但它代表了我們獲得新業務的來源，這對定價也有好處。

Yes, simply put this value creation value. We see that the customer wants that something that our engineers think it's slick and clever, it's what the customers want. So it's very exciting.

是的，簡單來說就是這個價值創造價值。我們看到客戶想要我們的工程師認為巧妙而聰明的東西，這就是客戶想要的。所以這非常令人興奮。

Yes, no, certainly it is a high gross margin revenue stream as well. So we're looking forward to progress on And my last question is just I know you mentioned the EUR150 million capacity cut, but in terms of on the operating side, with current operating level expense levels how much revenue can be supported? Or should we see some scaling off of a sales on expenses as revenues increased?

是的，不，當然這也是一個高毛利率的收入來源。因此，我們期待著取得進展。我的最後一個問題是，我知道您提到了 1.5 億歐元的產能削減，但在營運方面，以目前的營運水準費用水準可以支持多少收入？或者，隨著收入的增加，我們是否應該看到費用銷售減少？

Well, if I if I understand the question right, that our capacity at this site is to be able to increase our production line. We ship out of here 100 million, $150 million of lithium battery packs per year and the operating infrastructure is set to do that. We're not capital intensive as we double the size of that revenue. We expect a modest amount of additional tools and some testing equipment and a few more people, but we're very confident of that rollout. And particularly because we are two great enablers, as I said, 9,000 processes embedded here for the last four years. And we're very close to wrapping up lean manufacturing with this to make it efficient from the standpoint of expenses to support it, given the low capital expense. That's required for that. Our expertise in that we can we believe we have good good line of sight on that and selling out a second shift, I mean, a real function of second shift as well. I'll give that a lot of positive understanding of it.

好吧，如果我理解問題正確的話，我們在這個地點的產能是能夠增加我們的生產線。我們每年從這裡運出 1 億個、價值 1.5 億美元的鋰電池組，營運基礎設施就是為了做到這一點。我們不是資本密集型的​​，因為我們將收入規模增加了一倍。我們預計會有適量的額外工具和一些測試設備以及更多的人員，但我們對此非常有信心。特別是因為我們是兩個偉大的推動者，正如我所說，過去四年裡嵌入了 9,000 個流程。鑑於資本支出較低，我們非常接近完成精實製造，從支持它的費用的角度來看，它會變得有效率。這是必需的。我們的專業知識是，我們相信我們對此有良好的視野，並出售第二班，我的意思是，第二班的真正功能也是如此。我會給它很多正面的理解。

Yes, we do have a lot of operating leverage here that we can capitalize on because a lot of the bodies we've had at our production based, which is already in the COGS line forecast going forward. So those bodies are already part of the cost of goods sold in terms of production. And we could definitely have a lot of leverage here to grow the business without adding a lot of OpEx because right.

是的，我們確實有很多可以利用的營運槓桿，因為我們在生產中擁有很多機構，這已經在未來的銷貨成本生產線預測中。因此，就生產而言，這些機構已成為銷售商品成本的一部分。我們絕對可以在這裡擁有很大的影響力來發展業務，而無需增加大量營運支出，因為這是正確的。

So cash flows and net margins were not only going to be improved as gross margin improved, but you will find this operating leverage as well.

因此，現金流和淨利潤率不僅會隨著毛利率的提高而提高，而且您還會發現這種營運槓桿。

And further program curriculum, sorry, it's really kick it's going to kick in from here on very well, what I'm saying on.

還有進一步的課程，抱歉，這真的很有趣，從這裡開始，我所說的會很好。

Truly exciting.

確實令人興奮。

Thanks.

謝謝。

Thanks for taking my questions.

感謝您回答我的問題。

Thanks, Amiram.

謝謝，阿米拉姆。

Our next question comes from the line of Craig Irwin with Roth. Please proceed with your question.

我們的下一個問題來自克雷格歐文和羅斯的對話。請繼續你的問題。

And good evening, gentlemen, and congratulations on the nice growth and progress of your margin.

先生們，晚上好，祝賀你們利潤的良好增長和進步。

Thanks, Greg.

謝謝，格雷格。

So Ron, can you maybe comment for us or give us some color on your competitiveness in the airport ground equipment markets. And, you know, with the environmental commitments of the airlines looking to reduce their carbon footprint and commit to these advanced technologies, how active do you expect that market to potentially be this year?

羅恩，您能否為我們發表評論，或給我們一些關於您在機場地面設備市場的競爭力的信息。而且，您知道，隨著航空公司致力於減少碳足跡並致力於這些先進技術，您預計該市場今年的活躍程度如何？

Well, it's certainly come back to life from the pandemic, as you know, and that particularly in the top five airlines, that stuff really shut down, everything battened down the hatches. And so for the past year, we've seen really a very strong revenue growth. I would say our largest customer does Delta Airlines is known as a technology leader in the sector and of our distributor that we have a risk because it is a very long term season. Our supplier of batteries to the airlines. So we have a great leverage, a great enabler there with the airline. So we see them some other airlines. We've brought on top five, including air and then also Air Canada. We have others from pipe piling the packs and we see the growing interest. And I think part of it is yes, it is interesting. I mean, as I was referencing before they're looking at lithium and gone well with lead acid or diesel. We have telemetry. What are the real leverage points embedded and benefits of this? And I think when you see somebody like Delta who has brought this on and others with the very positive experiences they have and what they're getting out of it for cost management on emissions. And I think it's just my opinion. And I think that's going to continue to grow. Credibility is everything in there and the current players are giving credibility. We claim leadership particularly in the US on supplying IGSC. And the market, of course, is not nearly as big as the material handling market in North America, but it's very sizable it represents on market where our core competencies can be exploited for them. And we're seeing that. We're very excited about that and working with them because all their equipment virtually all their equipment uses 80 volt battery packs. And what we're seeing is that I'm having spent time with that, it has has allowed some bases for continued expansion of products in GSC and also the adoption of Abel lithium batteries for the very heavy duty forklift. So there's that tangential benefit to the GSE market in that you have the GSE market. You mentioned you mentioned the competitiveness and there are other competitors out there. And but but I think we offer some of the reputation with some of these large customers and the lot of the airlines. Top five, as you know, are very large in themselves. And what we're finding it resonating with them is that we're somebody that can handle operations with many sites and meet their quality, not quality and service needs sales. Now that Azure.

嗯，正如你所知，它肯定會從大流行中恢復生機，特別是在排名前五的航空公司中，這些東西真的關閉了，一切都在準備之中。因此，在過去的一年裡，我們看到了非常強勁的收入成長。我想說的是，我們最大的客戶達美航空被稱為該行業的技術領導者，而我們的經銷商則認為我們面臨風險，因為這是一個非常長期的季節。我們為航空公司提供電池的供應商。因此，我們對航空公司有很大的影響力和推動力。所以我們看到他們是其他一些航空公司。我們已經進入了前五名，其中包括航空和加拿大航空。我們有其他人透過管道堆放包裝，我們看到人們的興趣日益增長。我認為部分原因是肯定的，這很有趣。我的意思是，正如我在他們考慮鋰並與鉛酸或柴油配合良好之前提到的那樣。我們有遙測技術。其真正的槓桿點和好處是什麼？我認為，當你看到像達美航空這樣的人帶來了這一點，以及其他人擁有非常積極的經驗以及他們從排放成本管理中獲得的成果時。我認為這只是我的意見。我認為這一數字將會繼續增長。信譽就是一切，目前的球員正在提供信譽。我們聲稱在提供 IGSC 方面處於領先地位，尤其是在美國。當然，這個市場不像北美的物料搬運市場那麼大，但它代表著我們可以利用我們的核心競爭力的市場。我們也看到了這一點。我們對此並與他們合作感到非常興奮，因為他們的所有設備幾乎所有設備都使用 80 伏特電池組。我們看到的是，我花了很多時間在這方面，它為 GSC 的產品持續擴展以及在超重型堆高機中採用 Abel 鋰電池奠定了基礎。因此，擁有 GSE 市場對 GSE 市場有一定的好處。您提到您提到了競爭力，並且還有其他競爭對手。但我認為我們在一些大客戶和許多航空公司中享有一定的聲譽。如您所知，前五名本身就非常大。我們發現與他們產生共鳴的是，我們能夠處理許多站點的運作並滿足他們的質量，而不是品質和服務需求的銷售。現在是蔚藍。

That's excellent.

那太好了。

That's really helpful from. My next question is about pack certifications this year and then spending on new product development. Can you maybe update us on any plans certifications this year that we should look at the financial model? You know, how would you discuss the expenses and for these for these packs and, you know, R&D, do you do have any specific new initiatives that will alter the trajectory from where you've been? I mean, I know you guys have been really tight on the spending side, but you're smart about where you are where you spend your money so that if you could maybe just give us a little granularity.

這真的很有幫助。我的下一個問題是關於今年的包裝認證以及​​新產品開發的支出。您能否向我們介紹今年我們應該考慮財務模型的任何計劃認證的最新情況？你知道，你會如何討論這些包的費用和這些費用，你知道，研發，你是否有任何具體的新舉措來改變你一直以來的軌跡？我的意思是，我知道你們在支出方面一直非常緊張，但你們很清楚自己在哪裡花錢，所以如果你們可以給我們一些細節。

Yes, in the UL certification is one where historically our best is seven, eight years of really requires of money and time to go through that. And we will continue to incur that the current heavy duty models have UL. But as we add more models, we're working on a 96 HOLT model. We believe that all those models going into ground support equipment and at some point will likely require UL certification. And we use that. We view that UL certification really as a good thing, even though it's time and money used to be an aggravation, but it's also a point of differentiation. It's also a point of building confidence with our with our customers and you take the airlines if they have anything go wrong, any thermal or vent or something, they get extremely nervous and their safety officers up immediately to wherever they're going. So they are particularly excited as our other customers on that UL certification so we'll continue to that. The good news is that given our many years with you well, we are able to do all the testing here. We used to have to send it out to expensive third party groups that took time and money and we can do it now with the UL oversight, either virtually or in person, depending on the test that they think is important. So that's an important that's been an important leverage point in mitigating that expense that the other thing is there's a there's some testing there that we honestly we need to do anyway, they're covering safety and ruggedness test, which of course, we will want to do as well.

是的，在 UL 認證中，歷史上我們最好的認證是七、八年，確實需要金錢和時間來完成。我們將繼續確保當前的重型型號具有 UL。但隨著我們添加更多型號，我們正在開發 96 HOLT 型號。我們相信所有這些型號進入地面支援設備並在某些時候可能需要 UL 認證。我們使用它。我們認為 UL 認證確實是一件好事，儘管過去它很花時間和金錢，但它也是一個差異化點。這也是與我們的客戶建立信任的一個點，如果航空公司出現任何問題，任何熱或通風口或其他什麼問題，他們會變得非常緊張，他們的安全官員會立即趕到他們要去的地方。因此，他們和我們的其他客戶一樣對 UL 認證感到特別興奮，因此我們將繼續這樣做。好消息是，鑑於我們與您合作多年，我們能夠在這裡進行所有測試。我們過去必須將其發送給昂貴的第三方團體，這需要時間和金錢，現在我們可以在 UL 監督下進行，無論是虛擬的還是親自的，這取決於他們認為重要的測試。因此，這是一個重要的因素，它是減輕費用的一個重要槓桿點，另一件事是，我們確實需要進行一些測試，無論如何，它們涵蓋了安全性和耐用性測試，當然，我們希望進行這些測試也要做。

The other piece of certification, Craig, is it getting the OEMs whether they're forklifts and particularly, we're putting a battery in their forklift, the put a car engine in a car. It's you know, it's integrated and it's very it's very important for warranty when the customer has problems, they just go to probably the forklift dealer. So they're they're very keenly aware that there's a process, as I mentioned earlier, and that does cost us some money. I packs. It's not a major expense, but it's an expense. And actually the real pain point is this time for them to get it done. There's some other testing self-certification for transport of lithium batteries. We do all that here, self-certification occasionally, we might ship something out if for some for some reason.

克雷格，另一個認證是讓原始設備製造商了解他們是否是堆高機，特別是，我們在他們的堆高機中安裝了電池，就像在汽車中安裝了汽車引擎一樣。你知道，它是整合的，這對於保固非常重要，當客戶遇到問題時，他們可能會去找堆高機經銷商。所以他們非常敏銳地意識到有一個過程，正如我之前提到的，這確實花費了我們一些錢。我打包。這雖然不是一筆大開支，但卻是一筆開支。事實上，真正的痛點是他們這次要完成它。還有一些其他針對鋰電池運輸的測試自我認證。我們在這裡做所有這些，偶爾進行自我認證，如果出於某種原因，我們可能會發出一些東西。

And I think over the next six to 12 months. We're going to spend a lot more money on telemetry in terms of that's a key product here. So we're going to spend some money on the goodwill for the users looking at how that looks, we're going to create an app for phones, spend some money on that because I think it's a big point that we need to start a precedent as well. And that's not R&D development there.

我認為在接下來的六到十二個月內。我們將在遙測上花費更多的錢，因為這是這裡的關鍵產品。因此，我們將花一些錢為用戶提供商譽，看看它的外觀，我們將創建一個手機應用程序，花一些錢，因為我認為這是一個重要的點，我們需要開始一個也有先例。這不是研發開發。

And just say, I think open, I think congratulations on the progress guys.

只是說，我認為開放，我認為祝賀你們的進展。

Okay. Thanks, Greg.

好的。謝謝，格雷格。

Our next question comes from the line of Matthew Galinko with Maxim Group. Please proceed with your question.

我們的下一個問題來自 Maxim Group 的 Matthew Galinko。請繼續你的問題。

Hey, thanks for taking my question. And Bill, you may have covered this already, but I was hoping you could talk, I guess a little bit more about the $100 million pipeline you referenced that that extends beyond on this fiscal year, Tom?

嘿，謝謝你回答我的問題。比爾，您可能已經介紹過這一點，但我希望您能談談，我想您可以多談談您提到的 1 億美元的管道，該管道將延伸到本財年之後，湯姆？

Yes, I get ahead and any changes to the composition of that pipeline in the last quarter or any changes in confidence level level of capturing on a portion of that pipeline?

是的，我領先了，上個季度該管道的組成有任何變化，或者捕獲該管道的一部分的置信水平有任何變化嗎？

You know, it's our head of sales and those guys are all over that. There's a number the lead time on on a lot of these on sales orders for quite some time, particularly quite quite long, particularly for a new, a new company, the other again, it kind of going back to the same old message, you may be tired of hearing, but the timing of the new forklifts going out is moving around as well on the forecasting on their side of when forklifts are going out is to pick is the big question mark.

你知道，這是我們的銷售主管，這些人都在負責這件事。許多銷售訂單上的交貨時間有相當長的一段時間，特別是相當長的時間，特別是對於一個新的、新的公司，另一個，這有點回到同一個舊消息，你可能聽膩了，但新堆高機的出動時間也在不斷變化，而他們這邊的預測，堆高機何時出動是要打上一個大問號的。