ESS Tech Inc (GWH) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions)

女士們先生們，謝謝你們的支持。（操作員說明）

I would now like to turn the conference over to our host, Erik Bylin. Please go ahead, sir.

現在我想將會議轉交給我們的主持人 Erik Bylin。請繼續，先生。

Welcome to ESS second quarter of fiscal year 2024 financial results conference call. Joining me on the call today from ESS are Eric Dresselhuys, CEO; and Tony Rabb, CFO. Following management's prepared remarks, we will hold a Q&A session. Earlier today, ESS released financial results for the second quarter of fiscal year 2024. The earnings release is available in the Investor Relations section of the company's website.

歡迎參加 ESS 2024 財年第二季財務業績電話會議。今天與我一起參加電話會議的是 ESS 執行長 Eric Dresselhuys；和財務長托尼·拉布。在管理階層準備好發言後，我們將舉行問答環節。今天早些時候，ESS 發布了 2024 財年第二季的財務表現。收益發布可在公司網站的投資者關係部分查看。

As a reminder, the information presented today will include forward-looking statements, including, without limitation, statements about our growth prospects, partnerships, financial performance and strategy for 2024 and beyond.

提醒一下，今天提供的資訊將包括前瞻性陳述，包括但不限於有關我們的成長前景、合作夥伴關係、財務業績和 2024 年及以後策略的陳述。

The forward-looking statements are also subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or implied during this call. In particular, those described in our risk factors set forth in more detail in our most recent periodic filings filed with the Securities and Exchange Commission, as well as the current uncertainty and unpredictability in our business, issues with our partnerships, the markets, the economy and the current geopolitical situation.

前瞻性陳述也受到已知和未知的風險和不確定性的影響，這些風險和不確定性可能導致實際結果與本次電話會議期間預測或暗示的結果有重大差異。特別是，我們最近向美國證券交易委員會提交的定期文件中更詳細地描述了我們的風險因素，以及我們業務當前的不確定性和不可預測性、我們的合作夥伴關係、市場、經濟的問題以及當前的地緣政治局勢。

You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call today are based on assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

您不應依賴我們的前瞻性陳述作為未來事件的預測。我們今天在這次電話會議上所做的所有前瞻性陳述均基於截至本新聞稿發布之日的假設和信念，除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

During the call, we will also present certain financial information on a non-GAAP basis. Management believes that non-GAAP financial measures taken in conjunction with US GAAP financial measures provide useful information for both management and investors by excluding certain items that are not indicative of our core operating results.

在電話會議期間，我們也將提供某些非公認會計原則的財務資訊。管理層認為，結合美國公認會計準則財務措施採取的非公認會計準則財務措施通過排除某些不代表我們核心經營業績的項目，為管理層和投資者提供了有用的信息。

Management uses non-GAAP measures internally to understand, manage and evaluate our business and make operating decisions. Reconciliations between US GAAP and non-GAAP results are presented within our earnings release.

管理階層在內部使用非公認會計準則衡量標準來了解、管理和評估我們的業務並做出營運決策。我們的收益報告中提供了美國公認會計原則和非公認會計原則結果之間的調節表。

With that, I'll turn the call over to ESS CEO, Eric Dresselhuys.

接下來，我會將電話轉給 ESS 執行長 Eric Dresselhuys。

Welcome, and thanks for joining us today. Momentum continues to build for our business and for the larger long duration energy storage market. In the last quarter, we've seen continued regulatory momentum to grow deployments of eight plus hour duration storage and direct funding announcements to projects that will accelerate adoption and continued deployment of our technology reinforcing our position as a leader in the field.

歡迎並感謝您今天加入我們。我們的業務和更大的長期儲能市場的勢頭繼續增強。在上個季度，我們看到了持續的監管勢頭，以增加八小時以上持續存儲的部署，並直接向項目宣布資助，這將加速我們技術的採用和持續部署，從而鞏固我們作為該領域領導者的地位。

In the second quarter, we have expected to ship more units but a key partner experienced a delay in final approvals and funding. We have built and had anticipated shipping approximately 12 additional EWs last quarter in support of those projects.

在第二季度，我們預計將發貨更多設備，但主要合作夥伴在最終批准和融資方面遇到了延遲。我們已經建造並預計在上個季度額外運送約 12 艘電子戰來支持這些項目。

But unfortunately, they flipped. Based on the current information provided by the partner and the end customer, we now expect to ship and recognize revenue for those units in the third quarter. So stay tuned for further announcements.

但不幸的是，他們翻轉了。根據合作夥伴和最終客戶提供的當前信息，我們現在預計這些單位將在第三季度發貨並確認收入。因此，請繼續關注進一步的公告。

These delays are frustrating and given our early stage any shift in project timing has a meaningful impact on the results within any given quarter. In any case, we continue to execute on our strategy and expect to ramp revenue in the back half of the year as we lower cost and increase our capacity.

這些延遲令人沮喪，考慮到我們處於早期階段，專案時間的任何變化都會對任何特定季度的結果產生有意義的影響。無論如何，我們將繼續執行我們的策略，並預計隨著我們降低成本和增加產能，下半年收入將增加。

I'm thrilled to announce that we are finalizing the details to close a transformative agreement with the Export-Import Bank of the United States, or EXIM for up to $50 million in funding to help ESS continue to maintain our strong balance sheet while expanding our operations. Provided by the Make More in America Initiative, this funding is long term, low interest nondilutive capital to finance expanding manufacturing capacity.

I'm thrilled to announce that we are finalizing the details to close a transformative agreement with the Export-Import Bank of the United States, or EXIM for up to $50 million in funding to help ESS continue to maintain our strong balance sheet while expanding our營運.這筆資金由「Make More in America Initiative」提供，是長期、低利率、非稀釋性資本，旨在為擴大製造能力提供資金。

We can use it immediately to add to our cash position, borrowing about $10 million this year, including on a look back basis for previously installed capacity and for the addition of Line 2, which is expected to triple our production capacity to over 1 gigawatt hour of battery capacity annually.

我們可以立即使用它來增加我們的現金頭寸，今年借了約 1000 萬美元，包括回顧之前的裝置容量和增加 2 號線，預計這將使我們的產能增加兩倍，超過 1 吉瓦時每年的電池容量。

Just last week, we were joined by Senator Ron Wyden and EXIM Vice Chair, Judith Pryor and numerous other dignitaries here in Wilsonville to hold the ribbon cutting to celebrate our growing manufacturing capacity.

就在上週，參議員羅恩·懷登(Ron Wyden) 和進出口銀行副主席朱迪思·普賴爾(Judith Pryor) 以及眾多其他政要在威爾遜維爾與我們一起舉行了剪彩儀式，以慶祝我們不斷成長的製造能力。

This groundbreaking followed the visit from the Conservative Climate Caucus, a group of Congress people that works to reduce emissions by educating house republicans and climate policies and legislation consistent with conservative values, proving that lowering our carbon footprint through American made long duration energy storage is a bipartisan imperative, something we can all agree upon.

這項開創性的舉措是在保守黨氣候核心小組訪問之後進行的，該小組由國會議員組成，致力於通過教育眾議院共和黨人以及符合保守價值觀的氣候政策和立法來減少排放，證明通過美國製造的長期能源儲存來降低我們的碳足跡是一個可行的方法。

We're honored to have gained their support and humbled to hear their praise for what ESS is doing on storage in the US. This support for scaling is important because we're going to need a lot of long duration energy storage.

我們很榮幸獲得他們的支持，並很榮幸聽到他們對 ESS 在美國儲存方面所做的工作的讚揚。這種對擴展的支持很重要，因為我們將需要大量的長期能量儲存。

As many of you know, electricity demand in the US and around the world is beginning to increase dramatically as we work to electrify everything and support the massive demand from technologies such as generative AI.

眾所周知，隨著我們努力實現一切電氣化並支援生成人工智慧等技術的巨大需求，美國和世界各地的電力需求開始急劇增加。

After decades of essentially no load growth, the Federal Energy Regulatory Commission or FERC now shows that US electricity demand is expected to grow by 4.7% annually. That translates to 38 gigawatts of growth by 2028, as large customers are expecting it to be clean, driving the demand for green energy PPAs and clean baseload power. Legislators and regulators are hearing the call, resulting in new mandates for long duration energy storage in California, Michigan, New York and other states and across the globe.

經過數十年基本無負載成長後，聯邦能源管理委員會 (FERC) 現在顯示，美國電力需求預計每年增長 4.7%。這意味著到 2028 年將成長 38 吉瓦，因為大客戶期望它是清潔的，從而推動對綠色能源購電協議和清潔基荷電力的需求。立法者和監管者正在聽取這項呼籲，從而在加州、密西根州、紐約州和其他州以及全球範圍內制定了長期儲能的新規定。

Ensuring a reliable, cost effective, decarbonized electricity system is our mission here at EFS, and we were pleased to be included in the recent New York Times discussion on the need to ensure the reliability of the grid.

確保可靠、經濟高效、脫碳的電力系統是 EFS 的使命，我們很高興參與《紐約時報》最近關於確保電網可靠性必要性的討論。

Our customers are leading the industry to the future and their work demonstrates the progress we're making in the market, helping position our iron flow technology as the most proven long duration energy storage technology available.

我們的客戶正在引領產業走向未來，他們的工作展示了我們在市場上的進步，幫助我們將鐵流技術定位為最成熟的長期儲能技術。

These proof points are critical as they demonstrate the value of our solutions across a variety of use cases, unlock future projects with these customers and serve as a critical catalyst to building on an over $1.5 billion in potential projects with our current customers.

這些證據至關重要，因為它們展示了我們的解決方案在各種用例中的價值，與這些客戶一起開啟未來的項目，並成為與我們當前客戶合作的超過 15 億美元的潛在項目的關鍵催化劑。

Earlier this year, we successfully commissioned our first system at Schiphol Airport in Amsterdam, which is installed on the tarmac to phase out diesel ground power units or GPUs that supply electrical power to aircraft while they're parked at the gates. I'm pleased to share that in Q2, we went into operation at the airport and are charging GPUs.

今年早些時候，我們在阿姆斯特丹史基浦機場成功調試了第一個系統，該系統安裝在停機坪上，以逐步淘汰為停在登機口的飛機供電的柴油地面動力裝置或 GPU。我很高興與大家分享，我們在第二季度開始在機場投入運作並正在為 GPU 充電。

This is an extremely meaningful validation of the safety of our technology given the strict standards in commercial aviation while also proving out the functionality and versatility of our batteries. And yet another sign of the imperative behind California's drive to decarbonize and increase resiliency of the electricity system.

鑑於商業航空的嚴格標準，這是對我們技術安全性的極其有意義的驗證，同時也證明了我們電池的功能和多功能性。這是加州推動脫碳和提高電力系統彈性的必要性的另一個跡象。

In July, the California Energy Commission or CEC, awarded a $10 million grant to our long duration battery storage project in partnership with Sacramento Municipal Utility District or SMUD. As a reminder, SMUD signed a 2-gigawatt hour framework agreement with ESS and we have already delivered and commissioned the first phase of this agreement.

7 月，加州能源委員會 (CEC) 與薩克拉門托市政公用事業區 (SMUD) 合作，向我們的長期電池儲存項目撥款 1000 萬美元。提醒一下，SMUD與ESS簽署了2吉瓦時框架協議，我們已經交付並調試了該協議的第一階段。

The CEC's funding, along with incremental investments in SMUD, will be used to fund Phase 2, a 3.6 megawatt eight hour iron flow battery implementation. With SMUD transitioning to a carbon free power portfolio by 2030, a goal which is now a near 5.5 years away, they are clearly taking meaningful steps towards achieving the 13.6 gigawatts of energy storage the California Public Utility Commission believes California will need by 2032.

CEC 的資金以及 SMUD 的增量投資將用於資助第二階段，即 3.6 兆瓦八小時鐵液流電池的實施。隨著SMUD 到2030 年過渡到無碳電力組合（目前距離這一目標還有近5.5 年），他們顯然正在採取有意義的步驟，以實現加州公用事業委員會認為加州到2032 年將需要的13.6 吉瓦的儲能容量。

At the end of May, Burbank Water and Power held their ribbon cutting with local elected officials to commemorate the commissioning of their ESS Energy Warehouse, their first long duration energy storage system. EWP is another progressive California utility that recognizes the necessity of pairing LDES with renewables to achieve their aggressive decarbonization goals.

5 月底，伯班克水務和電力公司與當地民選官員舉行了剪綵儀式，以紀念他們的 ESS 能源倉庫的調試，這是他們的第一個長期能源儲存系統。EWP 是加州另一家進步的公用事業公司，它認識到將 LDES 與再生能源結合起來以實現其積極的脫碳目標的必要性。

Our Energy Warehouse is now integrated into BWP's EcoCampus and connected to a 265-kilowatt solar array capable of powering about 300 homes. Their forward thinking approach to decarbonization will help them increase their use of renewable energy and propel them towards their goal of achieving 100% carbon free power by 2040.

我們的能源倉庫現已整合到 BWP 的 EcoCampus 中，並連接到一個 265 千瓦的太陽能電池陣列，可為約 300 個家庭供電。他們的前瞻性脫碳方法將幫助他們增加再生能源的使用，並推動他們在 2040 年實現 100% 無碳電力的目標。

I'm pleased that ESS will play such an integral part in this journey and it is gratifying to see the Burbank team so eager to publicize their project, including their planned VIP tour in September. We were pleased to announce that Indian Energy, a native American-owned microgrid developer and integrator, the CEC and the Department of Defense together selected ESS' iron flow batteries to demonstrate the diverse capabilities of LDES technologies for utility scale resilient microgrid.

我很高興 ESS 將在這次旅程中發揮如此重要的作用，並且很高興看到伯班克團隊如此渴望宣傳他們的項目，包括他們計劃在 9 月進行的 VIP 巡演。我們很高興地宣布，美國本土微電網開發商和整合商 Indian Energy、CEC 和國防部共同選擇了 ESS 的鐵液流電池，以展示 LDES 技術在公用事業規模彈性微電網中的多種功能。

The program is a valuable step forward in proving that LDES can deliver energy security to remote communities like triball nations and military bases. Over the coming months, our project partners expect to demonstrate a variety of use cases for the California energy market, including solar peak shifting and grid ancillary services, after which time it will be placed into commercial operation.

該計劃向前邁出了寶貴的一步，證明 LDES 可以為部落國家和軍事基地等偏遠社區提供能源安全。在接下來的幾個月中，我們的專案合作夥伴預計將展示加州能源市場的各種用例，包括太陽能調峰和電網輔助服務，之後將投入商業營運。

And now I'll touch on our progress with the Energy Center project we're developing with Portland General Electric and the transition to production manufacturing. Importantly, as we've shared in the past, we completed production and testing of the inaugural EC and have been cycling it to hone the operations while subjecting it to varied operating demands to characterize and validate its operational performance.

現在我將談談我們與波特蘭通用電氣公司合作開發的能源中心項目的進展以及向生產製造的過渡。重要的是，正如我們過去所分享的，我們完成了首個EC 的生產和測試，並對其進行循環磨練以磨練操作，同時使其滿足不同的操作要求，以表徵和驗證其操作性能。

As part of this, we continue to conduct additional durability cycling against both the PNNL and testing regimes. It's great to see the unit performing well and we have transacted more than 140-megawatt hours of energy through this 1 unit over the last couple of months. Importantly, we're thrilled to see our iron flow technology transition quickly to a scaled up form factor through the great work of our engineering and production teams.

作為其中的一部分，我們繼續針對 PNNL 和測試制度進行額外的耐久性循環。很高興看到裝置表現良好，在過去的幾個月裡，我們已經透過這 1 台裝置處理了超過 140 兆瓦時的能源。重要的是，我們很高興看到透過我們的工程和生產團隊的出色工作，我們的鐵流技術迅速過渡到更大的外形尺寸。

Building the units is only one part of making a new battery ready for market. In our business, certifications are imperative to our customers. Ensuring our solutions are safe and can withstand the harsh environments in which they operate is critical to enabling adoption. We mentioned last quarter that we were the first nonlithium grid battery bet for both the EW and EC achieved IEEE 693 certification, a seismic rating that qualifies new systems for deployment as critical infrastructure across the United States.

製造這些單元只是將新電池推向市場的一部分。在我們的業務中，認證對我們的客戶來說至關重要。確保我們的解決方案安全且能夠承受其運作的惡劣環境對於實現採用至關重要。我們在上個季度提到，我們是第一個為 EW 和 EC 獲得 IEEE 693 認證的非鋰電網電池押注，該認證是一種抗震等級，使新系統有資格在美國各地部署為關鍵基礎設施。

This is an essential certification for LDES deployment in California. And in the near term, we expect to achieve UL 9540 for the EC, a safety standard for energy storage systems and equipment for fire prevention. Achieving both IEEE 693 and the UL 9540 certifications is critical for utilities, given the ongoing lithium storage incidents in California and elsewhere and an important step in demonstrating the viability of our EC for frictionless deployment across broad use cases and a variety of environments.

這是在加州部署 LDES 的重要認證。在短期內，我們預計將實現 EC 的 UL 9540，這是儲能係統和防火設備的安全標準。鑑於加州和其他地方不斷發生的鋰儲存事件，獲得IEEE 693 和UL 9540 認證對於公用事業公司至關重要，也是展示我們的EC 在廣泛用例和各種環境中實現無摩擦部署的可行性的重要一步。

Given our progress, we incorporated a number of design optimizations from our first EC to enhance manufacturability and begin production of our second unit for PGE in July. We expect this unit to be completed by our next earnings call with grid interconnection and handover to PGE expected to take place soon after. In conjunction with that, we are nicely positioned to begin building the first ECs for commercial deliveries in August.

鑑於我們的進展，我們對第一個 EC 進行了多項設計最佳化，以提高可製造性，並於 7 月開始生產第二個 PGE 裝置。我們預計該部門將在下一次財報電話會議上完成，並預計不久後將完成電網互連並移交給 PGE。同時，我們已做好準備，並將於 8 月開始建造第一個用於商業交付的 EC。

In preparation for our planned shipments to Tampa Electric, followed by SMUD, we have bolstered our operations and assembly lines to accommodate the EC manufacturing requirements and volume expectations.

為了準備我們計劃向坦帕電力公司以及隨後向 SMUD 的發貨，我們加強了我們的營運和裝配線，以滿足 EC 的製造要求和產量預期。

As we've discussed on previous calls, our plan for 2024 was to moderate our builds and shipments in the first half and scale them in the second half after we make progress on our cost reduction initiatives. That plan remains intact and we expect to begin increasing our shipments in the coming quarters, driven by a combination of EWs and initial shipments of our EC.

正如我們在之前的電話會議中討論的那樣，我們 2024 年的計劃是在上半年調整我們的生產和發貨量，並在我們在成本削減計劃方面取得進展後在下半年擴大規模。該計劃保持不變，我們預計在電子戰和 EC 初始出貨量的共同推動下，在未來幾季開始增加出貨量。

As you have likely seen from many companies in the energy transition space, project timing can be difficult to predict and we've certainly had our share of delays. That said, we continue to see ramping 2024 revenue to multiples of what it was in 2023, which sets us up nicely to achieve our broader expansion plans for 2025 and beyond. So we'll continue to work to keep these projects on track. And with that, I'll turn it over to Tony.

正如您可能從能源轉型領域的許多公司看到的那樣，專案時間可能很難預測，而且我們肯定也遇到過延誤。也就是說，我們繼續看到 2024 年的收入將達到 2023 年的數倍，這為我們實現 2025 年及以後更廣泛的擴張計劃奠定了良好的基礎。因此，我們將繼續努力讓這些項目步入正軌。有了這個，我會把它交給東尼。

Thanks, Eric. Unless otherwise noted, all numbers we discuss today will be on a non-GAAP basis. You'll find the reconciliation of GAAP to the non-GAAP financial measures in our earnings release, which is posted on our Investor Relations Web site.

謝謝，埃里克。除非另有說明，我們今天討論的所有數字都將基於非公認會計原則。您可以在我們的收益報告中找到 GAAP 與非 GAAP 財務指標的調整表，該報告發佈在我們的投資者關係網站上。

We reported revenue of $348,000 in the second quarter with the associated cost of revenue reported at $11.7 million. As previously shared, the transition from R&D accounting to inventory accounting results in an LCNRV adjustment that dramatically impacts our current COGS results.

我們報告第二季的收入為 348,000 美元，相關收入成本為 1,170 萬美元。正如之前所分享的，從研發會計到庫存會計的轉變導致了 LCNRV 調整，這極大地影響了我們目前的銷貨成本結果。

This will not be a material contributor to our financials as we reach scale. We continue to make progress towards profitability. However, our COGS results will not fully reflect our cost reduction initiatives benefits, thereby making it difficult to assess our progress through our current financial statements.

當我們達到規模時，這不會對我們的財務做出重大貢獻。我們繼續在盈利方面取得進展。然而，我們的銷貨成本結果將無法完全反映我們的成本削減計劃的好處，因此很難透過我們目前的財務報表評估我們的進度。

We're making great progress with incremental cost reduction initiatives through value engineering, supply chain optimization and process improvements for both the Energy Warehouse and Energy Center. As we previously mentioned, during 2023, we lowered the cost to build EW by 60% and we're targeting another 40% reduction this year.

我們透過能源倉庫和能源中心的價值工程、供應鏈優化和流程改進，在增量成本降低措施方面取得了巨大進展。正如我們之前提到的，2023 年期間，我們將電子戰建設成本降低了 60%，今年我們的目標是再降低 40%。

With the improvements we're realizing on the cost reductions in 2024, we still expect to reach non-GAAP gross margin profitability on the Energy Warehouse by the end of this year. Our non-GAAP operating expenses for Q2 were in line with our expectations at $9.1 million.

隨著我們在 2024 年實現成本削減的改進，我們仍然預計到今年年底能源倉庫將達到非公認會計原則毛利率。我們第二季的非 GAAP 營運費用為 910 萬美元，符合我們的預期。

Non-GAAP R&D came in at $1.9 million, which we believe reflects the company's run rate and continued investment in our cost out initiatives and product road map improvements on reliability, durability and the efficiency of the EW and EC. With that, we reported Q2 adjusted EBITDA of negative $18.8 million.

非公認會計準則研發收入為 190 萬美元，我們認為這反映了公司的運行率以及對我們的成本削減計劃以及 EW 和 EC 的可靠性、耐用性和效率方面的產品路線圖改進的持續投資。據此，我們報告第二季調整後 EBITDA 為負 1880 萬美元。

Turning to cash flow and liquidity. We ended the second quarter with $74.4 million in cash and short term investments. We remain focused on managing our cash burn rate, including driving ongoing efforts to optimize working capital.

轉向現金流和流動性。第二季結束時，我們擁有 7,440 萬美元的現金和短期投資。我們仍然專注於管理現金消耗率，包括持續努力優化營運資本。

As Eric mentioned, this quarter, we expect to close on the first tranche of an up to $50 million financing facility from EXIM and from this, we intend to add about $10 million of cash to our balance sheet this year with extended repayment terms and very competitive interest rates.

正如艾瑞克所提到的，本季度，我們預計將完成來自EXIM 的第一筆高達5000 萬美元的融資安排，由此，我們打算今年在我們的資產負債表中增加約1000 萬美元的現金，並延長還款期限和非常多的資金。

We have invested in another automated line that is planned to come online early next year to produce power modules that should greatly enhance our ability to ramp up in 2025. That capacity expansion comes at a dramatic improvement in cost per megawatt, roughly half the cost we previously expected.

我們投資了另一條自動化生產線，計劃於明年初投產，用於生產電源模組，這將大大增強我們在 2025 年產能提升的能力。產能擴張帶來了每兆瓦成本的大幅改善，大約是我們之前預期成本的一半。

And with the EXIM agreement, we expect to fully fund this and future production capacity expansion. We're extremely well positioned to continue to expand our production capacity through this EXIM financing facility, effectively funding all of our production capacity CapEx needs through 2025 and into 2026.

透過 EXIM 協議，我們預計將為此次和未來的產能擴張提供全額資金。我們處於非常有利的位置，可以透過這個 EXIM 融資機制繼續擴大我們的產能，有效地為我們 2025 年和 2026 年的所有產能資本支出需求提供資金。

This transformative agreement bolsters our liquidity levels and we expect should support our business cash needs well into 2025.

這項變革性協議提高了我們的流動性水平，我們預計將在 2025 年之前滿足我們的業務現金需求。

We continue to opportunistically look to strengthen our balance sheet through dilutive and nondilutive financing alternatives, to provide the necessary capital to give us operational flexibility to respond to market demand.

我們繼續機會主義地尋求透過稀釋性和非稀釋性融資替代方案來加強我們的資產負債表，以提供必要的資本，使我們能夠靈活地應對市場需求。

Our EXIM financing is a great example of a nondilutive solution to bolstering our cash position. Additionally, with such strong market tailwinds, we continue to see considerable investor interest in investing in long duration energy storage, and we remain very confident in our ability to raise the necessary capital to fund us through to cash flow breakeven.

我們的 EXIM 融資是增強我們現金狀況的非稀釋解決方案的一個很好的例子。此外，在如此強勁的市場推動下，我們繼續看到投資者對投資長期儲能有很大興趣，並且我們仍然對籌集必要資金以實現現金流收支平衡的能力充滿信心。

And finally, as you may have seen, we filed a proxy statement with the SEC to execute a reverse split of our stock to address a listing notice from the New York Stock Exchange.

最後，正如您可能已經看到的，我們向美國證券交易委員會提交了一份委託書，以執行我們股票的反向分割，以應對紐約證券交易所的上市通知。

Once executed, we expect to be in compliance with the listing requirements and continue our operations as a publicly listed company. The current ratio of shares has yet to be determined but we expect to complete the split in late August. And with that, I'll open it up for questions.

一旦執行，我們預計將遵守上市要求並繼續作為上市公司運作。目前的股份比例尚未確定，但我們預計將於 8 月下旬完成分拆。接下來，我將開放提問。

(Operator Instructions)

（操作員說明）

Your first question comes from [Colin Rusch.]

你的第一個問題來自[科林·魯什。

This is Lidya on for Colin. First, we noticed on Slide 20 of the investor presentation that the capital required to produce for ESS is around $20 million per gigawatt hour. Could you maybe talk about what scale you would need to achieve that number?

這是科林的莉迪亞。首先，我們在投資者簡報的幻燈片 20 中註意到，生產 ESS 所需的資本約為每吉瓦時 2000 萬美元。您能否談談要達到這個數字需要多大的規模？

You mean the scale to that's on a per gigawatt hour basis in terms of the capacity that we need to add. So each of our lines is substantially less than that amount.

您的意思是，就我們需要添加的容量而言，其規模是按每千兆瓦時計算的。所以我們每條線的數量都大大低於這個數量。

So we can build an increment smaller than a gigawatt. I think Line 2 is about a half, a little bigger than 0.5 gigawatt hour of capacity…

因此我們可以建構小於千兆瓦的增量。我認為 2 號線大約是 0.5 吉瓦時容量的一半，略大一點…

And then maybe for a follow-up, could you speak to the growth in potential customers evaluating your field data and how quickly those customers are moving through your sales funnel?

然後，也許作為後續行動，您能否談談評估您的現場數據的潛在客戶的成長情況以及這些客戶通過您的銷售漏斗的速度有多快？

It's a mixed bag, as you would expect. We're seeing two things. We're seeing some of the behind the meter applications where customers have kind of follow-on applications, they tend to move through more quickly.

正如您所料，這是一個混合體。我們看到兩件事。我們看到一些儀表後面的應用程序，客戶有一些後續應用程序，他們往往會更快完成。

They'll often want to run for a year but sometimes less. And for other customers, we have a multi phased approach where we're going through it kind of in order. So we’d expect, as we said, if you look at SMUD to having deployed the first phase, complete the work on that and start moving on to the second phase, which will be an EC phase product. But the third piece that we found is that a lot of the market activity these days from an RFP, RFI perspective, are all targeting larger projects that will be ‘26 and ‘27 projects.

他們通常想要跑步一年，但有時更少。對於其他客戶，我們採用多階段方法，依序進行。因此，正如我們所說，如果您看到 SMUD 已經部署了第一階段，那麼我們預計，完成該工作並開始進入第二階段，這將是 EC 階段的產品。但我們發現的第三點是，從 RFP、RFI 的角度來看，目前的許多市場活動都針對較大的項目，即 26 和 27 項目。

One of the things about our industry that people who follow other companies would certainly be aware is that the lead times for planning are quite long and that can be influenced by interconnect cues and site preparations as well.

關於我們行業的一件事，關注其他公司的人肯定會意識到，規劃的準備時間相當長，也可能受到互連線索和現場準備的影響。

So we have a lot of folks that are looking at current customers and visiting them, getting feedback on the product as they're making their plans for very large projects that happen in the out years. And that activity has increased quite a bit in part, as I mentioned, due to things like the need for green PPAs from hyperscalers and folks like that.

因此，我們有很多人正在關注當前的客戶並拜訪他們，在他們為未來幾年發生的大型專案製定計劃時獲得有關產品的反饋。正如我所提到的，由於超大規模企業和類似人員對綠色購電協議的需求，這種活動已經大幅增加。

Your next question comes from Corinne Blanchard.

您的下一個問題來自科琳·布蘭查德。

This is actually Mike on for Corinne. My question has to do with your revenue target of 3 times to 4 times in 2024. So this is implying $23 million in the second half at midpoint. Could you maybe break that down between Energy Centers and Energy Warehouses?

這其實是麥克為科琳代言的。我的問題與你們 2024 年 3 到 4 倍的收入目標有關。因此，這意味著下半年中位數將達到 2,300 萬美元。您能否將其分解為能源中心和能源倉庫？

I think that the ramp-up on the Energy Centers we've talked about in the past will start in the not until the fourth quarter. So it's going to be, I'd say, I don't know, maybe a split of two thirds EW and a third ECs.

我認為我們過去討論過的能源中心的擴張將在第四季度開始。所以，我想說，我不知道，也許三分之二的電子戰和三分之一的歐洲聯盟會分開。

As we said in our in the prepared comments, not just what we've seen but with other people have seen, we get very interested about the timing of one project versus another if there's any slippage or movement in timing because our numbers are comparatively small number of projects, that can make a pretty big difference. So I wouldn't want to hang my hat too hard on exact mixes but that would roughly be the layout.

正如我們在準備好的評論中所說，不僅是我們所看到的，而且是其他人所看到的，我們對一個項目與另一個項目的時間安排非常感興趣，如果時間安排上有任何延誤或變動，因為我們的人數相對較小項目的數量，可以產生很大的影響。所以我不想太執著於精確的混音，但這就是大致的佈局。

And then my follow-up has to do with the growth tied to AI and data centers. You mentioned it in your prepared remarks, I was wondering if you could give a little bit more color around what you're hearing from potential customers in that space?

然後我的後續行動與人工智慧和資料中心相關的成長有關。您在準備好的發言中提到了這一點，我想知道您是否可以對您從該領域的潛在客戶那裡聽到的內容提供更多資訊？

Eric Dresselhuys

埃里克·德雷塞爾休斯

So the step back is really on the broader category of data centers. One of the increasingly loud screams we're hearing from the market, both from end users but also from developers who serve that market is that the data center operators have very ambitious plans for building out in support of what they expect to be massive growth in generative AI.

因此，退一步實際上是在更廣泛的資料中心類別上。我們從市場上聽到的越來越響亮的尖叫聲之一是，數據中心運營商制定了非常雄心勃勃的建設計劃，以支持他們期望的大規模增長，這既來自最終用戶，也來自服務該市場的開發商。

And that's got two problems. One, it's just regular use, but generative AI is, depending on who you talk to, kind of 8 to 10 times more energy consuming than, say, a typical Google search. So people are anticipating that demand.

這有兩個問題。第一，這只是常規使用，但生成式人工智慧（取決於你與誰交談）的能源消耗比典型的谷歌搜尋多 8 到 10 倍。所以人們正在期待這種需求。

And what's happening is they're going to utilities, not just here in the US but around the world saying, hey, I'd like to build a data center of this size and I need the power of a certain level. And they're getting the answer back from the utilities that say, I'm sorry, I just can't support that, it's just too much energy.

正在發生的事情是，他們向公用事業公司求助，不僅是在美國，而是在世界各地，他們說，嘿，我想建立一個這種規模的資料中心，我需要一定程度的電力。他們從公用事業公司得到了答复，他們說，對不起，我無法支持這一點，這太耗電了。

So this is becoming kind of an economic limiter for the people in the business of hosting data centers to say where can I go put a data center that can supply the power I need. In some markets like Ireland, as an example, Ireland, they've come out and just told data center people would love to have you, but you're totally responsible for coming up with your own power.

因此，對於託管資料中心行業的人來說，這正在成為一種經濟限制因素，他們無法確定我可以在哪裡放置一個能夠提供我所需電力的資料中心。在愛爾蘭等一些市場，例如愛爾蘭，他們出來告訴資料中心的人們很樂意擁有你，但你完全要為自己的能力負責。

So with that as a little bit long winded background what we're finding is that people are looking at saying, can I do this as a microgrid, can I buy my own renewables, pair it with storage and create a 24/7 green energy system and do that without having a heavy reliance, maybe not no reliance, but without any heavier reliance on the grid operator that I normally would thought about doing.

因此，在這個有點冗長的背景下，我們發現人們正在考慮說，我可以將其作為微電網嗎？並在沒有嚴重依賴的情況下做到這一點，也許不是沒有依賴，但沒有對我通常會考慮做的電網運營商的任何嚴重依賴。

It's early days of this but it's a topic at every conference that happens in the energy industry these days. And there have been quite a few big public announcements from Google, Microsoft and AWS, they're trying to procure their own green PPAs to get out of the way to not have the reliance on the utility operators.

雖然現在還處於早期階段，但它已成為當今能源產業每次會議的主題。Google、微軟和 AWS 已經發布了相當多的重大公開聲明，他們正試圖購買自己的綠色購電協議，以避免對公用事業營運商的依賴。

Our next question today comes from Justin Clare.

今天我們的下一個問題來自賈斯汀·克萊爾。

So, I wanted to start with the manufacturing here. So the second automated line, I think that's expected to come online next year. I was wondering if you could talk about the ramp there. So you talked about getting to 1 gigawatt hour. When could you achieve that run rate and what does the time line look in terms of the ramp-up of that second line?

所以，我想從這裡的製造開始。我認為第二條自動化生產線預計明年上線。我想知道你能否談談那裡的坡道。所以你談到要達到 1 吉瓦時。什麼時候可以達到該運行率？

So the second line, we anticipate, should be online in the first half or by the end of the first half of next year. And so the way to think about that is that we'll have 1 gigawatt hour approximately of production capacity going forward from that point. So we'll get about half year's worth of that capacity in 2025.

所以我們預計第二條線應該會在上半年或是明年上半年年底上線。因此，考慮這個問題的方法是，從那時起我們將擁有大約 1 吉瓦時的產能。因此，到 2025 年，我們將獲得大約半年的產能。

And then just on the manufacturing CapEx, I was wondering when we think about the financing from Export-Import Bank, $10 million this year and then $10 million to $15 million, I think you anticipate next year. Is all of that capital expected to be devoted toward the CapEx spend for that second automated line? And then just wondering how you're thinking about the remaining capital that might be available to you and whether that could be used for a third automated line or what you're contemplating there?

然後就製造業資本支出而言，我想知道我們何時考慮進出口銀行的融資，今年 1000 萬美元，然後是 1000 萬至 1500 萬美元，我想你預計明年。預計所有資本都將用於第二條自動化生產線的資本支出嗎？然後只是想知道您如何考慮您可能可用的剩餘資金，以及是否可以將其用於第三條自動化生產線或您正在考慮的事情？

So the large portion of the first $10 million that we're drawing down is associated with Line 1 and the production capacity CapEx that we incurred to put that in place. So that's that look back component that Eric had mentioned. And then Line 2 will be financed with the remaining parts of the credit facility. And as we mentioned, the CapEx that we need to implement these lines is substantially less than Line 1. So we should be able to add multiple lines with this credit facility well beyond Line 2 and into the capacity that we need into 2026.

因此，我們提取的前 1000 萬美元中的很大一部分與 1 號線以及我們為落實該線而產生的產能資本支出有關。這就是埃里克提到的回顧組件。然後，2 號線將利用信貸額度的剩餘部分進行融資。正如我們所提到的，我們實施這些產品線所需的資本支出大大低於第 1 條產品線。因此，我們應該能夠利用這筆信貸額度在 2 號線之外增加多條線，並達到 2026 年所需的容量。

And then one more just on the margin profile. So it sounds like you're on track to reach non-GAAP profitability for the EW toward the end of this year. Wondering what the impact could be on the profitability for that product as that second automated line ramps up. Like would you produce EWs on that line and would you expect a margin boost at that point in time?

然後還有一個關於利潤概況的內容。因此，聽起來您預計在今年年底實現 EW 的非 GAAP 盈利能力。想知道隨著第二條自動化生產線的啟動，該產品的獲利能力可能會受到什麼影響。就像您會在該生產線上生產電子戰嗎？

Well, what gets produced on those battery stacks lines, those go into both EWs and ECs. It's the exact same product. So it doesn't matter what the mix of product is that we are shipping. Those production lines, the core components and the battery powertrain that goes into the EC is the exact same product. So as we scale up to produce and sell ECs, that's all going to be happening on Line 1. And then as we run out of capacity on Line 1, we'll start producing on Line 2.

那麼，這些電池組生產線生產的產品將進入電子戰和電子戰。這是完全相同的產品。因此，我們運送的產品組合是什麼並不重要。這些生產線、核心零件和進入 EC 的電池動力系統是完全相同的產品。因此，當我們擴大生產和銷售 EC 的規模時，這一切都將發生在 1 號線上。然後，當 1 號產能耗盡時，我們將開始在 2 號線生產。

Your next question today comes from Davis Sunderland.

今天你們的下一個問題來自戴維斯·桑德蘭。

I wanted to ask if you can talk a bit more about the Honeywell partnership, maybe if there's any new traction you can speak to as a distribution channel, maybe if there's any possibility to execute more, I guess, I'll call them individual asset sales rather than your typical kind of framework partnerships you have with, say, SMUD or LEAG or some of the other larger partners? Just anything that's opened up from the Honeywell, and then I have one follow-up.

我想問您是否可以多談談霍尼韋爾的合作夥伴關係，也許您可以作為分銷渠道談論任何新的吸引力，也許是否有可能執行更多，我想，我會稱它們為個人資產銷售，而不是與 SMUD 或 LEAG 或其他一些較大合作夥伴建立的典型框架合作夥伴關係？只要是霍尼韋爾開放的任何內容，然後我都會進行跟進。

So well, things are starting to really get some great momentum with Honeywell. We were very fortunate to host Vimal, the CEO of Honeywell, all Honeywell came out just last week to visit us and two weeks ago, I want to be accurate, came out to visit us here in Wilsonville and spent a day with us, which he's a busy guy.

好吧，霍尼韋爾的事情開始真正取得一些巨大的進展。我們非常幸運地接待了霍尼韋爾首席執行官維馬爾（Vimal），所有霍尼韋爾上週都來拜訪我們，兩週前，我想準確地說，來威爾遜維爾拜訪我們並與我們一起度過了一天，這他是個很忙的人。

So I think that's a great sign for the importance that he's putting on the relationship in the space, and we had a great series of conversations across both go-to-market and on some of the joint development activities that we've taken on together to do some things, to add new features, functions and performance, but a lot of it has been driven by just getting to scale more and driving cost out of the system.

因此，我認為這是一個很好的跡象，表明他重視該領域的關係，我們在市場進入和我們共同開展的一些聯合開發活動方面進行了一系列精彩的對話做一些事情，添加新的特性、功能和性能，但其中許多都是由擴大規模和降低系統成本所驅動的。

Honeywell certainly has a great appreciation, as we do, for the market environment and the mandate to get down the cost curve as fast as possible. So we're at the stage now where the go-to-market teams have been organized. They've been off actively engaged in the marketplace. And I think the hope would be we'd have announcements to make. We're putting proposals out to people and our hope would be that we'll be able to translate that into live announcements with people here over the coming months.

霍尼韋爾當然和我們一樣，非常重視市場環境和盡快降低成本曲線的使命。因此，我們現在正處於組織市場推廣團隊的階段。他們一直在積極參與市場。我認為我們希望能夠發佈公告。我們正在向人們提出建議，我們希望能夠在未來幾個月內將其轉化為與這裡的人們一起進行的即時公告。

And then my follow-up is just on raw material costs. And I know there's some one-offs this quarter and probably the rest of this year with LCNRV, the accounting of the higher cost. But just wanted to ask if you guys are suffering from the so-called start-up premium or if suppliers have been able to renegotiate with you guys as you're getting more units out in the field now, or just anything you can speak to on that would be great.

然後我的後續行動只是原料成本。我知道本季以及今年剩餘時間可能會有一些一次性的 LCNRV，即較高成本的會計。但只是想問一下，你們是否正在遭受所謂的啟動溢價的困擾，或者隨著你們現在在現場投入更多的單位，供應商是否能夠與你們重新談判，或者只是你們可以交談的任何事情那就太好了。

So we're not seeing any negative impacts from our suppliers in terms of raw materials costs. Most of the efforts that we are seeing is we're either negotiating with our vendors for reduced cost or negotiating and qualifying new vendors for the same materials for lower cost. So that tends to be the primary focus of what we tend to be experiencing with respect to raw materials.

因此，我們沒有看到供應商對原材料成本產生任何負面影響。我們看到的大部分努力是要么與供應商談判以降低成本，要么與新供應商談判並獲得相同材料的資格以降低成本。因此，這往往是我們在原材料方面經歷的主要焦點。

Operator

操作員

Your next question today comes from Thomas Boyes.

今天你們的下一個問題來自托馬斯·博伊斯。

Just two quick ones. Do you have a sense on maybe what the financing issues were that caused the delay in EWs this quarter? The reason I asked is we saw something similar in solar complex, where adjustments to the domestic content add or caused some companies to kind of pause for a second reassess, figure out under the new kind of schedule that was put out there, what the ramifications are. Is that something that you're seeing or could you give any commentary there?

就兩個快的。您是否知道可能是什麼融資問題導致了本季電子戰的延遲？我問的原因是我們在太陽能綜合體中看到了類似的情況，對國內含量的調整增加或導致一些公司暫停進行第二次重新評估，弄清楚根據在那裡發布的新時間表，會產生什麼後果是。這是您所看到的嗎？

We haven't seen that specific case. Although like you, we've been noting a lot of the announcements made by others on project delays either from site delays or other third party equipment delays.

我們還沒有看到這個具體案例。儘管和您一樣，我們也注意到其他人因工地延誤或其他第三方設備延誤而發布的許多專案延誤公告。

We've been fortunate we've avoided those for this quarter. This specific case was the project is specifically dependent on the government grant. So government funding that was expected to happen before the end of the quarter that would have freed everything up and the government just didn't move fast, this government entity just didn't move fast enough to get it done.

我們很幸運，本季避免了這些問題。這個具體案例是該計畫特別依賴政府補助。因此，政府預計將在本季末之前提供資金，這將釋放一切，但政府的行動速度不夠快，這個政府實體的行動速度不夠快，無法完成這項工作。

So we've talked to the party both our partner and the folks at the utility and the government funders, everybody assures us that they're moving through and getting it done, and it's just taken longer than they had hoped. But unfortunately, in this case, it was enough of a timing slip that it held us back from shipping the product.

因此，我們已經與該黨、我們的合作夥伴、公用事業公司的人員以及政府資助者進行了交談，每個人都向我們保證他們正在完成並完成它，只是花費的時間比他們希望的要長。但不幸的是，在這種情況下，時間上的錯誤足以讓我們無法出貨。

Do you know if that was the PACE program or the newer financing vehicles?

您知道這是 PACE 計畫還是更新的融資工具嗎？

No, this was just a directed investment. So it wasn't under any sort of a broader program or anything that we'd see be more methodical.

不，這只是一項定向投資。因此，它不屬於任何更廣泛的計劃或任何我們認為更有條理的計劃。

And then for my follow-up, just it was good to see the project with India Energy, we've talked about some of the traction you've seen in for military applications. I'm trying to get a sense of maybe what the size of the resiliency market would be for tribal land, is that maybe a large opportunity, how do you think about addressing that longer term?

然後，對於我的後續行動，很高興看到與印度能源公司的項目，我們已經討論了您在軍事應用中看到的一些吸引力。我試圖了解部落土地的彈性市場規模有多大，這可能是一個巨大的機會，您如何考慮解決這個長期問題？

I think it's I don't know that I can give you a number specifically for tribal lands. But certainly, resiliency as a market resiliency microgrids, we see as a multibillion-dollar US market between now and 2030.

我想我不知道我可以給你一個專門針對部落土地的數字。但可以肯定的是，從現在到 2030 年，作為市場彈性微電網的彈性，我們認為美國市場將達到數十億美元。

And it ties back a little bit to the earlier question on data centers, although that is certainly, data centers are very unique use case with some very unique requirements. But it ties into this broader theme of people wanting to have not just green energy networks that they're supplying their own electricity, but they're really starting to ship to see this as a resiliency play where you're obviously going green and hopefully trying to drive cost out but you're worried about your ability to access electricity on a regular basis.

它與之前有關資料中心的問題有些聯繫，儘管可以肯定的是，資料中心是非常獨特的用例，具有一些非常獨特的要求。但這與更廣泛的主題相關，即人們不僅希望擁有自己供電的綠色能源網絡，而且他們真的開始將其視為一種彈性遊戲，顯然你正在走向綠色，並希望試圖降低成本，但您擔心自己能否定期獲得電力。

And so microgrids for military bases or indigenous communities are great examples of where they frankly have, in the past, either had an underserved community where the electricity distribution isn't good enough or where the cost of having a power outage is so severe, it's beyond the cost of electricity, right. There's operational or application impacts to losing electricity.

因此，軍事基地或原住民社區的微電網就是一個很好的例子，坦白說，過去，要么是服務不足的社區，電力分配不夠好，要么停電的成本非常嚴重，這是超出了電費的範圍，對吧。斷電會對操作或應用產生影響。

And we like those markets because those markets also tend to have put a big premium on both American made products and on safe products, right? They wanted their there's a lot of concern about lithium and some of the problems that lithium batteries have had. And so there's kind of a predisposition, if you will, towards buying a US product or buying a product that is non-lithium in design.

我們喜歡這些市場，因為這些市場也往往對美國製造的產品和安全產品給予很高的溢價，對嗎？他們希望人們對鋰以及鋰電池存在的一些問題有很多擔憂。因此，如果您願意的話，人們會傾向於購買美國產品或非鋰設計的產品。

Our next question comes from Brian Dresselhuys.

我們的下一個問題來自 Brian Dresselhuys。

Maybe we lost Brian (technical difficulty)

也許我們失去了布萊恩（技術難度）

It would appear we are having technical difficulties with Canaccord’s lines, I do apologize. But that was our final question for today. I see there aren't any further questions in the queue. So that will conclude today's conference call. I want to thank you all for your participation, and that will conclude today's call. You may now disconnect.

看來我們在使用 Canaccord 線路時遇到了技術困難，我深表歉意。但這是我們今天的最後一個問題。我發現隊列中沒有任何其他問題。今天的電話會議到此結束。我要感謝大家的參與，今天的電話會議到此結束。您現在可以斷開連線。