Hyliion Holdings Corp (HYLN) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Hyliion Holdings third-quarter 2023 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Kellen Ferris, Hyliion's Director of Investor Relations. Kellen, please go ahead.

美好的一天，感謝您的支持。歡迎參加 Hyliion Holdings 2023 年第三季財報電話會議。 （操作員指示）我現在想將會議轉交給 Hyliion 投資者關係總監 Kellen Ferris。凱倫，請繼續。

Thank you and good afternoon, everyone. Welcome to Hyliion Holdings third-quarter earnings conference call. On the call today are Thomas Healy, our Chief Executive Officer; and Jon Panzer, our Chief Financial Officer. A slide presentation accompanies this conference call and is available on Hyliion's Investor Relations website at investors.hyliion.com.

謝謝大家，大家下午好。歡迎參加 Hyliion Holdings 第三季財報電話會議。今天參加電話會議的是我們的執行長 Thomas Healy；和我們的財務長 Jon Panzer。本次電話會議附帶幻燈片演示，可在 Hyliion 投資者關係網站 Investors.hyliion.com 上取得。

Please note that during today's call, we will make certain forward-looking statements regarding the company's business outlook. Forward-looking statements are predictions, projections, and other statements about anticipated events that are based on current expectations and assumptions as such, are subject to risks and uncertainties. Many factors could cause actual results to differ materially from forward-looking statements made on this call.

請注意，在今天的電話會議中，我們將就公司的業務前景做出某些前瞻性陳述。前瞻性陳述是基於當前預期和假設的關於預期事件的預測、預測和其他陳述，存在風險和不確定性。許多因素可能導致實際結果與本次電話會議中所做的前瞻性陳述有重大差異。

For more information about factors that may cause the company's results to differ materially from such forward-looking statements. Please refer to our presentation and press release as well as our filings with the Securities and Exchange Commission. You are cautioned not to put undue reliance on forward-looking statements, and we undertake no duty to update this information unless required by applicable law. Thank you, and now I will turn the call over to Thomas.

有關可能導致公司業績與此類前瞻性陳述存在重大差異的因素的更多資​​訊。請參閱我們的簡報和新聞稿以及我們向美國證券交易委員會提交的文件。請您注意不要過度依賴前瞻性陳述，除非適用法律要求，否則我們不承擔更新此資訊的義務。謝謝您，現在我將把電話轉給托馬斯。

Hello and welcome to Hyliion third-quarter 2023 earnings call. I appreciate everyone joining us today for a business update and third-quarter financial report. Last month, we announced that with the support of strategic expert advisors, we were exploring a range of strategic options for our Powertrain Business, including engaging with a number of strategic and private equity partners regarding a possible sale or industry merger. In parallel, we also engaged industry experts to help us evaluate the market opportunity and competitiveness of the KARNO generator.

您好，歡迎參加 Hyliion 2023 年第三季財報電話會議。我感謝今天大家加入我們的業務更新和第三季財務報告。上個月，我們宣布，在策略專家顧問的支持下，我們正在探索動力總成業務的一系列策略選擇，包括與一些策略和私募股權合作夥伴就可能的出售或行業合併進行接觸。同時，我們也聘請了產業專家來幫助我們評估KARNO發電機的市場機會和競爭力。

As a result, today, we are announcing that we have decided, with the support of our Board of Directors, to wind down the Powertrain Business while preserving the technology for potential later use or sale. Going forward, we will focus the company's capital resources and efforts on our KARNO generator business, an innovative new generator solution. Although this is a difficult decision to make, it is a decision we believe to be in the best interest of the company and its shareholders.

因此，今天，我們宣布，在董事會的支持下，我們決定關閉動力總成業務，同時保留技術以供以後使用或出售。展望未來，我們將把公司的資本資源和精力集中在我們的 KARNO 發電機業務上，這是一個創新的發電機解決方案。儘管這是一個艱難的決定，但我們認為這是一個符合公司及其股東最佳利益的決定。

We are proud of the progress we've made with the development of our Hypertruck ERX powertrain. As we have regularly publicized, we've made consistent progress achieving the development milestones that we've laid out almost two years ago. In fact, with the recent receipt of CARB certification, the beginning of extended fleet trials with customers and building of production trucks, we have completed all the prerequisite steps on our path to commercializing our Hypertruck ERX powertrain.

我們對 Hypertruck ERX 動力系統開發所取得的進展感到自豪。正如我們定期宣傳的那樣，我們在實現近兩年前製定的發展里程碑方面取得了持續進展。事實上，隨著最近獲得 CARB 認證、開始與客戶進行長期車隊試驗以及生產卡車的製造，我們已經完成了 Hypertruck ERX 動力總成商業化道路上的所有先決步驟。

Since I founded the company, Hyliion's mission has been to provide innovative solutions that reduce emissions from semi-trucks, which was in line with the interest from fleets in adopting electrified trucks and with the development we've accomplished to date. Despite this progress, the environment for companies in the electrified commercial vehicle space has become challenging. Slower than initially expected fleet adoption of electrified vehicles, higher component costs, and evolving regulatory frameworks that have put significant pressure on companies like Hyliion.

自從我創立公司以來，Hyliion 的使命一直是提供減少半掛卡車排放的創新解決方案，這符合車隊採用電動卡車的興趣以及我們迄今為止所取得的發展。儘管取得了這些進展，但電動商用車領域的公司面臨的環境仍然充滿挑戰。車隊採用電動車的速度比最初預期的要慢，零件成本較高，以及不斷變化的監管框架，這些都給 Hyliion 等公司帶來了巨大壓力。

As an example, I was recently speaking with a fleet owner who shared that the cost to buy a conventional natural gas truck has increased by around 45% in the past few years. We have seen increases for nearly all powertrain parts some by more than $10,000 each. While this is partly due to inflation, it is also driven by the limited number of suppliers and low production volumes for key components as a result of the immature nature of the electrified powertrain market.

舉個例子，我最近與一位車隊老闆交談，他分享說，過去幾年購買傳統天然氣卡車的成本增加了約 45%。我們發現幾乎所有動力總成零件的漲價幅度都超過了 1 萬美元。雖然這部分是由於通貨膨脹，但由於電動動力總成市場不成熟，供應商數量有限和關鍵零件產量低也是推動因素。

Last June at our investor event, we described additional development work that was necessary to align with changes to the regulatory environment. This included integrating and obtaining CARB certification for the new Cummins 15-liter natural gas engine, developing a day cab variant of the Hypertruck ERX powertrain and reducing the cost and weight of our powertrain.

去年六月，在我們的投資者活動中，我們描述了適應監管環境變化所需的額外開發工作。其中包括為新型康明斯 15 升天然氣引擎整合並獲得 CARB 認證、開發 Hypertruck ERX 動力系統的日間駕駛室變體以及降低動力系統的成本和重量。

While we believe our electric powertrain is the right solution for long haul trucking and avoid some of the hurdles associated with other electric solutions such as charging infrastructure, range anxiety, and the high cost of hydrogen. We are now faced with an adoption cycle that is longer than we expected as fleets are delaying orders until mandates force the adoption of electric trucks.

雖然我們相信我們的電動動力系統是長途卡車運輸的正確解決方案，並避免了與其他電動解決方案相關的一些障礙，例如充電基礎設施、里程焦慮和氫氣的高成本。我們現在面臨的採用週期比我們預期的要長，因為車隊正在推遲訂單，直到強制要求採用電動卡車。

The primary one being CARB ACF, which starts in 2027 and requires additional investment and expense such as integrating into a day cab and a new engine. Given these various reasons, it is clear that further development of our Powertrain Business would require us to raise additional capital at some point.

第一個是 CARB ACF，將於 2027 年啟動，需要額外的投資和費用，例如整合到日間駕駛室和新引擎。考慮到這些不同的原因，很明顯，我們的動力總成業務的進一步發展將需要我們在某個時候籌集額外的資金。

Partly driven by higher interest rates, but also due to the recognition of the industry challenges I have described, our third-party experts have advised that the capital markets are not currently supportive of additional fundraising by companies developing electric commercial vehicles. This has caused financial difficulties for many companies and some including Proterra, Lordstown, ELMS, and recently Volta Trucks have entered bankruptcy. Therefore, we believe it is important to act now while we are in a position of financial strength to discontinue spending on the Powertrain segment of our business.

我們的第三方專家表示，資本市場目前不支持開發電動商用車的公司進行額外融資，部分原因是利率上升，但也由於認識到我所描述的行業挑戰。這給許多公司造成了財務困難，其中一些公司包括 Proterra、Lordstown、ELMS，最近 Volta Trucks 已經破產。因此，我們認為，趁我們有足夠的財務實力停止在動力總成業務領域的支出時，立即採取行動非常重要。

Jon will discuss the impact of the wind down of powertrain later in the presentation, but I want to shift to discussion now on our KARNO generator business and the go-forward plan. Our goal with KARNO has been to develop and commercialize the generator to address the growing demand for electricity with a distributed generator solution that offers clean, efficient, and cost-effective electricity.

喬恩將在稍後的演示中討論動力系統逐步停止的影響，但我現在想轉而討論我們的卡諾發電機業務和未來計劃。我們與 KARNO 的目標是開發發電機並將其商業化，透過提供清潔、高效且經濟高效的電力的分散式發電機解決方案來滿足日益增長的電力需求。

KARNO is an innovative new solution that is powered by a linear heat generator and enabled by recent advancements in additive manufacturing. When we initially acquired the KARNO technology, we saw it as a strong solution for both our hypertruck powertrain as well as the stationary market. Our team has successfully showcased both the vehicle integration and the KARNO's ability to work in a stationary application by providing power back to the grid.

KARNO 是一種創新的解決方案，由線性熱產生器提供動力，並得益於積層製造的最新進展。當我們最初收購 KARNO 技術時，我們認為它是我們的超級卡車動力系統以及固定市場的強大解決方案。我們的團隊成功展示了車輛整合和 KARNO 透過向電網供電而在固定應用中工作的能力。

As we look at the opportunities ahead, the KARNO generator in the stationary market has become even more compelling due to its stand-alone nature and ability to address customers' ever-increasing electricity needs. Commercial fleets that have expressed interest in BEV vehicles are discovering that they are not able to secure sufficient electric power for their recharging infrastructure. And when they do, they are faced with significant capital investments, long lead times, and often encounter above market electricity rates and incremental demand charges. Our KARNO generator is currently being configured to solve each of these issues.

當我們展望未來的機會時，固定式市場中的 KARNO 發電機因其獨立性和滿足客戶不斷增長的電力需求的能力而變得更加引人注目。對純電動車錶現出興趣的商業車隊發現，他們無法為其充電基礎設施提供足夠的電力。當他們這樣做時，他們面臨著大量的資本投資、漫長的交貨時間，並且經常遇到高於市場的電價和增量需求費用。我們的 KARNO 發電機目前正在配置中來解決這些問題。

It is important to highlight that the KARNO generator is unlike conventional internal combustion or gas turbine driven generators. Powered by a heat engine, the KARNO generator has distinct benefits compared to its conventional counterparts. These benefits include greater efficiency across a broad range of power output levels, lower maintenance costs, high power density, less noise and vibration, and the ability, to operate on a broad range of fuel sources, including hydrogen, natural gas, ammonia, propane and conventional fuels.

需要強調的是，KARNO 發電機不同於傳統的內燃或燃氣渦輪機驅動發電機。 KARNO 發電機由熱機提供動力，與傳統發電機相比具有明顯的優勢。這些優勢包括在廣泛的功率輸出水平範圍內提高效率、降低維護成本、高功率密度、減少噪音和振動，以及能夠使用多種燃料來源，包括氫氣、天然氣、氨、丙烷和常規燃料。

KARNO utilizes a proprietary flameless oxidation technology that results in significantly lower emissions compared to conventional generators. We expect its efficiency to surpass conventional generating systems when employing various fuel sources and even outperforming fuel cell efficiency when operating on hydrogen while generating no carbon emissions.

KARNO 採用專有的無焰氧化技術，與傳統發電機相比，排放量顯著降低。我們預計，在使用各種燃料來源時，其效率將超過傳統發電系統，甚至在使用氫氣運行時超過燃料電池效率，同時不產生碳排放。

We believe the KARNO generator can compete across a broad range of prime power applications, operating as a substitute for or as a supplement to grid power. We also believe it can compete in markets providing supplemental or backup power, such as peak shaving, electric vehicle charging or renewables matching. Its ability to operate on a range of fuels, fuel mixtures or even fuels with impurities is another advantage that enables it to convert waste gases such as flare gas or landfill gas into usable electricity.

我們相信 KARNO 發電機可以在廣泛的主要電力應用中競爭，作為電網電力的替代或補充。我們也相信它可以在提供補充或備用電力的市場中競爭，例如調峰、電動車充電或再生能源匹配。它能夠使用多種燃料、燃料混合物甚至含有雜質的燃料，這是它的另一個優勢，使其能夠將火炬氣或垃圾掩埋氣等廢氣轉化為可用電力。

Over the past couple of years, we have made significant advancements in its development as we prepare for initial commercial deployments later next year. Recently, we highlighted a major achievement of successfully returning power back into the electric grid from our facility in Ohio using a KARNO generator unit.

在過去幾年中，我們在其開發方面取得了重大進展，為明年稍後的初步商業部署做好了準備。最近，我們強調了一項重大成就，即使用 KARNO 發電機組成功地將電力從我們位於俄亥俄州的工廠返回電網。

In recent months, we have been showcasing KARNO technology to potential customers. Through these discussions, we are garnering valuable insights on how the KARNO generator can address many of the pain points customers face with grid power. One example is maintenance costs. Internal combustion generators require frequent maintenance like oil changes that require downtime and technician support. In contrast, the KARNO generator has no oil or lubricants. And with only one moving part per shaft, we expect maintenance to be significantly reduced.

近幾個月來，我們一直在向潛在客戶展示 KARNO 技術。透過這些討論，我們獲得了關於 KARNO 發電機如何解決客戶在電網供電方面面臨的許多痛點的寶貴見解。一個例子是維護成本。內燃發電機需要頻繁維護，例如需要停機和技術人員支援的換油。相比之下，KARNO 發電機沒有油或潤滑劑。由於每根軸只有一個移動部件，我們預期維護工作將顯著減少。

As we continue these customer showcases, we expect to announce soon that several of these companies will take deliveries of initial KARNO units next year. As we wind down the Powertrain Business and preserve the technology for potential later use, we have an opportunity to shift certain employees and technology to KARNO development. As an example, the cloud and infrastructure we have developed to capture and analyze vehicle data is readily adaptable for use in system supporting KARNO generator controls and monitoring.

隨著我們繼續向客戶展示，我們預計很快就會宣布其中幾家公司將於明年接收首批 KARNO 設備。當我們結束動力總成業務並保留技術以供以後使用時，我們有機會將某些員工和技術轉移到 KARNO 開發中。例如，我們開發的用於捕獲和分析車輛數據的雲端和基礎設施很容易適用於支援 KARNO 發電機控制和監控的系統。

The Hyliion Drive Processor which is used on the vehicle for connectivity and advanced algorithms can similarly be adapted to the KARNO technology. We also see significant overlap in electric architectures and battery systems. We plan to maintain operations in Austin, Texas; and Cincinnati, Ohio. Austin will remain our headquarters and will assume more activities related to the industrialization of the KARNO generator and software development.

車輛上用於連接和進階演算法的 Hyliion 驅動處理器同樣可以適應 KARNO 技術。我們也發現電力架構和電池系統有顯著重疊。我們計劃維持德州奧斯汀的業務；和俄亥俄州辛辛那提。奧斯汀仍將是我們的總部，並將承擔更多與 KARNO 發電機工業化和軟體開發相關的活動。

The Ohio team will maintain its focus on R&D technology. As we transition the focus on KARNO, we will be able to significantly reduce the amount of cash spent on the business. Jon will provide financial details, but I want to highlight our initial expectations. We continue to have a strong balance sheet with $324 million of available capital at the close of the third quarter.

俄亥俄團隊將繼續專注於研發技術。隨著我們將重點轉向 KARNO，我們將能夠大幅減少用於該業務的現金量。喬恩將提供財務細節，但我想強調我們最初的期望。我們繼續擁有強勁的資產負債表，截至第三季末可用資本為 3.24 億美元。

Our projection for the full year is to have spent $137 million in 2023, leaving us approximately $285 million at year end. For 2024, we expect our cash burn to be reduced to approximately $40 million or 70% reduction. Our strong capital position gives us financial flexibility well into the future as we begin commercial deployments of our KARNO generator technology next year. I will now turn the call over to Jon to provide a financial update.

我們預計 2023 年全年支出為 1.37 億美元，到年底我們的支出約為 2.85 億美元。到 2024 年，我們預計現金消耗將減少至約 4,000 萬美元，即減少 70%。隨著我們明年開始對 KARNO 發電機技術進行商業部署，我們強大的資本狀況為我們提供了未來良好的財務靈活性。我現在將把電話轉給喬恩，以提供最新的財務資訊。

Thank you, Thomas, and good afternoon. Starting with our financial results for the quarter, we reported $96,000 in revenue from sales of hybrid systems. Operating expenses totaled $33.3 million compared to $62.9 million in the prior year quarter, which included a one-time charge of $28.8 million related to the purchase of KARNO last year.

謝謝你，托馬斯，下午好。從本季的財務表現開始，我們報告混合動力系統銷售收入為 96,000 美元。營運費用總計 3,330 萬美元，而去年同期為 6,290 萬美元，其中包括與去年購買 KARNO 相關的一次性費用 2,880 萬美元。

Excluding this charge, expenses in 2022 were $34.1 million. Using this more comparable basis, total expenses were down about $1 million in the third quarter, driven by $2 million reduction in SG&A expenses, partly offset by $1 million increase in R&D expense. Total cash consumed in the third quarter was about $31 million compared to $45 million in the third quarter of 2022, including $15 million of cash that was paid as part of the KARNO acquisition and comparative cash spend of $31 million in the second quarter of this year.

排除此項費用，2022 年的支出為 3,410 萬美元。使用這種更具可比性的基礎，第三季的總費用減少了約 100 萬美元，這是由於 SG&A 費用減少了 200 萬美元，部分被研發費用增加了 100 萬美元所抵消。第三季消耗的現金總額約為 3,100 萬美元，而 2022 年第三季為 4,500 萬美元，其中包括作為收購 KARNO 的一部分支付的 1,500 萬美元現金，以及今年第二季的相對現金支出 3,100 萬美元。

We finished the third quarter with $324 million of cash, short-term and long-term investments on our balance sheet. I want to remind everyone that we maintain a significant share of our capital and longer-term investments to take advantage of higher interest rates on longer-dated securities. For example, we currently have about 43% of our capital or $141 million categorized as long-term investments.

截至第三季末，我們的資產負債表上有 3.24 億美元的現金、短期和長期投資。我想提醒大家，我們保留了很大一部分資本和長期投資，以利用長期證券的較高利率。例如，我們目前約有 43% 的資本（即 1.41 億美元）被歸類為長期投資。

For the first nine months of 2023, revenue from hybrid-related sales was $672,000, down about $300,000 compared to the first nine months of 2022. Year to date, operating expenses in 2023 were $103.7 million compared to $120.8 million for the same period in 2022 or $92 million excluding the KARNO acquisition charge.

2023 年前 9 個月，混合動力相關銷售收入為 672,000 美元，比 2022 年前 9 個月減少約 30 萬美元。年初至今，2023 年營運費用為 1.037 億美元，而 2022 年同期為 1.208 億美元或9200萬美元，不包括KARNO 收購費用。

Year to date, SG&A expenses were down about $2 million and R&D expenses, excluding the KARNO charge were up about $14 million. This increase is entirely due to the expensing of powertrain components that were purchased for the first 30 production trucks that we previously planned to sell to customers this year.

今年迄今為止，SG&A 費用減少了約 200 萬美元，研發費用（不包括 KARNO 費用）增加了約 1,400 萬美元。這一增長完全是由於我們之前計劃今年向客戶銷售的前 30 輛生產卡車購買的動力總成部件費用所致。

Most of the cost and cash expenditures we expect for the wind down of powertrain will be incurred in the fourth quarter of this year, including payments made for truck chassis and other components for the initial 30 production trucks. We estimate that total expenses for the fourth quarter will be around $35 million, including expenses that will be incurred to recognize future payments for contractual component purchases, employee severance agreements, and other expenses related to the wind-down of the Powertrain Business.

我們預計動力總成停產的大部分成本和現金支出將在今年第四季產生，包括為最初 30 輛生產卡車支付的卡車底盤和其他零件的費用。我們估計第四季度的總費用約為 3500 萬美元，包括確認未來合約組件採購付款、員工遣散協議以及與動力總成業務結束相關的其他費用。

Total operating expenses for the year will be approximately $140 million, including expenses for discontinued operations. This is a little higher than our previous guidance of $130 million because of the additional powertrain wind-down costs. We expect to finish the year with a total cash and investment balance of around $285 million or about $10 million higher than our previous guidance, even though we expect no revenue from Hypertruck ERX or hybrid systems for the rest of the year.

今年的總營運費用約為 1.4 億美元，其中包括終止營運的費用。由於額外的動力系統停產成本，這略高於我們先前 1.3 億美元的指引值。我們預計今年年底的現金和投資餘額總額約為 2.85 億美元，比我們先前的指引高出約 1,000 萬美元，儘管我們預計今年剩餘時間不會有來自 Hypertruck ERX 或混合動力系統的收入。

We expect to begin receiving payments from customers for early KARNO generator stationary deployments in late 2024. And as Thomas noted, we expect a significant decrease in our cash spending after we wind down powertrain operations. We estimate that total cash expenditures will drop from approximately 137 million this year to approximately $40 million next year. This amount excludes some cash expenditures for powertrain wind-down activities that we will incur in 2024 and potential proceeds from powertrain asset sales.

我們預計將於 2024 年底開始收到客戶對早期 KARNO 發電機固定部署的付款。正如 Thomas 指出的那樣，我們預計在結束動力系統業務後，我們的現金支出將大幅減少。我們預計現金支出總額將從今年的約 1.37 億美元降至明年的約 4,000 萬美元。這筆金額不包括我們將在 2024 年進行的動力總成逐步淘汰活動的一些現金支出以及動力總成資產銷售的潛在收益。

It is important to note that with the cash and investments we have on hand today along with a slower burn rate for KARNO development, we expect to be able to commercialize the KARNO generator business without the need to raise additional capital. To provide investors with more details on our future plans, we will be hosting a technology fireside chat later this quarter to further highlight the unique capabilities of the KARNO generator, business opportunities for near- and long-term deployments, and key development milestones. We will update you about this event in the coming weeks. With that, I will turn the call back over to Thomas for closing remarks.

值得注意的是，憑藉我們目前手頭上的現金和投資以及 KARNO 開發的燒錢速度較慢，我們預計能夠將 KARNO 發電機業務商業化，而無需籌集額外資金。為了向投資者提供有關我們未來計劃的更多細節，我們將在本季度晚些時候舉辦一次技術爐邊談話，以進一步強調KARNO 發電機的獨特功能、近期和長期部署的商業機會以及關鍵的發展里程碑。我們將在未來幾週內向您通報此活動的最新情況。至此，我將把電話轉回給托馬斯，讓他發表結束語。

I want to express my sincere appreciation and gratitude to the entire Hyliion team that has worked tirelessly and passionately on our powertrain solutions. The development of these products has taken great effort, many long nights, and exceptional dedication from our extremely talented team. We take great pride that trucks outfitted with our Hypertruck ERX powertrain have been on the road logging thousands of miles with great success.

我想對整個 Hyliion 團隊表示誠摯的讚賞和感謝，他們為我們的動力總成解決方案不懈而熱情地工作。這些產品的開發付出了我們極其才華橫溢的團隊的巨大努力、許多個漫長的夜晚和非凡的奉獻精神。我們感到非常自豪的是，配備 Hypertruck ERX 動力總成的卡車已經在路上行駛了數千英里並取得了巨大成功。

During extended fleet trials, we received overwhelmingly positive feedback about our Powertrain's performance. We have not had a single truck break down and a fleet was able to drive over 1,000 miles in a day, which speaks to the great potential of this technology and the robustness of the product. This is the reason we plan to maintain the technology for potential later use or sale.

在長期的車隊試驗中，我們收到了關於動力總成性能的絕大多數正面回饋。我們沒有一輛卡車發生故障，車隊一天可以行駛超過 1,000 英里，這說明了這項技術的巨大潛力和產品的堅固性。這就是我們計劃維護該技術以供以後使用或銷售的原因。

Although we are confident that the winding down of the Powertrain Business is the right move at this time, we are preserving the technology such that if the opportunity arises in the future, it may be reintroduced and utilize to its full potential as the industry matures. For now, we look forward to the great potential of the KARNO generator. Now we will take your questions.

儘管我們相信目前關閉動力總成業務是正確的舉措，但我們正在保留該技術，以便如果未來出現機會，隨著行業的成熟，它可能會被重新引入並充分利用其潛力。現在，我們期待KARNO發電機的巨大潛力。現在我們將回答您的問題。

(Operator Instructions) Donovan Schafer, Northland Capital Markets.

（操作員說明）Donovan Schafer，Northland Capital Markets。

Hey, guys. So my first question is just on the incremental movement of initially talking about looking at strategic alternatives for the Hypertruck ERX business and then now committing to a path of winding it down. First, just, is this a case where you did go through conversations or solicit or engage with potential buyers, folks signed, NDAs, and went through things and were able to see eye-to-eye on value? Or was this a case where you didn't even actually get to that point.

大家好。因此，我的第一個問題只是關於漸進式的行動，最初談論尋找 Hypertruck ERX 業務的策略替代方案，然後現在致力於逐步結束該業務。首先，只是，在這種情況下，您是否確實與潛在買家進行了對話或招攬或接觸，簽署了保密協議，並經歷了一些事情並且能夠在價值上達成一致？或者在這種情況下，你甚至沒有真正達到這一點。

And yeah, maybe you ran some numbers on a rough valuation or something and decided to not take that next step. And then did you get a valuation from a third party of any kind, and if you could share that? That is the first question.

是的，也許你對粗略的估值或其他數據進行了一些計算，然後決定不採取下一步。然後您是否從任何類型的第三方獲得了估值？您是否可以分享？這是第一個問題。

Sure. So I appreciate the questions, Donovan. And so we did run a process. We engaged Evercore as our bankers to assist us with this process. And we went out and had discussions with dozens of different groups out there and explored what strategic options there could be that included looking at potential buyers, that included looking at potential industry roll-ups or mergers. And upon conclusion of the process and looking at what came of that, we decided the best interest for all stakeholders was this wind down path and preserving the IP for potential later use.

當然。所以我很感激你提出的問題，多諾萬。所以我們確實運行了一個流程。我們聘請 Evercore 作為我們的銀行家來協助我們完成這項過程。我們出去與數十個不同的團體進行了討論，並探討了可能的策略選擇，包括尋找潛在的買家，包括尋找潛在的產業整合或合併。在過程結束並查看結果後，我們認為所有利害關係人的最大利益是這條逐步結束的道路並保留智慧財產權以供以後使用。

With that, I think that speaks a lot to just where the market is at right now. Through these discussions, as I'm sure you can imagine, we had a lot of discussions with potential strategic partners or acquirers and what we found was they themselves are even assessing. If they pull back their own spend internally on electrification, just as we're seeing the slowdown in this electric market, people are expecting adoption to take a lot longer. That also equates to people pulling back on their spend on electrification.

因此，我認為這很能說明市場目前的狀況。透過這些討論，我相信您可以想像，我們與潛在的策略夥伴或收購者進行了很多討論，我們發現他們自己甚至正在評估。如果他們削減內部電氣化支出，就像我們看到這個電力市場放緩一樣，人們預計採用時間會更長。這也相當於人們減少在電氣化方面的支出。

In terms of others that are in the space, other parties that would be comparable to highly on new entrants into the space where we've seen a lot of them filed bankruptcy recently. And then other ones are out trying to actively raise financing and, in many instances, have not been successful at that. And so all those factors lead us to the decision of this wind down.

就該領域的其他參與者而言，其他與該領域新進入者相當的其他方最近已經申請破產。然後其他人試圖積極籌集資金，但在許多情況下都沒有成功。因此，所有這些因素導致我們做出了停止這項決定。

Okay. And then turning to the KARNO, first, would there be -- the way you've done in the past for Hypertruck ERX, do you see yourselves -- maybe this is something you plan to have at the time of the fireside chat. But now that it's a focus maybe giving us a more granular and detailed kind of timeline on that path to commercialization?

好的。然後轉向 KARNO，首先，是否會有 - 就像您過去為 Hypertruck ERX 所做的那樣，您是否看到自己 - 也許這就是您計劃在爐邊聊天時擁有的東西。但現在它成為了一個焦點，也許會給我們在商業化道路上提供更細化和詳細的時間表？

Any particular tests or certifications? If there's the EPA stationary source required? Whatever is involved that, are you planning on giving us a more granular breakdown there? And one more there on KARNO is just, how do we not repeat the same situation where with Hypertruck ERX, we talked a lot about excitement from customers. And of course, that changed. Do you have any thoughts around a different approach that could make that stickier this time with KARNO? Any color there would be great. Thank you.

有什麼特別的測試或認證嗎？是否需要 EPA 固定源？無論涉及什麼，您是否計劃向我們提供更詳細的細分？ KARNO 上的另一個問題是，我們如何不重複與 Hypertruck ERX 相同的情況，我們談論了很多客戶的興奮。當然，情況發生了變化。您是否有什麼想法可以採取不同的方法來讓這次與 KARNO 的合作變得更加緊密？任何顏色都會很棒。謝謝。

Yeah, absolutely. So let's start with the first one around milestones around KARNO. So I just want to highlight a couple years. We expect that by end of this year. We'll started having some discussions around who the initial adoption partners are going to be with the KARNO. And then as we go into next year, middle of the year, we'll be kind of final validation of the system that then brings us into actually starting customer deployments in the second half of next year.

是的，絕對是。那麼，讓我們從第一個關於 KARNO 里程碑的事件開始。所以我只想強調一下這幾年的情況。我們預計到今年年底。我們將開始討論 KARNO 的初始採用合作夥伴是誰。然後，當我們進入明年，年中時，我們將對系統進行最終驗證，然後使我們在明年下半年真正開始客戶部署。

So we probably will come back with some more granularity around that. And whether that's in the fireside chat, we'll probably share some more details there. And then as we go into next year just to set expectations. So those initial customer deployments, we're looking at low single million. So a couple of millions of income or up revenue that would be coming from those deployments. So I just want to set expectations that those will be the initial entrants into the market.

因此，我們可能會圍繞這個問題提供更多的粒度。無論是在爐邊聊天中，我們都可能會在那裡分享更多細節。然後，當我們進入明年時，我們只是為了設定期望。因此，對於那些最初的客戶部署，我們正在考慮低百萬。因此，這些部署將帶來數百萬美元的收入或更高的收入。所以我只想設定預期，這些人將成為市場的首批進入者。

As we think about how to not repeat the situation that we're in with powertrain, so I think as we look at the customer discussions on the powertrain side of things, the shift is focus to -- since the cost of electric vehicles are higher upfront, their thought is that now they're going to wait until government mandates really come into place in order to force them to adopt it.

當我們考慮如何不重複我們在動力總成方面遇到的情況時，我認為當我們查看客戶對動力總成方面的討論時，我們的重點轉移到了——因為電動汽車的成本更高首先，他們的想法是，現在他們必須等到政府的命令真正到位，然後才能迫使他們採用它。

I think where we were a couple of years ago was even though the costs were more upfront, there was a strong freight market. And fleets were saying, yeah, we're going to get ahead of this. We want to focus on ESG, and we want to start adopting electric. Now there's more of a pull back. It's a weak freight market and the push is, let's wait till government mandates are there.

我認為幾年前我們的處境是，儘管前期成本更高，但貨運市場仍然強勁。艦隊說，是的，我們會領先的。我們希望專注於 ESG，並且希望開始採用電力。現在有更多的回調。這是一個疲軟的貨運市場，推動因素是，讓我們等到政府的命令出台。

As we look at the generator market, this is already an existing market that we're stepping into, right, versus electric vehicles. There are very few numbers of electric semi-trucks that are out on the road versus generators. It's a pretty established market already that we're stepping into. And we're bringing a very competitively differentiated solution.

當我們審視發電機市場時，這已經是我們正在涉足的現有市場，與電動車相比。與發電機相比，上路行駛的電動半拖車數量很少。我們正在涉足這個已經相當成熟的市場。我們正在帶來極具競爭力的差異化解決方案。

This isn't a standard generator. It's not an internal combustion engine. It gives a lot of flexibilities like fuel agnostic, high efficiency, low emissions, low noise, low maintenance. And so it really brings forward a lot of benefits of what a power plant has, but bringing it into a solution that's the size of a generator. So going after an already existing market and one where there are pain points from the customers and where people need electricity now and they just can't get it from the grid and they're being told they can't get grid hookups for one two, three or even more in some instances years, and that's a market that we feel like we can step in and address, which has a a very prominent need right now.

這不是標準發電機。它不是內燃機。它提供了許多靈活性，例如與燃料無關、高效率、低排放、低噪音、低維護。因此，它確實帶來了發電廠所具有的許多好處，但將其引入發電機大小的解決方案中。因此，我們要尋找一個已經存在的市場，這個市場存在客戶的痛點，人們現在需要電力，但他們無法從電網獲得電力，而且他們被告知無法獲得一兩個電網連接，在某些情況下三年甚至更多年，我們覺得我們可以介入並解決這個市場，目前這個市場的需求非常突出。

Okay. Thank you. I'll take the rest of my questions offline.

好的。謝謝。剩下的問題我會離線回答。

Bill Peterson, JPMorgan.

比爾彼得森，摩根大通。

Yes, hi, good afternoon and thanks for taking the questions. I would like to get a little bit more details on the history that led to the decision to wind down the efforts here. And I think back over the last few years there, indeed was a lot of excitement, the Founders Program. Even four months ago, you're still talking about cost of ours, the advantages, and infrastructure advantages.

是的，嗨，下午好，感謝您提出問題。我想了解更多關於導致決定停止這裡努力的歷史的細節。我回想過去幾年，創辦人計畫確實令人興奮。甚至四個月前，你們還在談論我們的成本、優勢、基礎建設優勢。

So just trying to get a feel for how does this evolve? I'm not saying it's going to come out of nowhere. Obviously, these fleet decisions are understandable given their own challenging times, but just the evolution of that. And then at this stage, looking ahead, how do you see the fleets really adopting any new technologies? And they're really going to be a 2027 story?

那麼只是想了解一下這是如何演變的嗎？我並不是說它會憑空出現。顯然，考慮到他們所處的充滿挑戰的時代，這些機隊決策是可以理解的，但這只是其演變。那麼在現階段，展望未來，您如何看待車隊真正採用新技術？它們真的會成為 2027 年的故事嗎？

What do you think about the mix between the various options they have, again, like the nat gas generated option you had did have advantages and that there was a lot of infrastructure versus lack thereof of other's infrastructure, especially given the student. You've actually provided such great information across the landscape, whether it be bad fuel cell, hydrogen and so forth. How should we think of this evolving from here?

您如何看待他們擁有的各種選項之間的組合，例如您擁有的天然氣生成選項確實具有優勢，並且有很多基礎設施而不是其他基礎設施的缺乏，特別是考慮到學生。實際上，您在整個領域提供瞭如此重要的信息，無論是劣質燃料電池、氫還是等等。我們該如何看待從這裡開始的演變？

Sure. So a little history on it of getting to this decision. So we still have customer interest and engagement and even fleets. We're doing fleet trials. And one thing I want to really reiterate is, this was not a decision based on product performance or having reliability issues or things like that. Actually, we've been very, very pleased with how the product was outperforming in fleet hands, and we we're hearing that same feedback from fleet.

當然。關於做出這個決定的一些歷史。因此，我們仍然有客戶的興趣和參與度，甚至還有車隊。我們正在進行艦隊試驗。我想重申的一件事是，這不是基於產品性能或可靠性問題或類似問題的決定。事實上，我們對該產品在車隊手中的表現感到非常非常滿意，我們也從車隊那裡聽到了同樣的回饋。

But I think what has really happened is the market has shifted to fleets are saying, with these vehicles costing a lot more upfront than diesel trucks. And as shared, we've been experiencing those price increases as well in our components and having discussions with fleets about passing those costs on. Fleets are expressing that they're going to really slow down their rate of adoption until they wait for the government mandates to force the adoption.

但我認為真正發生的事情是市場已經轉向車隊，這些車輛的前期成本比柴油卡車高得多。正如我們所分享的，我們的零件也經歷了價格上漲，並與車隊討論如何轉嫁這些成本。艦隊表示，他們將真正放慢採用速度，直到等待政府強制採用。

And as you pointed out, that probably is a later this decade type of a situation. And one other thing that gives us concern is there's a lot of discussions out there right now about those government mandates potentially even softening or changing or becoming elongated as to one fleets really need to adopt electric.

正如您所指出的，這可能是本十年後期的一種情況。另一件讓我們擔憂的事情是，現在有很多關於政府命令的討論，這些命令甚至可能會軟化、改變或延長，因為一支車隊確實需要採用電力。

And so as we look at the position we were in, were more approaching this from a position of strength as opposed to a position of weakness where we're fortunate that we have a strong balance sheet and a strong cash position. And we have two really strong technologies within the company. We had Powertrain and KARNO. And Powertrain is facing some of these hurdles that we mentioned, the demand changing, the components going up in the regulatory side of things.

因此，當我們審視我們所處的位置時，我們更多的是從強勢地位而不是弱勢地位來實現這一點，幸運的是我們擁有強大的資產負債表和強大的現金狀況。我們公司內部擁有兩項非常強大的技術。我們有動力總成和卡諾。動力總成正面臨我們提到的一些障礙，需求的變化，監管方面的組件增加。

And as we look at the KARNO market opportunity, we see it as a more capital efficient path to market. We're going to be delivering initial customer units next year and the second part of the year. So that's what led us to look at that. We've got, as we closed out last quarter, $324 million of cash available to us. And we feel like it's the best decision to put focus on the KARNO go forward, take the Powertrain technology, preserve it, put it on the shelf for potential later use. And then for the time being focused on KARNO.

當我們審視 KARNO 市場機會時，我們將其視為資本效率更高的市場途徑。我們將於明年和今年下半年交付首批客戶。這就是促使我們關注這個問題的原因。截至上季末，我們擁有 3.24 億美元的可用現金。我們覺得最好的決定是把重點放在 KARNO 的發展上，採用動力總成技術，保留它，把它放在架子上以備以後使用。然後暫時關注 KARNO。

Okay. Yeah. Okay. Well understood. On KARNO, just trying to get a more bigger picture view on how you're viewing the competitive landscape for the stationary power market. We're hearing early use cases like around EV charging. We've heard people talk about data center backup.

好的。是的。好的。完全了解。在 KARNO 上，我只是想更全面地了解您如何看待固定電力市場的競爭格局。我們聽到了早期的用例，例如電動車充電。我們聽到人們談論資料中心備份。

There's different business models and later approach it, whether it be Turkey Solution is generated plus to trying to get a feel for how you see the landscape for this and where you're going to be focusing on over the next few years?

有不同的商業模式和後來的方法，是否是土耳其解決方案的產生，以及嘗試了解您如何看待這一領域的前景以及您在未來幾年將重點關注的領域？

Sure. So there's a couple of different markets, anything about the power generation side of things. And maybe to start off, I'd just clarify, so we're looking at being a generator of electricity versus some of the solutions that you mentioned, like a battery is more going to help with conserving electricity and then being able to use it at a later date. As we think about what is really needed, we think it is both. But there's a lot of demand for just more electricity production.

當然。因此，存在幾個不同的市場，涉及發電方面的任何市場。也許首先，我想澄清一下，所以我們正在考慮成為一個發電機，而不是你提到的一些解決方案，例如電池更有助於節省電力，然後能夠使用它稍後。當我們思考真正需要什麼時，我們認為兩者都是。但對更多電力生產的需求很大。

Especially as you think about the EV space, more chargers are being deployed. Substations don't have the electricity available to actually service some of these chargers and in some instances, and we're enabling an opportunity where we could just bring a generator out and actually produce electricity locally at that site.

尤其是當您考慮電動車領域時，正在部署更多的充電器。在某些情況下，變電站沒有可用的電力來實際服務其中一些充電器，而我們正在提供一個機會，我們可以將發電機取出並在該地點實際發電。

There are a lot of other companies in this space. Some are using more conventional internal combustion engines in order to produce that electricity and then some others are using things like fuel cells in order to produce electricity. What we see as our advantages, internal combustion engine does not have great efficiency, requires a lot of maintenance. And from an emissions and pollution standpoint, many are still running on diesel fuel, and that's not great for our environment, right? I don't think we want EV chargers that are sitting there being powered by a diesel generator.

這個領域還有很多其他公司。有些人使用較傳統的內燃機來發電，而有些人則使用燃料電池之類的東西來發電。我們認為我們的優勢是，內燃機效率不高，需要大量維護。從排放和污染的角度來看，許多人仍在使用柴油，這對我們的環境不利，對吧？我認為我們不想要由柴油發電機供電的電動車充電器。

So, we're looking at the KARNO solution is bringing many benefits from an emissions and pollution standpoint, similar to what a fuel cell brings forward. But we're bringing it with low maintenance and the cost that we are looking at coming in a lot less than where fuel cells are at. So as mentioned before, it's kind of bringing forward many benefits that normally you see in a power plant, but bringing it forward in a size like a conventional generator that can be deployed locally and produce your own electricity at a cost affordable rate.

因此，我們認為 KARNO 解決方案從排放和污染的角度來看帶來了許多好處，類似於燃料電池帶來的好處。但我們的維護成本較低，而且我們預計其成本遠低於燃料電池。正如之前提到的，它帶來了許多通常在發電廠中看到的好處，但它的規模就像傳統發電機一樣，可以在當地部署，並以可承受的成本自行發電。

All right. Thanks for that. I'll jump back in the queue.

好的。感謝那。我會跳回到隊列中。

(Operator Instructions) Andres Sheppard,

（操作員說明）Andres Sheppard，

Hey, guys, this is Anand on for Andres. Thanks for taking our question. So we were just wondering with respect to the KARNO generator, what you would expect revenue to look like into commercialization and prior to commercialization as we're in period right now?

嘿，夥計們，這是安德烈斯的阿南德。感謝您提出我們的問題。所以我們只是想知道關於 KARNO 發電機，您預計商業化後和商業化之前的收入會是什麼樣子，因為我們現在正處於這個時期？

Sure. So commercialization will start at the later part of next year. And as mentioned, we're expecting just a couple of million of revenue coming in next year from that solution. As we get further into this transition, obviously, and we're just announcing it today, so as we get into next year, the first half of next year, we plan on coming back and being able to share more on what we think the future projections of it are.

當然。因此商業化將於明年下半年開始。如前所述，我們預計明年該解決方案的收入僅為數百萬美元。顯然，隨著我們進一步進入這一轉變，我們今天才宣布這一點，所以當我們進入明年、明年上半年時，我們計劃回來並能夠分享更多我們認為的內容未來的預測是。

The generator space, the production of electricity market is a huge market. So this is not a market size issue by any means. This is a huge addressable market we're going after. But we plan on coming back in the first half of next year with projections on what we're expecting from an adoption rate standpoint.

發電機空間、生產電力市場是一個龐大的市場。所以這無論如何都不是市場規模的問題。這是我們正在追求的一個巨大的潛在市場。但我們計劃在明年上半年回來，從採用率的角度對我們的預期進行預測。

Got it. Appreciate the color. And with respect to pricing and competitors, how do you expect to see pricing for the KARNO generator and comparable product and services?

知道了。欣賞顏色。關於定價和競爭對手，您預期 KARNO 發電機以及類似產品和服務的定價如何？

So we'll come back with more granularity on this, but I just wanted to give some directional numbers. So we are going to be more expensive than a conventional diesel engine, an internal combustion engine. But we're looking at being substantially less than some of the other solutions like fuel cells that are coming out to the market. But as mentioned, bringing forward, a lot of the benefits of those other solutions like the ability to run on hydrogen, having that low maintenance side of things.

因此，我們會對此進行更詳細的闡述，但我只是想給出一些方向性的數字。因此，我們將比傳統的柴油引擎、內燃機更昂貴。但我們正在考慮比市場上的燃料電池等其他一些解決方案要少得多。但如前所述，提出了其他解決方案的許多好處，例如使用氫氣運行的能力，以及低維護成本的一面。

So I think this is going to be a pretty attractive and compelling solution for the space. Now it's going to be important for us to focus on where do we deploy these, right? In the beginning, it doesn't make sense for us to go after market opportunities like standby power generation or emergency operation where the generator kicks on for one or two hours a year.

所以我認為這對該領域來說將是一個非常有吸引力和引人注​​目的解決方案。現在對我們來說重要的是要專注於在哪裡部署這些，對吧？一開始，我們追求備用發電或發電機每年啟動一兩個小時的緊急運作等市場機會是沒有意義的。

We suspect that the conventional diesel engine is going to still be the solution there, at least for the time being. But we see our opportunity being more prime power applications where someone wants to become less dependent on the grid and actually make their own electricity. We see peak shaving opportunities, the ability to be able to take flare gas and convert that into electricity, take pollution coming off of landfills, produce electricity with that, operations where you're going to really utilize the generator and have a high uptime of it.

我們懷疑傳統的柴油引擎仍然是解決方案，至少目前是這樣。但我們看到我們的機會是更多的主要電力應用，人們希望減少對電網的依賴並真正自行發電。我們看到了調峰機會，能夠利用火炬氣並將其轉化為電力，消除垃圾掩埋場的污染，並用其發電，您將真正利用發電機並擁有較長的正常運行時間。它。

That's where we see the KARNO being significantly differentiated, and the great news is there's plenty of opportunities that can utilize that. Think about warehouses, hotels, hospitals, those are all applications that we see KARNO generator being a great fit.

這就是我們看到 KARNO 顯著差異化的地方，好消息是有很多機會可以利用這一點。想想倉庫、飯店、醫院，我們認為 KARNO 發電機非常適合這些應用。

Got it. Appreciate it. And just a last really quick and easy one, if I could. I just wanted to make sure I have this right. You're not expecting to deliver any of the 30 trucks in the order book or hybrid trucks going forward. Is that correct?

知道了。欣賞它。如果可以的話，這是最後一個非常快速和簡單的方法。我只是想確保我有這個權利。您預計未來不會交付訂單中的 30 輛卡車或混合動力卡車中的任何一輛。那是對的嗎？

Yeah. That's correct. So we won't generate any more revenue from the Powertrain Business from selling average systems or the production trucks we talked about. That business is being wound down.

是的。這是正確的。因此，我們不會透過銷售普通系統或我們談到的生產卡車來從動力總成業務中獲得更多收入。該業務正在逐步結束。

Goy you. Sounds good. Thanks again for taking your questions. I will pass it on.

戈伊你。聽起來不錯。再次感謝您提出問題。我會把它傳遞下去。

Shang Kai, UBS.

尚凱，瑞銀。

Hi, guys. Thanks for taking my questions. So just one very quick question. What will be your sales outlook for KARNO in 2025?

嗨，大家好。感謝您回答我的問題。所以只有一個非常簡短的問題。您對 KARNO 2025 年的銷售前景有何看法？

So sales of the KARNO Generator in 2025, we'll come back with more information on that in the first half of next year. At this stage, we've given some directional numbers of a couple of million in revenue next year from the KARNO as expected in the second half of next year. But as mentioned, we're just starting this transition now. Obviously, it was just announced today. And so we'll be coming back with more granularity on future projections.

那麼 2025 年 KARNO 發電機的銷售情況，我們將在明年上半年提供更多相關資訊。現階段，我們已經給出了明年 KARNO 預計將帶來數百萬美元收入的一些方向性數字，正如明年下半年所預期的那樣。但如前所述，我們現在才剛開始這項轉變。顯然，這是今天剛剛宣布的。因此，我們將在未來的預測中提供更詳細的資訊。

Yeah. Just to add to that, so as Thomas mentioned, the units next year are deployments with initial. Real customers are going to use them for that will provide power benefits. We'll still be doing R&D at the time, but you can imagine after that, we'll start ramping up those deployments. And as Thomas mentioned, we'll have a little bit better visibility as we make this strategic shift and kind of reevaluate as we're shifting resources over from Powertrain to KARNO, what that looks like. But clearly, we're just going to be ramping up from what we expect deliveries to be next year. That will be a good starting point for continued growth.

是的。除此之外，正如托馬斯所提到的，明年的部隊將進行初步部署。真正的客戶將使用它們來提供電力優勢。當時我們仍然會進行研發，但你可以想像之後，我們將開始加大這些部署的力道。正如托馬斯所提到的，當我們進行這一戰略轉變時，我們將獲得更好的可見性，並在我們將資源從動力系統轉移到卡諾時進行重新評估，這是什麼樣子的。但顯然，我們只會比明年的預期交付量增加。這將是持續成長的良好起點。

Thank you. That's helpful.

謝謝。這很有幫助。

And this concludes the question-and-answer portion of today's call. At this time, I would like to turn the conference back over to Hyliion's CEO, Thomas Healy, for some final closing remarks.

今天電話會議的問答部分到此結束。此時，我想將會議轉回由 Hyliion 執行長 Thomas Healy 進行最後的閉幕致詞。

Well, thank you, everyone, for joining today's call. Obviously, a lot of news shared on today's earnings call around the discontinuation of our Powertrain Business, putting that technology on the shelf, preserving it for potential later use, and the pivot to focusing in on the KARNO generator for our go forward strategy for the time being.

好的，謝謝大家參加今天的電話會議。顯然，今天的財報電話會議上分享了很多關於我們動力總成業務終止的新聞，將這項技術擱置起來，保留以供以後使用，以及將重點放在 KARNO 發電機上，以實現我們的前進戰略暫且。

We do believe that this is the right shift for the company, for stakeholders, and shareholders. And we're excited to go execute on this path forward and look to share this exciting story as we continue on with our shareholder base. So thank you for joining today and more to come in the quarters ahead.

我們確實相信，這對公司、利害關係人和股東來說都是正確的轉變。我們很高興能夠沿著這條前進的道路前進，並希望在我們繼續與我們的股東基礎上分享這個激動人心的故事。感謝您今天的加入，以及未來幾季的更多內容。

Ladies and gentlemen, this does conclude today's conference call. You may all disconnect and have a wonderful day.

女士們先生們，今天的電話會議到此結束。你們可能會斷開連接並度過美好的一天。