Hyliion Holdings Corp (HYLN) 2025 Q2 法說會逐字稿

Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to the Hyliion Holdings Corp Q2 2025 earnings release conference call. (Operator Instructions) I would now like to turn the call over to Greg Stanley, Chief Accounting Officer. Greg, please go ahead.

您好，感謝您的支持。我叫蒂芬妮，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Hyliion Holdings Corp 2025 年第二季財報發布電話會議。（操作員指示）現在我想將電話轉給首席會計官格雷格·史丹利。格雷格，請繼續。

Thank you and good morning, everyone. Welcome to Hyliion Holdings second-quarter 2025 earnings conference call. On today's call are Thomas Healy, our Chief Executive Officer; and Jon Panzer, our Chief Financial Officer. A slide presentation accompanying this call is available on Hyliion Investor Relations website at investors.hyliion.com.

謝謝大家，早安。歡迎參加 Hyliion Holdings 2025 年第二季財報電話會議。參加今天電話會議的有我們的執行長 Thomas Healy 和我們的財務長 Jon Panzer。本次電話會議的幻燈片簡報可在 Hyliion 投資者關係網站 investors.hyliion.com 上取得。

Please note that during today's call, we will be making 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 risk and uncertainties. Many factors could cause actual results to differ materially from forward-looking statements made on this call. For more information on both 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 place undue reliance on forward-looking statements, and we undertake no duty to update this information unless required by applicable law.

請注意，在今天的電話會議中，我們將對公司的業務前景做出某些前瞻性的陳述。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、預期和其他陳述，因此具有風險和不確定性。許多因素可能導致實際結果與本次電話會議中的前瞻性陳述有重大差異。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信息，請參閱我們的演示文稿和新聞稿，以及我們向美國證券交易委員會提交的文件。請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。

With that, I will now turn the call over to Thomas.

說完這些，我現在將電話轉給托馬斯。

Hello and thank you for joining us for Hyliion's second-quarter 2025 earnings call. I'm joined today by our CFO, Jon Panzer. We have a number of positive updates to share with you on today's call, including the resumption of deliveries as we resolve the key engineering and manufacturing challenges we highlighted earlier in the year.

您好，感謝您參加 Hyliion 2025 年第二季財報電話會議。今天和我一起出席的還有我們的財務長 Jon Panzer。在今天的電話會議上，我們有許多積極的更新要與大家分享，包括在我們解決今年早些時候強調的關鍵工程和製造挑戰後恢復交付。

I'd like to begin by highlighting a major development this quarter that we believe underscores the value proposition of our KARNO power module and will help drive customer adoption in the years ahead.

首先，我想強調本季的一項重大發展，我們認為這凸顯了我們的 KARNO 電源模組的價值主張，並將有助於推動未來幾年的客戶採用。

As part of the newly enacted, One Big Beautiful Bill Act, a 30% investment tax credit has been established for customers deploying linear generators or fuel cells. This tax credit will apply to projects that begin construction in 2026 or later and will remain in effect for the next 10 years. This credit will apply not only to the generator itself, but also to the supporting infrastructure required for its operation.

作為新頒布的《一項偉大的美麗法案》的一部分，為部署線性發電機或燃料電池的客戶設立了 30% 的投資稅收抵免。此稅收抵免將適用於2026年或之後開始建設的項目，並將在未來10年內有效。該抵免不僅適用於發電機本身，也適用於其運作所需的支援基礎設施。

We believe this credit is significant for both Hyliion and our customers as it affirms the value that fuel-agnostic linear generators like the KARNO power module offer in addressing the growing need for clean distributed power generation in the US. Since the passage of this legislation, customer interest has increased as the credit will help offset the upfront cost of adopting our new KARNO technology.

我們相信，這項榮譽對於 Hyliion 和我們的客戶都具有重要意義，因為它肯定了 KARNO 電源模組等燃料無關線性發電機在滿足美國日益增長的清潔分散式發電需求方面所提供的價值。自法案通過以來，客戶的興趣增加，因為信貸將有助於抵消採用我們新的 KARNO 技術的前期成本。

Now shifting to our product development and deployment progress. During the past quarter, we delivered our second early adopter unit to the US Navy. In the coming weeks, we expect to complete assembly of two additional KARNO power modules. The first will be used to complete UL certification of the KARNO system, which is an important milestone ahead of product commercialization. The second power module will be the third early adopter customer unit and the first one delivered to a commercial customer. The main takeaway here is that we believe we've overcome some of the key manufacturing challenges we were facing in the first half of this year, which will allow us to continue producing systems.

現在轉向我們的產品開發和部署進度。在過去的一個季度，我們向美國海軍交付了第二個早期採用者單位。在接下來的幾週內，我們預計將完成另外兩個 KARNO 電源模組的組裝。第一座將用於完成KARNO系統的UL認證，這是產品商業化前的一個重要里程碑。第二個電源模組將是第三個早期採用者客戶單元，也是第一個交付給商業客戶的單元。這裡的主要結論是，我們相信我們已經克服了今年上半年面臨的一些關鍵製造挑戰，這將使我們能夠繼續生產系統。

On the manufacturing side, I'd like to provide an update on production of the linear electric motor or LEM. Last quarter, we shared that we began parallel production of certain LEM components at our Austin facility in response to quality issues and delays with our contract manufacturer. Unfortunately, those issues persisted, and we made the decision this quarter to fully transition LEM production in-house.

在製造方面，我想提供有關線性電動馬達或 LEM 生產的最新情況。上個季度，我們表示，為了解決合約製造商的品質問題和延誤問題，我們開始在奧斯汀工廠並行生產某些 LEM 組件。不幸的是，這些問題仍然存在，因此我們本季決定將 LEM 生產完全轉入內部。

I'm pleased to report that this transition is going well. We are now successfully assembling LEMs internally at a pace that gives us confidence in our ability to meet our ongoing production needs. Our plan is to continue scaling in-house LEM production capability to support larger volumes of KARNO systems in 2026.

我很高興地報告，這一過渡進展順利。我們目前已成功在內部組裝 LEM，其速度讓我們有信心滿足持續的生產需求。我們的計劃是繼續擴大內部 LEM 生產能力，以在 2026 年支援更大量的 KARNO 系統。

While we continue to believe that this is a component that can eventually be outsourced for greater production efficiency, our current focus is on quality and execution to minimize the risk of further delays to LEM supply.

雖然我們仍然相信，這個組件最終可以透過外包來提高生產效率，但我們目前的重點是品質和執行，以最大限度地降低 LEM 供應進一步延遲的風險。

We achieved another important technical milestone this quarter by confirming our ability to remove residual powder from the regen component of the KARNO core. The regen is a 3D printed metal part featuring a complex mesh structure that is critical for achieving the KARNO system's power output and efficiency.

本季度，我們實現了另一個重要的技術里程碑，確認了我們能夠從 KARNO 核心的再生組件中去除殘留粉末。再生器是一個 3D 列印的金屬部件，具有複雜的網格結構，對於實現 KARNO 系統的功率輸出和效率至關重要。

Last quarter, we mentioned the development of an enhanced powder removal method. This quarter, we've been able to confirm the effectiveness of this process. This has enabled us to upgrade the region with a more complex mesh design that we expect will address the performance shortfall caused by our earlier simplified design that we had implemented for easier powder removal.

上個季度，我們提到了增強粉末去除方法的開發。本季度，我們已能夠確認此流程的有效性。這使我們能夠使用更複雜的網格設計來升級該區域，我們期望這將解決我們先前為更容易去除粉末而實施的簡化設計所導致的性能不足的問題。

With this improved design, we believe we now have a solution capable of achieving the power and efficiency levels we are targeting for the KARNO power module. Bench testing of the redesigned regen has yielded encouraging heat transfer and performance results. We are now in the process of printing components needed to upfit a full KARNO core to validate expected performance during full power operation. As a reminder, the regen is easily retrofitted into existing KARNO cores, allowing us to continue production and testing with earlier versions of the regen.

透過這種改進的設計，我們相信我們現在擁有一個能夠實現我們為 KARNO 電源模組設定的功率和效率水平的解決方案。重新設計的再生裝置的台架測試取得了令人鼓舞的熱傳遞和性能結果。我們目前正在列印組裝完整 KARNO 核心所需的組件，以驗證全功率運行期間的預期性能。提醒一下，再生器可以輕鬆改裝到現有的 KARNO 核心中，從而使我們能夠繼續使用早期版本的再生器進行生產和測試。

With the progress we have achieved so far this year, we continue to expect that we will deliver all 10 early adopter units in 2025. Based on our current development and build schedule, we now expect that additional KARNO unit deliveries beyond the early adopter units and full product commercialization will shift into 2026. This schedule recognizes the time we need to properly learn from early deployments, including validating system performance and incorporating customer feedback. Meanwhile, we continue to build an inventory of printed components for KARNO power modules we plan to deliver in 2026 for product commercialization and afterwards.

憑藉今年迄今的進展，我們預計在 2025 年將交付所有 10 個早期採用者單元。根據我們目前的開發和建設計劃，我們預計除早期採用者單元之外的額外 KARNO 單元交付和全面產品商業化將推遲到 2026 年。這個時間表考慮到了我們需要從早期部署中適當學習的時間，包括驗證系統效能和整合客戶回饋。同時，我們繼續為 KARNO 電源模組建立印刷組件庫存，並計劃於 2026 年交付，以實現產品商業化及之後的交付。

I'd also like to provide an update on our ongoing work with the US Navy. We've been running the Navy KARNO units through near daily testing, and we continue to see strong system reliability of the production components. Importantly, the minor issues we've encountered have been primarily related to software optimization as we implement new features and from test equipment. Overall, the KARNO power module production hardware has been performing well in testing against the Navy's specifications.

我還想介紹一下我們與美國海軍正在進行的合作的最新情況。我們幾乎每天都對海軍 KARNO 裝置進行測試，並且我們持續看到生產組件具有強大的系統可靠性。重要的是，我們遇到的小問題主要與我們在實施新功能和測試設備時的軟體最佳化有關。總體而言，KARNO 動力模組生產硬體在海軍規格測試中表現良好。

On the commercial front, we've had many notable developments. This past quarter, we were awarded a phase two small business innovation research contract for up to $1.5 million that furthers our research and development work with the US Navy for shipboard and stationary applications. Specifically, this contract focuses on the development of software required to manage and synchronize cores in a multi-megawatt KARNO system.

在商業方面，我們取得了許多顯著的進展。上個季度，我們獲得了價值高達 150 萬美元的第二階段小型企業創新研究合同，這將進一步推動我們與美國海軍在艦載和固定應用方面的研發工作。具體來說，該合約重點關注管理和同步多兆瓦 KARNO 系統中核心所需的軟體的開發。

We're particularly excited about how our Navy partnership is progressing as near-term plans are underway to install multiple KARNO cores on a prototype Navy vessel and to deploy full KARNO power modules at multiple testing sites.

我們對與海軍的合作進展感到特別興奮，因為我們近期計劃在海軍原型艦艇上安裝多個 KARNO 核心，並在多個測試地點部署完整的 KARNO 電源模組。

I'm also proud to share that Hyliion's KARNO power module has been designated as an awardable technology by the US Air Force and the Department of Defense's Chief Digital and Artificial Intelligence Office under the Military Multi-fuel Initiative. Achieving awardable status positions the KARNO technology to support the Air Force's needs for power technologies that can support critical operations during fuel supply disruptions. We expect that this designation will be beneficial for Hyliion as we seek other military applications for KARNO technology.

我還很自豪地告訴大家，Hyliion 的 KARNO 電源模組已被美國空軍和國防部首席數位和人工智慧辦公室指定為軍事多燃料計劃下的獎勵技術。獲得授予地位使 KARNO 技術能夠滿足空軍對電力技術的需求，這些技術可以在燃料供應中斷期間支援關鍵行動。我們期待這一頭銜將對 Hyliion 有利，因為我們正在尋求 KARNO 技術的其他軍事應用。

This quarter, we signed a strategic MOU with Alkhorayef Industries during the Saudi-US Investment Forum, outlining a potential $1 billion opportunity to deploy and localize KARNO power modules in Saudi Arabia. This MOU is part of the $600 billion in commercial deals announced during President Trump's visit. It marks a major step toward international deployment, with initial units expected in 2026.

本季度，我們在沙烏地阿拉伯-美國投資論壇期間與 Alkhorayef Industries 簽署了策略諒解備忘錄，概述了在沙烏地阿拉伯部署和本地化 KARNO 電源模組的潛在 10 億美元機會。該諒解備忘錄是川普總統訪問期間宣布的6,000億美元商業協議的一部分。這標誌著向國際部署邁出了重要一步，首批部署單位預計將於 2026 年投入使用。

This quarter, we also signed an LOI with MMR Group, a global leader in custom electrical solutions serving commercial, industrial, and utility markets. MMR has over 5,000 employees and more than $6 billion in delivered projects. The LOI outlines plans for MMR to purchase three KARNO power modules totaling up to 600 kilowatts of stationary power, with deployments expected to begin in the second half of 2026.

本季度，我們還與 MMR 集團簽署了意向書，該集團是一家為商業、工業和公用事業市場提供客製化電氣解決方案的全球領導者。MMR 擁有超過 5,000 名員工，已交付的專案價值超過 60 億美元。意向書概述了 MMR 購買三個 KARNO 電源模組的計劃，總計可提供 600 千瓦的固定功率，預計將於 2026 年下半年開始部署。

The previously mentioned MOU and LOI are non-binding in nature and subject to the execution of definitive agreements.

前述諒解備忘錄及意向書不具約束力，並須遵守最終協議的執行。

To wrap up, we are very encouraged by the momentum we've built so far in 2025. We've tackled some of the toughest technical challenges in LEM production and regen de-powdering and design. The introduction of a 30% tax credit through the One Big Beautiful Bill Act validates our belief that the KARNO power module represents a significant advancement in the development of clean, efficient distributed power technologies and will serve as a catalyst for faster commercial deployment across a broad range of applications. We remain committed to delivering all 10 early adopter units this year and look forward to commercializing the KARNO system and broadening deployments in 2026.

總而言之，我們對 2025 年迄今所取得的進展感到非常鼓舞。我們已經解決了 LEM 生產和再生除粉和設計中的一些最棘手的技術挑戰。透過「一項大而美的法案」引入 30% 的稅收抵免，證實了我們的信念，即 KARNO 電源模組代表了清潔、高效分散式電源技術發展的重大進步，並將成為廣泛應用中更快商業部署的催化劑。我們仍致力於在今年交付所有 10 個早期採用者單元，並期待在 2026 年實現 KARNO 系統商業化並擴大部署。

With that, I will now turn the call over to Jon for the financial update.

說完這些，我現在將把電話轉給喬恩，讓他報告一下財務更新。

Thank you, Thomas. And good morning, everyone. Starting with our 2025 second quarter results, we recorded revenue of $1.5 million from research and development services related to our contracts with the Office of Naval Research. Cost of sales was $1.4 million resulting in gross profit of $131,000. In the second quarter of 2024, we recorded no revenue or cost of sales.

謝謝你，托馬斯。大家早安。從 2025 年第二季的業績開始，我們從與海軍研究辦公室簽訂的合約相關的研發服務中獲得了 150 萬美元的收入。銷售成本為 140 萬美元，毛利為 131,000 美元。2024 年第二季度，我們沒有記錄任何收入或銷售成本。

R&D services revenue reflects both the sale of KARNO cores and related components to the US Navy, the work we perform to test and validate these units, and other development work. Operating expenses for the second quarter were $15.8 million compared to $14 million in the second quarter of 2024. The increase was related to research and development costs, which were $10.1 million compared to $8.3 million in the second quarter of 2024. This increase reflects a ramp up in R&D work and growth in the production of additive components. SG&A expenses were $6 million down from $6.3 million in 2024 due primarily to lower facilities, insurance, and professional services expenses, partly offset by higher labor costs.

研發服務收入反映了向美國海軍銷售 KARNO 核心和相關組件的收入、我們為測試和驗證這些裝置所做的工作以及其他開發工作。第二季的營運費用為 1,580 萬美元，而 2024 年第二季為 1,400 萬美元。這一成長與研發成本有關，2024 年第二季研發成本為 1,010 萬美元，而 2024 年第二季為 830 萬美元。這一增長反映了研發工作的增加和添加劑成分產量的成長。銷售、一般及行政費用 (SG&A) 比 2024 年的 630 萬美元下降了 600 萬美元，這主要是由於設施、保險和專業服務費用減少，但勞動力成本上升部分抵消了這一影響。

In the second quarter, we recorded a credit and exit and termination cost of $346,000 due to asset sale gains related to our former powertrain business. In the second quarter of 2024, we recorded a gain of $556,000 in exit and termination costs also related to asset sales. We recorded $2.2 million of interest income during the second quarter, which is down from $3.1 million in the prior-year quarter due to a lower level of investments this year. Our total net loss in the second quarter was $13.4 million, up from $10.9 million in the second quarter of 2024, but down from the $17.3 million we recorded in the first quarter of this year.

在第二季度，由於與我們先前的動力系統業務相關的資產出售收益，我們記錄了 346,000 美元的信用和退出及終止成本。2024 年第二季度，我們記錄了與資產出售相關的退出和終止成本收益 556,000 美元。我們在第二季記錄了 220 萬美元的利息收入，由於今年的投資水準較低，低於去年同期的 310 萬美元。我們第二季的總淨虧損為 1,340 萬美元，高於 2024 年第二季的 1,090 萬美元，但低於今年第一季的 1,730 萬美元。

Year-to-date we recorded revenue of $all $2 million all from R&D services and gross profit of $143,000. We recorded no revenue or gross profit in the first half of 2024. Year-to-date operating expenses were $35.5 million compared to $33 million in the first half of last year. The increase in expenses is related to higher R&D expenses this year partly offset by lower SG&A and powertrain exit and termination expenses compared to the first two quarters of last year. Net loss year-to-date is $30.7 million compared to $26.4 million last year.

今年迄今為止，我們透過研發服務實現了 200 萬美元的收入，毛利為 143,000 美元。2024 年上半年我們沒有記錄任何收入或毛利。年初至今的營運費用為 3,550 萬美元，而去年上半年為 3,300 萬美元。費用的增加與今年研發費用的增加有關，但與去年前兩個季度相比，銷售、一般及行政費用以及動力系統退出和終止費用的降低部分抵消了這一增加。今年迄今的淨虧損為 3,070 萬美元，而去年同期為 2,640 萬美元。

Turning to our cash and investment position, we spent $13.5 million during the second quarter, down from $20.9 million in the first quarter of this year. The slowdown in cash use was partly due to lower capital spending, which totaled $4.3 million in the second quarter this year compared to $7.3 million in the first quarter. Capital spending consists primarily of added printing machines and related equipment. And also includes facility investments to support printer operation.

談到我們的現金和投資狀況，我們在第二季的支出為 1,350 萬美元，低於今年第一季的 2,090 萬美元。現金使用放緩部分是由於資本支出減少，今年第二季資本支出總額為 430 萬美元，而第一季為 730 萬美元。資本支出主要包括增加印刷機和相關設備。還包括支援印表機運作的設施投資。

Asset sales through the first half of 2025 were $800,000 compared to $3.5 million in the first half of 2024. We finished the second quarter with $185.3 million of cash and short and long-term investments on our balance sheet.

2025 年上半年的資產銷售額為 80 萬美元，而 2024 年上半年為 350 萬美元。我們第二季結束時資產負債表上有 1.853 億美元的現金以及短期和長期投資。

Last quarter, we provided an updated forecast of cash spending for the year, noting that tariffs with the EU were expected to increase capital spending by $2 million to $3 million and that we plan to purchase additional used printers. Although EU tariffs are now expected to be 15%, we are maintaining our forecast for total expenditures of $65 million this year, as well as the expectation that our year-end balance of cash and investments will be approximately $155 million.

上個季度，我們對全年現金支出進行了更新預測，並指出與歐盟的關稅預計將使資本支出增加 200 萬至 300 萬美元，並且我們計劃購買更多二手印表機。儘管目前預計歐盟關稅為 15%，但我們仍維持今年總支出 6,500 萬美元的預測，並預計年底現金和投資餘額約為 1.55 億美元。

These forecasts continue to assume that we will be able to offset cash capital spending. With around $10 million of equipment financing if favorable terms are available. Our previous forecast of $10 million to $15 million in revenue for 2025 included both R&D services and sales of 200-kilowatt KARNO modules to commercial customers. As Thomas mentioned earlier, we now expect that commercialization will extend into 2026. We are therefore adjusting our 2025 revenue forecast down to $5 million to $10 million to account for this shift.

這些預測仍然假設我們能夠抵銷現金資本支出。如果條件優惠，可提供約 1000 萬美元的設備融資。我們先前預測 2025 年的收入將達到 1,000 萬至 1,500 萬美元，其中包括研發服務和向商業客戶銷售 200 千瓦的 KARNO 模組。正如托馬斯之前提到的，我們現在預計商業化將延續到 2026 年。因此，我們將 2025 年的營收預測下調至 500 萬至 1,000 萬美元，以適應這項轉變。

Next, we continue to expect to see positive gross margin for R&D services for the year.

接下來，我們繼續預期今年研發服務的毛利率將為正值。

Finally, we continue to expect that the capital we have on hand today will be sufficient to carry us through the commercialization of KARNO power module sales.

最後，我們繼續期望我們今天擁有的資金足以支持我們實現 KARNO 電源模組銷售的商業化。

Now I'll turn the call back over to Thomas.

現在我將把電話轉回給托馬斯。

Q2 was a strong quarter for Hyliion with progress on multiple fronts. Our US customers will now benefit from a 30% investment tax credit on future KARNO deployments, and we've resumed system builds after achieving key technical milestones, including fully transitioning LEMs production in-house and finalizing both our de-powdering process and regen design.

Hyliion 在第二季度表現強勁，在多個方面取得了進展。我們的美國客戶現在將受益於未來 KARNO 部署的 30% 投資稅收抵免，並且在實現關鍵技術里程碑後，我們已經恢復了系統構建，包括完全過渡到內部 LEM 生產並最終完成我們的脫粉工藝和再生設計。

These steps, along with demonstrated reliability in Navy operations, strengthen our path toward commercialization. Our focus now is on executing the early adopter program, producing and upgrading systems with the new regen, scaling manufacturing, and preparing for a 2026 commercial launch. We look forward to updating you next quarter on new deployments, partnerships, and technical advancements.

這些措施以及海軍行動中證明的可靠性，加強了我們走向商業化的道路。我們現在的重點是執行早期採用者計劃，使用新的再生技術生產和升級系統，擴大生產規模，並為 2026 年的商業發布做準備。我們期待下個季度向您通報新的部署、合作夥伴關係和技術進步。

With that, we'll turn the call back over to the operator for Q&A.

然後，我們會將電話轉回給接線生進行問答。

(Operator Instructions) There are no operator-assisted questions at this time. I will now turn the call back over to Greg Standley.

（操作員指示）目前沒有操作員協助的問題。現在我將把電話轉回給 Greg Standley。

Thank you. These are the questions that have come in from shareholders. Thomas, can you share more on the 30% tax credit and how does this compare to previous ITC credits?

謝謝。這些都是股東提出的問題。托馬斯，您能否分享更多有關 30% 稅收抵免的資訊？這與先前的 ITC 抵免相比如何？

Absolutely. So I can't emphasize enough just the importance of this tax credit for both Hyliion and for our customers. First, it just showcases that KARNO is viewed as a technology that can really assist with energy resiliency and security for our nation, which is why in the new Big Beautiful Bill Act, there's been a 30% tax credit applied to linear generators and to fuel cells like the KARNO.

絕對地。因此，我再怎麼強調這項稅收抵免對於 Hyliion 和我們的客戶的重要性都不為過。首先，它表明 KARNO 被視為一種能夠真正幫助我們國家實現能源彈性和安全的技術，這就是為什麼在新的《美麗大法案》中，對線性發電機和 KARNO 等燃料電池實行 30% 的稅收抵免。

And then, as we compare this against previous ITC that we've talked about in years past, the previous ITC was planned to have things like fuel dependency, so it was only going to be applied to fuels like hydrogen or to technology that's going to use fuels like hydrogen. It also had thresholds that customers needed to meet where it started at a 6% credit and could raise up to a 30-plus percent credit.

然後，當我們將其與過去幾年討論過的 ITC 進行比較時，先前的 ITC 計劃包含燃料依賴性等內容，因此它僅適用於氫等燃料或使用氫等燃料的技術。它還設有客戶需要達到的門檻，最低信用額度為 6%，最高可達 30% 以上。

This new structure is much more simple. It's a flat 30% credit. It doesn't have any stipulations on what fuel can or cannot be used. And it's in place for the next 10 years. So we ultimately see this as a big benefit for our customers as it's going to assist with their ability to adopt the KARNO.

這個新結構更加簡單。這是固定的 30% 信用額度。它沒有規定可以使用或不能使用什麼燃料。並且它將在未來十年內實施。因此，我們最終認為這對我們的客戶來說是一個巨大的好處，因為它將有助於他們採用 KARNO。

On product development, you spoke about LEMs and de-powdering. Are there other large issues that need to be resolved prior to shipping?

在產品開發方面，您談到了 LEM 和去粉化。出貨前還有其他大問題需要解決嗎？

Absolutely. So LEMs and regens were really the two large things on our radar that over the past couple of quarters we've been addressing. As we shared on today's call, very pleased that LEMs production has been pulled in-house. That's going well. We're producing units. And that's what's really allowed us to resume production that we talked about on today's call.

絕對地。因此，LEM 和再生實際上是我們在過去幾季中一直在關注的兩大問題。正如我們在今天的電話會議上所分享的，非常高興 LEM 的生產已在內部完成。一切進展順利。我們正在生產單位。這就是我們在今天的電話會議上談到的真正讓我們能夠恢復生產的原因。

In terms of the regen, this past quarter, we confirmed that our de-powder strategy works. And now, what we're undertaking is we did a redesign of the regen. We made the mesh more compact. We improved the performance of the part. We've done bench testing of this. And we believe that it's hitting the performance criteria that we need. And now, we're in the process of manufacturing these components to be able to roll them in to the KARNO core and do full power operation.

就再生而言，上個季度，我們確認我們的去粉策略是有效的。現在，我們正在對再生進行重新設計。我們使網格更加緊湊。我們改進了該部件的性能。我們已經對此進行了台架測試。我們相信它達到了我們需要的性能標準。現在，我們正在製造這些組件，以便將它們裝入 KARNO 核心並實現全功率運行。

So all in all, those two initiatives are going well. We're pleased with the progress that's been made. A big shout out to our team, both from an engineering standpoint and from a production standpoint, of the progress they made over this past quarter.

總的來說，這兩項措施進展順利。我們對已經取得的進展感到滿意。無論是從工程角度還是從生產角度，我們團隊在過去一個季度都取得了巨大的進步。

Then as we go ahead here, as we highlighted on today's call, the goal of the remainder of the year is to get these 10 early adopter units out there into customers' hands and into operation. And we're going to have continued learning and feedback from the customers as they're operating these systems. And then ,we've talked about how we've shifted the commercialization into 2026. This really gives us the ability to roll in any of the feedback or learnings to continue to improve the product.

然後，正如我們在今天的電話會議上所強調的那樣，我們今年剩餘時間的目標是將這 10 個早期採用者單元送到客戶手中並投入使用。當客戶操作這些系統時，我們將繼續學習並從他們那裡獲得回饋。然後，我們討論如何將商業化轉移到 2026 年。這確實使我們能夠利用任何回饋或學習來繼續改進產品。

So right now, we've tackled the main ones that have been on our radar and we'll continue to learn from these systems as we get more of them deployed.

因此，現在我們已經解決了我們關注的主要問題，並且隨著我們部署更多的系統，我們將繼續從這些系統中學習。

On the Navy contract, can you share more on how the Navy is planning to use the KARNO? And are you pursuing other military contracts as well?

關於海軍合同，您能否分享更多有關海軍計劃如何使用 KARNO 的信息？您是否也在尋求其他軍事合約？

So the engagement with the military initially started with a focus of the KARNO being the power plant behind autonomous unmanned vessels. And this is still the overarching goal, and this is where it began. One exciting thing is the military recently released some videos showcasing the ship that we're actually going to be going into.

因此，與軍方的合作最初是以 KARNO 作為自主無人船的動力裝置的重點開始的。這仍然是我們的首要目標，也是我們開始的地方。令人興奮的是，軍方最近發布了一些視頻，展示了我們實際上將要進入的船隻。

And so these units that we're producing now for the Navy ultimately have two paths ahead of them. Some will be going into that unmanned vessel. Others will be going into stationary applications at military bases to prove the performance of the technology.

因此，我們現在為海軍生產的這些部隊最終面臨兩條道路。有些人將進入那艘無人駕駛船隻。其他人將在軍事基地進行固定應用，以證明該技術的性能。

Now, as we also highlighted, our relationship with the military is continuing to grow. This past quarter, we received another SBIR phase two award. We also received awardable criteria by the US Air Force, which this means that any branch of the government can now have a more streamlined process in order to acquire the KARNO technology for their application.

現在，正如我們所強調的，我們與軍方的關係正在不斷發展。上個季度，我們又獲得了另一個 SBIR 第二階段獎項。我們還獲得了美國空軍頒發的獎勵標準，這意味著政府的任何部門現在都可以透過更簡化的流程來獲取 KARNO 技術以供其應用。

So we're continuing to push on areas and opportunities of where the military can be using the KARNO, and we hope to be able to share more as we go forward on other applications that we'll be moving into.

因此，我們將繼續推動軍方可以使用 KARNO 的領域和機會，我們希望在推進其他應用的過程中能夠分享更多資訊。

That addresses all the questions. I'll turn the call back over to Thomas for closing remarks.

這解決了所有問題。我將把電話轉回給托馬斯，讓他做最後發言。

Thank you, all, for joining this quarter's earnings call. One thing I would like to highlight is this morning, we released a video on our social media that highlights some of the feedback we've received from industry leaders who have come out to our facility and actually been able to see the KARNO in performance and see some of those benefits that we've talked about. So I strongly encourage you to go watch that video and see what others are saying about this revolutionary technology.

感謝大家參加本季的財報電話會議。我想強調的一件事是，今天早上我們在社交媒體上發布了一段視頻，重點介紹了我們從行業領袖那裡收到的一些反饋，他們來到我們的工廠，親眼目睹了 KARNO 的性能，並看到了我們談到的一些好處。所以我強烈建議你去觀看該視頻，看看其他人對這項革命性技術的評價。

Thank you again for joining the call, and we look forward again to sharing more updates on our next earnings call.

再次感謝您參加電話會議，我們期待在下次財報電話會議上再次分享更多最新消息。

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。