Lightning eMotors Inc (ZEV) 2022 Q4 法說會逐字稿

Good morning. Welcome to Lightning eMotors fourth-quarter 2022 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Brian Smith, Vice President, Investor Relations for Lightning eMotors. Thank you. You may begin.

早上好。歡迎來到 Lightning eMotors 2022 年第四季度財報電話會議。 （操作員說明）提醒一下，正在錄製此會議。我現在想把會議轉交給你的主持人，Lightning eMotors 投資者關係副總裁 Brian Smith 先生。謝謝。你可以開始了。

Thank you, operator, and thanks for joining us. On the call today are Lightning's Co-Founder and CEO, Tim Reeser; Chief Revenue Officer, Kash Sethi; and CFO, David Agatston. Ahead of this call, Lightning issued our fourth-quarter 2022 earnings press release and presentation deck, which we will reference today. These can be found on the Investor Relations section of our website at lightningemotors.com.

謝謝你，接線員，感謝你加入我們。今天參加電話會議的有 Lightning 的聯合創始人兼首席執行官 Tim Reeser；首席營收官 Kash Sethi；首席財務官 David Agatston。在此電話會議之前，Lightning 發布了我們今天將參考的 2022 年第四季度收益新聞稿和演示文稿。這些可以在我們網站 lightningemotors.com 的投資者關係部分找到。

On this call, management will be making statements based on current expectations and assumptions, which are subject to certain risks and uncertainties. Actual results could differ materially from these forward-looking statements due to risk factors that are listed in today's earnings release and in our filings with the SEC, which can also be found on our website. We assume no duty to update any forward-looking statements except as required by law.

在這次電話會議上，管理層將根據當前的預期和假設發表聲明，這些預期和假設受到某些風險和不確定性的影響。由於今天的收益發布和我們提交給美國證券交易委員會的文件中列出的風險因素，實際結果可能與這些前瞻性陳述存在重大差異，這些文件也可以在我們的網站上找到。除非法律要求，否則我們不承擔更新任何前瞻性陳述的義務。

Today's presentation also includes non-GAAP financial measures. Please refer to the information contained in today's earnings press release for definitional information and reconciliations of non-GAAP measures to the comparable GAAP measures.

今天的演示文稿還包括非 GAAP 財務措施。請參閱今天的收益新聞稿中包含的信息，了解非 GAAP 措施與可比 GAAP 措施的定義信息和調節。

With that, let me turn it over to Tim.

有了這個，讓我把它交給蒂姆。

Thank you, Brian, and thanks to everyone for joining us today. I'll start off on slide 4 with today's agenda. I will begin with an overview of Lightning, some highlights from the quarter, a discussion of our progress on managing our supply chain, and a discussion of the narrowing of our product focus. Kash will then provide an update on products, markets, and incentives; and David will wrap up with a financial overview.

謝謝你，布賴恩，感謝大家今天加入我們。我將從幻燈片 4 開始介紹今天的議程。我將首先概述 Lightning，本季度的一些亮點，討論我們在管理供應鏈方面取得的進展，以及討論縮小我們的產品重點。然後，Kash 將提供有關產品、市場和激勵措施的最新信息；大衛將總結財務概覽。

Moving to slide 5, a summary of the quarter. Lightning produced a record 128 vehicles and powertrains in the fourth quarter, 23% higher than our previous record of 104 achieved in Q3. As we announced in January, revenue in the quarter was impacted by quality issues as Romeo batteries, plus customer financing delays, and the timing of incentives.

轉到幻燈片 5，本季度的總結。 Lightning 在第四季度生產了創紀錄的 128 輛汽車和動力總成，比我們之前在第三季度創下的 104 輛的記錄高出 23%。正如我們在 1 月份宣布的那樣，本季度的收入受到 Romeo 電池等質量問題、客戶融資延遲和激勵措施時間的影響。

Next, we will discuss our view of market forces and momentum and our refined product development focus on certain segments and applications most favored by government incentives and where we currently have a competitive advantage, specifically Class 4 trucks and buses plus the Lightning Mobile DC fast charger, we just introduced. And finally, we'll discuss how this narrowing of our focus will allow us to reduce our expenses and cash burn.

接下來，我們將討論我們對市場力量和勢頭的看法，以及我們的精細化產品開發，重點關注政府激勵措施最青睞的某些細分市場和應用，以及我們目前具有競爭優勢的領域，特別是 4 級卡車和公共汽車以及 Lightning Mobile DC 快速充電器，我們剛剛介紹過。最後，我們討論了這種縮小我們的關注點將如何讓我們減少開支和現金消耗。

Moving to slide 6, we offer a full range of fleet electrification solutions from vehicles and service to powertrain technology, repowering of pre-owned ICE vehicles, energy solutions for fixed and mobile charging, including installation support, and finally, our Lightning insights, telematics and analytics offering, which provides fleet intelligence, including driving efficiency, charging optimization, and predictive maintenance.

轉到幻燈片 6，我們提供全方位的車隊電氣化解決方案，從車輛和服務到動力總成技術、二手 ICE 車輛的重新供電、固定和移動充電的能源解決方案，包括安裝支持，最後是我們的 Lightning insights、遠程信息處理和分析產品，提供車隊智能，包括駕駛效率、充電優化和預測性維護。

Moving to slide 7, let's discuss the supply chain landscape. On the chassis side, our work with GM is providing a sufficient and predictable supply of chassis to serve our targeted market segment of Class 4 trucks and buses. The GM chassis is preferred by most Type A school bus providers. And we are currently the only OEM with an electrified solution on this platform, plus our progress on our purpose-built Lightning e-chassis is very exciting as we will begin initial testing in the first half of this year and volume production next year.

轉到幻燈片 7，讓我們討論一下供應鍊格局。在底盤方面，我們與通用汽車的合作是提供充足且可預測的底盤供應，以服務我們的目標市場 4 級卡車和公共汽車。 GM 底盤是大多數 A 型校車供應商的首選。我們目前是唯一一家在此平台上提供電氣化解決方案的 OEM，加上我們在專用 Lightning 電子底盤上取得的進展非常令人興奮，因為我們將在今年上半年開始初步測試，明年開始量產。

On the battery front, we have sufficient quantities of high-quality batteries from Proterra and CATL for our near-term needs. I will discuss the Romeo battery issue shortly.

在電池方面，我們有足夠數量的來自 Proterra 和 CATL 的優質電池來滿足我們的近期需求。我將很快討論 Romeo 電池問題。

Beyond chassis and batteries, we continue to work to diversify our supply chain with new higher production and lower cost suppliers to help reduce the cost and lead times we are seeing for components such as high-voltage heaters, high-voltage air conditioners and heat pumps, and thermal management parts.

除了底盤和電池之外，我們繼續努力通過新的更高產量和更低成本的供應商來實現我們的供應鏈多元化，以幫助降低我們看到的高壓加熱器、高壓空調和熱泵等組件的成本和交貨時間和熱管理部件。

Turning to slide 8. Lightning has been working closely with multiple battery pack suppliers for the last six years as our broad range of applications and customizations require multiple battery suppliers, configurations, and technical specifications.

轉到幻燈片 8。Lightning 在過去六年中一直與多家電池組供應商密切合作，因為我們廣泛的應用和定制需要多個電池供應商、配置和技術規格。

Many early battery pack suppliers struggled with quality and availability and vehicle OEMs. And their customers have had to work our way through that. Lightning has built a significant field service team of internal OEM through partners to manage the early challenges. We are having excellent success now with our current battery suppliers, Proterra and CATL; and in fact, have built a proprietary safety system on CATL packs in partnership with CATL for commercial vehicle applications.

許多早期的電池組供應商都在為質量和可用性以及車輛原始設備製造商而苦苦掙扎。他們的客戶不得不通過我們的方式來解決這個問題。 Lightning 通過合作夥伴建立了一支重要的內部 OEM 現場服務團隊來應對早期挑戰。我們現在與我們現有的電池供應商 Proterra 和 CATL 取得了巨大的成功；事實上，與 CATL 合作，在 CATL 電池組上構建了專有的安全系統，用於商用車應用。

We are actively analyzing, testing, and validating new battery suppliers to meet our requirements, which include best-in-class safety systems, buy America compliance, modular support and fit for a wide variety of chassis configurations and best-in-class energy and power density.

我們正在積極分析、測試和驗證新的電池供應商以滿足我們的要求，其中包括一流的安全系統、購買美國合規性、模塊化支持以及適合各種底盤配置和一流的能源和功率密度。

Turning to slide 9. In January, we announced revenue constraints in Q4 due primarily to defects we identified in the Romeo batteries, while we expected Romeo and its parent company Nikola to support us and our customers and honor the warranty obligations as they publicly stated, they would. They are not. We filed suit against Nikola and Romeo on March 9. This battery issue directly and significantly impacted Q4 revenue and is expected to impact our revenues in Q1 and Q2 of this year as we lost planned sales of our legacy Class 4 [4450] base platform.

轉到幻燈片 9。1 月，我們宣布第四季度的收入限制主要是由於我們在 Romeo 電池中發現的缺陷，同時我們希望 Romeo 及其母公司 Nikola 支持我們和我們的客戶並履行他們公開聲明的保修義務，他們將。他們不是。我們於 3 月 9 日對 Nikola 和 Romeo 提起訴訟。該電池問題直接且顯著影響了第四季度的收入，並且由於我們失去了遺留 Class 4 [4450] 基礎平台的計劃銷售，預計將影響我們今年第一季度和第二季度的收入。

Looking forward, our new line of products, including all our GM based Class 4 products and our Lightning Mobile DC fast vehicle charger, all use high-quality batteries from Proterra, CATL, of which we have more than ample supply. We are working with customers to convert our backlog of orders for the legacy Class 4 platforms that had Romeo batteries to the new GM platform with Proterra batteries.

展望未來，我們的新產品線，包括我們所有基於 GM 的 Class 4 產品和我們的 Lightning Mobile DC 快速車載充電器，都使用來自 Proterra、CATL 的優質電池，我們擁有充足的供應。我們正在與客戶合作，將我們對配備 Romeo 電池的傳統 Class 4 平台的積壓訂單轉換為配備 Proterra 電池的新 GM 平台。

While we are having some success and are optimistic, given what we are currently seeing with the performance of the platform, we may not be able to replace all of these orders. And this process is likely to impact the amount and timing of our revenue for the first half of the year.

雖然我們取得了一些成功並且很樂觀，但鑑於我們目前看到的平台性能，我們可能無法替換所有這些訂單。這個過程很可能會影響我們上半年的收入數量和時間。

Turning to slide 10. Early on, our product development strategy prioritized optionality as we waited for more clarity on the market and the regulatory landscape. That clarity has arrived. And fortunately, the landscape now favors a market segment where we have an advantage in terms of both experience and the investments we've recently made.

轉到幻燈片 10。早期，我們的產品開發策略優先考慮可選性，因為我們等待市場和監管環境更加明朗。那種清晰度已經到來。幸運的是，現在的格局有利於我們在經驗和最近進行的投資方面都具有優勢的細分市場。

The Inflation Reduction Act is driving market momentum for Class 4 vehicles. The $40,000 IRA incentive on Class 4 and above is leading to strong demand for Class 4 school buses, shuttle buses, and work trucks. School buses are seeing particularly strong momentum in terms of both incentives and public sentiment. We will continue to participate in Class 3 business with a focus on passenger vans and ambulances and focusing less on last-mile delivery.

通貨膨脹減少法案正在推動 4 類車輛的市場勢頭。 4 類及以上的 40,000 美元 IRA 獎勵導致對 4 類校車、穿梭巴士和工作卡車的強勁需求。校車在激勵措施和公眾情緒方面的勢頭尤其強勁。我們將繼續參與第 3 類業務，重點放在客貨車和救護車上，較少關注最後一英里的交付。

Our Class 3 platforms are already designed. And where it makes sense, we will produce vehicles and capitalize on the investments we've made. We will also focus on our Lightning Mobile DC, fast charger, which we unveiled last month and for which we are already taking orders. This can be a game-changing product, especially for customers wishing to electrify their fleet, but [we] are experiencing delays in getting fixed charging installed. With this more focused product development and market strategy, we believe we can now lean out our expense base without sacrificing growth potential, which David will go into a little later.

我們的 3 級平台已經設計好了。在有意義的地方，我們將生產汽車並利用我們所做的投資。我們還將專注於我們上個月推出的 Lightning Mobile DC 快速充電器，我們已經在接受訂單。這可能是一種改變遊戲規則的產品，特別是對於希望為其車隊供電的客戶，但 [我們] 在安裝固定充電設備方面遇到了延誤。有了這種更加專注的產品開發和市場戰略，我們相信我們現在可以在不犧牲增長潛力的情況下精簡我們的費用基礎，大衛稍後會談到這一點。

Turning to slide 11, which summarizes our product development focus for this year. Class 4 buses and trucks built on the GM platform with Proterra batteries and an optimized next-generation powertrain plus the mobile charger I spoke of. While the supply chain environment remains dynamic, we are not currently supply limited for components to build these products. We have delivered our first GM Class 4 vehicles to customers. And the customer response has been positive.

轉到幻燈片 11，它總結了我們今年的產品開發重點。基於 GM 平台構建的 4 級公共汽車和卡車配備 Proterra 電池和優化的下一代動力總成以及我提到的移動充電器。雖然供應鏈環境保持動態，但我們目前並沒有限制構建這些產品的組件供應。我們已經向客戶交付了首批 GM Class 4 車輛。客戶的反應是積極的。

The platform rollout should continue in Q2 with a strong expected ramp in the second half of the year. Initial customer response to our mobile charger has also been positive. I'm excited about this product and its prospects and proud of our development team for the job they've done because this product can be an electrification bridge for our customers as they build out our Proterra fixed charging capability to meet their charging needs.

該平台的推出將在第二季度繼續進行，預計下半年將出現強勁增長。客戶對我們的移動充電器的最初反應也很積極。我對這款產品及其前景感到興奮，並為我們的開發團隊所做的工作感到自豪，因為該產品可以成為我們客戶的電氣化橋樑，因為他們建立了我們的 Proterra 固定充電能力以滿足他們的充電需求。

Although we expect the sales cycle to be a little slower given the newness of the product and the high ASP, we are working to accelerate it by helping customers rent or lease the product through our finance and lease partners.

儘管鑑於產品的新穎性和高平均售價，我們預計銷售週期會稍微慢一些，但我們正在努力通過我們的金融和租賃合作夥伴幫助客戶出租或租賃產品來加快銷售週期。

Turning to slide 12, you can see how the new North America and US incentive programs stack up to provide very significant opportunities for customers to buy Lightning electric commercial vehicles at a much lower investment, de-risking the purchase and allowing them to electrify their fleets at a much faster pace. Most of these programs have launched in the last six months. So we believe the ability to stack these incentives will result in a demand inflection in the near term as customers align their purchasing plans with these new incentives.

轉到幻燈片 12，您可以看到新的北美和美國激勵計劃如何疊加起來，為客戶提供非常重要的機會，以低得多的投資購買 Lightning 電動商用車，降低購買風險並允許他們使車隊電氣化以更快的速度。這些項目中的大多數是在過去六個月中啟動的。因此，我們相信，隨著客戶將他們的購買計劃與這些新激勵措施相結合，疊加這些激勵措施的能力將在短期內導致需求變化。

Turning to slide 13, you can see the current competitive landscape. Although there's been a lot of noise, we show here that there's little actual competition in the key markets we are focusing on. It is also important to note that many of the products listed from competitors are likely not designed complete or on the road yet. We believe that we are well ahead of the competition with our completed designs and real-world miles. Note that we believe we are the only EV OEM today with an electrification solution for ambulances and Class 3 passenger shuttles.

轉到幻燈片 13，您可以看到當前的競爭格局。儘管有很多噪音，但我們在這裡表明，在我們關注的主要市場中幾乎沒有實際競爭。同樣重要的是要注意，競爭對手列出的許多產品可能尚未設計完成或尚未上路。我們相信，我們在完成的設計和實際里程方面遠遠領先於競爭對手。請注意，我們相信我們是當今唯一一家為救護車和 3 級客運班車提供電氣化解決方案的 EV OEM。

And now I'll turn it to Kash to provide an update of our products, markets, sales momentum, and a look at how the incentives are stacking up to drive market acceleration.

現在我將請 Kash 提供我們產品、市場、銷售勢頭的最新情況，並了解激勵措施如何疊加以推動市場加速。

Thank you, Tim. I'll begin on slide 15. First off, we continue to be strongly positioned in our target markets because many of our peers are still in early prototype development and testing, while we continue to deploy our zero-emission vehicles in real-world environments across multiple market verticals and commercial vehicle applications.

謝謝你，蒂姆。我將從幻燈片 15 開始。首先，我們繼續在我們的目標市場中佔據優勢地位，因為我們的許多同行仍處於早期原型開發和測試階段，而我們繼續在現實環境中部署我們的零排放車輛跨越多個垂直市場和商用車應用。

Our deployed fleet of over 450 vehicles recently crossed a collective 3.7 million miles on the road, a number growing rapidly every week. Based on our data and estimates, our vehicles have spent more than 50,000 hours on the road moving goods and people without emissions. Although deploying new technologies isn't easy and some bumps are expected, we continue to improve our product's reliability and are receiving repeat orders from an expanding customer base.

我們部署的超過 450 輛汽車的車隊最近在路上總共行駛了 370 萬英里，這個數字每週都在快速增長。根據我們的數據和估計，我們的車輛已經在路上行駛了 50,000 多個小時，沒有排放任何貨物和人員。儘管部署新技術並不容易，而且預計會有一些顛簸，但我們會繼續提高產品的可靠性，並不斷收到來自不斷擴大的客戶群的重複訂單。

Turning to slide 16, I'd like to highlight our new-generation Class 4 offering built on the GM 4500 platform. This product has been developed in close partnership with GM over the last two years and has gone through rigorous testing, including a crash test to validate battery disengagement and airbag deployment. We're using batteries. We've already deployed on our ZEV3 cargo vans and ZEV3 passenger events over the last year and a half.

轉到幻燈片 16，我想重點介紹我們基於 GM 4500 平台構建的新一代 4 類產品。該產品是在過去兩年中與通用汽車密切合作開發的，並通過了嚴格的測試，包括碰撞測試以驗證電池脫離和安全氣囊展開。我們正在使用電池。在過去一年半的時間裡，我們已經在 ZEV3 貨車和 ZEV3 乘客活動中進行了部署。

And we've repackaged these batteries between chassis frame rails for higher safety and ease of manufacturing. This platform will be leveraged across several market applications, including zero-emission school buses, shuttle buses, box trucks, work trucks, and ambulances.

我們在底盤框架導軌之間重新包裝了這些電池，以提高安全性和易於製造。該平台將用於多個市場應用，包括零排放校車、穿梭巴士、貨車、工作卡車和救護車。

Moving on to slide 17. We see here a summary of our most mature products that we expect to drive our business in 2023. We have strong vehicle body partnerships and distribution channels in place for all of these products. We're continuing to mature other vehicle partnerships we've talked about in the past. And we are actively exploring new partnerships with OEMs and vehicle builders that have a strong growth potential in 2024 and beyond.

轉到幻燈片 17。我們在這裡看到我們最成熟的產品的摘要，我們預計這些產品將在 2023 年推動我們的業務發展。我們為所有這些產品建立了強大的車身合作夥伴關係和分銷渠道。我們正在繼續完善我們過去討論過的其他車輛合作夥伴關係。我們正在積極探索與 2024 年及以後具有強大增長潛力的原始設備製造商和汽車製造商的新合作夥伴關係。

Turning to slide 18 and 19, you'll see how the combination of incentives, grants, and mandates continue to drive demand for zero-emission commercial vehicles and how our products can leverage multiple state and federal grants that are stackable with each other, including the $40,000 IRA tax credit mentioned by Tim.

轉到幻燈片 18 和 19，您將看到激勵措施、撥款和授權的組合如何繼續推動對零排放商用車的需求，以及我們的產品如何利用可以相互疊加的多個州和聯邦撥款，包括蒂姆提到的 40,000 美元 IRA 稅收抵免。

Combining these grants can dramatically offset the upfront cost of going electric, in some cases fully paying for the vehicle. We're working very closely with our customers to help them leverage these programs and get ready for the upcoming mandates.

結合這些補助可以大大抵消電動汽車的前期成本，在某些情況下可以全額支付車輛費用。我們正在與客戶密切合作，幫助他們利用這些計劃並為即將到來的任務做好準備。

Moving on to slide 20. I'm excited to report that our second-generation Lightning Mobile DC fast charger is now in production. We've developed this product based on over two years of testing and feedback from our first generation Lightning Mobile now available in multiple sizes and configurations. This product can help solve several charging infrastructure hurdles faced by the wider EV industry, both passenger cars and commercial EVs. We already have orders for this product and are on track to deploy customer units in the first half of Q2.

轉到幻燈片 20。我很高興地向大家報告，我們的第二代 Lightning Mobile DC 快速充電器現已投入生產。我們基於兩年多的測試和第一代 Lightning Mobile 的反饋開發了這款產品，現在有多種尺寸和配置可供選擇。該產品可以幫助解決更廣泛的電動汽車行業（包括乘用車和商用電動汽車）面臨的幾個充電基礎設施障礙。我們已經收到該產品的訂單，並有望在第二季度上半年部署客戶設備。

And with that, I'll turn it over to David to provide an update on Lighting's financial results and outlook.

有了這個，我將把它交給大衛提供有關 Lighting 財務業績和前景的最新信息。

Thank you, Kash. I will now provide some commentary on our fourth quarter results, followed by our 2023 outlook beginning on slide 22. For the fourth quarter, we generated revenues of $4.3 million, which increased 3% from the year ago period. In the quarter, Lighting produced a record 128 vehicles and powertrains and sold 31.

謝謝你，卡什。我現在將對我們的第四季度業績進行一些評論，然後是我們從幻燈片 22 開始的 2023 年展望。第四季度，我們創造了 430 萬美元的收入，比去年同期增長了 3%。本季度，Lighting 生產了創紀錄的 128 輛汽車和動力總成，售出 31 輛。

The adjusted EBITDA loss for the fourth quarter was $20 million compared to a $16 million loss in the prior-year period. The change is primarily related to higher operating expenses in the current period. Full year revenue increased by 16% versus 2021. A reconciliation of net income to the adjusted EBITDA loss can be found on slide 26.

第四季度調整後的 EBITDA 虧損為 2000 萬美元，而去年同期為虧損 1600 萬美元。該變化主要與本期營業費用增加有關。與 2021 年相比，全年收入增長了 16%。可以在幻燈片 26 中找到淨收入與調整後 EBITDA 損失的對賬。

Turning to slide 23. Lighting ended the fourth quarter with $56 million in cash and cash equivalents, which we believe is sufficient to fund our operations for the next several quarters. We have yet to draw on our equity line of credit. But we have the ability to do so if needed. We are working to raise sufficient capital in the first half of this year to fund operations to free cash flow positive. And we are confident we will succeed.

轉到幻燈片 23。Lighting 在第四季度結束時擁有 5600 萬美元的現金和現金等價物，我們認為這足以為接下來幾個季度的運營提供資金。我們尚未動用我們的股權信貸額度。但如果需要，我們有能力這樣做。我們正在努力在今年上半年籌集足夠的資金來為運營提供資金，從而實現正自由現金流。我們相信我們會成功。

Net inventory at the end of the third quarter was $47 million. The higher inventory level stems primarily from the larger number of chassis and batteries we purchased to support future growth and almost $13 million of finished goods. We expect to draw down on our inventory over the course of the next several quarters, which will help materially slow our cash burn.

第三季度末的淨庫存為 4700 萬美元。較高的庫存水平主要源於我們為支持未來增長而購買的更多底盤和電池以及近 1300 萬美元的成品。我們預計將在接下來的幾個季度內減少庫存，這將有助於大幅減緩我們的現金消耗。

Tim and Kash discussed the narrowing of our product focus onto the products that are most attractive in terms of market opportunity, incentive support, and Lightning's experience and competitive advantage. This focus will allow us to run the business in a more streamlined manner. And we've begun taking actions to reduce expenses, improve gross margin, and lower our cash burn rate.

Tim 和 Kash 討論了將我們的產品重點縮小到在市場機會、激勵支持以及 Lightning 的體驗和競爭優勢方面最具吸引力的產品上。這一重點將使我們能夠以更精簡的方式開展業務。我們已經開始採取行動來減少開支、提高毛利率並降低我們的現金消耗率。

Turning to slide 24, earlier today, we announced that we took another step in strengthening our balance sheet by agreeing to exchange $10.5 million of debt for common stock with certain holders of our 2024 convertible notes. Since the end of the third quarter of 2022, we have reduced the principal on these notes by almost $30 million, which in turn lowers our annual interest expense by over $2 million. We are constantly evaluating opportunities to strengthen the balance sheet and reduce Lighting's cost of capital to facilitate our growth.

轉到幻燈片 24，今天早些時候，我們宣布我們在加強資產負債表方面又邁出了一步，同意將 1050 萬美元的債務換成我們 2024 年可轉換債券的某些持有人的普通股。自 2022 年第三季度末以來，我們已將這些票據的本金減少了近 3000 萬美元，這反過來又使我們的年度利息支出減少了超過 200 萬美元。我們不斷評估加強資產負債表和降低 Lighting 資本成本的機會，以促進我們的增長。

Turning to slide 25, I'll summarize our outlook for the year. As Tim highlighted, the issues related to the Romeo batteries and the timing of our GM based Class 4 ramp is likely to constrain our first half revenue. Based on current business conditions, we expect for 2023 revenues to be in the range of $35 million to $50 million. The high end of that range would represent a doubling of revenue versus 2022 vehicle and powertrain system sales to be in the range of 300 units to 400 units and vehicle and powertrain production to be in the range of 400 units to 450 units.

轉到幻燈片 25，我將總結我們今年的展望。正如蒂姆強調的那樣，與羅密歐電池相關的問題以及我們基於通用汽車的 4 級坡道的時間可能會限制我們上半年的收入。根據當前的業務狀況，我們預計 2023 年的收入將在 3500 萬至 5000 萬美元之間。該範圍的高端將代表與 2022 年車輛和動力總成系統銷量的翻番，達到 300 到 400 台，車輛和動力總成產量在 400 到 450 台之間。

Now I will turn it back over to Tim for closing remarks.

現在我將把它轉回給蒂姆作結束語。

Thank you, David. I remain very excited about the outlook for Lightning eMotors as we continue to execute our strategy. While many of our peers are still working on their first US manufacturing facilities or working to build their first production vehicles, we have put more medium duty zero-emission commercial vehicles in customers' hands and on the road in the US than anyone else.

謝謝你，大衛。隨著我們繼續執行我們的戰略，我仍然對 Lightning eMotors 的前景感到非常興奮。雖然我們的許多同行仍在建設他們的第一家美國製造工廠或致力於製造他們的第一輛量產車輛，但我們已經將更多的中型零排放商用車交到客戶手中並在美國上路行駛，比其他任何人都多。

We've introduced new products that benefit from the incentive landscape and remain focused on getting to positive gross margins. Our industry is transforming. And we continue to pursue opportunities through our strategic acquisition to achieve critical scale. We have a clear vision, a differentiated strategy, and tailwinds that we believe will accelerate our path to growth and profitability.

我們推出了受益於激勵環境的新產品，並繼續專注於獲得正的毛利率。我們的行業正在轉型。我們繼續通過戰略收購尋求機會，以實現關鍵規模。我們有一個清晰的願景、一個差異化的戰略和順風，我們相信這將加速我們的增長和盈利之路。

The Lighting team is energized, passionate, and focused moving with velocity towards a strong future. With each day that passes, the barriers to widespread EV adoption in the commercial vehicle space are falling. And the government incentive programs are growing. Although these programs, most of which have at least a five-year horizon provide an accelerated inflection point for commercial EVs, the fact is that today our products provide a very compelling return on investment versus their ICE counterparts even without these subsidies.

Lighting 團隊充滿活力、充滿激情並專注於快速邁向強大的未來。隨著時間一天天過去，在商用車領域廣泛採用電動汽車的障礙正在減少。政府的激勵計劃也在不斷增加。儘管這些計劃（其中大部分至少有五年的期限）為商用電動汽車提供了加速的拐點，但事實是，即使沒有這些補貼，今天我們的產品也能提供非常可觀的投資回報，而不是內燃機產品。

I would like to finish by thanking all of our customers for their confidence in Lightning, our partners for their contributions to our company's success, and our shareholders for their support. I especially want to thank our employees who are executing at a high level through a challenging operating environment.

最後，我要感謝我們所有的客戶對 Lightning 的信任，感謝我們的合作夥伴為我們公司的成功所做的貢獻，以及我們的股東的支持。我特別要感謝我們的員工，他們在充滿挑戰的運營環境中表現出色。

And with that, thank you, everyone. And I appreciate your time today. Operator, we are now ready to open the line for questions.

然後，謝謝大家。我感謝你今天的時間。接線員，我們現在準備打開問題熱線。

(Operator Instructions) Colin Rusch, Oppenheimer & Co.

（操作員說明）Colin Rusch，Oppenheimer & Co.

Thanks so much guys. As you look at the supply chain situation, all the changes that you've made in terms of qualifying incremental suppliers and optimizing operations, can you talk a little bit about the seasonality within the guidance you've provided for the full year and when you're expecting to reach gross margin positive on production?

非常感謝你們。當您查看供應鏈情況時，您在合格增量供應商和優化運營方面所做的所有更改，您能否談談您提供的全年指導中的季節性以及何時期望在生產上達到正毛利率？

Thank you, Colin. I'll start it and then let David finish on the gross margin question, Great to hear from you again, so appreciate all of your engagement and the research you're doing. Broadly, seasonality in the commercial vehicle space has usually been last half, as you know, focused primarily because when new vehicle model years hit, the supply chain and certainly chassis supply has changed that over the last 18 month to 24 months.

謝謝你，科林。我會開始，然後讓大衛完成毛利率問題，很高興再次收到你的來信，非常感謝你的參與和你所做的研究。如您所知，從廣義上講，商用車領域的季節性通常是後半部分，主要是因為當新車型年到來時，供應鍊和底盤供應在過去 18 個月到 24 個月內發生了變化。

But we still expect the business to return a bit to a last half seasonality based on primarily on chassis availability. But certainly some of the challenges we've had in the past around battery supply, et cetera, have not been seasonal. They're just ad hoc. So I do expect that to even out. But as I look at it, I think most commercial vehicles will move back towards a second half weighted seasonality at some level.

但我們仍然預計，主要基於底盤可用性，該業務將略微回到後半季的季節性。但可以肯定的是，我們過去在電池供應等方面遇到的一些挑戰並不是季節性的。他們只是臨時的。所以我確實希望它能平衡。但在我看來，我認為大多數商用車將在某種程度上回到下半年加權季節性。

And David, do you want to talk a little bit?

大衛，你想談談嗎？

Yeah, hey, Colin. We think probably now moving into early 2024 -- first half of 2024, given the impacts we've had from the Class 4 Romeo batteries and the ramp of our GMs. A lot of it has to do with obviously the volume we've talked about before that if we get to 100 vehicles a month, we get towards gross margin positive. And so it could happen towards the back end of this year, if depending on some of the seasonality that Tim talked about and the cost down initiatives that we're implementing but more likely first half of '24.

是的，嘿，科林。我們認為現在可能會進入 2024 年初——2024 年上半年，考慮到我們受到 4 級羅密歐電池的影響和我們 GM 的提升。這在很大程度上與我們之前討論過的數量有關，如果我們每月達到 100 輛汽車，我們就會實現正毛利率。因此，如果取決於 Tim 談到的某些季節性因素以及我們正在實施但更有可能是 24 年上半年的成本降低計劃，它可能會在今年年底發生。

Okay, that's super helpful. And then just in terms of the sales cycle, obviously, this can be a fairly long sales cycle for folks. But can you just give us an update and what you're seeing both in terms of the Class 4 market as well as the school bus market, in terms of the cadence of your orders coming in, and then also about your win rate? I'm just curious about the number of things you're bidding on and how that's moving into the backlog for you guys.

好的，這非常有幫助。然後就銷售週期而言，顯然，這對人們來說可能是一個相當長的銷售週期。但是你能不能給我們一個更新，你在 4 級市場和校車市場，你的訂單進入的節奏，以及你的贏率方面看到了什麼？我只是想知道你們競標的東西的數量，以及這些東西是如何進入你們的積壓訂單的。

Hey, Colin. This is Kash. So in gasoline vehicles for Class 4, whether that's school buses, shuttle buses, on the school bus side, there it's heavier on the late summer. Schools usually like to get ready with their buses before the next year starts.

嘿，科林。這是卡什。所以4類汽油車，不管是校車，班車，在校車這邊，夏末的時候比較重。學校通常喜歡在明年開學前準備好校車。

But when it comes to electric buses, it's really more tied with timelines. So school districts using HVIP in California are going to buy throughout the year. But they will tried to get most deliveries towards the end of the summer. But nationwide now that the [EPA] program is available, we're still learning what that cycle looks like. But I'd predict it will be heavier towards the summer and Q4 again.

但就電動巴士而言，它確實更受時間限制。因此，加州使用 HVIP 的學區將全年購買。但他們將努力在夏末前完成大部分交貨。但現在 [EPA] 計劃在全國范圍內可用，我們仍在了解該循環是什麼樣子的。但我預測它會在夏季和第四季度再次變得更重。

On your question on win rates, so we are already in the Class 4 shuttle bus and school bus space. We were addressing it with the 4455. From now we have the GM 4500 platform. Both those platforms also existed in the space already. But when it comes to win rates, we usually win more than 50% of actual bids in this space.

關於您關於勝率的問題，我們已經進入了 4 級穿梭巴士和校車空間。我們用 4455 解決了這個問題。從現在開始，我們有了 GM 4500 平台。這兩個平台也已經存在於該空間中。但就中標率而言，我們通常會贏得該領域實際出價的 50% 以上。

Now I'm talking about bids when a customer is trying to award a bid to someone to place a purchase order, I'm not talking about contracts, which basically everybody can get a contract and become eligible option for a state agency to buy something. But when there's an actual bid, when they're trying to win and buy one product or the other, we're winning more than 50% of the time.

現在我說的是當客戶試圖將投標授予某人下採購訂單時的投標，我不是在談論合同，基本上每個人都可以獲得合同並成為國家機構購買東西的合格選擇.但是當有實際出價時，當他們試圖贏得併購買一種產品或另一種產品時，我們有超過 50% 的時間獲勝。

That's incredibly helpful. Thanks so much guys.

這非常有幫助。非常感謝你們。

Mike Shlisky, D.A. Davidson.

邁克·施利斯基，檢察官戴維森。

Good morning and thanks for taking my question. I just wanted to start with the lawsuit you filed against Romeo. Another player has taken their claim to arbitration, it may be contractual. I'm curious if you just tell us is your claim also going to go to arbitration or you plan to you get into the long haul for a trial, if you have there just to kind of thoughts as to how this may turn out without any, obviously anything confidential, but how this thing might progress over the next couple of quarters here?

早上好，謝謝你提出我的問題。我只想從你對羅密歐提起的訴訟開始。另一位玩家已將他們的索賠提交仲裁，這可能是合同規定的。我很好奇你是否只是告訴我們你的索賠是否也將進入仲裁，或者你計劃進行長期審判，如果你只是想知道如果沒有任何結果會如何，顯然是任何機密，但是這件事在接下來的幾個季度裡可能會如何進展？

We do expect it to go to court. Obviously very few, I think when I was reading the other day in terms of actual civil litigation that actually ends up at a trial, most of them, a large, large percentage of them do not. So who knows where that's going to go. But it isn't -- we aren't at this point planning on arbitration. We are planning on it is headed to court.

我們確實希望它上法庭。顯然很少，我認為前幾天我在閱讀實際以審判結束的實際民事訴訟時，他們中的大多數人，其中很大一部分人沒有。所以誰知道它會去哪裡。但事實並非如此——我們目前不打算進行仲裁。我們正計劃將其送上法庭。

And as far as the timeline goes, like what would be the nest step? It was just filed last week. Correct?

就時間線而言，嵌套步驟是什麼？它是上周剛提交的。正確的？

Yes, exactly. We just filed last week. So I think we'll see where the courts take it from the timeline, et cetera.

對，就是這樣。我們上周剛提交。所以我認為我們會看到法院從時間軸等方面採取它的位置。

Okay. I guess my other question, maybe just wanted to ask about last week's NTA show. I guess I'd be curious how it went for Lightning. And we saw a new Ford E-Transit passenger van come from floor directly. I wonder if you could just give us -- is that Class 2 or Class 3, it's not going to compete much with your vehicle with a much shorter range? Or is that supposed to be something that's very close to the wheelhouse that you're working, with your GM product?

好的。我想我的另一個問題，也許只是想問一下上週的 NTA 節目。我想我很好奇 Lightning 的情況如何。我們看到一輛新的福特E-Transit客車直接從地板上駛來。我想知道你是否可以給我們 - 是 2 級還是 3 級，它不會與你的車輛競爭更短的距離？或者這應該是非常接近你正在工作的駕駛室的東西，使用你的通用汽車產品？

Yes. So the show was a success for us. We showcased our GM 4500, a lot of our customers and our vehicle partners because that show was excellent, not just to meet truck fleets, but also to meet vehicle builders, second stage vehicle builders, people putting box trucks, work trucks, and buses on top of platforms. So we were able to show our product to fleets and to our vehicle partners, chassis up in there. They could see the neatly packaged Proterra batteries. It was a success.

是的。所以這個節目對我們來說是成功的。我們展示了我們的 GM 4500、我們的很多客戶和我們的車輛合作夥伴，因為那個展示非常棒，不僅是為了滿足卡車車隊，而且還為了滿足車輛製造商、二級車輛製造商、放置箱式卡車、工作卡車和公共汽車的人在平台之上。所以我們能夠向車隊和我們的車輛合作夥伴展示我們的產品，底盤在那裡。他們可以看到包裝整齊的 Proterra 電池。這是成功的。

Specific to that bus you're talking about, that is built by a bus company, not by Ford itself. The underlying platform seems to be a Class 2 Ford E-Transit cutaway product. But I don't believe it was a certified roadworthy product. It seems to be an early stage prototype. And as you hinted, it is a lower payload, a lower range version I think the battery size of 67 kilowatt hours. And we've got almost twice as much. And we have a lot more payload.

具體到你說的那輛公共汽車，它是由一家公共汽車公司製造的，而不是福特自己製造的。底層平台似乎是 Class 2 Ford E-Transit 剖切產品。但我不認為這是經過認證的適合上路的產品。它似乎是一個早期的原型。正如你所暗示的，它是一個較低的有效載荷，一個較低範圍的版本，我認為電池容量為 67 千瓦時。我們得到的幾乎是兩倍。而且我們有更多的有效載荷。

So I think if that product hits the road, it will be a very different application. You're carrying eight or nine kids for 40 miles versus we're in the 16 kids to 20 kids over 100 miles. So it's good to see more people enter the market. It proves that we are in the right space. Electric school bus is worth focusing at. But I believe it's a very different part of what you're talking about.

所以我認為如果該產品上路，它將是一個非常不同的應用程序。你帶著八九個孩子跑了 40 英里，而我們帶著 16 到 20 個孩子跑了 100 多英里。所以很高興看到更多人進入市場。它證明我們在正確的空間。電動校車值得關注。但我相信這與你所說的完全不同。

And I think also important to note because it's not a Class 2 or because it is a Class 2, it's not a Class 4, the incentive offerings are very, very different for that product than they are for ours. And that, again is part of the reason we've stepped up into the Class 4 product.

而且我認為同樣重要的是要注意，因為它不是 2 類，或者因為它是 2 類，它不是 4 類，該產品的激勵產品與我們的產品非常非常不同。這也是我們升級到 Class 4 產品的部分原因。

Okay, great. That's great color. I'll pass it along. Thank you.

好的，太好了。那是很棒的顏色。我會傳下去的。謝謝。

Thank you, Mike.

謝謝你，邁克。

Sherif El-Sabbahy, Bank of America.

Sherif El-Sabbahy，美國銀行。

Hi, good morning. So I just wanted to ask a bit more on the inventory wind down. You said you expected that to help your cash burn somewhat. But do you foresee customers potentially not wanting some of those older platforms, just given some of the headwinds with the Romeo or some of those headlines? And if so, do you expect to see any potential inventory write-downs from those units that have been produced but not sold?

早上好。所以我只想多問一些關於庫存減少的問題。你說你希望這能在一定程度上幫助你燒錢。但是你是否預見到客戶可能不想要其中一些舊平台，只是考慮到 Romeo 或其中一些頭條新聞的一些不利因素？如果是這樣，您是否希望看到那些已生產但未售出的單位有任何潛在的庫存減記？

So at this point, the units that have been produced and not sold today are Class 3 product, not a Romeo based products. So they are Proterras. And we do expect to sell those. We don't expect to write those down on inventory. We do know customers want them. So we're not that worried about product. And it's been a very, very good product for us.

所以在這一點上，今天已經生產但未銷售的產品是 3 類產品，而不是基於 Romeo 的產品。所以他們是Proterras。我們確實希望出售這些。我們不希望將這些記錄在庫存中。我們知道客戶需要它們。所以我們並不那麼擔心產品。這對我們來說是一個非常非常好的產品。

Again, our focus is moving up a level just because of the higher grant money. But they're still state money, for specifically HVIP and the State of Colorado and California and New York money as well for the Class 3. So we do expect to continue on that. With the Romeo based products, at this point, we're working on how to convert all those customers to running GM. So we'll see where that plays off in terms of inventory write down, et cetera.

再一次，我們的重點是提高一個水平，只是因為更高的撥款。但它們仍然是國家資金，特別是 HVIP 和科羅拉多州、加利福尼亞州和紐約州的資金以及 3 級資金。所以我們確實希望繼續這樣做。對於基於羅密歐的產品，此時，我們正在研究如何將所有這些客戶轉變為運行通用汽車。因此，我們將看到在庫存減記等方面發揮作用的地方。

And then are you able to give us what backlog stood out on a dollar and unit basis at the end of the year?

然後你能告訴我們年底在美元和單位基礎上突出的積壓嗎？

Yes, we've stopped reporting backlog. So we just at the moment, because of some of these transitions, we don't feel it's as meaningful as we would like it to be as an indicator for the business. So we have a bunch of these Romeo Ford products sitting in backlog that we're trying to convert into GM products. And so we just felt like at this time it wasn't meaningful to provide that as an indicator for the business.

是的，我們已經停止報告積壓。所以我們就在此刻，由於其中一些轉變，我們覺得它不像我們希望的那樣有意義，可以作為業務指標。因此，我們有一堆積壓的 Romeo Ford 產品，我們正試圖將其轉化為 GM 產品。因此，我們只是覺得此時將其作為業務指標提供是沒有意義的。

Understood. And just one last one. You mentioned you have several quarters -- or enough cash to fund the next several quarters and expect to raise capital in the first half. Should we expect the capital raise in the first half to be dilutive to equity as we've seen with some of the share raises?

明白了。最後一個。你提到你有幾個季度——或者有足夠的現金來為接下來的幾個季度提供資金，並希望在上半年籌集資金。我們是否應該預期上半年的融資會稀釋股權，就像我們在一些股票融資中看到的那樣？

We would expect it to be via equity, yes.

我們希望它通過股權，是的。

Got it. Thank you.

知道了。謝謝。

Abhi Sinha, Northland Securities.

北國證券的 Abhi Sinha。

Yes, hi. Thanks for taking my question. And I apologize in advance, I've dropped out of the call for some reason twice. So maybe the questions that I ask might I have been already asked. So the first thing I want to understand what options and how much time do you have for the -- advance the [de-listing] or (inaudible)?

是的，嗨。感謝您提出我的問題。我提前道歉，我已經因為某些原因退出了兩次通話。所以也許我問的問題已經有人問過了。因此，首先我想了解哪些選項以及您有多少時間來推進 [除名] 或（聽不清）？

We had six months. So we have through June of this year to address and get back into compliance.

我們有六個月的時間。因此，我們必須在今年 6 月之前解決並恢復合規性。

Okay. And how do you try them in terms of like options you have? Is the reverse split an option? I'm just trying to understand like what options do you guys have in terms of trying to that?

好的。你如何根據你擁有的類似選項來嘗試它們？反向拆分是一種選擇嗎？我只是想了解你們在嘗試方面有哪些選擇？

(inaudible) if fortunately the business conditions could change and the stock could increase, but certainly reverse split is one of the obvious options.

（聽不清）如果幸運的是業務條件可能會發生變化並且股票可能會增加，但反向拆分肯定是顯而易見的選擇之一。

Sure. And in terms of percentage of orders that you're able to convert from Romeo to Proterra? I know you'll not be able to complete all of them, but what percentage should we think, should we be able to safely assume that it will be converted?

當然。就您能夠從 Romeo 轉換為 Proterra 的訂單百分比而言？我知道你無法完成所有這些，但我們應該考慮多少百分比，我們是否應該能夠安全地假設它會被轉換？

It's hard to say a number that's safe to assume. But we -- I'm hoping more than 75%.

很難說出一個可以安全假設的數字。但我們——我希望超過 75%。

Sure, [and perfect]. And the last one, if you could just elaborate more on the difference in operating and financial aspect when you compare and contrast the two batteries, from Romeo to Proterra. I mean, just trying to understand like in terms of what benefits you get in the operating and the financial aspects?

當然，[而且完美]。最後一個，如果你能在比較和對比從 Romeo 到 Proterra 的兩種電池時更詳細地說明運營和財務方面的差異。我的意思是，只是想了解您在運營和財務方面獲得的好處？

Yes, obviously multiple ones. And we've been running Proterra batteries now for a year and five months on the road, in other words and validating and testing them for a year before that. So we have a lot of experience at this point with the Proterra batteries. The biggest thing is, frankly, reliability and consistency. And that's why we standardized on them over a year ago rather than Romeo because they were higher quality battery, more consistent manufacturing.

是的，顯然是多個。我們現在已經在路上運行了 Proterra 電池一年零五個月，換句話說，並在此之前對它們進行了一年的驗證和測試。所以我們在這一點上對 Proterra 電池有很多經驗。坦率地說，最重要的是可靠性和一致性。這就是為什麼我們一年多前對它們而不是 Romeo 進行標準化，因為它們是更高質量的電池，更一致的製造。

Historically, they have been less expensive as well. So obviously, that has been a benefit on the other side. And I think our relationship with Proterra has been deep. And we've found them from an engineering standpoint to be a capable engineered product that we work with. So that in the end with batteries, you look at reliability, safety, and cost. And Proterra certainly has consistently won on all three of those by a long shot versus Romeo. And that's why we switched over a year ago.

從歷史上看，它們也更便宜。很明顯，這對另一方來說是一個好處。我認為我們與 Proterra 的關係一直很深。從工程的角度來看，我們發現它們是我們與之合作的功能強大的工程產品。因此，最終使用電池時，您會考慮可靠性、安全性和成本。 Proterra 肯定在所有這三個方面都以遠距離擊敗羅密歐而獲勝。這就是我們一年前更換的原因。

Got it. Sure. Good. That's all I had. Thank you.

知道了。當然。好的。這就是我的全部。謝謝。

(Operator Instructions) Michael Ward, The Benchmark Company.

（操作員說明）Michael Ward，Benchmark 公司。

Thanks. Good morning, everyone. I wonder if I could just clarify the order production/revenue process. So there were 130,000 -- or 130 units produced in Q4, but only roughly 30 got counted as revenue. Is that correct?

謝謝。大家，早安。我想知道我是否可以澄清訂單生產/收入流程。因此，第四季度生產了 130,000 台或 130 台，但只有大約 30 台計入收入。那是對的嗎？

Right. Correct.

正確的。正確的。

Okay. Were those units produced to a customer order?

好的。這些單元是根據客戶訂單生產的嗎？

Some were, so to the case of the complexity of this, some were produced to a customer that had Romeo batteries. So those are being rebuilt, reallocated for those customers that are now willing, as Kash said, there are three-quarters of them. We expect or willing to switch to a GM-based product with Proterra batteries, so somewhere that. Others of them were built either speculatively or for customers who in the end delayed getting their financing, so a combination of all three scenarios.

有些是，因此對於這種情況的複雜性，有些是為擁有羅密歐電池的客戶生產的。因此，正如卡什所說，這些正在重建，重新分配給那些現在願意的客戶，其中有四分之三。我們希望或願意改用帶有 Proterra 電池的基於 GM 的產品，所以在某個地方。他們中的其他人要么是投機性的，要么是為最終延遲獲得融資的客戶建造的，因此是所有三種情況的結合。

Okay. So those 100 units that were produced but not delivered or expected to be delivered and counted revenue in the first half. Is that what you're thinking?

好的。因此，這 100 台已生產但未交付或預計將交付的單位在上半年計算收入。你是這麼想的嗎？

I think some of them will be.

我想他們中的一些人會。

Okay, depending on when they get resolved? And then so that has implications for cash flow and that's part of the unwind you see in that working capital, correct?

好的，取決於他們什麼時候得到解決？然後這會對現金流產生影響，這是您在營運資金中看到的放鬆的一部分，對嗎？

Correct.

正確的。

And then when I'm looking at the outlook for this year, so the production rate you're going from the 128, whatever it was in the fourth quarter, it came in for the full year next year, you're looking at a lower rate in the first half. Is that because of these retrofits?

然後當我看今年的前景時，你從 128 開始的生產率，無論第四季度是什麼，明年全年都會出現，你正在看上半年利率較低。是因為這些改裝嗎？

Yes, it's because of having to resolve the issues around the Romeo battery rebuilds, yes.

是的，這是因為必須解決圍繞 Romeo 電池重建的問題，是的。

And the transition.

和過渡。

Okay.

好的。

And the transition. Well stated, David, yes. We are -- the transition to a whole new product in terms of the GM does have -- it created at a time lag.

和過渡。說得好，大衛，是的。我們是——就通用汽車而言，向全新產品的過渡確實有——它是在時間滯後創造的。

So in Q1 and Q2, we can expect lower year-over-year production. But then the second half, look at it to expect higher production accelerate as the full transition takes place.

因此，在第一季度和第二季度，我們可以預期產量同比下降。但下半年，隨著全面轉型的發生，預計產量會加速增加。

Correct.

正確的。

Beautiful. Thank you very much.

美麗的。非常感謝。

You're welcome.

不客氣。

Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I'll turn the floor back, Mr. Reeser for final comments.

謝謝。女士們，先生們，我們的提問時間到此結束。 Reeser 先生，我將把發言權轉回去征求最後的意見。

Thank you, operator, and thank you, everyone, for the time. This now concludes our call.

謝謝接線員，也謝謝大家花時間。現在我們的電話到此結束。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。