Lightning eMotors Inc (ZEV) 2023 Q1 法說會逐字稿

Greetings. Welcome to Lightning eMotors First Quarter 2023 Earnings Call. (Operator Instructions) Please note that this conference is being recorded. At this time, I'll turn the conference over to Brian Smith, Vice President of Investor Relations. Brian, you may now begin.

問候。歡迎來到 Lightning eMotors 2023 年第一季度收益電話會議。 （操作員說明）請注意，正在錄製此會議。此時，我會將會議轉交給投資者關係副總裁布賴恩史密斯。布萊恩，你現在可以開始了。

Thank you, operator, and thank you 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 its first quarter 2023 earnings press release and presentation deck, which we will reference today. These could be found on the Investor Relations section of our website at lightningemotors.com.

謝謝你，運營商，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 2023 年第一季度收益新聞稿和演示文稿，我們今天將參考這些內容。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. 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。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 財務指標。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 the first quarter summary; followed by an overview of key products, supply chain progress and conclude with a short discussion on product positioning and the incentive landscape. Kash will then provide an update on products and markets, and David will wrap up with a financial summary and discuss the agreement we announced today with Yorkville Advisors to provide growth capital.

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。我將從第一季度的總結開始；隨後概述了關鍵產品、供應鏈進展，並以對產品定位和激勵格局的簡短討論作為結尾。然後，Kash 將提供有關產品和市場的最新信息，David 將提供財務摘要並討論我們今天與 Yorkville Advisors 宣布的提供增長資本的協議。

Moving to Slide 5. First, the ZEV4 transition to the GM platform is now complete. The transition had to be expedited because the Romeo recall on the legacy ZEV4 product forced us to accelerate the sunsetting of our E-450 platform. While the gap in our product offerings during the transition period caused our financial results in the previous 2 quarters to be disappointing, the investment we made in this new platform was clearly the right decision.

轉到幻燈片 5。首先，ZEV4 到 GM 平台的過渡現已完成。必須加快過渡，因為 Romeo 召回舊版 ZEV4 產品迫使我們加速淘汰 E-450 平台。雖然過渡期間我們產品供應的差距導致我們前兩個季度的財務業績令人失望，但我們對這個新平台的投資顯然是正確的決定。

In the quarter, Lighting produced 53 vehicles in powertrains. And of those, 13 were ZEV4s on the new GM platform and the rest was ZEV3 vehicles. In addition to completing the manufacturing transition in Q1, we took steps to support our customers through this recall, which I will discuss in more detail. The combination of not having enough new ZEV4 vehicles ready to replace the legacy vehicles in early Q1, plus the expense we are incurring to provide customer refunds and replacement vehicles for impacted customers, muted revenue.

本季度，Lighting 生產了 53 輛動力總成汽車。其中，13 輛是新通用汽車平台上的 ZEV4，其餘是 ZEV3 車輛。除了在第一季度完成製造轉型外，我們還採取措施通過此次召回為我們的客戶提供支持，我將對此進行更詳細的討論。第一季度初沒有足夠的新 ZEV4 車輛準備好替換舊車輛，再加上我們為受影響的客戶提供客戶退款和更換車輛而產生的費用，收入減少。

The relatively complex accounting to correctly reflect the recall transaction in our financial statements is what caused the delay in our 10-Q filing and earnings release. Now that this transition to the new platform is in our rearview mirror, we can look ahead. And I am pleased with the strong order book we have built for our ZEV4 school bus and public transit shuttle bus business. In many cases, the orders we have been receiving for the ZEV4 school buses and public transit shuttle buses have been the direct result of the new incentive landscape.

在我們的財務報表中正確反映召回交易的相對複雜的會計是導致我們 10-Q 申報和收益發布延遲的原因。現在，向新平台的過渡已在我們的後視鏡中，我們可以展望未來。我對我們為 ZEV4 校車和公共交通穿梭巴士業務建立的強大訂單感到滿意。在許多情況下，我們收到的 ZEV4 校車和公共交通穿梭巴士訂單是新激勵措施的直接結果。

As we've previously highlighted, Class 4 electric school buses and public transit shuttle buses are uniquely positioned to receive the $40,000 IRA incentive, that's on top of EPA or FDA incentives that can then be added to state incentives. In addition to the bus momentum, Kash will talk more about the new 126-unit order from Macnab EV sales that we announced last Friday and that we expect to revenue in the second and third quarters of this year.

正如我們之前強調的那樣，4 級電動校車和公共交通穿梭巴士具有獨特的優勢，可以獲得 40,000 美元的 IRA 獎勵，這是在 EPA 或 FDA 獎勵之上，然後可以添加到州獎勵中。除了公共汽車的勢頭，Kash 還將更多地談論我們上週五宣布的來自 Macnab EV 銷售的 126 輛新訂單，我們預計將在今年第二和第三季度實現收入。

On the funding side, I'm pleased to announce a new agreement with Yorkville Advisors that we believe will help provide us the capital we need to continue our growth trajectory. David will provide more detail and discuss our commitment from Yorkville.

在資金方面，我很高興地宣布與 Yorkville Advisors 達成一項新協議，我們相信這將有助於為我們提供繼續增長軌跡所需的資金。大衛將提供更多細節並討論我們在約克維爾的承諾。

Moving to Slide 6. I will provide more detail on the impact we experienced from Romeo's battery quality issues in Q4 2022 and Q1 2023. We were forced to recall all Romeo batteries due to defects we identified, but those fixes required Romeo support, which we expected to receive. They have not agreed to provide support or honor their battery warranty, and we filed suit against Nickel and Romeo on March 9. We chose to do the right thing for our customers, and we are buying back the full vehicles containing Romeo batteries.

轉到幻燈片 6。我將提供更多細節，說明我們在 2022 年第四季度和 2023 年第一季度受到 Romeo 電池質量問題的影響。由於我們發現的缺陷，我們被迫召回所有 Romeo 電池，但這些修復需要 Romeo 支持，我們預計收到。他們未同意提供支持或兌現電池保修，我們於 3 月 9 日對 Nickel 和 Romeo 提起訴訟。我們選擇為客戶做正確的事，我們正在回購裝有 Romeo 電池的整車。

As highlighted, this battery issues significantly impacted Q4 and Q1 sales. Furthermore, we booked the majority of the cost of the vehicle buyback against revenue in Q1. The relatively small remainder of the buyback costs will be amortized against future 2023 revenue and recognition of the commitment made by our customers to purchase new ZEV4 vehicles to replace the vehicles under the recall.

正如強調的那樣，電池問題嚴重影響了第四季度和第一季度的銷售。此外，我們將大部分車輛回購成本計入了第一季度的收入。回購成本中相對較小的剩餘部分將在未來 2023 年的收入中攤銷，並確認我們的客戶購買新 ZEV4 車輛以更換召回車輛的承諾。

In addition, we've been able to recover value from the vehicles we repurchased through sales of chassis and other components in the secondary market. This resale value is also factored into the net impact to our financials. While the situation has certainly been difficult, given the impact to Q4 2022 and Q1 '23, the good news is that our customers appreciated our support and holistic solution. We are working with them to convert their original orders from the legacy Class 4 platform with Romeo batteries to the new GM platform with Proterra batteries. Many of our customers have already made the switch, and some have already received their new ZEV4 vehicles.

此外，我們已經能夠通過在二級市場上銷售底盤和其他部件從我們回購的車輛中收回價值。該轉售價值也計入了對我們財務的淨影響。鑑於對 2022 年第四季度和 23 年第一季度的影響，情況確實很困難，但好消息是我們的客戶感謝我們的支持和整體解決方案。我們正在與他們合作，將他們的原始訂單從使用 Romeo 電池的傳統 Class 4 平台轉換為使用 Proterra 電池的新 GM 平台。我們的許多客戶已經進行了轉換，有些已經收到了他們的新 ZEV4 車輛。

Moving to Slide 7. Unlike many of our peers, we have mature offerings that include a full range of fleet electrification solutions from vehicles and service to powertrain technology, charging, finance and incentives; and finally, our Lightning Insights' telematics and analytics offerings, which provide fleet intelligence, including driving efficiency, charging optimization and predictive maintenance.

轉到幻燈片 7。與我們的許多同行不同，我們擁有成熟的產品，包括從車輛和服務到動力總成技術、充電、金融和激勵的全方位車隊電氣化解決方案；最後，我們的 Lightning Insights 遠程信息處理和分析產品可提供車隊智能，包括駕駛效率、充電優化和預測性維護。

Lightning now has over 500 vehicles spread throughout the U.S. and Canada, supported by a spare parts and service infrastructure and a talented service team already in place. Combined with our robust manufacturing capabilities, we are ready to scale.

Lightning 現在在美國和加拿大擁有超過 500 輛汽車，並得到備件和服務基礎設施以及已經到位的人才服務團隊的支持。結合我們強大的製造能力，我們已準備好擴大規模。

Moving to Slide 8. I want to elaborate on our new streamlined product development focus for 2023. Our near-term focus is on our ZEV4 vehicles. which includes Class 4 school and shuttle buses and Class 4 trucks built on the GM platform, plus our mobile DC fast charger and best-in-class telematics and charging systems. We shipped the platform vehicles in Q1 and are delivering our first revenue units of the Mobile DC fast charger in Q2. Although we don't know what the sales cycle will be on the DC fast charger, given the newness of the product and the high ASP, we are working to accelerate it by helping customers rent or lease the product to our finance and lease partners. Customers are showing strong interest in our school buses, public transit shuttle buses, trucks and the mobile DC fast charger, and we expect all 4 to drive strong revenue growth in the second half of this year.

轉到幻燈片 8。我想詳細說明我們 2023 年新的簡化產品開發重點。我們近期的重點是我們的 ZEV4 車輛。其中包括基於通用汽車平台的 4 級校車和穿梭巴士以及 4 級卡車，以及我們的移動直流快速充電器和一流的遠程信息處理和充電系統。我們在第一季度交付了平台車輛，並在第二季度交付了我們的第一批移動直流快速充電器收入單位。雖然我們不知道 DC 快速充電器的銷售週期會是怎樣，但鑑於產品的新穎性和高 ASP，我們正在努力通過幫助客戶將產品出租或租賃給我們的金融和租賃合作夥伴來加速銷售。客戶對我們的校車、公共交通穿梭巴士、卡車和移動直流快速充電器表現出濃厚的興趣，我們預計今年下半年這四者都將推動強勁的收入增長。

Moving to Slide 9, let's discuss the supply chain landscape. On the chassis side, our work with GM is providing a sufficient and consistent supply of chassis to serve our targeted markets, but expect timing of deliver -- but exact timing of deliveries can still impact quarterly revenue. 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. We are continuing to work on our purpose-built Lightning eChassis, and we expect to begin initial testing in the second half of this year and move into production next year.

轉到幻燈片 9，讓我們討論供應鍊格局。在底盤方面，我們與通用汽車的合作是為我們的目標市場提供充足且穩定的底盤供應，但預計交付時間——但準確的交付時間仍會影響季度收入。 GM 底盤是大多數 A 型校車供應商的首選，我們是目前唯一在該平台上提供電氣化解決方案的 OEM。我們將繼續致力於我們專用的 Lightning eChassis，我們預計將在今年下半年開始初步測試，並於明年投入生產。

On the battery front, we have sufficient quantities of high-quality batteries from Proterra and CATL for our near-term needs. Beyond chassis and batteries, we continue to work to diversify our supply chain with new higher production, lower cost suppliers to help reduce the cost of lead times we are seeing for components such as electric power steering, high-voltage gears, high-voltage air conditioners and thermal management parts.

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。除了底盤和電池之外，我們繼續努力通過新的更高產量、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電動助力轉向、高壓齒輪、高壓空氣等組件的交貨時間成本調節器和熱管理部件。

Turning to Slide 10. You can see how the North -- how the new North American U.S. incentive programs match our current product offerings, and our customers are very excited to use these incentives to help fund a large portion of the purchase price of their vehicles. Most of these programs have launched recently, so we are beginning to see increased order activities we help customers navigate the application process and obtain needed approvals.

轉到幻燈片 10。您可以看到北方 - 新的北美美國獎勵計劃如何與我們當前的產品相匹配，我們的客戶非常高興能夠使用這些獎勵來幫助資助他們車輛的大部分購買價格.這些計劃中的大多數都是最近推出的，因此我們開始看到訂單活動有所增加，我們幫助客戶瀏覽申請流程並獲得所需的批准。

And now I'll turn it to Kash to provide an update of our products, markets and sales momentum.

現在我將請 Kash 提供我們產品、市場和銷售勢頭的最新信息。

Thank you, Tim. I'll begin on Slide 12. I'm glad to share that we continue to deploy zero-emission vehicles with customers in real-world environments across multiple market verticals and commercial vehicle applications. Our deployed fleet of over 540 zero-emission vehicles has accumulated an impressive 4.2 million miles on the road, a number growing rapidly every week. Although deploying new technologies isn't easy and some bumps are expected, we continue to improve our product reliability and are receiving repeat orders from an expanding customer base. This positions us nicely in a marketplace where many of our competitors are still in their prototype development and testing phase.

謝謝你，蒂姆。我將從幻燈片 12 開始。我很高興與大家分享，我們將繼續在多個垂直市場和商用車輛應用的真實環境中與客戶部署零排放車輛。我們部署的 540 多輛零排放車輛已累計行駛 420 萬英里，而且這個數字每週都在快速增長。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，並不斷收到不斷擴大的客戶群的重複訂單。這使我們在許多競爭對手仍處於原型開發和測試階段的市場中處於有利地位。

Moving on to Slide 13 summarizes our current product lineup that we expect to drive our business in 2023: zero-emission cargo vans, delivery trucks, passenger vans, shuttle buses, school buses and the second-generation Lightning Mobile DC Fast Charger. We have strong distribution partners in place for these products. Additionally, we're exploring new partnerships that have strong growth potential in 2024 and beyond.

轉到幻燈片 13，總結了我們預計將在 2023 年推動業務發展的當前產品系列：零排放貨車、送貨卡車、客車、穿梭巴士、校車和第二代閃電移動直流快速充電器。對於這些產品，我們擁有強大的分銷合作夥伴。此外，我們正在探索在 2024 年及以後具有強勁增長潛力的新合作夥伴關係。

Moving to Slide 14. I want to highlight our next-generation ZEV4 platform built in collaboration with General Motors. As a reminder, we signed an agreement with GM last year, which gives us direct access to GM chassis supply and facilitates strong technical collaboration between our engineering teams. This includes software development, testing and validation and data gathering from a GM-specified crash test. The depth of this effort helps ensure we deploy OEM-level quality products. Lightning is the only commercial EV company to have such a relationship with General Motors as of today.

轉到幻燈片 14。我想重點介紹我們與通用汽車合作構建的下一代 ZEV4 平台。提醒一下，我們去年與通用汽車簽署了一項協議，這使我們能夠直接獲得通用汽車的底盤供應，並促進我們的工程團隊之間進行強有力的技術合作。這包括軟件開發、測試和驗證以及從通用汽車指定的碰撞測試中收集數據。這種努力的深度有助於確保我們部署 OEM 級優質產品。 Lightning 是迄今為止唯一一家與通用汽車建立這種關係的商業電動汽車公司。

The ZEV4 comes with high-quality, thermally managed Proterra batteries, Thanks to the versatile nature of this platform, we'll be building a wide variety of vehicles on the ZEV4, including school buses, public transit shuttle buses, delivery trucks and work trucks. Deployments have already begun, and we expect to ramp up in the coming quarters.

ZEV4 配備高品質、熱管理的 Proterra 電池，由於該平台的多功能性，我們將在 ZEV4 上製造各種車輛，包括校車、公共交通穿梭巴士、送貨卡車和工作卡車.部署已經開始，我們預計將在未來幾個季度加速部署。

Now turning to Slide 15. We're excited about the tremendous response that our second-generation Lighting Mobile DC Fast Chargers received, which is now operational and in production. We've developed this product based on over 2 years of testing and customer feedback on our first-generation Lightning Mobile. It can pack up to 420-kilowatt hours of energy and can fast-charge up to 5 vehicles at a time. The impressive array of use cases range from fleet managers needing short- to medium-term charging solutions, as they wait for their long-term charging infrastructure of brakes to be done; to event planners who want to provide passenger car charging at concerts, sporting events and music festivals; to tow-truck companies who would use it to rescue EVs that may be stranded after running out of juice.

現在轉到幻燈片 15。我們對我們的第二代照明移動直流快速充電器收到的巨大反響感到興奮，該充電器現已投入運營和生產。我們根據第一代 Lightning Mobile 超過 2 年的測試和客戶反饋開發了這款產品。它最多可提供 420 千瓦時的能量，一次最多可為 5 輛車快速充電。令人印象深刻的用例範圍從需要短期到中期充電解決方案的車隊經理，因為他們等待他們的製動器的長期充電基礎設施完成；給希望在音樂會、體育賽事和音樂節上提供乘用車充電服務的活動策劃者；給拖車公司，他們會用它來拯救可能在用完果汁後擱淺的電動汽車。

To showcase this product, we demonstrated a working unit at the recent ACT Expo in Southern California, where the Lighting Mobile charged a wide variety of electric vehicles at the show's ride-and-drive section. We also displayed a unit at our booth, where over 100 potential customers engage with us, and feedback was very positive. We already have orders on the books and are on track to deliver the first units this quarter.

為展示該產品，我們在最近於南加州舉行的 ACT 博覽會上展示了一個工作單元，Lighting Mobile 在展會的乘車和駕駛部分為各種電動汽車充電。我們還在我們的展位上展示了一個裝置，有超過 100 名潛在客戶與我們互動，反饋非常積極。我們已經收到訂單，並有望在本季度交付第一批產品。

Turning to Slide 16. I'm pleased to report that we received a large order for 126 zero-emission vehicles from Macnab EV sales, a leading distributor in trucks and buses in Canada. The order is for a mix of ZEV3 and ZEV4 cargo vans, passenger vans and shuttle buses. Deliveries have already begun, and we expect to fulfill the order across Q2 and Q3.

轉到幻燈片 16。我很高興地報告，我們收到了 Macnab EV sales 的 126 輛零排放汽車的大訂單，Macnab EV sales 是加拿大卡車和公共汽車的領先經銷商。該訂單包括 ZEV3 和 ZEV4 貨車、客車和穿梭巴士。交貨已經開始，我們預計將在第二季度和第三季度完成訂單。

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

有了這個，我會把它交給大衛提供閃電的財務業績和前景的最新情況。

Thank you, Kash. I will now provide some commentary on our first quarter results, followed by our 2023 outlook.

謝謝你，卡什。我現在將對我們的第一季度業績和 2023 年展望發表一些評論。

Beginning on Slide 18. For the first quarter, we generated GAAP revenues of $1.3 million. On an adjusted basis, our revenue was $3.6 million on sales of 29 units. The difference between adjusted and GAAP revenue is the charge we took for buying back some vehicles with Romeo batteries, as Tim explained previously.

從幻燈片 18 開始。第一季度，我們的 GAAP 收入為 130 萬美元。在調整後的基礎上，我們銷售 29 個單位的收入為 360 萬美元。正如蒂姆之前解釋的那樣，調整後收入和 GAAP 收入之間的差異是我們為回購一些帶有 Romeo 電池的車輛所收取的費用。

In the quarter, Lightning produced 53 vehicles and powertrains. The adjusted EBITDA loss for the first quarter was $19.7 million compared to a $14.8 million loss in the prior year period. The change is primarily related to higher operating expenses in the current period. A reconciliation of net income to the adjusted EBITDA loss can be found on Slide 23, and the revenue reconciliation can be found on Slide 24.

本季度，Lightning 生產了 53 輛汽車和動力總成。第一季度調整後的 EBITDA 虧損為 1,970 萬美元，而去年同期為虧損 1,480 萬美元。該變化主要與本期營業費用增加有關。淨收入與調整後 EBITDA 損失的對賬可在幻燈片 23 中找到，收入對賬可在幻燈片 24 中找到。

Turning to Slide 19. We have been upfront about our need to raise additional capital to fund our operations until we reach cash flow positive. We are pleased that, despite extremely challenging market conditions, we have options. First, we have an existing equity line of credit with Lincoln Park, which is currently untapped and could provide us additional capital. Today, we announced an agreement with Yorkville Advisors to provide up to $50 million through a prepaid advance agreement. We are excited about this agreement and partnership with Yorkville, which should help us accelerate our growth.

轉到幻燈片 19。在我們實現現金流為正之前，我們一直坦言需要籌集更多資金來為我們的運營提供資金。我們很高興，儘管市場條件極具挑戰性，但我們有選擇。首先，我們與林肯公園有現有的股權信貸額度，目前尚未開發，可以為我們提供額外的資金。今天，我們宣布與 Yorkville Advisors 達成協議，通過預付預付款協議提供高達 5000 萬美元的資金。我們對與 Yorkville 的這項協議和合作夥伴關係感到興奮，這將有助於我們加速發展。

Turning to Slide 20. Here are some more details about the deal with Yorkville. The prepaid advances will come in $2 million tranches and will be used for general corporate purposes. The agreement provides us great flexibility in terms of the timing and number of advances over the 18-month term of the agreement, and Yorkville is willing to increase tranche sizes if market conditions improve.

轉到幻燈片 20。這裡有一些關於與 Yorkville 的交易的更多細節。預付預付款將分 200 萬美元分批支付，將用於一般公司用途。該協議在 18 個月的協議期限內，在時間安排和預付款數量方面為我們提供了極大的靈活性，如果市場狀況改善，Yorkville 願意增加批次規模。

Turning to Slide 21. Lightning ended the first quarter with $35 million in cash and cash equivalents, and we believe this cash, plus initial tranches drawn against the Yorkville facility, is sufficient to fund our operations for the next several quarters. Additionally, we have yet to draw on our equity line of credit, but we have the ability to do so if needed.

轉到幻燈片 21。Lightning 在第一季度結束時擁有 3500 萬美元的現金和現金等價物，我們相信這筆現金，加上從 Yorkville 設施提取的初始付款，足以為我們接下來幾個季度的運營提供資金。此外，我們尚未動用我們的股權信貸額度，但如果需要，我們有能力動用。

We continue to explore additional opportunities to raise sufficient capital to fund operations to free cash flow positive, and we remain confident we will succeed.

我們繼續探索更多的機會來籌集足夠的資金來為運營提供資金，從而使自由現金流為正，我們仍然相信我們會成功。

Net inventory at the end of the first quarter was $47 million, about flat with last quarter. We expect to draw down our inventory over the course of the next several quarters, which will help improve our cash flow. The deal with Macnab that Kash highlighted will be fulfilled in large part with existing finished goods inventory and generate cash.

第一季度末的淨庫存為 4700 萬美元，與上一季度持平。我們希望在接下來的幾個季度內減少庫存，這將有助於改善我們的現金流。 Kash 強調的與 Macnab 的交易將在很大程度上用現有的成品庫存來完成並產生現金。

Early in Q2, we took actions to reduce our expenses. Despite the capital we can raise with the Yorkville agreement, we may still take further actions to reduce expenditures if we feel they are warranted to further preserve cash.

在第二季度初，我們採取了減少開支的行動。儘管我們可以通過約克維爾協議籌集資金，但如果我們認為有必要進一步保留現金，我們仍可能會採取進一步行動來減少支出。

Turning to Slide 22. I will reiterate our outlook for the year. Based on current business conditions, we continue to expect for 2023, revenues to be in the range of $35 million to $50 million, vehicle and powertrain system sales to be in the range of 300 to 400 units, vehicle and powertrain production to be in the range of 400 to 450 units.

轉到幻燈片 22。我將重申我們對今年的展望。根據目前的業務狀況，我們繼續預計到 2023 年，收入將在 3500 萬至 5000 萬美元之間，車輛和動力總成系統的銷售額將在 300 至 400 台之間，車輛和動力總成的產量將達到範圍為 400 到 450 個單位。

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 we are certainly disappointed with the results over the last 2 quarters, we feel we are now through the issues resulting from the Romeo recall and see significant opportunity to leverage the tailwinds created by the alignment of our new products with the incentive and mandate landscape. The order momentum we see gives us confidence that we will realize the sales volumes and mix required to achieve positive gross margin within the next 12 months.

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。雖然我們對過去兩個季度的結果肯定感到失望，但我們認為我們現在已經解決了羅密歐召回導致的問題，並看到了利用新產品與激勵和授權格局相結合所產生的順風的重大機會。我們看到的訂單勢頭使我們有信心在未來 12 個月內實現實現正毛利率所需的銷量和組合。

The commitment from Yorkville provides a new source of funding to help us achieve the goals we have for the business.

Yorkville 的承諾提供了新的資金來源，幫助我們實現我們的業務目標。

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，我要感謝所有客戶對 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.

就此，謝謝大家，我感謝你們今天的時間。接線員，我們現在準備打開問題熱線。

(Operator Instructions) And our first question is from the line of Colin Rusch with Oppenheimer.

（操作員說明）我們的第一個問題來自 Colin Rusch 與 Oppenheimer 的合作。

Could you just talk a little bit about the customer dynamics? I mean, obviously, having trucks on the road is a huge deal relative to a lot of peers. But working through some of these service issues, can you just speak to the tone of the relationships? And what you're seeing beyond the orders with those customers?

你能談談客戶動態嗎？我的意思是，顯然，相對於許多同行而言，讓卡車上路是一件大事。但是，在解決其中一些服務問題時，您能否只談一下關係的基調？除了這些客戶的訂單之外，您還看到了什麼？

Yes. So Colin, obviously, when we had the quality issues with Romeo batteries, it's not a good situation because our ideal method is people buy 5 vehicles, 10 vehicles and that leads to hundreds. And if the deployment of 5 or 10 stumbles because of a battery quality issue, that delays them buying hundreds. So it's painful for the customer and it's painful for us.

是的。所以 Colin，很明顯，當我們遇到 Romeo 電池的質量問題時，情況不是很好，因為我們理想的方法是人們購買 5 輛、10 輛，然後再購買數百輛。如果由於電池質量問題導致 5 或 10 個部署失敗，他們就會推遲購買數百個。所以這對客戶來說是痛苦的，對我們來說也是痛苦的。

Having said that, the resolutions we have offered have got us a lot of goodwill with customers. So broadly speaking, most of our customers are understanding that technology is new and some bumps are expected. And they're very appreciative of the solutions we've given them. Combined with that, we have a very strong service network that covers across U.S. and Canada, including a combination of our own technicians and our partners. And on many levels, customers really appreciate having a service team that shows up to site when something goes wrong and helps troubleshoot them, instead of some other EV companies that we've heard about where, if an issue happens, it's weeks and weeks before they even see anybody. So the customer dynamic generally is positive. And given the amount of funding that's coming in, it's getting positive every week.

話雖如此，我們提供的解決方案為我們贏得了客戶的大量善意。因此，從廣義上講，我們的大多數客戶都知道技術是新技術，並且預計會有一些顛簸。他們非常感謝我們為他們提供的解決方案。此外，我們擁有覆蓋美國和加拿大的非常強大的服務網絡，包括我們自己的技術人員和我們的合作夥伴。在許多層面上，客戶真的很高興有一個服務團隊在出現問題時出現在現場並幫助他們解決問題，而不是我們聽說過的其他一些電動汽車公司，如果問題發生，需要幾周和幾週的時間他們甚至看到任何人。因此，客戶動態總體上是積極的。考慮到資金的數量，每週都在增加。

Tim, please feel fee to add to that.

蒂姆，請補充一下。

That was great, Kash. Thank you.

太好了，卡什。謝謝。

And then from a cash management position, I guess, have you thought through and can you communicate just kind of what your expected cash use is for the year as you work through this ramp into some of these bigger numbers as the supply becomes available to build more vehicles?

然後從現金管理的角度來看，我想，你有沒有想過，你能不能傳達一下你今年的預期現金使用情況，因為你通過這個斜坡進入一些更大的數字，因為供應可以建立更多車輛？

Yes. I mean I think, Colin, we expect that -- the cash burn to drop from kind of current levels, just especially because of the inventory we're working through. So we've got a lot of the inventory, whether it's in finished goods or raw materials that we need to build out, what we're forecasting in terms of the order book. And so that's going to be helpful. I mean we've built up inventory in Q4 last year and Q1 of this year. And a lot of batteries have chassis, have some finished goods inventory that we're going to used to fulfill this Macnab order that Kash talked about. So we expect that to help us significantly in terms of cash burn. And from a net perspective, obviously, having this Yorkville cash is also incredibly helpful.

是的。我的意思是，我認為，科林，我們預計 - 現金消耗將從目前的水平下降，特別是因為我們正在處理庫存。所以我們有很多庫存，無論是成品還是我們需要建立的原材料，我們根據訂單簿進行預測。所以這會有所幫助。我的意思是我們在去年第四季度和今年第一季度建立了庫存。很多電池都有底盤，有一些成品庫存，我們將用它們來完成 Kash 談到的這個 Macnab 訂單。因此，我們希望這能在燒錢方面對我們有很大幫助。從淨值的角度來看，顯然，擁有約克維爾現金也非常有幫助。

That makes a lot of sense.

這很有意義。

The next question is from the line of Mike Shlisky with D.A. Davidson.

下一個問題來自 Mike Shlisky 和 D.A.戴維森。

I wanted to ask about the Class 4 market and kind of where things stand right now with respect to that market going electric. There are other players trying to go into Class 4 right now over the next couple of years. Most of them seem to be looking at the EV cargo space, not necessarily the shuttle buses and school bus part of that market. But I always thought that school bus, shuttle bus are basically the -- almost the entire classroom market, there's a small cargo space, but it's almost entirely shallow bus and school bus. So can you maybe just give us a feel for how important the shuttle and school bus is to your Class 4 business? And at this point, are you pursuing that smaller cargo piece as well? And how that piece is going for you right now?

我想問一下 4 級市場，以及目前該市場走向電動化的情況。在接下來的幾年裡，還有其他玩家正在嘗試進入第 4 級。他們中的大多數人似乎都在關注電動汽車的貨運空間，不一定是該市場的穿梭巴士和校車部分。但我一直認為校車，擺渡車基本上都是——幾乎整個教室市場，有一個很小的載貨空間，但它幾乎全是淺巴和校車。那麼，您能否讓我們了解一下班車和校車對您的 4 類業務有多重要？在這一點上，你是否也在追求那件較小的貨物？那件作品現在對你來說怎麼樣？

Kash, do you want to take that one?

卡什，你要拿那個嗎？

Yes, sure. So Mike, you're right that you look at Class 4, there's multiple segments. There's cargoes, delivery trucks, work trucks. There are school buses, and there is shuttle buses, public travel shuttle buses. The cargo space is sizable. But when you look at the incentive landscape, it does not have the same incentives. It's got some state incentives. It's got some of the IRA money. But school buses and shuttle buses have FDA and EPA money, a lot of money that's been reserved for many years to come. So while in the gasoline space, the Class 4 cargo market is sizable, when you look at EV adoption and EV markets, we strongly believe that school buses and transit buses will lead the way. And we are very nicely positioned there with already products on the road and more importantly, vehicle body partnerships in place. We do think the cargo space will get some adoption, especially as time goes on, cost drops and more mandates kick in that require customers to go electric. And that's the beauty of our ZEV4 platform. It's the same underlying platform that goes underneath multiple vehicle types, and we can take our investment and look for return across multiple markets. So we believe in our strategy. I agree with you. If you only went after the cargo van space, ignoring the bus space within Class 4, I would make that business case a little hard to justify.

是的，當然。所以邁克，你看第 4 類是對的，有多個部分。有貨物、送貨卡車、工作卡車。有校車，也有接駁車，公共旅遊接駁車。貨物空間相當大。但是，當您查看激勵機制時，它並沒有相同的激勵機制。它有一些國家激勵措施。它有一些 IRA 的錢。但是校車和穿梭巴士有 FDA 和 EPA 的錢，很多錢都預留了很多年。因此，雖然在汽油領域，4 級貨運市場規模龐大，但當您審視電動汽車的採用和電動汽車市場時，我們堅信校車和公交車將引領潮流。我們在這方面的定位非常好，產品已經在路上，更重要的是，車身合作夥伴關係已經到位。我們確實認為載貨空間會得到一些採用，尤其是隨著時間的推移、成本下降和更多要求客戶使用電動汽車的強制要求的實施。這就是我們 ZEV4 平台的美妙之處。它是多種車輛類型下的相同底層平台，我們可以進行投資並在多個市場中尋找回報。所以我們相信我們的戰略。我同意你的看法。如果你只追求貨車空間，而忽略 4 級內的公共汽車空間，我會讓這個商業案例有點難以證明。

Great. That's great color. And I want to follow up on what you just commented on about, mandates. We are starting to hear about the California advanced clean fleet rules that are coming out here. And it looks like a lot to be -- you have to be 10% EV by the end of next year. That's what it seems like for most fleets. That's what it'll have to be next year. Are you already selling California -- certainly, we've seen some of your shuttle buses out there and other vehicles. You discussed the 2024 opportunity in California, just that 1 state alone for your business. Is that a sizable number that could easily beat this year?

偉大的。那是很棒的顏色。我想跟進你剛才評論的任務。我們開始聽說這裡即將出台加州先進的清潔車隊規則。看起來很多——到明年年底你必須達到 10% 的 EV。這就是大多數艦隊的樣子。這就是明年的情況。你已經在賣加州了嗎——當然，我們已經看到了你的一些穿梭巴士和其他車輛。您討論了 2024 年在加利福尼亞州的機會，這只是您業務的第一個州。這是今年可以輕鬆擊敗的一個相當大的數字嗎？

Yes, I believe so. Historically, California has led the way anyway. Going forward, we see a lot of zero-emission vehicles going across the country and across Canada as well, but California will continue being a sizable chunk of the EV market for both reasons, the carrot and the stick. They've got a lot of incentives that can stack on top of the federal incentives. And they've got the stick coming, as you described. So we are already talking with customers who are eager to learn about what the stick means to them next year and how should they start deploying a small number of units now, so they can ramp up as the mandates ramp up.

是的，我相信是的。無論如何，從歷史上看，加州一直處於領先地位。展望未來，我們看到許多零排放車輛在全國和加拿大各地行駛，但出於胡蘿蔔和大棒這兩個原因，加州將繼續在電動汽車市場佔據相當大的份額。他們有很多激勵措施可以疊加在聯邦激勵措施之上。正如你所描述的，他們已經得到了棍子。因此，我們已經在與渴望了解明年這根棍子對他們意味著什麼以及他們現在應該如何開始部署少量單元的客戶進行交談，以便他們可以隨著任務的增加而增加。

So we do believe it's a sizable market opportunity for us in '24 or '25 and beyond.

因此，我們確實相信，在 24 年或 25 年及以後，這對我們來說是一個巨大的市場機會。

And I would say, Mike, anecdotally, just sitting at the ACT booth for a little bit. A couple of weeks ago, there were a lot of folks that came buy from California government agencies, which I think is part of that and other companies that were located in California because of that mandate.

我會說，邁克，有趣的是，只是在 ACT 展位坐了一會兒。幾週前，有很多人從加利福尼亞州政府機構購買產品，我認為這是該機構的一部分，以及由於該授權而位於加利福尼亞州的其他公司。

So I guess I'm trying to get more of a feel for it. Do you feel better about 2024 now than you did on April 27, before the rules were kind of released? Or were you already feeling that it was going to be strong next year because it's just California in general? Kind of want to get a feel for your pipelines and your sentiment.

所以我想我正在嘗試對它有更多的感覺。您現在對 2024 年的感覺是否比 4 月 27 日（規則發布之前）好？或者你是否已經感覺到明年它會很強勁，因為它只是整個加利福尼亞州？有點想感受一下你的管道和你的情緒。

Yes, I think marginally better, but only because we already knew the rule was coming. This rule has been in development for many years, right? It started with rule that manufacturers must sell EVs into California, and we knew they were going to match it up with a rule that fleets must purchase EV. So we have baked in some of the opportunity into our plans, but it's certainly promising to see the rule coming into play and plans actually being executed by the government.

是的，我認為稍微好一點，但這只是因為我們已經知道規則即將到來。這個規則已經發展了很多年了吧？它始於製造商必須向加利福尼亞銷售電動汽車的規則，我們知道他們將與車隊必須購買電動汽車的規則相匹配。因此，我們已經將一些機會融入了我們的計劃中，但看到規則開始發揮作用並且政府實際執行計劃肯定是有希望的。

Great. One last one for me. Are you currently pursuing any platforms other than GM and your own eChassis, other brands out there that we maybe haven't heard much about in recent quarters?

偉大的。最後一張給我。除了 GM 和您自己的 eChassis 之外，您目前是否正在尋求其他平台，以及我們最近幾個季度可能沒有聽說過的其他品牌？

At the moment, Mike, it's -- go ahead, Kash.

此刻，邁克，它是——繼續，卡什。

Yes, I was going to say, we are exploring it. We're focused a lot on the ZEV4 on the GM and our own eChassis. I think that will lead the way for us. But we're always looking out for new opportunities, whether in our core markets today or adjacent markets like Off-road, where they could be a good fit for us.

是的，我要說的是，我們正在探索它。我們非常關注 GM 和我們自己的 eChassis 上的 ZEV4。我認為這將為我們指明方向。但我們一直在尋找新的機會，無論是在我們今天的核心市場還是像越野這樣的相鄰市場，它們都非常適合我們。

Off-road. Great. Interesting. I appreciate it.

越野。偉大的。有趣的。我很感激。

Our next question is from the line of Abhi Sinha with Northland Capital.

我們的下一個問題來自 Abhi Sinha 與 Northland Capital 的合作。

The financial support that you guys got from Yorkville, that's certainly addresses the street that Lightning is here to stay. But if you could provide any color like how you guys thought internally about various other options you have on the table, the dilution and everything that came with it and why this made the most sense?

你們從 Yorkville 獲得的財政支持，這肯定是 Lightning 留在這裡的道路。但是，如果你能提供任何顏色，比如你們內部對桌面上的各種其他選項的看法、稀釋度和隨之而來的一切，以及為什麼這最有意義？

Sure, Abhi. I mean, obviously, in this market, it's not like there were tons of awesome opportunities. And so you know that our convert prevents us from any additional debt. So we really had to look at equity. And so anything was going to be somewhat dilutive. What we really like about the way Yorkville was able to structure this facility is that we have these small tranches and that we control when we take them, how many we take, when we need them, et cetera. And so it gave us, we thought, the most flexibility in terms of matching our cash needs with the way they were structuring the facility.

當然，阿比。我的意思是，很明顯，在這個市場上，並沒有很多很棒的機會。所以你知道我們的皈依者可以防止我們承擔任何額外的債務。所以我們真的不得不考慮股權。所以任何東西都會有點稀釋。我們真正喜歡 Yorkville 能夠構建這個設施的方式是，我們有這些小部分，我們可以控制何時使用它們、使用多少、何時需要它們等等。因此，我們認為，在將我們的現金需求與他們構建設施的方式相匹配方面，它給了我們最大的靈活性。

And Abhi, I'd add to that, the -- a couple of things. One of them is they are -- it's a very covenant-light agreement. So we felt that was key, obviously, to give us a lot of flexibility. And the second thing you'll notice, it doesn't have a lot of overhangs. It doesn't have warrants, that sort of thing. So we do feel it's clean capital and is a great option for us for all the reasons we're talking about here.

還有 Abhi，我要補充一點——幾件事。其中之一是——這是一份非常輕巧的協議。因此，我們認為這顯然是給我們很大靈活性的關鍵。第二件事你會注意到，它沒有很多懸垂。它沒有認股權證之類的東西。所以我們確實覺得它是乾淨的資本，並且出於我們在這裡談論的所有原因對我們來說是一個很好的選擇。

Got it. Sure. And then if you could remind us how many units were recalled? And if I look at still the non-GAAP sales, the delta between the production and the sales is still high. So what else is going on there?

知道了。當然。然後你能否提醒我們有多少單位被召回？如果我仍然看非 GAAP 銷售額，產量和銷售額之間的差值仍然很高。那麼那裡還發生了什麼？

David, I'm thinking -- correct me if you remember more. I think the recall affected 15 to 20 vehicles. Is that accurate?

大衛，我在想——如果你還記得更多，請糾正我。我認為召回影響了 15 到 20 輛車。那是準確的嗎？

I think a little more than that, probably 20 to 30.

我覺得比那個多一點，大概20到30個。

Okay, so in that range. We were still -- on the other side, to your question, obvious, still -- in the quarter, building some inventory and knowing that we were working on this Macnab deal and a few others, that by having that, those vehicles on the ground ready to go, gave us a leg up in the sales process with those customers. Because as you can imagine, if you're a customer looking for a vehicle right now, if you have a choice of buying a vehicle that you have to wait a long time for or one that's ready to go right now, you often will choose the ones you can get right now. So we did continue. As you look at the last several quarters, we built more than we sold. And now we have an opportunity to reverse that trend here with this large order with Macnab.

好的，所以在那個範圍內。我們仍然 - 在另一方面，對於你的問題，很明顯，仍然 - 在本季度，建立一些庫存並且知道我們正在處理這個 Macnab 交易和其他一些，通過擁有這些，這些車輛在準備就緒，讓我們在與這些客戶的銷售過程中占得先機。因為你可以想像，如果你是一名正在尋找車輛的客戶，如果你可以選擇購買一輛你必須等待很長時間的車輛，或者一輛現在就可以出發的車輛，你通常會選擇您現在可以得到的那些。所以我們確實繼續了。當你看過去幾個季度時，我們建造的比銷售的多。現在我們有機會通過與 Macnab 的大訂單來扭轉這種趨勢。

The next question is from the line of Sherif El-Sabbahy with Bank of America.

下一個問題來自美國銀行的 Sherif El-Sabbahy。

Just wondering if you can touch on that recall impact, just taking the difference of vehicles produced versus vehicles sold. At the end of Q1, it looks like differential was about 187 units. So with that 20 or 30 units that you mentioned being the impact, would that be stripped out of the 187? Is that how we should think about units on hand?

只是想知道您是否可以談談召回的影響，只考慮生產的車輛與銷售的車輛之間的差異。在第一季度末，差異似乎約為 187 個單位。那麼，對於您提到的 20 或 30 個單位的影響，是否會從 187 中剔除？我們應該如何看待手頭的單位？

I'm not sure I'm following the math, Sherif. So sorry, you're saying -- so you -- based on your math, we have 180-or-so -- units in inventory. What was the tie to the recall?

Sherif，我不確定我是否遵循了數學計算。很抱歉，你是說 - 所以你 - 根據你的數學，我們有 180 左右 - 庫存。與召回有什麼關係？

Only taking the difference between the vehicles produced and the vehicles sold.

只取生產的車輛和銷售的車輛之間的差額。

Yes. And then what was the tie to the recall, sorry?

是的。抱歉，召回與召回有什麼關係？

I believe you said it was 20 or 30 units?

我相信你說的是 20 或 30 個單位？

Yes. I'm sorry. I'm missing your question around what the recall number...

是的。對不起。我想念你關於召回號碼是多少的問題......

My question would be is, those 20 or 30, would that be coming out of that 187 that are on hand? Or were some of them sold and kind of bought back and wouldn't be kind of in the units on hand?

我的問題是，那 20 個或 30 個，是從現有的 187 個中產生的嗎？或者他們中的一些人被賣掉然後被買回來，而不是在手頭的單位裡？

Yes. No, I mean we -- so we bought the vehicles back. We're kind of taking them into inventory and reselling components from them. So those would not be part of the units on hand that we would now have to resell because, obviously, we have to strip the batteries which are no longer working out of them. So they're not working vehicles, and we didn't have other batteries that we could put into those 4 chassis.

是的。不，我的意思是我們 - 所以我們買回了車輛。我們有點將它們納入庫存並轉售它們的組件。因此，這些不會成為我們現在必須轉售的手頭單位的一部分，因為很明顯，我們必須剝離不再工作的電池。所以他們不是工作車輛，我們沒有其他電池可以放入這 4 個底盤。

And then just looking at average selling price, it dipped a little bit sequentially. Is that mostly just mix? Or is there sort of a changeover in pricing when we think about the ZEV3 and 4 products?

然後只看平均售價，它連續下跌了一點。那主要是混合嗎？或者當我們考慮 ZEV3 和 4 產品時，定價是否有某種轉變？

Yes, it's mix. We certainly like -- the pricing on the ZEV4 is certainly stronger, especially because they are qualified for more incentives. So you can keep the price a little higher with customers, because they're getting the discount via the incentives where they're much smaller in the ZEV3s.

是的，它是混合的。我們當然喜歡——ZEV4 的定價肯定更高，尤其是因為它們有資格獲得更多獎勵。因此，您可以對客戶保持更高的價格，因為他們通過 ZEV3 中小得多的激勵措施獲得折扣。

The next question is from the line of Michael Ward with Benchmark.

下一個問題來自 Benchmark 的 Michael Ward。

Just to follow up a little bit more on the Yorkville agreement. So this is a straight equity agreement, and it goes out for 18 months. And then you have 2 million tranches. Is the price determined? Is there a minimum? How is it going to work?

只是為了進一步了解約克維爾協議。所以這是一份直接的股權協議，有效期為 18 個月。然後你有 200 萬份。價格確定了嗎？有最低要求嗎？它會如何運作？

Yes. We followed the docs and have all the details. It's a bit complicated, but they're certainly out there. With each tranche, there's a price that's set with a bit of a discount that determines how the shares convert, but all the details are in the docs that were filed.

是的。我們遵循了文檔並獲得了所有詳細信息。這有點複雜，但它們肯定在那裡。對於每一部分，都有一個價格，帶有一些折扣，決定了股票的轉換方式，但所有細節都在提交的文件中。

Okay. The price has already been set upfront though.

好的。不過價格已經提前定好了。

With each tranche, yes.

每一批，是的。

With each tranche. Okay. Is it cumulative? So if you don't exercise a tranche, do you still have the ability to exercise that tranche?

每批。好的。是累積的嗎？那麼如果你不行使那一部分，你還有能力行使那一部分嗎？

Yes. I mean it's $50 million over the 18 months, and we choose kind of how we take those, it would be up to 25 tranches.

是的。我的意思是在 18 個月內是 5000 萬美元，我們選擇我們如何接受這些，最多 25 筆。

Okay. Is there a minimum you have to take?

好的。有最低要求嗎？

No.

不。

Okay. David, on one of your charts, you talked about cost cutting. And just was that, you said cost actions to reduce expenses by $5 million to $10 million. Is that operating cash? Or is that capital?

好的。大衛，在你的一張圖表上，你談到了削減成本。就是這樣，你說成本行動將開支減少 500 萬到 1000 萬美元。那是營運現金嗎？還是那是資本？

Combination.

組合。

Okay. Can you give some color on that?

好的。你能給它一些顏色嗎？

Yes. I mean in terms of operating, we've reduced headcount. Obviously, we're taking a look across consulting, travel, we've reduced. You can -- pretty much any category you can find. We just renewed our D&O insurance and got a lower cost than that and then have really scrubbed any CapEx projects that we're doing this year and only doing the things that were most critical for the business. And then we'll keep looking at those as we go each month to see if there are other things that we should cut further.

是的。我的意思是在運營方面，我們已經減少了員工人數。顯然，我們正在審視諮詢、旅遊，我們已經減少了。你可以——幾乎任何你能找到的類別。我們剛剛續簽了 D&O 保險並獲得了比這更低的成本，然後真正取消了我們今年正在進行的所有資本支出項目，只做對業務最關鍵的事情。然後我們每個月都會繼續關注這些，看看是否還有其他我們應該進一步削減的東西。

Okay. So what are you looking at for CapEx for the year?

好的。那麼，您對今年的資本支出有何看法？

We would expect it to be around 5%.

我們預計它會在 5% 左右。

Wow. Okay. And so then the rest of the -- and then -- so you have about $5 million in operating cost reduction, that's what we're looking at?

哇。好的。然後剩下的 - 然後 - 所以你有大約 500 萬美元的運營成本削減，這就是我們正在看的？

Yes. Yes.

是的。是的。

Thank you. At this time, I show no additional questions. And thank you, ladies and gentlemen, for joining us today. This will conclude today's conference. You may disconnect your lines at this time, and we thank you for your participation.

謝謝。此時，我沒有顯示其他問題。女士們先生們，感謝你們今天加入我們。今天的會議到此結束。您此時可以斷開線路，我們感謝您的參與。

Thanks, everyone.

感謝大家。

Thank you, everyone.

謝謝大家。