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spk_0: that afternoon and welcome to apply block chain first fiscal quarter twenty twenty three conference call my name is paul and i will be or operator today before this whole applied block chain issued it's financial results for the first quarter of fiscal twenty twenty three and in august thirty first twenty twenty two and a press release a copy of which will be furnished in a reply short on form ten que filed with the scc and will be available in the investor relations section of the company's website joining us on today's call or apply blocks and chairman and ceo was common and cfl david ranch following their remarks will open a call for questions before we begin just grab from gateway group will make a brief introductory statement mr graham please proceed
spk_1: thank you operator good afternoon everyone and welcome to apply block chain fiscal first quarter twenty twenty three conference calls before management begin their formal remarks he would like to remind everyone that some statements were making today may be considered forward looking statements under securities lot and evolve a number of risks and uncertainties as a result we caution you that there are a number of factors many of which are beyond our control which could cause actual results and events to differ materially from those described in the for looking statements the more detail the risks uncertainties and assumptions relating to are forward looking statements we see the disclosures and our earnings release in public filings made with the securities and exchange commission which is claim any obligation or undertaking to update for law and statements to reflect circumstances or events that occur after the date before that these statements are made except as required by law will also discussed not gap financial metrics encourage you to read our disclosures and of reconciliation tables to applicable got measures in earnings release carefully as you consider these metrics we refer you to our filings would be securities and exchange commission for detail disclosures and descriptions of our business as well as uncertainties another variable circumstances including but not limited to risks and uncertainties identified under the caption at risk factors that are idea prospectus you may get of my block chain securities and exchange commission filings for free by visiting the fcc website at se si dot gov i would also like to my everyone at this call is being recorded and will be made available for replay the a link available in the investor relations section of applied watkins website now i will turn the ball over to apply boucher and chairman and ceo what's commons was thanks jeff from good afternoon or one thank you for joining us for our first quarter fiscal twenty twenty three conference call a result for a quarter solid which revenue of six point nine million coming in at the high end or guides range of six point five to six point nine billion and adjusted ebitda coming in at a loss of one point nine million which compares favorably with our guidance of adjusted ebitda one point eight two two point two million dollar loss of financial performance relative to our games for sex or study execution and the consistency unpredictability predictability of are hosting only business model which provide shareholders which revenue that has contracted out on a multiyear basis we expect these dynamics to drive long term high margin sustainable cash flow generation and for a company also i want to remind everyone that one of the you waiting at first it's called quarter results it is important to keep in mind that hundred megawatt james download dakota data center operated at only fifty percent capacity during most of july and august due to the previously disclosed unexpected equipment failure at the substation power in the facility
spk_2: therefore first fiscal quarter results in august thirty first two twenty twenty two do not reflect the full quarter of contributions are james trump saudi prince repairs were made in august the facility has been operating as expected
spk_1: outside of are currently operating james job site we remain laser focused on executing the build out of art next generation data center site the two hundred megawatt facility in garden city taxes and one hundred and eighty make what facility an our don't have to correct these two facilities are expected to energize between now and between why trees which will bring our total hosting capacity to almost five
spk_2: megawatts
spk_1: all this capacity is already contracted out on multiyear agreements and once fully online we expect to beat a runway tantalize to just to be bitter about a hundred million dollars which we think it's quite compelling in the context of our kind of those your i would like to highlight what i believed to be the largest was factors to the timing of energize a shame which is regulatory approvals and whether we're working through the regulatory approval process in texas and north dakota weather and north dakota has been good to date but we need to pour all concrete prior to extremely cold weather like a cruiser working diligently to make this happen or too many were terrified team and especially operations personnel for executing so well and that's an overall difficult operating environment with supply chain challenges and persistent inflation or team has stayed ahead of the curve by ordering certain long lead time items well in advance to avoid any meaningful delays related to construction since our entry into the high performance computing hosting industry will bite it ourselves on the capabilities and experience of our team so i'm pleased that we've been able to execute so alone an industry that has unfortunately the challenge to be timeline i will now from the call overdue are of oh david ranch walk you to our financials before providing my political marks a bit
spk_3: i think us and good afternoon everyone before i begin my remarks i would like to note that like last quarter's call since we did not have operations in the year ago comparable period will not be providing any year over year compares revenues in the fiscal first quarter were six point nine million which is west mentioned was at the high end of our guidance range of six point five million to six point nine million posey revenues were generated entirely from my first posting facility and jamestown north dakota which is bottom line phases between the third and fourth fiscal quarters of fiscal year twenty twenty two note that the jamestown to see oh the operate only at about fifty percent capacity during a meaningful part of the quarter due to an unexpected equipment failure of the substation powering the facility repairs were made in august and the facility has been operating as expected since the that cost the revenues and the fiscal first quarter were six point one million consisting of four point nine million of energy costs to generate are hosting revenues eight hundred thousand of depreciation and amortization expense and for her thousand a personal expenses for the employees directly working our james on hosting facility operating expenses for the fiscal first quarter of twenty twenty three or five million which include four point one million and selling general and administrative costs six hundred thousand a stock based compensation and three hundred thousand and a depreciation and amortization expenses adjusted net loss from continuing operations for the fiscal first quarter of twenty twenty three was three point four million or a lot of four cents per basic in diluted share based on a weighted average basic and fully diluted share count during the quarter of nine three point one million net loss attributable to apply block team for the fiscal for first quarter of twenty twenty three was four point five million or a loss of five cents per basic and diluted share based on a weighted average share count during the quarter of ninety three point one million adjusted gross profit a non gap measure for the fiscal first quarter of twenty twenty three was one point seven million which equates to twenty five percent of revenue adjusted ebitda a non gap measure for the fiscal first quarter twenty twenty three was a lot of one point nine million which compares favorably tour guides range for an adjusted ebitda loss of one point eight million to two point two million lastly on our balance sheet we ended the fiscal first quarter twenty twenty three with forty point eight million in cash and cleveland and fourteen point seven million in debt during the first fiscal quarter of twenty twenty three we received four point six million in that customer deposits and fifteen point three million in that differed revenue which collectively a to almost twenty million in cash inflow do the structure of a commercially arrangements with our customers that incorporate up front deposits and prepayment in certain contract the prepayments are amortize back to the customer over the first year of their contract with no impact revenue recognition but the timing of cash flow with up front cash to us is a major benefits for the company and that it helps our cap expanding funding needs as we build our data centers we also it ended the corner with the practically ninety two point eight million shares outstanding as a reminder we fully converted all our outstanding preferred stock the common stock concurrent with our ipo in april twenty twenty two now turning to guidance we have decided not to give an explicit range for guidance as we have in the past for the next two quarters didn't the uncertainty around timing of interviews nation of our new facilities this time in can have a dramatic impact on revenue and a bit of for a quarter we do have or want to be transparent with our expectation for fiscal discotheque one quarter of twenty twenty three and in november we expect our jamestown site to generate approximately twelve million in revenue assuming it remains at full capacity during the quarter which is our expectation any other capacity that it's energized will generate revenue at a rate of about one point two times the amount of jamestown on a per megawatt what basis we all announce when megawatts are energized we do expect resume portly got him from the future possibly as soon as you for of this fiscal year that complete my financial summary now will turn the call over to west for closing remarks
spk_1: thank you david before we open it to q and a i want to cover a couple of the key gotten initiatives for a company first we're focused on standing up and energy into remaining to our first three data centers which would give us hosting capacity of almost five hundred megawatts all of which is contracted out a multiyear agreements once operational is about you should put us at about one hundred million annually be better run rate achievement of this goal over the next several quarters would be a major milestone for the of company that only a year ago had no revenue to achieve this we simply need to execute the same business model we've been executing during calendar twenty twenty chill we already have the customers lined up next
spk_2: the facility was we speak
spk_1: the next key objective for the company relates to a recent to pose name change to apply digital with shareholders will vote on it an annual general meeting on november tenth of this year or name change or more accurately reflect or services and broader business offering that your customers require large computing power applications are these large computing power applications can include bitcoin miners which compromise or current customer base we see a much larger or the opportunity for jane the high performance computing applications relating to image for
spk_2: your graphics rendering artificial intelligence and machine learning
spk_1: while we continue to see robust demand from bitcoin miners we believe there is value in to burst final have any base to jason industries that can still leverage or expertise and capabilities and building and operating next generation data centers we are having act of discussions with numerous potential customers that are embarrassed stages with our needs ranging from only a few megawatts to potentially hundreds of megawatts all within the broader hpc landscape ultimately we are committed to providing why club service and best in class digital infrastructure to any customers that have high performance computing need and require access to a
spk_2: libel power
spk_1: i spend a significant amount of time contemplating the highest in use case where company's assets and i think about where assets are and what we can provide i keep returning for a low cost our contracts and are called locations in north dakota besides can be leveraged to build ultra low cost high efficiency digital infrastructure for high performance computing application the first application is bitcoin mining but it won't stop there we have found what i believe will be our second large application in the machine learning area i expect we will help a pilot program running with a customers earlier this month of all goes well we could be in a position to scale that application early next year this will be the first of what we believe will be many applications will allow us to grow and non crypto hpc business to compliment are based the close it's clearly an extremely difficult time for industry were in a strong position to not only survived the turmoil but possibly take advantage of i'm more excited for the future of a company that ever been and would like to thank all of our team members for the dedication and hard work when i happy to take your questions operator
spk_0: thank you will now be conducting a question and answer session if you like asking question please press or one on your telephone keypad a confirmation tone when the carolinas and the question kill in a press or to you'd like to remove your question from the to the partisans using bigger equipment and may be necessary to pick up your hands of before pressing the starkey one moment please while we pull for questions thank you our first question is from lucas pipes with be riley security please passivity a question
spk_4: thank you very much operator in tech good afternoon everyone thanks for taking my question i'm a efforts wanted to touch on a bit on on didn't the near term outlook and i appreciate their are i did
spk_5: right so some some man
spk_4: aka full disability with with the guidance but
spk_6: can you can touch bid on it
spk_4: possible regulatory delays in texas what exactly is holding things up on on the regulatory front there is it is it are calculated as it is it state related i would appreciate additional color on that and then a you mentioned that pouring of concrete and in north dakota with the weather turning called the how many days of hungry point you have left him and and when does it get too cold to to continue work on a concrete to thank you very much for your color on these two topics
spk_7: you know hey hey thanks lucas i appreciate the question so on the first were one of the first company that he to go through the the large flexible load program in texas there's multiple things going on in taxes and multiple parties that we're dealing where the media we we were we've been we started on this bag actually in february we've made a lot of progress without a few roadblocks come up more recently kind of in the september time frame but i think we're any good position to get past those to do you have
spk_3: we have kind of three parties and this and it's it's urquhart is encore and it's and to called were wh w e t t which is where we enter tonight in west texas and we're working with all these boys in fact with with in person meetings with two of them this month i'm feeling pretty optimistic about getting close to the and there been a a i don't know if you've seen in certain publications and maybe was and coin dusk and i've seen it in other areas but there's something in the neighborhood of almost forty gigawatts of applications in texas
spk_7: and so that has kind of delayed i think a lot of people because you realistically i think maybe one or two gigawatts of that is going to come online but you have to separate yourself from those other projects that are just your people kind of throwing something against the wall the see if they can sell it to maybe a company like ours so i think we're we're quite a ways to that you know if i were to handicapped this i i think we could get through and good things turned on anywhere from early november two ooh it's an absolute worst case the at the first part of february if it does get delayed out you know what i would say about that is will be in a in a position and set of kind of staged turn ons have to really energized the foresight how when we when we get approval to do so so it's is still a moving target or wanted to be a huge amount of details ago i gave quite a bit right there but we are in discussions and having meaningful discussions with with all of the regulatory bodies the we need to in the state in north dakota to err on the same schedule really that we were last year and last year we were able with we completed pouring concrete but we could go until about november fifteenth
spk_3: i think october thirty first is is always what i've been told from from natives there's kind of a good ah time to try to be finished by until we're we're we're we're pouring ah now and generally discos really fast once we start but i did one a flag it as that that's one of them you know getting factors if we don't get that board you know if we get home me it a passport then you know if we will build up organ probably until march or april into than you would find out me maybe until june i don't think that's gonna be the case for us but but but that's definitely one of the issues to to deal with the north dakota's just that we love that cold weather but it it is a problem for construction winter
spk_4: that's very helpful really appreciate it a follow up question on that on the texas are you continuing and development construction while you're waiting this sabic a toy poodle
spk_3: yeah hide the regulatory approvals there's you know we've been through a lot of it i i feel really confident in and i don't think there's any issue that we you know that we wouldn't get the approval is just a matter of timing it's it's a process to work through were largely through the process and and so we have a mean we're we're i would say ninety percent complete on the site to will be we ready to energize is basically the minute the were approved
spk_4: got it and then my at very helpful thank you and my my second question is on at college and of counterparty risk it's it's so obvious topic in in the industry given given the stress out there can you can you speak a bit about who you're kind of parties are today may be three four largest account of parties and and how you go about evaluating counterparty risk and environments thank you
spk_8: thank you very much for that
spk_7: now that i think that's a really relevant question so our largest customer in that ditch obering right now is his bit main ah and in that in the north dakota sites there's some other companies did did that are investors and accompanies i mean that that's been discussed i don't mind saying you know have to pool which is one of the largest bitcoin mining pools in the world is one of our customers and in north dakota they're than gmr is one of our customers of course in north dakota
spk_3: i feel confident in in all of those counterparties that into other large when not easy to weave announces his marathon them and movies you have your can have your own opinion about this and i'm certain that you do and and all the other animals on the call do as well that's adding marathon is the one of the best counterparties is not the best of the publicly traded miners me industry new they have a relatively
spk_7: clean balance sheet is really the one piece of debt outstanding i don't think is is due for over four years now
spk_3: and than ever when i think they have access to be a better capital access as far as capital markets or anything than almost any company in the industry
spk_7: where lot of the others you know with plaguing a lot of the public miners is of yeah really especially equipment financing which has a lot of know very fast amortization that at this time last year didn't look like you would be a problem given bitcoin price which turned into a massive problem i think all over the industry
spk_3: the so so that's the the the primary exposures that we have and and i feel really good about them but it's something that we monitor or mean almost on a daily basis because because there's a lot of a lot of companies that are struggling in industry
spk_4: very helpful were some really appreciate your color and best of luck
spk_0: thanks
spk_9: thank you our next question is from chris friendly with the a davidson please proceed with your question
spk_10: i they've got noon am
spk_2: don't forget aleppo follow up on so looks as questions are just have any overall competitive environment is given some the recent news
spk_7: but the hosting business to maybe some you even more demand amid constrain supplies so is curious ill at a you mentioned is an opportunity to take advantage of the challenging conditions israel were color on the i demand side and and where you sit and twenty years of parking out your additional capacity
spk_3: the don't think thanks for the question we don't have any additional capacity right now
spk_7: i'm really to offer so we your job
spk_3: actively seeking other customers for capacity were still in the market for additional sites were looking for the power locations the same stuff we always do the town location good say ah and of course we're looking in there's some some really well publicized sites that are out there that you know that there's or one competitor falsehood bankruptcy i think there's other there's many many other distressed properties in the market and we're looking at all of those i haven't found anything that does he have the we're moving to take advantage of just yet but but there's a lot of that that's out there are a i will say again here you know talked about this a lot and i'll reiterate it would we spend a lotta time you know focused on the power side and that's the biggest part of our business ray were were purchasing power at or biggest cost than in the customer cyber card
spk_11: writing we're we're offering you know that least could basically the spread of the middle
spk_3: i think last year a lot of companies went out and signs you know variable rate contracts or didn't sign contracts or whatever it might be ah
spk_7: and so i'm i'm saying he owns some assets did did just now they're they're hosting sites kind of in remote locations the don't have very good power contracts and so i don't know that those are worth very much calm but we're we're still looking for so looking but i there is a lot of distressed assets that were saying and and will continue to local i think we're in a minute for
spk_3: good position to take advantage of that is to balance sheet it in that a quarter
spk_10: i think expressing our industry we have with was kept ourselves you know fairly clean on the balance sheet side
spk_2: yeah it's to know about a fresh air for sure i'm just as a just a little confused like to youtube eighty hp see that is that different capacity and i guess my question was the last time we talk give the the opportunity to the economics in the in the bitcoin posting states where of have a much larger to a bigger chunk the
spk_3: there is an h b c space so it may be as they they'd be seizures her of like up away get your toe ends meet them at a summer temperatures yeah not a deal he has begun to pick one wants
spk_7: so so i would i view it this ways to bitcoin is given the opportunity to go and build these sites outnumber men like i said we spent a lot of time focused on getting what i think a really attractive sites with really attractive power contracts and in good locations
spk_3: and then i think a lot about how do we leverage that so obviously we've had this big beachhead you know five hundred megawatts who were building and they point where we expect to continue to grow but if there's other applications you know that that i think about highest as use case of our assets at all times if there's other applications for our side that are not just bitcoin one i i i think diversification is attractive me from for me myself and the larger shareholders renting for all of our shareholders and then to when i look i got on a per megawatt bases some of the hpc applications were saying you know the the revenue is is five plus times from for megawatt the iba does five plus times
spk_7: for megawatts a you you know that that maybe it's something that's that's more attractive our from an economic perspective sprites i expect to see a bland as we go for a bit but i think of known a key take away his years you know we we do have a gp you based machine learning application that we expect to be running a pilot
spk_3: as as early as this month and then walks fans that if it if it goes well later this year and then maybe be in a position that is in i i think this one application is an extremely large market them of but the in a position to to scale that in and twenty three and twenty four and
spk_7: and i've you know i wouldn't say the sky's the limit but it's it's definitely have a really attractive potential for us then and so we we're spending some toughest a significant amount of time on that honestly pounds to when it when you figure out the site low cost our code location if we can figure out the application to run ultra low cost infrastructure
spk_10: yeah that was gonna be running the same in video a did you to use when we run the same intel based or mtv servers so you know it's going gonna have a necessarily some kind of equipment advantage on us it's it's really were focused on the ultra low cost your digital infrastructure for hpc the hopefully that title pressed not super have of a cigar just one more could numbers question
spk_2: the just internal gap gross profit margin human had expected for i wasn't going to see given tower cost and was or the your mining peers are struggling with on and i just was concerned that my question was given a lot the to reduce capacitors quarter heard that was that impacted by let that go higher from
spk_7: here hours twenty four percent a good run rate ah so we have a confession quarter to quarter from from like our our power month to month can change a little bit of jamestown fight over a year today's we are roughly the same that the thing i would point out for last quarter and one we just reported you know we we were fully staffed we didn't go and lay people off and so there were some definite in efficiency
spk_11: in the gross margin line
spk_7: with the staff because we basically the same amount of staff will run twelve twelve million of of revenue
spk_12: the versus that the six point nine so there's there's some leverage their
spk_0: great thanks so much
spk_13: thank you our next question is from john turturro with need him and company please proceed with your question great lakes taken my question of or the breaking into a issues in texas is is a can you saying that the texas market for your guys his viewpoint is gonna be closed for news sites moving forward how i guess it's kind a how big are those concerns or and it's something you can can can can
spk_7: new debt to push through i i i don't think the taxes i think there is a result of bit of a pause and then trying to work through and from our perspective you know the machine is moving so i don't i don't think anyway texas is closed in to new sides moving forward a minute he added the governor here's been very supportive everyone has been very supportive but bit in also texas has had some very widely publicized issues really was as february of twenty one i think was the last big issue for taxes on the on the grid
spk_3: id
spk_2: side the i think that the regulatory body there are car just wants to make sure that there's ah
spk_13: need of different that that the greatest stable and these are large lows being added that but i think the machine is moving another good the texas is close to new site
spk_2: okay gotcha ah years to from so that facility windy the city and sixteen manager constructed there's not really any possibility that permitting doesn't gods were way it's a really just comes down to that delay and energetic it's it's it's it's just time working through the process okay great pants and then turning over just to the the new facility or the second one of the dakotas there
spk_7: i have noticed he looks like this facility my cost a little bit additional per megawatt vs some of the the past one is it because those are being outfitted with hpc capability or that facility completely contracted with bitcoin mining have edges what are we could you give a little bit more contacts and to that costs related htc vs typically manager it but i i is there is there something specific johnny you're seeing on that i don't think it's going to be
spk_13: ha any more per megawatt for the up for the one eighty that is that is all bitcoin ah maybe seen some some news items that to talk about kind of one hundred million dollars that that that that wraps and a lot of other spending to see now but the construction cost should come in in line with with the other areas in fact that you were saying in some equipment show up on the secondary market to we we recently purchased some some switchgear transformers for a pretty significant discount tire versus what we have been so i think i think will be on the one that you know in line of not lower
spk_7: ah gotcha okay yes yes in relation to some of those media are the cause
spk_3: okay great and then i guess it's just to be clear so far nothing has been contract law pp side that pilot program that could be done this month and that's the furthest along on that side yeah so so that could tell jokes take that a step further it's you know we we're do a pilot program what we really need to focus on is what what can we do and with is low cost infrastructure with the for applications they can tolerate a somewhat higher latency environment was still a very good fiber connectivity car but it will be a higher latency environment than others knowledge your for data centers have and so we're working through that with with our partner ah is but it's it's very exciting
spk_2: the of the work we're doing or or will be doing with them because it it has the potential to bring down the cost to a lot of people of of machine learning significantly
spk_3: so it's it's it's early but very excited about it and so now have we have the pilot up as are like it and earlier this month and then we'll have a pretty good idea
spk_13: we'll move out to a little bit larger scale later this year and then
spk_0: i'm your own in twenty three really we scale that up by time i'm pretty excited with the with the potential
spk_14: got it under said protect you guys after taking my questions and congratulate quarter
spk_15: thanks john
spk_14: thank you our next question is from my granddaughter with northland security please consider their question
spk_3: you guys did a couple clarifying questions i'm in north dakota
spk_14: as of today how many more days you have of concrete to poor or what do you think the end days if everything goes well from today we're we're shooting right now for the end of october i mean it a here's what you you know you're dealing with construction outside rated that can be rain days there could be you know things like that of the were shooting for if all goes well maybe the end of october got it so you gotta admit you know a little bit a cushion depending on the weather i got it yeah i know a a a ton of the groundwork and and a lot of that's been done to me were in a position to to serve to to really once we start going generally the are expensive the cruise not this are pretty quickly
spk_7: sounds good sounds good it in in texas if there were not these regulatory delays headache wendy's when would you have been able to sort of energize texas
spk_11: but we we would have able to energize you know
spk_3: pretty close to now to between now and the and the first in november
spk_16: til we can work through these you know that that's what i will say those those would be staged ramps right and be like we did in jamestown where you need to bring online about twelve and a half megawatts per week
spk_14: every week so on the like i said if if if we can start sooner that's would have a look like and if we have to start later we we should have everything rack and ready to go on
spk_7: by the time we get approval bear know that's good it's i mean it sounds like ready to go except for this regulatory stuff up your mm
spk_17: you guys ever have a lot on your plate but i know you're looking for number for to is it too early to talk about you know the foresight to fourth project the incremental hundred megawatts or kind of what does that look like
spk_0: it's the it is a little bit earlier mean will like i said we're looking at everything we want to make sure we find a very attractive site again you know stable low cost power the location for us
spk_1: and and maybe one of those to decide to jump in the you know someone else has it's already obligations and see a lot of a lot of assets that are being shown to us palm some in my in my take that form instead got it got it okay eight thanks guys
spk_7: thanks thank you our next question is from george sudden with craig helen please pursue their
spk_18: a great idea that a monster george thanks take my questions are was a todos are willing for a junior your commentary on the h d c pipeline notes a few megawatts two hundred megawatts as hope you could provide a little more detail their about in the types of companies that they're making up that pipeline in addition to how you're approaching the go to marketing
spk_3: and how you're building that pipeline yeah so we i mean this is really early days both would be no discussions from anywhere from ah educational institutions to be on top top five i preschoolers and the world so it's it's a really broad range
spk_7: a and it's yeah it's kind of to be seen how that comes together by
spk_3: you you know like i was i was talking about it adam is that if you've if we can get these applications to work and i'm i'm i'm very encouraged that we can do i don't i don't think it will be hard for anyone to compete with us on the price that we can offer for the for the infrastructure here in the locations the were and just because is some of the stuff that we've been going to you know when you look at some these data centers you don't have
spk_2: you do and high performance computing a significant amount of the power is electricity
spk_11: and and he to work introduce numbers we have an operator these big veto foot forty plus person to run these of would be electricity and then out of that you know he kind of split that half and half hour forty sixty two actually running the equipment vs running climate control controller a seat and so if we can do this with local
spk_3: our and then also in cold climates where we can use a lot of air cools got all air cooled and
spk_19: i think it would just be hard for anyone to compete with the the cost basis the we can provide for for ah for pc
spk_20: oh that's great are and in terms of this opportunity and your such think you're going forward with with site construction is there any change their on on how you're gonna approach building site in four five six with this opportunity
spk_0: there's so there there there could be others timespan right now on you know that the additional because it's gonna cost like is in the buildings are we have you if you look at these are there can be no big steel structures so and knows you know the modifications it would be needed if you decided to switch over to gp you applications
spk_21: and then also new build sites if we have specifically for this into the team's working on what that would look like right now but i think it's it's pretty early this to talk about what what exactly that's gonna look like let's let's get through the pilot that's you know scale the pilot up a little bit and make sure this works and then you we'll we'll be focused and and much more ready to talk
spk_22: about what new sites look like
spk_23: great things just
spk_3: thank you our next question if i'm rob brown with lake street capital markets please proceed with your question
spk_24: a good afternoon
spk_3: just talk about expected cap back to complete the remaining two sides would you expect it you need to put into them at this point
spk_18: hello david you know that
spk_7: yeah
spk_3: so we'll be is a combination of cash in the balance sheet some community bank loans
spk_7: in the prepayments from customers that were collecting immobile have man
spk_22: to require capital the first cut backs and and and of all at inheritance of texas' be a ninety percent complete the rest point
spk_3: for for capital and then they experience is to them by always like to point this out the we've had is to event the construction moments barely once we've started to swim started to draw that yard our in taxes and so that that's about fifteen million for that site but he experienced that we've had rob is dead in so in jamestown we have to
spk_4: seven and a half million from the same bags the construction and then once the site was up or operational there was ah another fifteen million or we're with not another fifteen were able to expand that to fifteen so in taxes given it's double the size we're starting fifteen and then once operational we should be able to go to thirties we haven't used any of that yet
spk_3: so you you know as far as build goes really think about the cash on the balance sheet for star thirty coming in as at the taxes side and and and eventually you know twenty seven is to come in as on on the dutch side for the the allendale site
spk_22: plus customer prepares we we think we're in a good position for that
spk_0: okay did spiegel you feel like you've got most of the texas cap expense but the north dakota cap x get pretty much the whole facility to happen to go on that one of people how to conceive you know you're you're you're a there's actually a fair amount of has been spent their right to be cure minute the of the transformers switchgear fair amount of the build
spk_25: for germany's been dancing probably have twenty percent spent there right now
spk_7: okay the tickets and then actually to press we said the north korea power contract is now signed could you give a sense of would the length of that contract housing heard of some of the era your other contractor
spk_3: ah we don't ever talked about pricing but by by it's very attractive pricing and it's a five year deal
spk_7: okay figure turner
spk_3: like you our next question is from kevin de do with hc wainwright please proceed with your question hi guys nick with hc wainwright year on behalf of indeed he would you be able to quickly to from expected and asian timeline for dirty city and allendale
spk_25: it
spk_0: nick we we went through those a little bit earlier in the call bit you know we we expect things to start to energize any time you know basically between now and and mid next year
spk_7: the the big timing issues for us right now and in taxes are regulatory approval
spk_0: and it's is a of i went through the the three components there
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