Eos Energy Enterprises, Inc.

Greetings and welcome to the EOS Energy Enterprises Second Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jared Ame, Investor Relations for EOS Energy. Thank you, Jared. You may begin.

Thank you. Good morning, everyone, and thank you for joining us for EOS's financial results conference call for the second quarter ending June 30th, 2021. On the call today, we have EOS CEO Joe Mastrangelo and CFO Sagar Kurata. Before we begin, allow me to provide a disclaimer regarding forward-looking statements. This call, including the Q&A portion of the call, may include forward-looking statements related to the expected future results for our company, which are subject to certain risks, uncertainties, and assumptions. Should any of these risks materialize or should our assumptions prove to be incorrect, our actual results may differ materially from our projections or those implied by these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to are described in our earnings release and other SEC filings. Our remarks during today's discussion should be considered to incorporate this information by reference. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events except as required by law. Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to the GAAP financial information, is provided in the press release. Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies. This conference call will be available for replay via webcast through EOSA's Investor Relations website at investors.eose.com. Joe and Sagar will walk you through the company highlights, financial results, and business priorities before we proceed to Q&A. With that, I'll now turn the call over to Joe.

Thanks, Jared, and thanks, everybody, for joining us here this morning. You want to start off with our normal operating highlight page. The top half of the page talks about the progress that we're making commercially. You can see our pipeline is now approaching $4 billion with 18 gigawatt hours of opportunities in the pipeline. And reminding everybody, as Sagar talks about this moving forward, to get into the pipeline, we need to have a use case to be able to model Our orders backlog is above 95 million, getting close to 100 million and getting close to 400 megawatt hours of orders and backlog. The commercial team is doing a great job of going out, finding opportunities for us to win in the marketplace and adding to our backlog. And you can see year to date, we're approaching 80 million in orders and backlog. So really, we're seeing a great uptick commercially and how the team is executing what we're delivering. On the bottom, this is operational highlights where we're approaching 300 megawatt hours of discharge energy either out in the field or in our test facility. We've shipped $2 million of shipments year to date to Greece, Nigeria, India, and California. And right now we have $175 million of cash on hand. That includes the recent $100 million investment from Coke, which I'll talk about in a moment. But as you can see, another quarter where we continue to build momentum and improve the company and deliver out in the marketplace. We go to the next page on today's agenda, just up against our six priorities for 2021. I talked about where we are versus the 300 million in booked orders. What I would say is we're starting to see some great conversion on our letters of intent on our commercial model, which we'll talk about later on. You know, 55 million of the orders we booked have come from those LOIs. And at the same time, as we look at the remaining amount that we need to close to hit the target for this year, we've got 455 million in core opportunities that we believe can help us fulfill the 220 orders that we have to go, which is 2X the opportunity pipeline versus the orders that we need to deliver, with deliveries in the second half of next year and into 2023. On our revenue target, our backlog today, and when you look at the projects when we closed these opportunities, we covered 100% of our 2021 revenue target. But as many in the industry have seen, and as the world opens up coming out of the COVID pandemic, we're starting to see some of our delivery shift to the right and move out of the year, whether that be for permitting and grid connections and us closing our UL certification. We're looking at a revenue target that will be more around in the range of $5 million for 2021, basically because we've seen the projects go out into 2022 as far as shipments are concerned. Our full UL certification, we've achieved both the 9540A and the UL 1973 system certification. We're now going through a certification of our manufacturing sites, which will allow us to start shipping UL-certified product here in the third quarter. Building our capacity, we're optimizing our Gen 2.3 capacity to deliver on our current backlog. I'll talk later on in the presentation about how we're seeing the Gen 2.3 products continue to have demand out in the marketplace and how we're focusing our factory in Pittsburgh to deliver on that demand. And then also focusing on how we spend money on CapEx to automate and increase production, how we're investing in the facility and also in our people that are leading our supply chain and working on the factory floor. On our new product launch, we continue to learn on the Gen 2.3 and are implementing those learnings into the Gen 3 product and how we develop that and industrialize that. We're finalizing the system design and the prototypes that we have on test are performing as we discussed on our last quarterly call. And then lastly, on the people and culture, which is last on the list, but first in our importance of our success, I'm going to talk at the end of the presentation about how we're aligning the goals and objectives and the compensation of everyone in the company to shareholder success, which has been a key goal of the team and the board as we thought about how we want to position this company for the future. So we'll go through each one of these in a little bit more detail and then talk about what we're going to deliver in the third quarter. Just quickly, two big things that happened on the next page, two big things that happened last quarter. We did get an investment from Koch Strategic Platform, which is a great validation of our company and how we want to deliver it to the marketplace. This is on top of a 50 million equity investment that they made previously. We really like partnering with the team there and like what they bring, not only from an investment standpoint, but also opportunity to grow the company and leverage the entire Koch network to help us improve the company on many facets. So more to come here, but something that we're proud of being able to close here in June. And at the same time, right after that, we're very proud to host the second Earthshot of the Secretary of Energy, Jennifer Granholm. at our facility in Edison, New Jersey. It was a great day for us along with Congressman Frank Pallone to host them and walk them through and show them the great work that our team is doing. You know, when you look at these two things together, you know, strategic investment in the future and then looking at what the DOE is looking for as they think about North America, which is the largest storage market, we love how we fit into the overall vision of what they're trying to drive. That's low cost, high durability, long duration storage, which is exactly what EOS delivers to the market. So with that, I'll turn it over to Sagar, who will walk through the financials.