Lordstown Motors Corp.

Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Lordstown Motors Q4 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, please press star one again. Thank you. Carter Driscoll, Head of Investor Relations. You may begin.

Thank you, Operator. Good morning, and thank you to all for joining Lordstown Motors' fourth quarter and fiscal 22 earnings conference call. To supplement today's discussion, please go to our IR website, view our press release and investor deck. Before we begin, I want to call your attention to our safe harbor provision for forward-looking statements that is posted on our website and is part of our quarterly update. The Safe Harbor provision identifies risk factors and uncertainties that may cause actual results to differ materially from the content of our forward-looking statements for the reasons we cite in our Form 10-K and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes. Joining us today will be Lordstown Motors CEO and President Edward Hightower, CFO Adam Kroll, and Executive Chairman Dan Inovagi.

With that, I'd like to turn the call over to Edward. Thank you, Carter, and welcome, everyone. I would like to start today by giving you an update on the Endurance temporary production pause to address post-launch quality concerns and the voluntary recall that we announced last week. As we shared throughout last year leading up to the launch, engineering readiness, quality, and part availability would govern the speed and ramp up of the Endurance launch. Post-launch, the ongoing adherence to our part quality and vehicle quality standards is required to maintain or accelerate our production plan. Shortly after our January production update, we began to discover and experience several new performance and quality issues with the vehicles coming off the production line and vehicles in process. The issues affected several vehicle subsystems, including propulsion, chassis, and infotainment. At a high level, most of these issues could be attributed to supplier part quality shortfalls and software glitches. As our customers are our highest priority, we decided to temporarily pause production as we worked with our supplier network to root cause the issues, conduct additional vehicle component and software testing, and as needed, make updates to affected vehicle components and software. Concurrent with this production pause, we recently discovered isolated incidences of endurances losing propulsion while driving. Root cause analysis by our engineering team, manufacturing partners, and supplier network identified a specific electrical connection as the driver of this issue. In this regard, we filed paperwork with the National Highway Traffic Safety Administration, NHTSA, to voluntarily recall the endurance to address this issue. The recall affects 19 vehicles that are either in the hands of customers or being used internally by LMC. We have worked with our supplier network to implement a part corrective action that we believe will address this issue and have begun to retrofit customer and internal vehicles with the updated parts. Subsequent to this filing, our part brake supplier informed us that one of the source components in their system was not to specification. They have since supplied us with corrected parts and we have filed a voluntary recall to address this issue as well. Vehicles waiting for shipment and vehicles in process at the manufacturing plant will also be retrofitted with both corrective actions once sufficient quantities of the components are available. Our team has also worked closely with our supplier network to root cause the other post-launch quality issues and develop and implement corrective actions, which have included part quality corrections, part design modifications, retrofits, and software updates. We now have line of sight to the resolution of the issues that resulted in the production pause and voluntary recalls, and in the coming weeks expect to announce when we will resume production and deliveries. We recognize and understand that this news is disappointing to our stakeholders. It is to our team as well. However, please understand that the actions we have taken are consistent with our company values, in the best interest of our customers, and aligned with the long-term interests of Lordstown Motors. New vehicle launches require time, experience, and diligence, especially as vehicles transition towards electrification and the increased use of features, technologies, and attributes driven by software. Our experienced team has collectively been involved in hundreds of new vehicle launches across multiple OEMs around the world. We will continue to put our customers and values first. As we have discussed on previous earnings calls, we plan to build an initial batch of up to 500 endurance vehicles this year in order to see the commercial fleet market, demonstrate the capabilities of the truck, and support our OEM partnership pursuits, which is critical to scaling production. To date, approximately 40 endurance vehicles have been completed or are in process. As you may recall, we decided to limit the size of the first batch of commercial production as the BOM cost of the endurance is materially higher than our selling price. Forming the right partnerships will create the business rationale to invest in the hard tooling and BABE actions required to reduce its bomb cost and scale production of the truck. Lordstown Motors' launch of the Endurance created the opportunity for other OEMs to access the platform and manufacturing capacity of a fully homologated and certified vehicle in the second most popular segment in the United States, full-size pickup trucks. While we continue to pursue partnership opportunities, Should we not identify a partner in the coming months, we may decide to pause commercial production of the endurance until a partner is identified. This week, we will be displaying the endurance at NTEA Work Truck Week in Indianapolis. We will also display an endurance with commercial fleet-focused accessories from leading manufacturers and suppliers of aftermarket equipment. To provide our customers with aftermarket service and warranty support, we have entered into an agreement with a third-party provider under which we will jointly provide service and warranty for the endurance vehicles in key states where allowed by law. Technicians at these service locations will complete Lordstown's vehicle service training curriculum, and our partner provider will provide service solutions, including warranty and preventive and scheduled maintenance. We will share more about on the strategic rollout with our service partner in the coming weeks. Switching to our future vehicle program, we continue to work collaboratively with Foxconn and the MIH Consortium on the pre-development work and vehicle development process, or BDP, deliverables for our next platform and vehicle programs. The next platform and vehicle program are key to Lordstown Motors' long-term business strategy and are becoming a greater portion of our company's focus. While we are not ready to announce the details yet, I can tell you that this vehicle will serve growing battery electric vehicle commercial fleet segments that are different from those targeted by the Endurance. Also, The new vehicle will likely source key components and subsystems from Foxconn and MIH consortium members and be built in the Foxconn EV Ohio assembly plant. Discussions with potential Anchor customers are also ongoing. Our asset-light business model in collaboration with the Foxconn EV ecosystem, including MIH, will provide the opportunity for Lordstown Motors to create winning EVs that are tailored to the needs of our customers that use them for various work applications while gaining the cost benefits of scale. We shared the story of Lordstown's future in collaboration with Foxconn and MIH earlier this year at CES. We also plan to discuss our role in the growing Foxconn EV ecosystem later this month at the upcoming South by Southwest event in Austin, Texas, during their mobility, electrification, and innovation trade. Q4 2022 was a very busy and exciting quarter, and Q1 2023 has continued this trend. I will now turn the floor over to our CFO, Adam Kroll, to present our Q4 performance and financial outlook. Adam.