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spk01: Hello again, everyone, and thanks so much for joining Electromechanica's second quarter 2022 earnings call. I'm here today with our CFO, Val Buehler. But let me start by saying that I'm genuinely excited about our performance and momentum and the progress we've made despite the exceptionally challenging economic environment. Val will review our financial performance in more detail, but we increased our production, deliveries, and revenues during the quarter while continuing to work around the clock to prepare our new manufacturing facility in Mesa, Arizona. Encouragingly, our results for the quarter showed both year-over-year and sequential improvements across multiple key performance indicators. Second quarter revenues were up over $1.5 million, which is a 5x from the previous year and a 49% sequential increase from the prior quarter. We manufactured 193 solo vehicles, up nearly eight times from the previous year, and 13.5% sequential increase from the prior quarter. We delivered 68 solo vehicles to 68 very excited customers, a 51% sequential increase from the prior quarter. Our gross margin percentage was minus 121.8%, which represents a 61.5 point increase improvement from the prior quarter. Our net loss for the second quarter was $20.3 million, a 13.8% sequential increase from the prior quarter, and our balance sheet remains healthy with working capital of just over $195 million at the quarter end. All of us at Electromechanica are proud of these results, and we take them as validation of the transformation I've been talking about since I began as CEO which is to transition the company into a genuine US-based OEM that is on solid footing. Just an observation, the world doesn't seem to be getting any less complicated. We achieved these results despite multiple crosswinds that faced not only ourselves, but any company seeking to build, ship, and sell in an economic environment that continues to be uncertain. Thanks to a combination of pandemic aftershocks supply chain disruptions, inflationary pressures, and not least, geopolitical uncertainties. This combination of factors makes it clearer than ever that the decision to invest in our production facility in Mesa, Arizona was right for our company and our customers. Last quarter, we brought Joe Mitchell on board as our COO. And I'll say this much, Joe has been busy. On May 12, 2022, we received our occupancy certificate for our assembly facility and technical center. The 235,000 square foot facility is located adjacent to the Phoenix Mesa Gateway Airport and will include assembly, manufacturing, a research center, 22,000 square feet of office space, and 19,000 square feet of lab space. Joe and his team are working nonstop to get the facility up to speed. And once operational, we will have a production capacity of up to 20,000 vehicles a year and employ upwards of 200 to 500 people. While it takes some time to complete the full build out and be able to meaningfully ramp production of Solo, as of right now, we remain on track to roll our first validation vehicles off the line by the end of this year. Until that time, we'll continue with our manufacturing arrangement with our partner, Zhongshen. So right now, I'm confident we have the right mix of manufacturing capabilities and importantly, manufacturing expertise to drive us forward. I'm also aware that if we're going to be successful, we not only need to make vehicles, we need to sell them. That means Chief Revenue Officer, Tim Brink, another executive hire I announced last quarter, has also been very busy. Kim is completely repositioning and refocusing our branding, customer engagement, and sales and marketing strategies to make sure that both customers and fleets have access to the solos they want and need. She's targeting key markets and geographies with discipline and focus. And while Kim and her team are in their early days, they delivered a nice, sequential sales increase for this quarter. Finally, and before I turn the call over to Val to talk numbers, I want also to highlight another important initiative for electromechanica as it relates to our investors. Just as we feel we owe our customers clear communication and direct engagement, the same is true of our obligation for our shareholders. Beginning this quarter and on an ongoing basis, we'll be providing our shareholders with a detailed investor letter that will clearly articulate the company's performance, strategy, and vision, all in context of the real world proving ground of the markets we operate in. I encourage all of our shareholders to read the letter. In it, we have taken the time to speak plainly and candidly about our markets, our competitors, and our challenges. And in that letter, you will find thinking that I strongly believe sets not just our product, the remarkable little solo, but our business apart from virtually every other EV company in the marketplace. As we say in the letter, we don't just have a great product. We have a product market fit that's unique in the auto and EV sectors. This fit does not necessarily compete with cars or trucks or SUVs. It also does not compete with scooters or bicycles or other unenclosed, zero-cargo capacity forms of transportation. In the Solo, we offer people and businesses an elegant, inexpensive, and extraordinarily efficient answer to the vast majority of their mobility problems. It's the only vehicle custom designed for the way people actually live, work, and play now and for the next century. now that's a big claim but we think we're right and looking ahead our mission as a company is to prove we're right by making and selling solo vehicles into what we believe is a huge and underserved market i'll turn to bow but on behalf of everyone here at electromechanica that is working hard to commercialize our mission and translate it into a success for our customers and durable long-term value for our shareholders, thank you from the bottom of my heart. Val?
spk00: Thanks, Kevin. As Kevin said at the top of the call, Electromechanica's results for the second quarter were encouraging with increases in production, deliveries, and revenue. Our second quarter revenues were $1.547 million, a 418% increase from the previous year, and a 48.9% sequential increase from the prior quarter. This is a direct reflection of increased sales of our solo vehicles, as deliveries increased to 68 vehicles during the quarter versus 45 from the previous quarter. One KPI I'd like to highlight is our gross margin percentage, which was negative 121.8%. This represents a 61.5-point sequential improvement from the prior quarter. Our net loss during the second quarter was $20.3 million, or $0.17 per diluted share, a 13.8% increase from the previous quarter and reflective of the investments we have made in order to support our expanding operations. Our operating expenses increased the most significant on percentage basis being R&D costs of $5.6 million, which was a 20% sequential increase. General and administrative expenses rose 13.4% sequentially to $9.8 million, and sales and marketing expenses increased 3.1% sequentially to $3 million. As I said on our last call, we're being extremely disciplined And when it comes to managing our liquidity, as of June 30, 2022, our working capital was $195.1 million, and that included $176.3 million in cash balances. As Kevin said, we're pleased with our progress and momentum and continue to work hard to ensure our operational machinery is ready to support the next phase of our growth. Thank you.
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