Electriq Power Holdings, Inc.

zero on your telephone keypad, and an operator will come on the line to assist you. At this time, I would like to turn the conference over to Jeff Besson, VP, Investor Relations. Please go ahead.

Thank you, Audra. Good morning, everyone, and thank you for joining today's call. Joining us from the Electric Power Leadership Team are Frank Lignati, Chief Executive Officer, and Petrina Thompson, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address electric power's expectations for future performance and operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in the company's most recently filed periodic report in Form 10-Q, the Form 8-K filed with the SEC today, and electric power's press release distributed after market yesterday, particularly the cautionary statements in it. Today's conference call will include references to adjusted EBDA, which is a non-GAAP financial measure. Please see the related explanatory language and reconciliation tables located in Electric Power's earnings press release. The content of this call contains time-sensitive information that is accurate only as of today. Except as required by law, Electric Power disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. I would now like to turn the call over to Frank Magnotti, Electric's CEO.

Good morning, and thank you for joining us for our very first quarterly conference call as a public company. For those that are listening for the first time, Electric Power is an energy solutions company focused on residential applications that was founded in 2014 in Silicon Valley at a time when stationary energy storage was still very much a concept. We were ahead of the curve. seeing the application of batteries outside of electric vehicles. Our fully integrated hardware, installation, and software solutions, which includes safer, more durable lithium iron phosphate batteries, were created to help shape our world's environmental and economic future. Our mission is to provide complete residential solar plus energy storage solutions that are prudent, panoramic, and serve all demographics with parity. Electric batteries help improve resiliency by offering backup power during utility power outages, and energy can also be exported to help stabilize the grid. Before I get into details, I want to hit on some key points and measures taken to set up electric for success. We have a debt-free balance sheet. with approximately $8 million of cash on hand as of the end of the third quarter. We are pleased to have signed a binding term sheet to equitize and extinguish the forward purchase agreement we entered into July for a fixed number of shares and warrants in lieu of any cash requirement, which will clean up the cap table for future investment. Along with Meteora's equity commitment The company will be exploring a private placement equity offering. We also have plans to leverage our $20 million of inventory for future financings. And measures are being taken right now to right-size our cost structure, improving our cash runway. We've announced partnerships with two municipalities last year and four already this year in our sustainable community networks, providing a path to growth over the next three years. We have signed a $300 million financing in March with a major U.S. clean energy company to support the growth of our sustainable community networks across California. We have a backlog of over 100 signed power purchase agreements in our sustainable community networks valued at approximately $3 million. And this gives us revenue visibility over the next two quarters. And we announced 8X. quarter-over-quarter top-line revenue growth, demonstrating our early stages of scaling and execution. We have demonstrated our technical capabilities with compatibility in California's Demand Gridside Support Virtual Power Plan program, and we've assembled a strong management team with a breadth and depth of experience working in public companies across renewable and technology industries. Something that we and our investors are very much aware of is the current stock price. While we are not able to control the macroeconomic impacts on the price, we are taking steps with what we can control to set up the business for success. We believe there is a substantial market opportunity which could allow electric to become a more significant market participant. With battery attachment rates increasing, in markets such as California because of NEM 3.0, and in New England from battery incentives, batteries are becoming the pivotal part of the renewable energy story. Electric goes to market in two primary ways, by partnering with municipalities through what we call sustainable community networks, and two, building relationships with nonprofits, home builders, solar asset owners, or similar organizations looking to create microgrids. We refer to this channel as sustainable solutions. Within our sustainable community networks, we develop and install full turnkey solar plus storage plus software solutions and sell those to a major US clean energy company under a contractual agreement for a current average price of approximately $28,000 per household that elects to participate in the related program. Electric receives an upfront sale, plus there is ongoing high margin recurring software revenue and the opportunity to monetize the batteries through the creation of a virtual power plant if and when there are sufficient number of participants within the relevant geographic area. Within our sustainable solutions, we provide batteries or batteries and installation service to our partners. which are generally sold at a gross margin in the high 20s. In either of these market strategies, as we deploy battery storage in these dense geographic locations, we are building a foundation for long-term recurring software and grid services revenues. Unlike most SaaS platforms, which require substantial upfront costs, we are able to extract value at the unit level in a capital light model by financing systems off balance sheet. While Petrina will get to the specifics of the P&L and balance sheet in a few minutes, I would like to note a few recent developments that don't have an immediate impact on our financial results. As noted in our press release distributed yesterday after the market closed, we signed two municipalities last year and four so far this year within our SCM business, meaningfully increasing our addressable market, independent of income level. This sales channel has started scaling, with over 100 signed power purchase agreements worth approximately $3 million. Importantly, we also recently announced our first signed agreement with a partner outside of California, in Derby, Connecticut, expanding our footprint into the Northeast. and validating our intent to diversify to other geographies with high utility rates, great congestion and favorable renewable incentives. The program will provide Derby homeowners, regardless of socioeconomic status, access to home solar plus battery storage solutions, which will help lower electricity costs and provide reliable backup power during power outages. Electric is continuing to break down the barriers that prevent low and moderate income homeowners from obtaining the economic resiliency and environmental benefits of clean energy. Just last week, we announced electric's compatibility with California's demand side grid support program, which is a new virtual power plant program. This milestone has demonstrated end to end technical and operational capability in our first real virtual power plant event in California. Electric software allows PowerPod 2 battery storage system customers to earn money by discharging excess energy to the grid and help stabilize it during periods of high demand. With ever-changing weather conditions, and an increase in demand of electricity coming from growing EV ownership and electrification of the home, Electric is well positioned with our integrated products to be part of the solution. I'll now turn it over to Petrina to go through the quarterly financial results in more detail and provide further information on our business model. Petrina?