Lightning eMotors, Inc

Ladies and gentlemen, thank you for joining us for today's Lightning eMotors second quarter 2022 earnings call. As a reminder, all phone participants are in a listen-only mode, but later you will have the opportunity to ask questions. Also, a friendly reminder that today's session is being recorded. To get us started with opening remarks and introductions, I am pleased to turn the floor over to President of Investor Relations, Mr. Brian Smith. Please go ahead, sir.

Thank you, Operator, and thanks for joining us today. Hosting the call today are Lightning's co-founder and CEO, Tim Reeser, Chief Revenue Officer, Cash Sethi, and CFO, Teresa Covington. Ahead of this call, Lightning issued its second quarter 2022 earnings press release and presentation deck, which we will reference today. These can be found on the investor relations section of our website at lightningemotors.com. On this call, management will be making statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from these forward-looking statements due to risk factors that are listed in today's earnings release and in our filings with the SEC, which can also be found on our website. We assume no duty to update any forward-looking statements. Today's presentation also includes non-GAAP financial measures. please refer to the information contained in today's earnings press release for definitional information and reconciliations of non-GAAP measures to the comparable GAAP measures. With that, let me turn it over to Tim.

Thank you, Brian, and thanks to everyone for joining us today. I'll start off on slide four with today's agenda. I will begin with an overview of Lightning and a supply chain update. Cash will then provide an update on products and markets and sales and business development initiatives. And Teresa will wrap up with a financial overview. Moving to slide six, we believe Lightning Motors is the only full range manufacturer of class three through seven battery electric and fuel cell electric vehicles in the market, including ambulances, shuttle buses, utility trucks, school buses, and motor coaches. We're the only company currently shipping product in all of these classes today. We started in 2008 with commercial vehicle hybrid solutions and have now shipped over 300 zero emission vehicles with over 2 million zero emission miles driven by our customers. Our strategy to start by electrifying ICE chassis has allowed us to produce in volume earlier than our peers, advancing our learning about all things EV and giving us a competitive lead as we now move to designing and building our own E chassis. Moving to slide seven. We have built a modular software and hardware architecture that allows us to serve a highly segmented and customized market with cost-effective solutions. Our high level of software and hardware customization that is required for commercial electric vehicles is something that legacy OEMs have not historically performed and are not well-suited for. Companies like Ford and GM are building light-duty commercial trucks and vans in high volumes and have not pursued a business model that supports manufacturing electric vehicles for the medium-duty segment. Moving to slide eight, a quick summary of the quarter. Our production team executed very well in the quarter, producing 74 vehicles and powertrains, which is nearly 100% increase over quarter two of 2021. These were all units built to meet customer demand, but customer financing delays pushed nearly half of the expected revenue into Q3 and Q4, resulting in only 36 vehicle and powertrain sales in the quarter. We have already recognized over a million dollars of that expected revenue so far in Q3. Since our last earnings call, we have announced a strong lineup of new products and partnerships, which we will go into in more detail coming up. We continue to hire industry leaders to our team, and we are investing for the future. Lastly, during the quarter, we adjusted our prices to help offset the inflationary pressures on our product costs, which should lead to improving margins in the future. Moving to slide nine. We also announced last month that we are expanding our partnership with Collins Bus to include both GM and Ford chassis, which helps us in terms of chassis supply. It also reflects our commitment to the North American school bus market, which represents about 45,000 buses per year, 10,000 of which are the smaller Type A buses that we have successfully electrified. With the $5 billion of funding announced as part of the EPA's Clean School Bus Program and with our year-long partnership with Collins, we see a bright future in electric school buses. Moving to slide 10, last month we also announced our next generation mobile battery vehicle charger, which allows our customers to fast charge commercial vehicles wherever it is needed without electrical infrastructure or installation permits, providing charging in temporary lots, providing charging in areas with limited charging infrastructure, or while waiting for permitting and charging equipment to arrive. Our mobile chargers can accommodate a variety of battery buffer and number of DCFC charger configurations with an MSRP of between $300,000 and $400,000. Several customers are already renting an early beta unit. Moving to slide 11, in the face of chassis supply limitations, fleets are coming to us to repower their existing ICE vehicles. Last month, we announced that some of the top tech companies in the Bay Area have asked Lightning to repower some of their employee shuttle buses, allowing them to fulfill some of their emission reduction commitment without having to purchase new shuttles. In addition, we announced last week an offering with Bluebird to provide factory-certified repower options for their Type C school buses. Extending our partnership beyond the step van powertrain, we announced with Bluebird in May. Moving to slide 12, let's discuss the supply chain landscape. With our new platform partnerships and agreements, we now have much better chassis visibility for Q3 and Q4, with nearly 200 now on our lot and another 200-plus expected to arrive by the end of 2022. Engineering work on the new GM Class 4 platforms is progressing in earnest, and we expect to be in production with our new GM offerings later this year and our Bluebird E-chassis powertrain and Lightning E-chassis in the second half of 2023. Our factory-certified repower offerings are seeing strong customer interest, and we delivered the first Class III and IV repowers over the last six weeks. As we stated previously, batteries, which were supply limited last year, are in much better shape due to new battery partnership agreements, and we have inventory on hand today. The situation remains dynamic, however, as new platforms may require and or benefit from new battery configurations, both to support more range on a given platform, as well as reduce the price and improve quality and safety. Our nickel manganese cobalt-based batteries have seen a significant price increase, while our lithium iron phosphate battery-based battery pricing has been more stable, leading us to push some of our new platform designs towards our lithium iron phosphate pack options. Beyond chassis and battery, we continue to work to diversify our supply chain and to evaluate bringing additional component production in-house. Long lead times remain for components such as wire harnesses, electric power steering, and thermal management parts. Turning to slide 13, let's discuss our funding plans for the near future. We forecast that our current cash position is sufficient to fund our operations for the next 12 months, and we've shown great discipline in our CapEx spending, proving out our CapEx-like model. Our corporate investments thus far have generated a great return in terms of quality products, expanded production capacity, and a committed team of industry experts. As we've stated before, we see opportunities for industry consolidation, and we intend to continue to invest in growing our team, our product portfolio, and customer base. So we expect that in the near future, we will take steps that will allow us to secure additional capital over the next year to continue making further investments. And now I'll turn it to Kash to provide an overview of the order backlog, sales pipeline, and key partnerships.