Greetings, and welcome to Loop Energy Analyst Conference Call. At this time, all participants are in listen-only mode. A 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. I'd now like to turn the conference over to your host, Damian Towns, CFO and Corporate Secretary for the company. Thank you. You may begin. Thanks, operator. Thanks for joining us today. This call is designed to assist and provide additional background to our supply agreement with Tevva Motors, which includes delivery commitments in excess of $12 million through 2023, which was announced prior to market open today. I would like to remind our listeners that our comments in answers to your questions today may contain forward-looking information. Forward-looking information, by its nature, is subject to the risks and uncertainties that may cause stated outcomes to differ materially from the actual outcome. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections which are included in the forward-looking information. Readers are warned not to place undue reliance on forward-looking statements. Please refer to our Q1 2022 MD&A and financial statements, our 2021 Annual Information Form, and our 2021 annual MD&A and financial statements for more information. I would also like to caution our listeners that any projections provided today regarding Loop's future financial performance are effective as of today's date. My name is Damian Towns, and I am the CFO and corporate secretary of Loop Energy. Joining me today is the company CEO, Ben Nyland, and our chief commercial officer, George Rubin. We have some prepared remarks in respect of this important news release and supply agreement. We would also welcome any question in respect of the supply agreement and news release at the end of the prepared remarks. I will now pass the call over to George to provide some background on our partnership with Tevva and our insights into our go-to-market strategy and customer adoption cycle. Thanks, Damian. Thank you for joining us. First, a little bit of background on who Tevva Motors is. Tevva manufactures electric trucks. They have two different models between 7.5 and 19 tons in terms of gross vehicle weight. The company started with the battery electric truck only and has now launched a dual energy hydrogen electric platform during their own transport expo show last week. Tevva's customers are fleet operators. They serve a variety of applications, and what they're really looking for is a solution that would be on the functionality of diesel, but with no emissions, and thus the platform that Tevva brought out last week. Tevva is a perfect example of a Loop target customer. It checks every box in what we define as a perfect customer for us to execute our go-to-market strategy. Tevva had an electric vehicle platform, which really helps to accelerate time to market. Case in point, Loop has been selected by Tevva in the fourth quarter of last year through a competitive tender process where our products were compared during field tests and evaluations versus multiple manufacturers. That process concluded in Q4 of 2021, and by Q2 of 2022, so sort of like just, you know, just under nine months later, Tevva brought out the dual energy hydrogen electric truck for commercial launch at a trade show. The sector that Tevva operates in has strong market drivers that support adoption of hydrogen. A lot of the fleet operators that are looking to purchase trucks from Tevva are operating in the environment where their vehicles have to spend a significant amount of time within city limits, which puts them into the regulations for reduced or banned diesel emissions. That drives them to transition to a clean energy electric vehicles much faster than it would otherwise happen in some of the other applications. Tevva is a perfect fit for Loop product portfolio, not only from the power class point of view of the products that we make, not only from the physical fit and form factor of the products that we have, but also from the focus and the understanding of what actually determines how easy is the adoption of a particular vehicle. This is where we're both aligned on the fact that cost of ownership is absolutely critical for fleet operators to make that transition from diesel to clean technology. Loop's fuel efficiency was one of the key drivers that prompted Tevva to select us over competitors in this process. Last but not least, Tevva operates in a large market for medium-duty trucks and buses and both types of commercial vehicles that is primed for growth over the next few years. Tevva is also a great example of the customer adoption cycle that we talk about frequently on these types of phone calls, a great example of the cycle in action. Our relationship dates back approximately 18 months if you look at the sort of from the beginning to today's date. It took approximately 9 months of that period to get to the point of the pilot demonstration that was a part of this competitive trial. Once the selection process was complete, we spent the following 9 months working closely, building multiple vehicles as Tevva was going through a scale-up homologation and early stages of adoption of the product. Now here we are at the end of the second quarter, beginning of the third quarter of 2022, going into full commercial deployment. Over these 18 months, we grew together as supplier and a customer. We grew together as partners. We're deeply impressed with Tevva's ability to execute, and I wanted to highlight because it is not frequent when you see a combination of extremely experienced management team with automotive industry roots, paired together with a deep pool of engineering talent and what appears to be a flawless ability to execute. I mean, Tevva checked every box, every milestone on the way through this 18 months period, and we're highly excited to work together with them and be a part of their growth story. Thanks, George. I would now like to pass it over to Ben Nyland, our CEO. Thanks, Damian. When I joined Loop, it was because I could see there was an opportunity to launch a commercially viable clean technology product. That was close to 10 years ago. This announcement today is a giant stride forward toward that goal. It is both the beginning of Loop with the end of the beginning of Loop's story, if you will, the end of our technology development, and the beginning of an extremely exciting next chapter. We've now proven that we can incorporate our patented eFlow technology into products that compete effectively in the market. We've been chosen by multiple vehicle manufacturers in Europe, China, and North America for pilot and demonstration projects. This next chapter is about moving into full production. We've laid the foundation in our plant in Vancouver, and we'll soon have our plant in Shanghai come online as well to support these increasing volumes. This is a true supply agreement. It covers multiple years, multiple Loop products at commercial scale that will be sold to Tevva through to multiple fleet operators, which is distinctly different than many fuel cell announcements today, which tend to focus on single fleet deployments with single operators and tend to be government supported. We believe that this is showing that the market is maturing, with growing demand for fuel cell vehicles. It also shows that Loop products compete exceptionally well in the market. A customer who's serious about launching a vehicle product into the market selected Loop's products over all others following an exhaustive selection process and manufacturing audit. The customer adoption cycle that Loop has defined is working, and we're confident that we will be able to continue to move customers from pilot to scale up to full production. Our sales funnel is very active, and we see multiple customers with the intent, commitment, and resources to move through scale up and into full production. Frankly, I couldn't be more excited about the year ahead and what it is gonna hold in the years after that. Back to you, Damian. Thanks, Ben Nyland. I will now outline some of the specifics of the supply agreement, our capacity and future guidance. Given the nature of the supply agreement, a number of the aspects are commercially sensitive. Notwithstanding, we can share that the supply agreement includes over $12 million in delivery commitments through to the end of 2023. 2024 delivery commitments will be determined at a later date and announced at that time, but the supply agreement does include 2024. The commitments are a binding commitment, a contracted amount, and the supply agreement has a true-up mechanism included with it. Tevva has a contracted right to increase the minimum commitment at regular intervals through 2022, should it decide to do so. The minimum delivery commitment is a subset of the total forecast volumes for each year. Loop will not be looking to individually report on our forecast by customer. We are well-placed to deliver into these volumes based on our current production facilities. We have a stated annual capacity of 1,000 modules per year from each of our Burnaby and Shanghai facilities. We had anticipated opening our Shanghai facility in Q2 2022, but this has been delayed due to recent COVID shutdowns in China. We will provide an update on this opening on our Q2 earnings call. We intend to provide an updated guidance in August 2022 with our Q2 earnings call. Our previously stated guidance was for 60 purchase orders in 2022 and 180 purchase orders in 2023. Being able to have customers such as Tevva entering the production phase of our customer adoption cycle gives us not only increasing confidence in our approach to market, but our ability to deliver and beat our previous guidance. Our previously provided guidance is an aggregate for the entire company, and Tevva forms an increasingly important aspect of this, and we will be looking to provide updated guidance during our Q2 call, which is currently being scheduled for August the fourth. I would now like to open the phone lines up for questions. Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. In the interest of time, we ask you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Rupert Merer with National Bank Financial. Please proceed with your question. Hi, good morning, everyone. Congratulations on the milestone. Thanks, Rupert. Damian, if I can start with you gave us some detail on the supply agreement. You mentioned there are some contract minimums. Does that mean that this is effectively a take or pay agreement for that first $12 million? Not so much a take or pay. They are minimum contracted amounts, and there is a true-up mechanism. You know, and obviously as these are contracted and binding amounts, you know, we would be able to look through the contract, you know, for a breach of the contract. That's obviously not something we would look to do with a significant customer like Tevva, but we fully anticipate them to deliver into their minimum commitments. Great. Can you talk about the scope of supply in this deal? You mentioned multiple products. I believe one of your first units you shipped to Tevva was the 50 kW unit. Are you contemplating a number of different sizes of units? Can you talk about what that scope of supply includes? Is it basically a full fuel cell module or any other components around the module? Rupert, George here. The scope is centered around the 50 and 60 kW modules. The contracted supply is around the modules for you know this application. Okay, great. If I could. Does that help? Yes. Yeah, great. Thank you. On the price that you're selling today, now I understand you're in very low volume of production, but when you look at the price and the scope of supply, what visibility do you have on the margins on production? Will this be contributing to a positive gross margin? I think, given that we're in the early stages of our commercialization process, you know, getting to these volumes is obviously key to utilization rates, lowering costs and unlocking some economies of scale. We have, as you're aware, considered product offerings from the 30 to 50 to 60, and we're looking to introduce the 120 kW later this year. Those margins will vary, you know, by product depending on their maturity. I think, you know, with the size of this supply agreement, we'll certainly be able to unlock some of those economies of scale and see some of those cost reductions that we were targeting in 2022. Whether we'll be gross margin positive or not, we have not disclosed that and probably not look to be providing guidance at this time, on a per product basis. Right. Great. I'll get back in the queue. Congratulations. Thank you. Thank you. Our next question comes from line of Mike Gleim with Raymond James. Please proceed with your question. Okay, good morning. You mentioned during the opening remarks a few times about the capacity in Shanghai. Are you gonna be looking to satisfy these orders out of Shanghai as well as your plant in Burnaby as well? I think at this stage, Michael, we'll probably provide guidance in terms of how we satisfy these production volumes, probably in Q2 with the earnings call. We're not looking at providing guidance at this time of where it's coming from. I think the key takeaway for me is that, you know, with the Burnaby production facility able to do 1,000 modules per year and also the Shanghai facility able to do 1,000 modules per year, on its current capacity, I think we're well placed to be able to fill these volumes. Where we specifically fill them through is, you know, based on, you know, some management determination of where it's best to source these products from. Okay. Are you able to talk at all about when you're discussing this product with Tevva, do you talk at all about consideration for hydrogen supply in the UK? Is that a part of the discussion as to where is the actual hydrogen going to come from? George here. So I would say like in terms of the conversations between us and Tevva, yes, you know, at the high level, I mean, ultimately it is a bit downstream from where we are. I would say that Tevva is taking a very, very proactive approach to this. They actually have started off with a dedicated person and it's a group of people that specifically deals with working with the fleet operators and ensuring that the hydrogen supply is available at the depot where the vehicles will be deployed. Okay. On the customer side, are there customers already contemplated for these vehicles? Probably best addressed to Tevva directly. As they would like, from what we know, the answer is yes. I think that's probably best discussed with them on how much details they wanna provide on that. Okay. Thanks for taking the questions. No worries. Thank you. Ladies and gentlemen, as a reminder, to join the question queue, please press star one on your telephone keypad. Our next question comes from the line of Anne Crowe, Edison Group. Please proceed with your question. Good morning and congratulations, gentlemen. It's really, really good news. Thank you, Ann. I'm just wondering, I mean, clearly this is a big step for you. What sort of percentage, just roughly sort of what percentage capacity will this order take up? I'm just trying to assess, you know, what the potential is for taking on similar size programs with other customers going forward. Yeah. Thanks, Ann. I think one of the key things for us, and I sort of alluded to it in my remarks surrounding the supply agreement, is there's a number of things which are commercially sensitive surrounding this agreement. We have deliberately not disclosed the number of units associated with the S.A. in excess of $12 million through 2023. We remain very confident in terms of being able to deliver against that volume. I think what we're also, you know, as George alluded to, we're delighted with Tevva as a customer. They tick a number of our boxes in terms of what we're after in a customer, and we're very confident in their ability to deliver into not only their forecast, but their minimum contracted amounts, which we have referenced in the supply agreement. We're also conscious that there is, you know, it's a big market out there, and we're determined not to totally hitch our wagon to one customer, and we will be looking to diversify. I think you'll see announcements through us, you know, with the likes of ARCC out of Australia on the buses, and you'll see a number of continuing news releases from us over the coming months as we work to make sure we have a diversified customer base and not totally reliant or dependent upon one customer. Hopefully that helps address your question. Yes, it does. Thank you. Thank you. Our next question comes from the line of James Magness with Edison Group. Please proceed with your question. Thank you. Good morning, guys, and congratulations. Thank you. I've most of my questions have been answered, but I wondered, could you expect to see an acceleration of new customers entering your pilot phase one following this stamp of approval on the product? I mean, every time you see an adoption like this, it always helps. It helps within a specific vertical. It also helps, you know, even with surrounding applications. I think the fact that the product was selected through a competitive tender and not just a sort of a, you know, like a financial tender, in fact, that's actually one of the lower criteria for selection in this case. It was more like a full evaluation from the technical point of view, the performance, ability to execute with the manufacturing audit that Damian referred to. It's very sort of like a holistic approach. Being selected through that against some of the top brands in the industry creates a tremendous customer reference. That, you know, we're certainly already starting to see the benefits of having completed that exercise. Perfect. Thank you. Thank you. Our next question is a follow-up from the line of Mike Gleim with Raymond James. Please proceed with your question. Hey. The $12 million. I just wanna understand the $12 million. That would be revenue. We should think of that as a revenue number in 2023 then for this particular order? The specific wording I think we used in the news release, it's delivery commitments. We're committed to deliver in excess of $12 million through 2023. There is a portion of that that relates to 2022. I think if you heavily weight and load towards 2023 and perhaps even the back end of 2023, Michael, I think that's probably the right way of looking at it from a modeling perspective as they ramp up. Okay. What type of working capital commitment would you need to take on to build these units? Well, look, I think we've alluded to this in the previous calls. You know, we remain well funded through our, you know, to achieve our 2022 objectives. We are, you know, I think, as we've alluded to, you know, perhaps our margins aren't quite there across the entire company right now, so we will need some working capital to fund those. The specifics of those we have not currently disclosed, but we'll probably look to provide some guidance in Q2, when we come out with our revised guidance in terms of any working capital requirements to fulfill these orders. Okay. Thanks. Thank you. Ladies and gentlemen, that concludes our question and answer session. Mr. Towns, I'll turn the floor back to management for any final comments. Fantastic. Well, thank you everyone for joining and taking the time on short notice. You know, as always, management is totally available to you should you have follow-up questions, and we look forward to seeing you on our Q2 earnings call, which we're looking to schedule on August the fourth. Thank you very much for your time today. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.