Good day, and thank you for standing by. Welcome to Eos Energy's first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one one on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Liz Higley, Director of Investor Relations. Please go ahead. Good morning, everyone, and thank you for joining us for Eos's financial results and conference call for the first quarter, 2024. On the call today, we have Eos CEO, Joe Mastrangelo, and CFO, Nathan Kroeker. Before we begin, allow me to provide a disclaimer regarding forward-looking statements. This call, including the Q&A portion of the call, may include forward-looking statements, including, but not limited to, current expectations with respect to future results and outlook for our company, and statements regarding our ability to secure final approval of a loan from the Department of Energy LPO, or our anticipated use of proceeds from any loan facility provided by the U.S. Department of Energy, which are subject to certain risks, uncertainties, and assumptions. Should any of these risks materialize or should our assumptions prove to be incorrect, our actual results may differ materially from our expectation of those implied by these forward-looking statements. The risks, uncertainties that forward-looking statements are subject to, are described in our SEC filings. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today, or to reflect new information or the occurrence of unanticipated events, except as required by law. The conference call will be available for replay via webcast through Eos's Investor Relations website at investors.eose.com. Joe and Nathan will walk you through the company highlights, financial results, and business priorities before we proceed to Q&A. With that, I'll now turn the call over to Eos CEO, Joe Mastrangelo. Thanks, Liz. Welcome, everyone. Thanks for taking the time here this morning. Let's jump right into what I think is the biggest news of the session here today. You know, last week, we successfully completed the factory acceptance test for the state-of-the-art Line 1 with our automation partner, Acro Automation, in Wisconsin. Really a tremendous achievement by the combined team of the two companies to get the FAT completed and the way that we got it completed. And, you know, we got through final system debugging and integration, you know, in 6 weeks. The total cycle time, you know, on the line is a battery moving through stations around 12 seconds. You know, we really have a couple of stations that we need to tune in. The majority of the stations are running at the 10-second target. We've got a clear line of sight to get to that 10-second cycle time. It's very impressive to watch the batteries go through the manufacturing process and see how far we've come and see the quality that's able to come off of the line. Now, when you take a look at that, now think about what's next. You know, what, what's next? First equipment arriving today in Turtle Creek, to then start being installed in our factory here in Building 700, here, where we've been manufacturing on the semi-automated line. Pretty exciting time here. The operators have been trained on the state-of-the-art line during FAT, and then our installation and commissioning is on plan per our schedule. Now, I think this is very important for us as a company in a couple of areas. One, we continue to execute to the plan that we laid out at our strategic outlook session in December. The second piece is getting through the FAT is a critical step as we think about customers wanting to see our ability to execute on large projects. And three, as we've talked about, this is also SAT is a critical milestone as we continue to work with the Department of Energy on our Loan Programs Office conditional commitment. So really great job by the team to achieve the schedule. Great job to really start positioning now for SAT and truly ramp up, ramp up production here as we go forward. If we switch to the next page and just talk about where we are running the business operationally versus the targets that we laid out in December. You know, we talked about continuing to improve the performance of the Z3 module. Nathan will talk through in his section some of the cost out and work that we've done that we talked about in December. You know, we cut in a new Eos Z3 inline cube, which improves the overall power density of the product out in the field. We also transitioned over to lower cost, higher energy density Z3 battery module. You know, this will allow us to reduce overall product costs and manufacturing costs to bring the product to market. On our path to profitability, which is our overriding goal as you think about where we are in 2024, you know, we've secured 55% of our Direct Material Cost Out target. A phenomenal job by the team to be able to do this. More importantly, I think when you think about this in the context of the overall market, we believe that we're above 90% of U.S. content while achieving that cost out. So once again, like, one of our core tenets is to allow our customers to maximize their benefits under the Investment Tax Credit of the IRA. Continuing to do that while driving down cost of our product is a testament to our belief that we can still build competitive products here in the United States. You know, field data, you know, field operating data is the next critical component. We've shipped over 110 Z3 cubes to five different customers. We're beginning commissioning on three of those projects. I'll talk about them on a subsequent page, but that's gonna be the critical next milestone when you think about where the Z3 evolves to, is getting those assets up and running for customers out in the field. We have one of the three that are getting very close to start operating, with the other two starting operations in early third quarter. Commercial momentum, you know, the big announcement, you know, of extending our MSA with Pine Gate Renewables, you know, very big, you know, recurring customer. Our largest installation is with Pine Gate, so a testament to our ability to execute out in the field. You know, we are working on 1.2 GWh of late-stage opportunities to continue to convert into orders. I think, again, going back to the previous page, that conversion into orders really is going to, to start to see momentum as people can come and see the line and be able to look at a battery coming off the line every 10 seconds, and be able to say that Eos is capable to deliver at scale. I think that's critical as we start to see projects getting bigger in size. People want to be able to see that you can deliver not just the small, bespoke, prove-out a technical concept, but be a true scaled operating company, and that's the path that we're on. As a team, we continue to improve our overall digital capability. You know, we've taken a lot of the lessons learned from the Gen 2.3 product out in the field and rolled that into the logic around our BMS. If you go back and look at what we said in December around state of health, state of charge, overall operating and optimizing performance for customers, using that data and applying it to the Z3 is just gonna make those purchases that customers are making of the Z3 more valuable as they get out in the field and installed. On the liquidity front, Nathan will walk through where we are on monetizing our production tax credits and bringing in that capital to the company to allow us to keep operating. We continue to work to achieve our DOE loan requirements and continue to work with the LPO to get to loan closing, and feel really good about also the operational aspects of the business and being able to bring cash into the business through delivering on project milestones and being able to invoice and collect cash as we execute on those projects for those 110 cubes that we've already put out in the field. If we go to the next page, just our normal operating highlight page. Commercial pipeline standing at above $13 billion, 49 GWh of opportunities. You know, booked orders, $125 million last quarter, which is the Pine Gate MSA extension. Our orders backlog now stands above $600 million. You know, that's 2.4 GWh of backlog. You know, if you think about where we are on the, on the initial introduction of the state-of-the-art line, that's two years of capacity of the state-of-the-art line. You know, when you really think about some of the things Nathan will talk about when he gets in there, we've already started thinking about how do we take that state-of-the-art line, get it up and running at the 1.25 GWh that we've talked about, but then increase that to allow us to continue to grow the business as we see our pipeline accelerating. Discharge energy, this is probably one of the other biggest milestones that we have in the presentation. We're above 3 GWh of discharge energy with 2.6 GWh of that coming in customer sites out in the field. Our revenue is $6.6 million, 100% of that coming from the Z3 production. I think what we see, and when you really look at this and look at it on the basis of quarter-over-quarter performance, you know, you're really starting to see the aspect of being able to manufacture the product at scale and being able to see the cost work that we've been doing come through, and when you look at our cost of goods sold. And lastly, cash on hand, you know, was, was around $32 million at the end, at the end of the quarter. It doesn't include restricted cash that we hold for, for our Atlas debt that we have on the balance sheet. Shifting as we move into commercial-- the commercial opportunity pipeline and the orders backlog. If we go to page 7, I first want to start off with what I think is a really valuable insight into the value that the team is creating around Eos in the energy storage field. You know, left-hand side of the page shows the discharged energy coming off of our systems. That dark green line, our energy discharge out in the field. You know, when you just think about what we've done, we've discharged 1.4 GWh of energy in the first four months of 2024, and we've discharged 400 MWh in the last three weeks. So when you really think about the assets being able to operate, the technology being able to work out in the field, we're learning every day, we're improving the performance every day, but you can see the durability and the flexibility of the product as customers use that out in the field. That's mostly energy being generated off of Gen 2.3. I just want to be clear on when we—when you look up on the top, you know, 2.6 coming from the field, 2.2 GWh, it says FAT. I just want to be clear that that's factory acceptance testing of cubes and containers prior to being shipped from the factory, not associated with the factory acceptance testing that has been done on state-of-the-art Line 1 for the Z3. And then there's around 0.2 GWh out in the lab that totals up to that 3 GWh. Now, on the right-hand side of the page, you know, another important proof point, you know, when you think about proof points in the market and showing Eos's ability to grow into the demand that we see out in the field. First proof point we talked about today is the ability to be able to manufacture at scale. Big milestone in being able to deliver the factory acceptance testing on state-of-the-art Line 1. Second proof point is the left-hand side of this page, which talks about assets operating, discharging energy out in the field and showing that the technology works. The right-hand side of the page, I think, is the third important proof point, which is Z3 operating out in the field. You can see 3 projects that are currently installed out in the field, one of which completing its commissioning, the other two scheduled to complete their commissioning here in the beginning of the third quarter. That will then start generating and adding to that line on the left-hand side of the page, which will no longer just be Gen 2.3, will become Gen 2.3 plus Z3 operating out in the field, which is another critical proof point in how we grow the company for the future. Which takes me to page 8, which is our current pipeline, our traditional pipeline page that we talk about. Now, you'll see there's been a lot of flow in the pipeline during the quarter. You know, lead generation continues to grow. There's you know, you have to realize, like, we're showing net numbers. There's always ins and outs in every bucket, but we continue to add really strong core lead generation, which will then go into this commercial opportunity pipeline, which is, you know, technical proposals, non-binding quotes, and LOI firm commitments. You see LOI firm commitments being down from prior quarter. You know, that's a lot of that has to do with the signing of the Pine Gate order. There's also some changes in projects that we have as far as sizing of projects and projects that didn't materialize, even though we had a binding or an LOI and a firm commitment from our customers. Now, inside of that, we talked about late-stage opportunities last quarter. That stands at 1.2 GWh. The change in that number is, again, Pine Gate moving over into the booked order side, and then one project where the sizing of the project got smaller as the customer looked at their ability to generate profit off of a project and balancing the land available, the financing available, and the need for the power. So that takes that to 1.2 GWh. We continue to work across that portfolio to be able to continue to grow the right-hand side of the page, which is that backlog, which stands at $602 million today, with 2.4 GWh, up 13% from where we were last quarter. So, continuing to make progress here, continuing to have to work through putting the proof points on the board. The three important proof points that I think about operationally that lead to taking this pipeline page to booked orders, which eventually translates into revenue: having the line up and running, showing that the product works out in the field, and then ultimately, for shareholders, is working through the cost out equation to get the company to profitability. With that, I'll turn it over to Nathan, who'll walk you through the progress that the team has made here, since we last spoke, for year-end earnings. Thanks. Thanks, Joe. Thanks, everybody, for joining us this morning. I will spend the rest of the time walking through where we are on our cost out roadmap, along with our first quarter performance and an outlook for the rest of 2024. Moving to slide 10, I just want to spend some time on two programs that are critical to our cost out program and part of the manufacturing cutover that we undertook last month, and as we discussed back in December. If you look on the left, what you see here is the new lower cost, higher energy density module that was designed for further cost out, as well as being uniquely designed in anticipation of our automated line. If you remember from our last call, Joe talked about increasing the surface area of the felt on the bipolars and replacing the terminal electrodes with conductive plastic. Having more felt surface area means you have the ability to retain more energy, which has resulted in 15% more energy per module. Further, you can see the differences in the lids on these two images. The design has evolved as we replaced the titanium stud in the old design with a tab that is sealed in place with potting compound to improve manufacturability and reduce cost in the automated line. All of these enhancements take cost out of the product and improve the performance, both of which were key components of our cost out roadmap that we laid out in December. Now, switching to the inline cube. We are very proud of the team that has taken a concept and brought it to reality in just 4 months. This design was created with the intent of capitalizing on the value propositions of our Z3 battery technology, and by working with customers and incorporating their suggested enhancements that they value as our projects get larger in scale. The new inline cube has benefits in terms of the speed of loading batteries into the cube in our facility in Turtle Creek. But perhaps more importantly, it also has benefits for our customers as it simplifies site setup and site energy density, as the new inline cubes can be placed directly next to each other, rather than leaving spaces between each cube. The design enhancements seen in both of these programs is a testament to the hard work and dedication of our talented team, particularly in our research and development departments, and they have been instrumental to our cost out program. Our cube now has an energy density of up to 695 kWh for longer duration applications, and we have scheduled to further increase energy density in Q4 with the projects that Francis laid out back in December. Now, flipping to the next page, we continue to see progress on our cost roadmap that we have been talking about for the last couple of quarters. When you look at the left-hand side, you see we started off at 100% when we first launched the product, and we're now down to 59%, and we continue on our way to 20%, which would represent 80% cost out from product launch to manufacturing at scale. A lot of this has to do with ramping up the line, but also acceleration of our direct material reductions as we transition to the lower cost design and continue to negotiate strategic supply agreements with larger U.S. suppliers, as Joe discussed earlier. As of March 31st, we have locked in 55% of our direct material cost out target, and we expect to see these benefits flow through our financials in the second half of the year. You can also see on the page that we had lower overhead absorption from the prior quarter, which we discussed on the Q4 call. You will recall this was expected as we cut in some design enhancements into our semi-automated manufacturing line at the end of Q1 and into Q2, as part of the implementation of our newly designed product, as we talked about earlier. We expect to continue to have lower overhead absorption in the second quarter as we've scaled back production volumes in anticipation of the transition to the new state-of-the-art line. We feel really good about where we're at, and as we begin to ramp up in the back half of the year, we believe we will continue to see benefits through scaled production, improving both our overhead and direct labor efficiencies. Now, moving to slide 13. Before getting into the first quarter financial results, I will start with an update on our cash position as we continue to make progress on securing our long-term financing. We ended the quarter with $31.8 million in cash on the balance sheet, not including $14.5 million of restricted cash, which is primarily related to our senior secured loan. We are very focused on minimizing cash burn and optimizing working capital to support our ongoing operations and strategic objectives. As a proactive measure to conserve capital, we made the strategic decision to scale back production volumes in the second quarter and prioritize shipping new product from our automated line. While the unit economics of the new line are better as a result of better labor and overhead absorption, we still expect to be at negative contribution margins in the short term, but we do have a clear path to positive unit margins as we ramp up over the next few months. We have also been taking measures to increase cash flow and enhance our liquidity as we monetize our tax credits and collect on customer milestone payments. On April 22, we finalized our first transaction to monetize our Production Tax Credit in an agreement with Banyan Software. The sale was executed at a 10% discount to the face value of the credits, which was in line with our expectations and resulted in a cash infusion of $2.3 million. Going forward, we expect to take a more accelerated approach to monetizing these tax credits on a regular basis in an effort to offset our cash usage from operations and strengthen our balance sheet. With that, let's get into our financial results. In the first quarter, revenue was $6.6 million, flat to last quarter and down roughly 25% from the prior year on 18% lower unit volumes as we transition to Z3, combined with a slightly lower average selling price. In the quarter, we delivered Z3 systems to two customers and completed our final shipment to a key customer owned by a large North American infrastructure fund in Orchard, Texas, just outside of Houston. Cost of goods sold was $28.2 million, a 5% increase versus prior year, despite having 28% higher manufacturing volumes. Even though we saw a slight increase in COGS, we are beginning to see the benefits of the Z3 product, as we had higher manufacturing volumes this quarter compared to Q1 of 2023, when we were producing the Gen 2.3 product. The decrease in gross margins was driven by specific project revenue recognition timing, combined with the switch to Z3 cube manufacturing. Looking at quarter-over-quarter results, we saw a 9% improvement in gross margins as we continue to see the benefits of recent cost outs, improved manufacturability, and we expect to see continued improvements once we transition to our new line. Operating expenses for the quarter were $19.5 million, a 3% decrease from prior year, resulting from slightly higher payroll expenses, offset by slightly lower R&D spend. Total operating expenses included $3.1 million, or 16%, in non-cash items, including stock-based compensation, depreciation, and amortization. Our operating loss was $41.1 million for the quarter, compared to $38.3 million in the prior year, driven primarily by the decrease in revenue that we discussed earlier. Excluding non-cash items such as stock-based compensation, depreciation, and amortization, and PP&E write-offs, operating loss was $36.6 million. Net loss for the quarter was $46.7 million, a 35% improvement versus the prior year. Now, let's turn to page 14 and look at how we're planning to grow the business as we scale capacity. We continue to believe this to be a very capital-efficient business, as we are forecasting approximately $50 million in CapEx for over 2 GWh of production capacity, which is less than $25 million per gigawat hour. As we've discussed previously, and in line with our original expectations, it requires approximately $30 million in CapEx to get to 1.25 GWh of annualized capacity. This includes CapEx related to the Acro Automation line and the related investment for injection molding tooling. As of March 31, we have spent a little over $21 million and have roughly $8 million to go for the remainder of 2024. These dollars are expected to be spent over the next three quarters, with payment terms driven by progress milestones. Further, we are carefully evaluating our investment priorities to ensure that every dollar spent on capital expenditures has a direct impact on streamlining operations and improving productivity. Looking at the bottom left-hand side of the page, we are forecasting an additional $20 million in spend, which is in line with our original estimates to further expand capacity and increase the throughput of our first line to reach over 2 GWh of annualized capacity. We expect the majority of this spend to be in the back half of this year and into the first part of 2025. This investment would include automating the subassembly processes on the front and back end of the automated battery line, as well as increasing the injection molding tooling capacity to keep up with the increase in production volumes. Automating the subassembly process is aimed to enhance operational efficiency, reduce labor costs, and minimize scrap. Today, the bipolar subassembly is one of the more labor-intensive areas of our semi-automated manufacturing process, as we have teams of people manually cutting and pressing felt into the plastic bipolar with a manually operated heat press. Automating this portion of the process is expected to increase our labor efficiency by approximately 87%, significantly reducing our direct labor costs. While we look to increase capacity and automate certain processes, we may adjust investment timing as it will be tied to securing long-term funding. Finally, let's shift our focus to our 2024 outlook on the next slide. Regarding our revenue estimates for 2024, we continue to expect to realize between $60 million and $90 million based on our current production plan and anticipated customer delivery schedules, which assumes that we will be running a semi-automated manufacturing line through the second quarter and then transitioning to production of battery modules on the new state-of-the-art manufacturing line. As previously mentioned, we do expect our second quarter revenue to be lower than initial expectations as we transition to the new lower-cost battery module and scale back production volumes to better optimize our cost roadmap and conserve precious capital. Aligning our cost out roadmap with production volumes and critical customer commitments continues to be a key priority. This decrease is not indicative of a decline in overall performance, but rather a strategic shift from one period to another as a way to realize better unit economics as we transition to our automated line. We also continue to expect to achieve positive contribution margin in the fourth quarter of this year, which is defined as revenue, less direct labor and direct materials, including the benefit of the production tax credits. The entire team is laser-focused on executing the cost out program that we detailed in December, through a combination of increased production and improving operating leverage, as well as direct material cost outs that simultaneously improve battery performance and energy density. We continue to expect to reduce our total unit production costs in 2024 by approximately 76% from initial commercial launch, with further cost out to be achieved when we continue to increase our capacity in the beginning of 2025. Once we achieve positive contribution margin in Q4, we intend to increase our production significantly with every incremental unit that we produce, helping to cover our fixed costs. We believe this disciplined manufacturing approach will allow us to conserve capital as we work on securing long-term funding, and then lead to positive contribution margins in Q4 of this year. To conclude, we are incredibly confident in the roadmap that we've outlined, and the entire team is committed to meeting these benchmarks as we deliver both for our customers and the broader stakeholder community. With that, I want to thank everybody for their time and listening today. I would now like to turn it over to the operator for questions. Operator? Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment while we compile our Q&A roster. Our first question is going to come from the line of Chris Souther with B. Riley. Your line is open. Please go ahead. Hey, guys, thanks for taking my question, and, congrats on, on the progress here with the factory acceptance testing. I just wanted to get a sense, what are the areas we're still working on to hit 10-second cycle times? If you, if you could, kind of walk through some of those, areas that are a little bit slow in the line today, and then, maybe walk through the steps needed from operational and/or financial we need with site acceptance testing in order to close the DOE facility as, as we see it today. Hey, Chris. Morning. So on the line cycle time, look, there, there's two stations on what I would call the back end of the line, that we need to work on speeding up the production of those individual stations. Not, I would call from a level of complexity, not highly complex, just a matter of working through the control logic and how you pulse the batteries through the different stations. I think the team has a path on that. So we'll just continue pushing this forward. I mean, again, like with any production line, you know, we're never gonna stop making this thing better and improving upon this, and 10's not, 10's not the end. 10 is the starting line to then find productivity year-over-year as we go through this. So this is just a natural evolution. What I'm particularly proud of is the front end of the line, you know, running at 10 seconds on every station. I mean, that's been an amazing amount of work being done really by three companies, you know, Eos, Acro, and Rockwell Automation, just really pulling this together. And when you stand there and watch it, it's pretty impressive. From an SAT standpoint, you know, look, we're sitting off the shop floor here in Building 700, and the first truck is here, and they're unloading the first- ... piece of equipment onto the line as we speak. It's gonna be rebuilding that line here on the factory floor, and then running SAT to get through a successful test, which we're confident on, given where we are from a schedule. You know, we've put a lot of planning into disassembly and the logistics around how things are arriving and how we're gonna build out the line. On the floor, the team has spent the past month or so just getting the floor ready, with wiring and, you know, get prepared for electrolyte tanks to be installed, to be able to get through on the throughput. So we're pretty excited about getting through that per the plan by the end of Q2. You know, on other things, you know, like, again, like, we haven't talked about, you know, the other CPs that we have around closing the loan, but we're confident that we're dialing in with those and working with the LPO to get to a successful close here, you know, after SAT. That's great. And then, on the incremental, $20 million CapEx to expand the line, one, capacity to 2 GWh, would, would that be funded potentially upfront by the DOE, like I think you've talked about for future lines? Or would that be, back end, like we've, we've seen on the first 1.2 GWh? And I'm, I'm curious, do we, do we need that sub-assembly automation to hit positive contribution margins later this year or, or, or not? Chris, just to clarify, you know, that's not one of the positive contribution margins, our goal for the year as a company. It's not tied to the funding of the loan. I mean, when you think about the purpose of LPO, it's a bridge to bankability, so that's not one of the conditions that we have. But every LPO loan has the same mechanism in that it's a reimbursement of cost. So you would invest, you would invest that cost, and then that cost would be reimbursed. If you remember, when we talked about the loan closing, we got the maximum amount of reimbursement at 80%. So you would, you would spend that—you would spend that capital and then be reimbursed 80% of the capital spent to be able to do that work. Okay. Thank you. One moment as we move on to our next question. Our next question is gonna come from the line of Chip Moore with Roth. Your line is open. Please go ahead. Morning. Thanks for taking the question. I guess congrats on factory acceptance as well. I think, Joe, you did a good job on the last question there. Maybe you can expand on, you know, sort of what you learned during that process. And I guess, would you say that site acceptance is fairly de-risked here, just given some of those things you talked about in terms of planning for installation here? Yeah. So thanks, Chip. Morning. Look, we learned a lot through this process, right? So, going through and really when, you know, like I—look, I can't say enough about the Acro team and the way that we pulled together to get through this. I mean, you know, like, this was literally, you know, run in the morning, sit down, do, like, an after action report out, come back in the afternoon, run again, see where we improved, and just continuously dialing in how material moved and how the individual stations worked. You know, really, like, what we've learned as we've gone through this is just the consistency that you get from an automated line of how you produce and just watching that time come down. You know, when we, when we started off on this, you know, individual cycle times were above 20 seconds when we started, and you're basically... I mean, this is like running a marathon, right? You know, you, you start off, you're training, and you're, you're not running as fast as you, as you want, but the more you run, the more you run and the better you get. And I think we learned a, we learned a lot about component, you know, quality, how we feed the lines, how the, how the individual stations worked. And I think it's just, it's just pretty exciting to really think about, you know, executing this next phase of the installation. You know, like, we had a plan that said, get through FAT successfully, start taking apart this part, these individual portions of the line, get it on trucks and get trucks to Turtle Creek. And, you know, first, as I said earlier, first one's here, next 2 are arriving. We'll have three trucks worth of equipment arriving. There's a team from Acro on site. You know, if you come and look at the parking lot, there's Wisconsin license plates out in the parking lot because they're here with us, helping us put the line back together. One of the things that we did do, you know, was, we had our line operators in Acro last week for the FAT, so they've run the line. When we were building the line, we had our maintenance team there helping to build the line. That's a learning curve that as things arrive here, we'll know how to put the equipment back together again because we've done it once before. So, you know, I feel good about where we are. And again, like, we've got a fairly detailed daily plan of how we have to work through this. We'll just continue to work through this and, you know, let everyone know when we get through SAT, where we are. I mean, I feel confident, but never feel, you know, never, never, never feel like you've won the game until you cross the finish line. I think that's what we're focused on, getting across the finish line. That's great. That's helpful color. And if I could ask about liquidity, I think you talked about PTC monetization. I think maybe being able to accelerate efforts there, and then anything you can give us on line of sight on milestone cash payments or anything else on liquidity? Yeah. So on the, on the PTC, we, it was a significant amount of work to get the first deal done. As you know, the marketplace is still fairly new. We do have a counterparty that has an appetite for more tax credits, and we've already worked through all the legal documentation to get one done. So I, I do feel like we could monetize every quarter much quicker going forward, and that's our plan in order to do that. From a liquidity standpoint, look, I mean, it's consistent with what we've talked about previously, which is, you know, focused on getting the SAT completed here at the end of the quarter, meeting the final conditions for long-term financing, and in the short term, continue to manage cash outflows as efficiently as possible, while still hitting critical customer delivery dates, and then in trying to pull in customer milestone payments and deposits. So, you know, kind of balancing that in the short term as we focus on getting the line implemented and long-term funding secured. Thanks, Nathan. Maybe one—just one last one on that incremental $20 million to get to 2 iGW and automated bipolar subassembly process. I think you've mentioned sort of timing on that tied to securing longer term funding. Does that imply that that's not DOE loan is not contingent upon that? Thank you. DOE loan is not contingent on that. That would be a future event, just like Line 2 or Line 3, and that we would spend the money, apply for reimbursement, and get reimbursed. Joe touched on the mechanics of the loan a little bit earlier. I mean, once you get through the first reimbursement, that money goes into an account and kind of recycles inside the mechanism to where we can use that to pay for, you know, the next round of costs and then submit for reimbursement again. So once you get through the first closing and funding, that money kind of recirculates within the cap stack, if you will. Perfect. Thank you for the clarification. Thanks. Thank you, and one moment as we move on to our next question. Our next question is gonna come from the line of James West with Evercore. Your line is open. Please go ahead. Hey, good morning, guys. Hey, James. Good morning. So congratulations on getting the line up and running. As you guys, you know, get more experience and ramp further here, any changes to the strategy for, you know, Line 2, 3, 4, and expanding capacity further? And then did I hear correctly that you—this, what you have in the backlog should take up most of the capacity, if not all, of Line 1 for the next 1-2 years? Yeah. If we just stay pat on Line 1, yes, James, I think you know, underlying your question, you know, if you look at what's happening in the marketplace, you know, the market continues to accelerate to bigger projects with longer duration energy storage and a somewhat demand of domestic or U.S.-produced technology for energy security. All three of those things, I think Eos meets all three of those criteria. So as you look at the strategy for expansion, the strategy for expansion is going to continue to be expanding as we get backlog. I think what we've learned going through the line with Acro on Line 1 is we can convert these lines in relatively quickly. And we're only gonna add that capacity as we see the backlog firming up and the pipeline firming up to be able to produce. Right. What we don't wanna have is, you know, like, really want to avoid, you know, capacity chasing orders versus orders wanting to get in front of capacity and us investing our capital when we have the orders to be able to deliver, and that will continue to be the strategy. Now, what I think we're seeing is a building storm, if you will, inside of what we're trying to do in the country and also, you know, starting to see Europe and India and other, and Australia and other places go through the same acceleration that we're seeing in the U.S.. So I think demand signals will continue to strengthen. The entire philosophy of how we came up with our manufacturing capacity strategy was build it in lines, make the lines incremental, spend capacity as you need it, and if you have demand signals that come from other places, you would then expand into other buildings. So this isn't, this isn't like, you know, I don't think our... You know, our strategy has never been a 10-gigawatt-hour factory in Pennsylvania. It's build out Project AMAZE in Pennsylvania, and then look where you can reduce logistics costs by colocating a factory near demand, and that will be the next phase of the growth as we get through this first part here of getting the line up and running and delivering. Okay. Okay, makes sense. And so, to push go on kind of a Line 2, would you need to have it totally sold out, half sold out? What’s kind of the gating factor or the data point you need to see before you commit to it? So look, I think we look forward on a rolling basis, 6, 12, 18 months. You're gonna be looking out on the 12- 18-month demand signal and wanna have... You know, in my view, you're gonna wanna be close to that 50% mark. Okay. because you can absorb that and continue to make profit off the line. Like, when you look at, you know, and this, you know, just if I take back your question, James, and kind of link it back into, like, our second quarter numbers, you know- Right. If you look at what happened in the quarter to us on the page where Nathan walked through cost out, we don't wanna have capacity sitting there under absorbed that drags down the performance of the company. So like when you look out, you say, if I get to 50% on a line, I can absorb that capacity and still get to break even positive on a contribution margin basis. And that's how we'll make the investment decisions. But at the same time, you're going to be weighing the opportunity pipeline on what's out there for conversion into orders over that 12-month time period, to take that 50% that you're locked in on and increase that as you go - as you move forward. I think that's going to be the best way for us to continue effective utilization of capital and deliver a company that has profitable growth. Okay, got it. Thanks, Joe. Thanks, James. Thank you. One moment as we move on to our next question. Our next question comes from the line of Joseph Osha with Guggenheim. Your line is open. Please go ahead. Thanks. Good morning, everybody. I did want to return quickly to this issue on the DOE side. I guess I'd gotten the impression that site acceptance was the really the major thing that we had to deal with prior to the initial draw, and that it might be reasonable to expect that to conclude by the end of Q2. So I guess I'm asking, A, are any of these other CPs really material hurdles in your view? And B, are you still comfortable telling us that, you know, we should get there by the end of Q2 in terms of the initial draw? I think this. So you asked a couple of questions in there. One, we're on schedule to get SAT done by the end of the second quarter. That is a significant CP in terms of the DOE. There's obviously, you know, we've, we've got to submit our eligible expenses. They've got to review, they've got to process, they've got to reimburse. We've been led to believe that's probably a 30-day turnaround time. And so and that is, you know, there's other smaller CPs, but we've always been focused on the SAT. I think that is the that's the big one we've got to focus on. And so I would anticipate, you know, closing funding several weeks after that. So I guess, let me try it a different way. Do you believe that you're gonna be in a position then to give the LPO the, you know, relevant documentation by the end of the quarter? So, Joe, they'll be part of the SAT process. Okay. You know, as they have been all the way through this. I'm not gonna, I'm not gonna make a commitment on the, on the cycle time and the processing time of an external entity, but we feel like we'll be able to show them that the line is running to the performance that we signed up to in the loan. And then from there, as Nathan said, we have to go through the process of reimbursement of the cost, review of the costs. Okay. All right. Thanks. That's, that's helpful. I have some more, but, I'll take it offline for later. All right. Thanks, Joe. Thank you. One moment as we move on to our next question. Our next question comes from the line of Martin Malloy with Johnson Rice & Company. Your line is open. Please go ahead. Good morning, and congratulations on all the progress you've made, including the cost out initiatives. My first question, I just wanted to ask about customer conversations over the last couple of months, and if they've changed. You know, we're hearing in the press a lot more about utility companies increasing their expectations for demand and data center power needs increasing and them wanting power as quickly as possible and reliability. Can you maybe talk about anything you're seeing with respect to that maybe has changed with customer conversations or new customers in the last couple of months? Well, Marty, I think you see it in the growth of the opportunity pipeline, you know, on a quarter-over-quarter and year-over-year basis. You know, yes, I mean, there's a lot there. There are conversations we're having on the data center side. We feel like we've got a really good solution for data centers, and we always have to remember, you know, data centers, there's two types of energy they're looking for. There's the emergency response, which we are not, and then there is the operating and providing the energy for the data center, which I think we have a good fit for. You know, we continue to work through with multiple customers on multiple opportunities and just see that this is an emerging realization of there's a lot more power demand out there, and long-duration energy storage can help fit and, and, and deliver that demand requirement, and, and we have a solution that, you know, fits that really well. Great. For my follow-up question, just wanted to ask about maybe initial thoughts on the impact on Eos from the tariffs that were announced yesterday, and how that might benefit Eos in your domestic content that you have? Okay. I mean, Marty, I think from the standpoint of wanting to bring manufacturing back to the United States and wanting to invest in manufacturing and wanting to not just bring it back, but also incentivize the growth of companies like Eos, I think it's a great, you know, it's a great piece of legislation, both not just for energy storage, but also for EVs. I think the timing of when it comes in for energy storage times well to when we'll be up at scale and running as it gets into 2026. I think when you take the combination of the tariff, the fact that, you know, we're above 90% on U.S. content-... So the investment tax credit that the customers get and the, and, and the energy security piece of this, let's not downplay that. You know, I think you now have a, you know, a, you know, really good conditions for companies like Eos to grow in the future. And I've said many times, you know, you know, we're gonna need more than one Eos to be able to, to be able to meet this demand. You know, we're gonna-- we're- we've been positioning the company very purposefully for the timeframe that we're, that we're talking about as, as growth hits. And I think, Marty, the other piece that I'd like to talk about is, you know, the, you know, going back, linking your two questions together. You know, in my, you know, nearly six years here with the company, the, the overall industry has changed dramatically. You know, I think, you know, when you look at when I first came here, we were talking about energy storage for minutes, maybe if we get 2 hours, 4 hours being the goal, to now talking about +6 hours, large scale. You know, like, when you look at what the team has been able to do here in transitioning from Gen 2.3, which, you know, 6 years ago, would've been a product that could have met that market, that was much smaller, with a much more bounded use case, to coming out with the Z3 and the work that the team continues to do, it positions you perfectly for, you know, for the market, for the future of the market, where the market's gonna be in the future, not where it is, today. And I think, and I think we're just gonna keep working on that and keep improving what we have and keep driving costs down and keep getting a U.S. supply chain to deliver the energy security and a competitive product that meet the future demand that we have for, for energy. Great. Thank you. I'll turn it back. Thanks, Marty. Thank you. One moment as we move on to our next question. Our next question comes from the line of Thomas Boyes with TD Cowen. Your line is open. Please go ahead. Appreciate you taking the questions. Maybe just two quick ones. You know, great to hear that you're at 90% for, you know, kind of domestic content. Can you get to 100% at some point? Is that, is that the ultimate goal, or there may be some things that just can't ultimately be insourced fully, even over the longer term? So yes, you can get to 100%. You know, it's a goal we've put out there for ourselves. I think when you look at, like, the core portion of what we do, you know, the, the components and the, and the battery, the software and the BMS, yes, 100%. That's, that's the goal. Other ancillary things or maybe some hardware and fans and other things that might not come from the U.S., but, but what we're marching to as a team is, you know, how close can we get to 100%? And again, like, part of that also is, you know, making our supply chain simple and making it easy to work and control and get quality from our suppliers, versus adding the complexity of trying to do this globally when you're a small company. I mean, I think the fact that, you know, we went with the strategy of let's look at... You know, really, when we started, it was North America and then honed down into the U.S. It's made our ability to grow the company and switch over to the Z3. You know, it's enabled us to be able to do that because everybody's close by. You can actually talk to people face-to-face and go to their facilities, and they can come to our facility, and it just allows you... You know, innovation requires getting in a room together and working through the challenges to get to an innovative product, and having it local makes it simpler and faster. Excellent. I appreciate the insight there. Maybe just the last question, when you know you're expanding capacity for Line 1, do you need to kind of pause production at some point so that work can be done, or can it occur concurrently with you know operations? It sounds like it can, based on kind of how you laid it out on the call, but I wasn't sure. It's concurrent, so it's not... It's feeding parts into the main line. You know, we've been working on this as far as getting a conceptual design done and doing some pilot testing, and then we'll launch the full automation of the bipolar production. But that happens as an input into the line, not on the line itself. Appreciate it. I'll hop back in, Jim. Thanks. Thank you, and one moment for our next question. Our next question comes from the line of Vincent Anderson with Stifel. Your line is open. Please go ahead. Yeah, good morning. You know, it's been said already a few times, but I think it was barely a year ago when I was out in Turtle Creek watching you use a jerry-rig T-shirt press for prototyping the Z3 cell. So to go from that to an automated production line in barely a year is really honestly impressive. So I wanted to echo the congratulations just one more time. Thanks, Vincent. You settled on ramping Line 1 to 2 GWh. Can you just maybe talk me through what led you to that decision versus building out a second line first? And then you touched on this already, but maybe just initial feedback from your automation partners on the sub-assembly step. So let me start at the end there, and I'll work my way back, Vincent. So, on the sub-assembly work, you know, we feel confident that we'll be able to do this. Like I said, there's been some pilot work done. You know, part of... We've already, I'd say, on our terminal manufacturing, we've already automated that process, so that is a very similar manufacturing process. We feel like automating the other sub-assembly is gonna give us better, obviously, consistency of parts coming off of a line. You know, we feel confident that we have a layout and solution that we can execute on, and we've done some testing on individual processes. So we followed the same playbook that got us where we are, which is get your discrete processes within the manufacturing, get them working on an automated fashion, and figure out how to move things between their individual stations, and that's really what we're working on now, with Acro for the sub-assembly piece of it. You know, that's gonna help us, I think, like, you know, on your question of why not go for a second line? You need the sub-assembly, you know, to feed two lines, you need the sub-assemblies up and operating at that line rate. We've always known—we've always planned that. And I think that would be a fast follow, depending on where we are with the backlog, to launching the second line and getting the profitability where it needs to be. I think, you know, the main goal, if you go back to what we said in December, Vincent, is, like, continue to drive the cost out program. You know, we're making good progress on bill of material costs. You know, as Nathan laid out on his page, it's now about utilizing your labor and your capacity to its fullest to get to position the company to become contribution margin positive, and then go into cash flow positive as we get into 2025. The Line 2 launch comes down to allocation of capital and us getting the company to where we're generating the cash to be able to do that, tied in with the funding from the DOE loan. The only thing I would add, Vincent, is just efficient use of capital, right? The first 1.25 GWh was $30 million. For an incremental 20, we can effectively double that, within our existing footprint, within our existing square footage. So from a capital efficiency, it's more efficient to just increase the capacity of the first line than to go and build the second line. Okay, that's perfect. I appreciate it. And, I know we're coming up on, on time here, but I had a few questions all kind of related to, the commercial side of things, so I'm just gonna try to speed run them. You know, when I think about the, the cubes that are being installed or they are installed, hopefully they'll start up soon. When I think about the marketing value of the data they're going to spit out, are we thinking about this as, you know, those customers that have received those cubes are going to turn around with that data and hopefully put in more orders? Or is this more about Eos collecting that data and having something to point to, to other customers in the pipeline, in order to generate additional orders? Yes. It's in both. Yes and yes. Yes and yes. All right. Beautiful. That's exactly how that, that's gonna work. Okay. And then, Joe, maybe I'm misinterpreting or overinterpreting this, but you specifically pointed to FAT rather than site acceptance testing as being the stage that was really important to your potential customers. I'm curious, did you have potential customers come in and view the line while it was at Acro as part of their diligence to help accelerate the pipeline conversion? We've had customers go visit Acro. I think my point, Vincent, is like, you know, when you... You know, part of the challenge of this, you know, road that we're on, is there's been people before us that have tried and haven't gotten there. So when you talk about being able to automate production, a lot of people question, can you do it? Because we've seen a lot of other companies try and not get there. Being able to say, "Come out and let's watch it, stand there with a stopwatch and time the individual stations," and when people start timing it, you know, and maybe they use a stopwatch or maybe it's kind of like, you know, flag football, where they're counting 10 Mississippis and saying, "All right, that's 10 seconds." I mean, it proves out, it proves out to people, like, this can really happen. It's not just a concept. And there's a lot of people, Vincent, that have, you know, kind of where you started on the call, which is, "I came to Turtle Creek, I could see the potential of where you can take this," to, "Wow, you're doing it, and this is great." And, and I think that, that's just, you know, it's a, it's a show me game. I've said this many times, like, you know, we've got to show people and earn the right to grow this company and showing people, you know, FAT in it. And, you know, when I talk to customers about this, it's along the lines of: We've created a line. Do you think we can't take it apart and put it back together again? And that's where we are when I think about FAT. Perfect. And then, I'll just one last one here, for you, Joe. Your alma mater there at over at GE Vernova. It's now kind of through the distraction of, you know, becoming an independent entity. Just curious where you view them in kind of your value chain, particularly given their position in wind energy, and if that's a, you know, a pretty actionable partnership opportunity going forward? Yeah, I mean, look, Vincent, I mean, you know, congratulations to Scott Strazik and the team there. Having done it on a much smaller scale, like, you know, I can only imagine how excited they are to be able to be focused on the energy industry. There's always opportunities to partner with anybody that has, you know, production, you know, whether it be wind turbines, whether it be solar modules, whether it be, you know, gas turbines. You know, there's a ton of opportunity to be able to do that. Won't comment on any specific conversations with any players, but, you know, there's a lot of opportunity here as we, as the market starts to evolve, and we continue to put the proof points out on the product. All right, excellent. Thanks again. All from me. Thanks. Thank you. I'd now like to hand the conference back to Joe Mastrangelo for closing remarks. Hey, thanks, thanks, everyone, for being on the call today. I really, really appreciate the time. You know, again, you know, proud of the, proud of the team and the work that they've done. Really, we've got to continue executing, and the challenge now is taking what has been a very detailed logistical plan and turn that into a line on the, on the factory floor that's pushing batteries off that line every 10 seconds. And, you know, continuing to get the product out in the field commissioned and up and running, and just continue to show the value that the Z3 brings to the, brings to the market and how and the need that it fulfills in the future energy demands for the world. And we're just gonna keep working on that every day. There's a lot of work left to do, and that's what makes the job both challenging and fun at the same time. There's a group of people here that I couldn't be prouder of calling my colleagues because of the energy and enthusiasm and dedication they put into building a successful company. This concludes today's conference call. Thank you for participating.