Good day, thank you for standing by. Welcome to the Hyliion Holdings Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. After the management prepared remarks, there will be a question-and-answer session. I would now like to turn the conference over to Kellen Ferris, Hyliion's Director of Investor Relations. Kellen, please go ahead. Good morning, everyone. Welcome to Hyliion Holdings' fourth quarter and full year 2022 earnings conference call. On the call today are Thomas Healy, our Chief Executive Officer, and Jon Panzer, our Chief Financial Officer. A slide presentation accompanies this conference call and is available on Hyliion's Investor Relations website at investors.hyliion.com. Please note that during today's call, we will make forward-looking statements regarding the company's business outlook. Forward-looking statements are predictions, projections, and other statements about anticipated events that are based on current expectations and assumptions, and as such, are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the forward-looking statements on this call. For more information about the factors that may cause the company's results to differ materially from such forward-looking statements, please refer to our earnings press release as well as our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements. We undertake no duty to update this information unless required by applicable law. Now I will turn the call over to Thomas. Good morning, everyone, and thank you for joining us today for our fourth quarter and full year 2022 earnings call. We have a lot of exciting news to share with you about the progress we've made over the past year and our plans for 2023. First, let's review the key milestones that we achieved in the fourth quarter of 2022 and for the full year. We hit another milestone on the path to commercialization of our Hypertruck ERX powertrain by starting winter testing. We also completed the first full year of revenue generation and achieved our latest revenue guidance for the year. We added another 10 orders for initial Hypertruck ERX production slots, bringing the total up to 210 units. In addition, we acquired the KARNO generator technology, which will give us a competitive advantage by having a high-efficiency, fuel-agnostic generator. We've increased our workforce by over 50 employees during the year, including our CFO, Jon Panzer, and our Chief Strategy Officer, Cheri Lantz. We also added Jay Craig, the former CEO of Meritor, to our Board of Directors, and he recently took over the chairman role. We also expanded our relationships with both PACCAR Peterbilt and Cummins, which will help us scale our solutions and bring them to market more quickly. We made great progress on the regulatory front as well. Our technology will be included in the Inflation Reduction Act and is expected to qualify for CARB's Advanced Clean Trucks and Advanced Clean Fleets mandates, which define clean truck production and adoption requirements for OEMs and fleets. These are all significant achievements, and we are proud with what we have accomplished. Shifting back to the Hypertruck ERX powertrain milestones, as a reminder, we initially shared this commercialization timeline back in 2021. For five consecutive quarters, we have hit every milestone on schedule since then. During the quarter, we checked another box on our commercialization roadmap by initiating winter testing, which includes putting our powertrains through its paces in northern environments where most battery electric vehicles really struggle due to cold weather. Because our powertrain has a CNG range extender, it can operate more reliably and over greater distances than a pure plug-in vehicle. We've been pleased with the results thus far. While we've encountered some opportunities to strengthen components, we do not expect anything we've experienced to date to adversely impact our plans to start commercial production of the powertrain later this year. Having completed summer testing and initiated winter testing, we are beginning to build the next generation of development vehicles that incorporate all past learnings. These new vehicles will continue to go through validation testing but will also be used for expanded fleet trials throughout 2023. As we head towards the start of commercial production late in the year, I'm also pleased to share that we are on track for obtaining CARB, EPA, and NHTSA certifications in the second half of the year, which we expect to be our final milestones before delivering units to fleets. Late in 2022, we received an order from DSV for 10 Hypertruck ERX units with an option to buy 10 more. DSV is one of the largest third-party logistics companies in the world and is focused on expanding its U.S. business with these trucks deployed out of the Dallas region. DSV shared with us that they are seeing growing demand for their customers to offer emission-reducing solutions such as Class 8 trucks with the Hypertruck ERX powertrain system. We are excited to work with DSV and to continue growing our customer base while we help them grow theirs. We've also continued to execute additional controlled fleet trials, recent completing one with Ruan, moving goods for one of their largest shippers. Ruan is not only a Hypertruck Innovation Council member, but they also placed an order for 10 production slots. Ruan is committed to climate change initiatives and has a vision to transition to more sustainable movements of freight. As we go through additional fleet trials, we expect to continue to grow our backlog of orders for production slots. Various other fleets have told us they are interested in the Hypertruck ERX powertrain but would like to see us reach additional development milestones prior to participating in fleet trials or placing orders. We therefore believe that we will see more firm orders from customers as we approach our commercialization goal late in the year. I next wanna provide an update on our Founders Program. As mentioned on our last call, we are calling our initial deployments of trucks our Founders Program. We'll provide white glove service and we'll have a launch facility in the Dallas region to support and service these trucks to ensure a positive customer experience. We are researching the best facility location for our needs in Dallas, and we'll look to share more later in 2023 as we make progress. We also anticipate that the launch facility will be the location where we deliver new trucks to customers as they go through end of line certification at the Peterbilt plant in Denton, Texas. Shifting to a regulatory update, as a reminder, there are three main incentives or initiatives that we are pursuing, the Inflation Reduction Act, CARB Advanced Clean Trucks, and CARB Advanced Clean Fleets. The IRA provides a $40,000 tax credit per vehicle. A truck with a Hypertruck ERX powertrain qualifies for the same incentive as a plug-in electric truck. ACT is a CARB mandate on OEMs to drive the production and sale of vehicles that qualify for zero emission vehicle credits in the years ahead. According to this regulation, our Hypertruck ERX system qualifies for 75% of the ZEV credit that a plug-in electric truck or fuel cell truck will qualify for. ACF is similar to ACT, but is a mandate on the fleets to purchase zero or near zero emission trucks. ACF is still in the drafting stage, but as it stands today, the Hypertruck ERX product will qualify for 100% of a ZEV credit or the same value as a BEV or fuel cell truck. CARB has recently proposed some changes to ACF, where fleets can seek exemptions to delay compliance with the policy if either clean trucks are not available for purchase, or if there are documented delays associated with installation of on-site charging infrastructure. In a recent meeting, CARB confirmed that exemptions will not be offered to fleets if a near zero emission vehicle, like a truck with a Hypertruck ERX powertrain, is available to be purchased. We are pleased with how ACF is shaping up as we believe CARB's policy recognizes the value that our range extending electric powertrain system plays in the transition to cleaner operating vehicles, electrification of trucking, and meeting broader sustainability goals. Shifting gears, as we kick off 2023, we are excited to announce that we are undertaking the development of a fuel cell truck under a collaboration agreement. As you know, we've showcased a three-stage development roadmap for our Hypertruck powertrain that starts with a CNG engine as the range extender generator. We then replace the CNG generator with the more efficient KARNO fuel agnostic generator, and finally transition to a fuel cell powered truck. In 2022, we announced Cummins is our supplier for the CNG engine, and we also unveiled the KARNO as our fuel agnostic solution. We believe that our roadmap aligns with the need to transition to electric powertrain solutions in a manner that evolves over time, along with availability of clean fuel sources and charging infrastructure. It also leverages the ability to retain most of the same powertrain components across our vehicle platforms, including the axles, batteries, electric accessories, and most importantly, the software that controls the entire system. While we believe CNG will be the fuel most prominently used in the near term for range extender electric vehicles, we also see the market evolving towards greater electrification based on hydrogen as a fuel source. Initial adoption of hydrogen vehicles will likely occur in a regional fashion around new fueling locations designed to support trucks. As more stations are built out and the cost of hydrogen comes down, we expect to see adoption grow and applications shift from regional to include long haul. We are pleased to announce that Hyzon Motors is our collaboration partner in the development of this fuel cell powered vehicle. Together, we will integrate the Hyliion electric powertrain system and the Hyzon fuel cell into a Peterbilt chassis. Hyzon is an industry leader in the production of fuel cells, and Hyliion is an industry leader in developing electric powertrain solutions. We are excited to have our teams working together to develop a prototype hydrogen fuel cell powered vehicle that we expect to be the predecessor of a commercial version of a truck in the future years. We expect to complete the development of this truck later this year. By advancing our product portfolio with a fuel cell solution, we are positioning Hyliion to be ready for growth in the demand for hydrogen powered trucks in the coming years as new sources of hydrogen fueling become available at lower cost in strategic markets. We are excited about this collaboration and the opportunity to work with the Hyzon team and its fuel cell technology. More to come later this year. Before handing it over to Jon, I'd like to take a moment to acknowledge the passing of our former Chairman, Ed Olkkola, who was not only our Chairman, but also an initial investor in Hyliion. He passed away on December 15th after a long fought battle with leukemia. He was a mentor to our team, and his contributions to our success will always be remembered. I am extremely grateful for everything Ed did for me personally and for Hyliion. With his passing, Jay Craig has taken over as the Chairman of the Board, and we're excited to have him in this role. With that, I will turn the call over to Jon. Thank you, Thomas. Good morning, everyone. Turning to our financial results for the fourth quarter, we reported revenue of $1.1 million related to hybrid sales, including three trucks outfitted with hybrid systems, compared to $500,000 in the third quarter of this year and $200,000 in the fourth quarter of a year ago. Operating expenses totaled $31.6 million for the quarter, up from the $26.6 million we recorded a year ago in the fourth quarter, but sequentially lower than the $34.1 million we reported in the third quarter of 2022, after excluding the $28.8 million accounting impact from the KARNO acquisition we closed in September. I want to also note that this is the first time we are recording a full quarter of normalized expenses for the KARNO operation in our financial results. R&D expenses totaled $21.8 million, up $4.4 million from 2021, but down about $2 million from the prior quarter, again, after excluding the impact of the KARNO purchase accounting. SG&A expenses for the quarter were $9.7 million, up $500,000 from 2021, but down $500,000 from the third quarter as we are starting to level out the growth in spending on overhead costs. In total, Hyliion reported a net loss of $29.4 million for the fourth quarter, which is nearly flat compared to the net loss of $29.6 million we reported in the fourth quarter of 2021. Comparing the two periods, operating expenses were about $5 million higher in 2022 than 2021, but were mostly offset by a smaller gross loss and higher interest income on our investments. Sequentially, our operating loss of $29.4 million was $5.2 million lower than the loss we reported in the third quarter of 2022, excluding KARNO accounting, with improvements in all areas, including lower gross loss, lower R&D and SG&A expenses, and higher interest income. Turning now to the full year, revenue was $2.1 million on sales of hybrid systems and full trucks. Thomas mentioned this is in line with our most recent guidance of approximately $2 million in hybrid revenue for the year. Excluding the KARNO acquisition adjustment in all results, total full year operating expenses were $123.6 million, $30 million more than we reported in 2021, driven mostly by higher R&D expenses, which were $81.6 million in 2022 compared to $58.3 million in 2021. The increase in R&D expense was driven by a full year of development and testing work on our Hypertruck ERX powertrain system, as well as component purchases for development trucks we built in 2022 and additional units we plan to build in 2023. Full year SG&A expenses totaled $42 million, up $6.7 million from a year ago. Net loss for 2022 was $124.6 million compared to $96 million in 2021. I want to note that full year operating expenses of $123.6 million that I mentioned earlier were about $6 million lower than our most recent full year forecast of $130 million, primarily due to delays in R&D services and components that were pushed into 2023. We ended the quarter with total cash, short-term and long-term investments of $422 million compared to about $455 million at the end of the third quarter, with the $33 million of cash used during the period accounted for almost entirely by our net loss in the period, and also increased prepaid insurance expense. Looking forward into 2023, we expect to continue to deliver hybrid systems and full trucks with hybrid systems installed at about the same quarterly rate as we averaged in 2022 or about $0.5 million revenue per quarter as we move towards commercial launch of the Hypertruck ERX system. We plan to start delivering production versions of the trucks with our Hypertruck ERX system in the fourth quarter of this year. Initially, we do expect these sales to be recorded at a negative gross margin due to the start-up nature of our commercialization activities, including component procurement and truck assembly. Over time, we expect our cost of sales to be reduced, driving positive margins. We expect our full year 2023 operating expenses to be in the $130 million-$140 million range. This estimate reflects our continued focus on delivering the Hypertruck's ERX system in late 2023, also transitioning from largely research and development activities more towards testing and commercialization support. Also, as noted earlier, we are beginning to level off growth in SG&A expenses, a trend which we expect to continue in 2023. We plan to continue to grow our in-house engineering and development resources in 2023, while simultaneously reducing spending on outsourcing of these services. Included in our projections for 2023 spending is additional development work for our KARNO generator, the fuel cell truck collaboration program with Hyzon, and other platform development projects that leverage the Hypertruck ERX system. We continue to believe that we have sufficient financial resources to fund current commercialization activities for our Hypertruck ERX powertrain, as well as for initial development activities for the KARNO product and the Hyzon collaboration project. We noted last quarter that we expect to see increases in working capital for 2023, primarily as we acquire components needed for assembly of production trucks later this year. By beginning to acquire some parts in the coming months, we will reduce the risk that supply chain issues delay our planned start of truck deliveries. Finally, we expect to see an increase in capital spending for the year as we build out our Austin headquarters facility to support truck assembly work, construction of a product validation facility, and investments in the KARNO generator, including additive printers and test cells. Although it is still early in the year, we expect total cash used in the year to support our operations, capital spending, and working capital inventory build to be less than $200 million, compared to $135 million that we used in 2022. With that, I will turn it back over to Thomas for closing remarks. For our closing remarks, we have a few exciting updates and events to share with you. First, we wanna highlight that we will be exhibiting at the ACT Expo in Anaheim, California, in early May. We'll be showcasing both our Hypertruck ERX and KARNO technology. We'll have a KARNO generator in our booth, as well as the initial proof of concept semi-truck utilizing a KARNO generator. This will be the first time ever that the KARNO technology has been publicly displayed. At the show, you'll also have the opportunity to see Hyzon's fuel cell that we'll be integrating into a Hypertruck. We are excited to share our progress with the industry and connect with other leaders in the space. In early January, I participated in a panel at the World Economic Forum in Davos, where we spoke about how the grid is or is not able to support EV charging and how solutions like the KARNO generator can produce electricity locally in a distributed grid model to help ease the charging infrastructure issues. We also spoke about how range extender vehicles like the Hypertruck can help avoid many of the infrastructure problems. We encourage you to watch the panel discussion on our YouTube channel, as well as our recently released educational video on what size batteries are truly needed for EV trucking. We are pleased to announce that we will be hosting an Investor Conference at our headquarters in Austin, Texas, on June 27th. We'll be showcasing our existing technology and some of the future advancements we are working on. We encourage all of our investors and interested parties to attend and learn more about our vision for the future of electrification. In conclusion, we are very pleased with the progress we have made over the past year. We have achieved significant milestones, expanded our customer base, and made important regulatory strides. With our continued focus on innovation and collaboration, we are confident in our ability to lead the industry towards a more sustainable and efficient future. Thank you for your ongoing support, and we look forward to updating you on our progress in the months ahead. With that, I will open the call to questions. Please go ahead, operator. At this time, in order to ask a question, press star then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Bill Peterson from JPMorgan. Your line is open. Good morning. This is Mahima Kakani on for Bill Peterson. Thanks for taking our question. Hi, there. Could you please tell us a little bit more about if the Hyzon collaboration could potentially change the timing between the KARNO and the fuel cell launches and or the key markets addressed? Absolutely. You know, first coming to market is going to be the Hypertruck ERX, which is the CNG range extender solution. In parallel, as you know, we're already working on the KARNO development vehicle that will be first showcased out at the ACT Expo here in just a couple of months. You know, as we announced today, we're gonna start working on a fuel cell development vehicle as well. In terms of timing of those solutions, the one advantage that a fuel cell solution does have is just it's less regulatory compliances that we need to go through in order to bring that to market. There is some acceleration of the development schedule there. In terms of actual timing of when we'd be ready to bring that to market, we're not ready to share yet just 'cause, you know, the agreement with Hyzon is really around this initial development vehicle, proving that out, showing to the market that our powertrain is able to incorporate a fuel cell just like it can incorporate the range extender CNG, the KARNO generator. Then from there, we'll showcase the solution with customers, and we'll work with Hyzon to determine, how we see best fit to potentially bring a solution to market and what the timing of that would be. You know, more to come on that end, but, you know, as your question is pointing out, there are, you know, easier, or I should say less barriers to bring a fuel cell solution to market just because of the regulatory side of things and the zero tailpipe emissions. By all means, the team's focused on ERX as the first one we're bringing to market, and that'll be in start of production later this year. Got it. Thanks for that color. Maybe as a follow-up to that, is the Hyzon collaboration, let's say that the proof of concept kind of meets your expectations, will that be the primary fuel cell strategy going forward, or is it part of a larger hydrogen strategy from Hyliion? Yeah. As I think we've probably been, you know, pretty bullish on is, you know, we see hydrogen as being a fuel of the future, but the biggest question is just when, right? You know, even where we sit here today, hydrogen costs are still much, much higher than diesel even. There's only a few stations out there where you can actually refuel a hydrogen vehicle, a semi-truck. From that standpoint, we really see hydrogen as being kind of a localized delivery, and we expect there to be, you know, interest from fleets and demand from fleets in those areas. For the real, like, you know, vast majority of the country over the road trucking, we definitely see natural gas and renewable natural gas especially as being the fuel of choice. We've gotten, you know, as a company, we've gotten some question marks or maybe even criticism in the past of, like, are we gonna be ready when, you know, hydrogen is available? Are we gonna be a true contender at that point? That's one of the reasons why, you know, we wanted to make sure we fulfilled the roadmap that we had, the three-stage roadmap of including a fuel cell as well, because we wanna show that whenever hydrogen is ready, when those costs come down, when infrastructure gets built out, we're gonna be able to have a solution that is piggybacking on a powertrain that, you know, by that time, we expect we'll already have millions and millions of miles proven out with the CNG range extender. You know, we wanna showcase that we're gonna be a strong contender in the hydrogen space as well. Thank you. Really appreciate it. Your next question comes from the line of Andres Sheppard from Cantor Fitzgerald. Your line is open. Thank you. Hey, Thomas. Congrats on the quarter, thanks for taking our questions. Quick question on our end, a bit on the quantitative side. You know, as you approach start of production, second half of this year, you have the 210 orders, which was increased from last quarter. How should we be thinking about gross margins? I know you don't guide those, but, you know, should we expect those margins to perhaps turn positive by the end of this year, or are we more realistically should we be envisioning, you know, 2024 as a more feasible timeline? Thank you. Hi, Andres. This is Jon Panzer. I'll take that question. We mentioned that we're gonna be commercializing the truck later this year, so, we're gonna start making deliveries sometime in the fourth quarter. We don't know exactly what date or how many. I wouldn't assume in 2023 that we would see positive margins. You know, as we mentioned, there's some inefficiencies with starting out and component costs are higher when you're purchasing them in lower volumes. We're actively working to turn those positive, and that's gonna be from more efficient assembly, better procurement, and also just engineering changes to the truck. It's a little bit too early to predict, but you can be sure that's our, besides delivering a reliable truck, that's our number one priority for the future. It's a little bit hard to predict exactly when that will be. Understood. Thank you, Jon. That's helpful. Maybe as a follow-up, I'm curious, maybe Thomas, maybe this one a little bit more for you, is what kind of trends have you been seeing on the supply side, right? Obviously, supply chain disruptions has been a big problem for the entire industry. Just curious what you've been seeing and, you know, maybe any thoughts for 2023. Thank you. We're definitely seeing the, I guess the hurdles that were in place of the supply chain markets over the past couple of years. We're definitely seeing those easing some. You know, we're not seeing suppliers continue to extend their lead times. If anything, it's starting to go the other way of, they're achieving the lead times they told us, and in some instances, moving in the lead time. I think everything's heading in the right direction of the supply chain markets. The next thing that we hope to see, and, you know, we're gonna obviously push on this with our supply base, is to start to see the pricing reduced back to where it was or start to head towards the levels it was, pre this, you know, kinda shakeup in the supply market. That'll be one of our big pushes here. You know, one of the things maybe just to parlay this question into another topic is just, you know, we're starting to see BEV vehicles get out into the market, get out into customers' hands, and the question is: Where is the customer demand gonna lie? What's been interesting, and, you know, we've kind of forecasted this a little bit in the past, is we're seeing that fleets are really struggling with these BEV vehicles. They're seeing charging as being a massive issue, the cost of infrastructure, the uptime of the vehicle, the amount of time that it spends having to be recharged. All these things are just factors that are really hurting fleets' abilities to adopt a BEV solution, which is then, in return, actually causing more demand and more focus on our solutions, which is great. Just to put an actual story to that, we were with a fleet not too long ago who did adopt some BEV vehicles, some plug-in vehicles. The, you know, very senior executive there came back to us, and their comment was after their experience with BEVs, while he's at the company, they will never adopt another BEV vehicle again into their operations just because of how many hurdles and headaches they had with trying to adopt a BEV, but they see our solution as being very practical. That's some positive news for the path we're on, most definitely. Appreciate that context, Thomas. Very helpful. Maybe one last one, if I could squeeze it in. It's just remind us again on your capital needs, kinda what your expectation is there, obviously funded through start of production, but any additional color there? Yeah. This is Jon again. I'll summarize that. We finished the year with $422 million of liquid assets on our balance sheet, so capital that'll be available to us when we need it. We spent, I think it was roughly $135 million last year. We also guided to spending somewhere under $200 million this year. The unknowns there is just our, you know, working capital build and how many trucks we sell by the end of the year. You know, somewhere south of $200 million. It's gonna leave us over $200 million by the end of this year is our projection. That, you know, that leaves us in good shape, we have no plans to r aise any capital this year, and it puts us in a great position to even start 2024 as we start to ramp up sales. Excellent. Thank you very much. Congrats again on the quarter. I'll pass it on. Thank you. Thank you. Your next question comes from the line of Donovan Schafer from Northland Capital Markets. Your line is open. Hey, guys. Thanks for taking the questions. I do wanna start off just actually by offering you my condolences around Ed's passing. I know he was an early investor in the firm. I think he even had sort of like a COO role for some stretch of time, and I think it goes back to, like, 2016 or something. I know he was there for a long time, you know, no doubt. I'm sure that he will be missed. You know, just wanted to, yeah, pause and. Appreciate that, Donovan. Thank you. Yeah. Turning to questions. The Hypertruck ERX ramp, you know, you guys hinted on some of talked about some of this with, like, working capital and supply chain and sourcing and all that. Of course, I think we would all love to know and have a crystal ball for exactly what the Hypertruck ERX ramp will look like in 2024, you know, following the initial 200 or 210 units. Thinking about, you know, second quarter, third quarter, fourth quarter of 2024. I'm guessing it's far too early for you guys, for you guys to give us anything on that. Of course, if you can, please do. If not, what I'd like to know is, at what point do you need to start, you know, making procurement decisions? You know, when procurement decisions and other things. Like, when do you need to have your own internal view in place for the number of units, you know, you would need to be able to produce in Q2, Q3, and so forth? You know, what's the gating point or the point this year where you would need to start making some of those decisions? Sure. Yeah, as you led in with the question, it kinda hints into, we're not ready to share just volume expectations for 2024 at this point. You know, we are confident and are gonna work very hard to make sure we achieve what we set out of delivering all those 200 vehicles by the end of Q1 of 2024, which is gonna be a great ramp-up for the team. You know, in terms of, you know, the procurement part of it that you mentioned, it's a great question 'cause as we shared in past earnings calls, we were starting to pre-buy some of the things for these initial 200 trucks just to make sure that we had them in plenty of time. You know, supply chain markets, you know, it varies based on components, but usually probably at six months is a fair bet. Some components are longer than that, some are much shorter than that in terms of when we would need to be placing orders. But for kind of analysis purpose, I would use kind of that six-month mark of when we would need to be placing orders before actually making the deliveries with the customers. We're obviously working very closely with Peterbilt and working through the availability of trucks, and we feel confident for those initial 200 builds. We're in good shape there. You know, one thing to highlight on that end, just, the Peterbilt relationship is going well. We continue to make great progress with them. Actually, one of the big milestones for the team internally here was just recently we did the first build of a decontented truck off of Peterbilt's line that was spec'd specifically for Hyliion. As we've talked about in the past, you know, in the early stages here, we were kinda taking full trucks and we were taking components off of them and then having to discard those or sell those components. Now we're moving forward with being able to source chassis and trucks directly from Peterbilt that are built how we need them to be, which is a huge milestone, and we expect that relationship to continue to grow as we move forward here. Okay. Thank you. That's very helpful. For the winter testing, given that you've, you know, you've already begun the winter testing, I'm sure it's not, you know, complete or you would've said it was finished, and I'm sure that some amount of assessment has to have this, you know, full start-to-finish scope for an assessment. You know, I'm curious if there are various incremental phases for the winter testing or any, you know, discrete points where, you know, it allows you to give us some color or some updates on how the vehicles have been performing so far in the winter testing. Also maybe any new insights from that versus the summer testing. You know, I know, like you talked about frustrations with BEVs, you know, in the, in cold weather. You consume a lot of energy with heating, you know, the cab. With something like a natural gas generator, you get waste heat from that. That's why heating isn't really a problem in an internal combustion engine. Curious, you know, comparing and contrasting winter-summer testing, you know, benefits and just any incremental updates from what you're seeing so far? Absolutely. A few different parts to that question. I'll start off with, is it still ongoing? Yes, it is. Actually, we, you know, we're still in the middle of winter testing right now, and we're gonna continue it on. Actually, you know, we just have made some design improvements to the vehicle. The next batch of vehicles are just starting to hit the road. Actually, as we were getting ready for this call, we noticed that there's already been some pictures of the truck out on the road, the new design, the updated design. We're excited to have that already underway. Testing will continue. In terms of what we've learned thus far, there have been learnings, right? The philosophy with testing is you wanna push things to the point that you break them, so you figure out where the weak points are. We're doing just that. What I will say is, nothing that we found in testing thus far has made us have to go back and rethink the timeline that we're on. That's a huge win. The learnings have been learned anywhere from, you know, water ingress, you know, areas, things like that, to improve connectors, to improve designs of sheet metal to improve, you know, nothing that's major though. As well as we've even had learnings on some of the components that we're sourcing from, whether they're brand new or newer companies in the industry to well-established, been around long-around for a bunch of years, but they're new into the electrification space. We've been able to give feedback to those suppliers as well and help them through continuing to iterate the designs of their components. You know, the last part of your question was kinda summer versus winter. You know, I think winter is normally thought of as being, you know, very, very difficult for electric vehicles, and it is because you need to use a lot of your battery capacity to actually heat the batteries 'cause batteries don't like to be cold. One of the nice things that we have as an advantage, as you pointed out, is we can actually use the natural gas generator during that time to be producing electricity, to help with powering the vehicle. Thus, you know, we don't see as much of the negative performance attributes of cold weather. It doesn't affect our powertrain as much as it does a BEV. Overall, been very pleased with the testing, though. Okay. If I could just squeeze one last question in about kind of, you know, there's originally, there's sort of the 200 production slots for the Founders Program tied to the launch facility in Dallas. Now you've got the incremental 10 units ordered by DSV. As we get incremental orders and things that come in, so we add on to that initial 200, are those going to be folded into that same idea of like a Founders Program and they get that kind of, you know, white glove treatment you talked about with additional servicing and monitoring and everything out of the Dallas facility? I think you kind of hinted at that in your prepared remarks, but just wanting to clarify how to think about incremental orders in relation to the initial 200 that were kind of highlighted as this Founders Program. Sure. You know, we anticipate the Founders to be those initial 200, and we worked with the fleets to, you know, make sure that those vehicles were gonna be coming through Dallas and using the launch facility. Coincidentally with DSV, the area that they're gonna be operating these vehicles is out of Dallas as well. You know, we're gonna use the launch facility to assist with their vehicles in addition. As we go forward, you know, we plan to loosen that constraint of wanting to make sure the fleets are gonna be coming through Dallas and really just make it a solution that's available across the country. Obviously, if a fleet's coming through Dallas then we're gonna use that launch facility. Just to put some more color there, we are still in the process of identifying where that facility is exactly going to be located, where in Dallas. We're also exploring, you know, fueling options, having fueling on-site versus potentially just having a fueling station nearby that the trucks can fuel up at. We're on a good trajectory to have all of that complete by later this year when we launch the vehicle. You know, we'll be supporting those initial ones or other fleets that are in the Dallas area out of that location. When you talk about potentially doing that service, you know, elsewhere as you expand, you know, in other markets. The idea is this type of white glove, you know, talking about like a white glove service, that's a service you would actually intend to have available. It's not something where it was just, "Oh, here's the first 200, you know, we wanna really make this a flawless, perfect thing, and all the learnings and everything involved, so it's just white glove for the first 200." You actually, that's something you at least wanna have available as an option, going forward and in other markets. Is that correct? Maybe just to try to put a little more color to it of how we were thinking about it. For the first 200, we're approaching it where it's critical that we get as much learnings off of these initial vehicles as possible to make sure that the design is robust, there are no failure points that we see coming up. You know, what we've asked the fleet is, even if the vehicle is working perfectly fine, they aren't experiencing any issue, we still wanna get eyes on the truck to make sure that it's working as we would expect it would, and we don't visually see anything. Obviously, we're gonna be tracking the data 24/7. That's, that's kind of the agreement we have with those initial 200 trucks. As we go past that, the goal would be that, you know, we're only gonna be, you know, getting eyes on the vehicle if there's a routine maintenance that's scheduled or if there was an issue on the vehicle. Maybe that's more the difference of kind of the white glove is us, kind of creating an arrangement with the fleet where we're maybe more involved than we normally would be once it's into normal volume production, versus after the 200, you know, we want the fleets to use it like they would any other technology that's on the truck. Okay. Thank you. That's very, very helpful. I'll take the rest of my questions offline. Thanks, Donovan. Again, if you would like to ask a question, please press star one on your telephone keypad. Your next question comes from a line of Avi Jaroslawicz from UBS. Your line is open. Hey, good morning, guys. Avi on for Steve Fisher. Jon, I think a couple of questions on OpEx for this year. One is just how should we be thinking about SG&A for this year? You know, I know expected to be leveling off, but does that mean kind of flat with last year or increasing for some part of the year and then flattening out from there? Also in terms of the R&D expenses, can you maybe bucket, you know, how much of the R&D is geared towards commercialization this year versus development of future products? Sure. First of all, in the SG&A, you know, the guidance there is really just to indicate that on the SG&A side, the administrative side of the company, we're starting to kind of reach maturity and where we don't need to build a lot larger organization. To your question, it's I don't wanna you know, I don't wanna split hairs here, but it's, we just see it kind of leveling out. You might look at more fourth quarter and just say, "Hey, that's, you know, give or take a number like that." Of course, it grew a little bit. It looks like, you know, it grew a little bit less than 10% last year. So that fourth quarter might be a good point to just look at. You know, I don't wanna overplay it because we could see opportunities to expand or grow, but we just don't see that right now. Then again, it's a way of just saying, "Hey, we're focused on R&D, we're focused on the product versus the administrative side." Then on R&D, you know, we're shifting over. There are, you know, from R&D to testing and then certification and then into commercialization support, the activities that Thomas was talking about in terms of just making sure we have a good product that we can support in the field. We are shifting over, starting to shift some of that R&D into the, like the Hyzon project, certainly over to KARNO, and some other things, you know, other products and opportunities that we'll talk more about when we get to our Investor Conference later in the year. Yeah, it's gonna start to shift. You know, there's not a lot of value in trying to parse it out too finely, but we are definitely starting to shift into newer things and exciting things, as we get to the commercialization point on the truck. Got it. Appreciate those. Then Thomas, so in terms of the strategy for the fuel cells, can you explain like why the fuel cells are better to use than the KARNO generator? I know that, you know, you mentioned in terms of the regulations, no tailpipe emissions, the KARNO generator seems like it shouldn't really be emitting a whole lot. I know we discussed some of the tech behind it. Just trying to understand, you know, the advantages of the fuel cell versus the KARNO generator. Sure. On the fuel cell side, you hit the nail on the head. It's a, you know, zero tailpipe. It only runs on hydrogen versus KARNO brings forward this opportunity that it's fuel agnostic. It can run on natural gas, it can also run on hydrogen. When it is running on natural gas, you do have, you know, tailpipe emissions, but we're seeing that they are significantly [audio distortion] better than the NOx emissions that a internal combustion engine would be producing. Similarly, you know, on hydrogen, you are gonna have a very, very micro amount of emissions, but, you know, you do still have a tailpipe coming out of it. In terms of efficiencies, though, we actually expect that the KARNO is going to pull forward better efficiencies than a fuel cell. I think, you know, what we're gonna see is likely for some of these areas where the stations are already built out, we are gonna see some fuel cell adoption. Hyzon already has a customer base that they're working with. We'll work with Hyzon in going and seeing customers presenting this solution. We do expect that we will have interest on the fuel cell. As we look at, you know, kind of more the over-the-road long-haul trucking, we think KARNO is what is gonna be chosen by fleets because they could have a solution that's really future-proofed, right? You could use it for natural gas, you could also use it for hydrogen, and the generator can go between those various fuels without a problem. We're pretty bullish on the opportunities that KARNO has, but it is still a technology that's in development. So that's why, you know, we are including the fuel cell as well. One other thing just to highlight is, you know, around the certification. You know, one of the questions for a long time has been, even with the ERX, are we gonna be kind of pulled into the government mandates that are out there, ACF, ACT, IRA? We're seeing probably across all of our product portfolio, the ERX, the KARNO, and the fuel cell, that all three of those are gonna be pulled in. One thing to highlight there is just recently there's been a lot of discussion around ACF, which is the mandate that's in draft format by CARB. Little color on ACF. Fleets have been actually pushing back on CARB, saying they're looking for exemptions from ACF, and that they don't need to adopt vehicles till later on than what CARB is proposing. One of the exciting things for us is recently CARB had a call where they reiterated and expressed that if a near zero emission vehicle that has the correct performance characteristics is available, they're not going to grant fleets extensions for not being able to get infrastructure, not having vehicles available because CARB is viewing it and saying that that near zero emission vehicle is good enough, you know, is good, that they should be adopting, so they're not gonna get an exemption. That's a huge win for us because now, you know, fleets will be, you know, kind of forced into adopting a near zero emission vehicle, even if a BEV vehicle isn't available. Obviously, you know, we're one of those vehicles, and they could adopt us during that time or long term and still get the same credit. Long-winded answer there, but wanted to touch on a couple of points for you. Got it. That makes a lot of sense. Appreciate the time. Thanks. There are no further questions at this time. Mr. Thomas Healy, I turn the call back over to you for some final closing remarks. Terrific. Well, we appreciate everyone joining the call today. A lot of exciting news. You know, we're excited about the announcement today around the demo vehicle with Hyzon. We encourage everyone to, you know, that is interested to please either attend the ACT Expo that's happening in early May. We're gonna be showcasing a lot with the ERX as well as the KARNO. Or if you're interested in as well, please join us for our Investor Conference, which will be happening at our headquarters on June 27th. We expect to be able to really showcase a lot of what we're doing live during that investor meeting. Appreciate everyone taking the time, and we look forward to chatting again next quarter. This concludes today's conference call. Thank you for your participation. You may now disconnect.