 And welcome back to the Independent Investor Channel all for the loyal subscribers to the message. I appreciate you. Thank you so much for being part of this community and continuing to footstomp the message on what I consider to be a very frequent product that I put out every week. You know, in the eyes of the stock market, we really need to focus and have perspective on how frequent a weekly upload is for a company like this that is evolving in its mission to be a leader in electrified powertrain solutions. I cover highly on it is my favorite company to cover. There's a few others that have been introduced into the fold. I am a value investor at heart. I do dabble in some speculative investing and consider this to be just that. With that said, they have ample funding to see their business plan through until commercialization, which in all estimates is expected to come to fruition the end of 2023 going into 2024. I'm interested in the prospects of the OEMs being able to handle at least those initial orders that have come through. I do not have any clarity on that front to report to you guys. I do apologize. I've been off the cuff a little bit with some professional engagements. So I'm coming back in the pocket a little lean on information. I did in fact pull in with the Discord group about 10 minutes ago and asked them to give me some ideas about some of what they expect. Now, we are in quiet period right now. Earnings Call are expected here November 9th going into Earnings Call this week. So I'm happy to report to you guys to keep your ears open for any new developments along the timeline. I will ask you to mute your expectations going into this Earnings Call. I know I'll say that tongue-in-cheek and people will get emotional no matter what and lose their marbles and start pissing their pants. When Hylian comes out and reports $458,000 worth of earnings for this quarter, anything less than a half a million bucks is probably expected. Anything over will be a pleasant surprise. You remember quarters past, they discussed Q4 as probably being at time when most of the earnings will be made up. I'm not really sure what data they're pulling that from. We're just in an ice age right now with the company. We are evolving along a timeline that Thomas Healy has laid out for investors to understand. And quite frankly, I actually think the timing of it is just fine. It's allowing ample time for Hylian to continue along their fleet validation through not only the Innovation Council but some of the private companies as well that have placed orders with Hylian. And it's important that once things soften up a little bit, I'm speaking specifically about the supply chain issues. I think Hylian is going to be well positioned to benefit from a shift in sentiment. I think the space in and of itself has a very interesting tailwind behind it. And that I think that the movement toward lowering carbon emissions and environmental stewardship for these companies that are interested is not going anywhere. I think the initiative is here to stay. I think companies like Hylian and a few others will benefit from the paradigm shift in a massive $1 trillion industry here. I'm speaking specifically about the Class 8 trucking space. And I think that Hylian is well positioned here both financially as well as progressing along their timeline to finalize their product, get it through its final certification stages. Each of the different companies that are boasting solutions now are really trying to get to that end stage and get their product into the hands of fleets to be either engaged in their respective operations and or Hylian is taking a little bit different approach in that they want to have those fleet validations prior to the ramp up of commercialization. Fantastic. I have to defer to their expertise in this and trust that by spending that extra time and validation is the smart approach. And I actually concur with that approach. I think it's a good one. I think it's prudent. I don't think there's any real reason to rush to market now. The sentiment in the market in 2022 has just been a wash. Sentiment is horrible. The VIX is remaining very low right now. And I think perhaps maybe we're shaping up to enter into more of a getting worse before it can get better stage. And I think that will be time that's well deserved and will be able to be capitalized on by Hylian to make sure that they can enter into the back half of 2023 with all of the checkboxes here marked. Okay. A couple of things I want to talk about here. This would be a shorter video this week. I don't have a whole lot and I'm not going to be long winded about the content that I want to release. But just a few things to highlight. We've talked about earnings this week. I want to talk about the importance of independent thought in your application. It's amazing the amount of scrutiny that we want to award to people who are taking a strategic shot on an opportunity. I want you to understand a little bit my independent thought. I'm going to give you some insights. Perhaps maybe there's investors out there who are overlevered to the position. Perhaps maybe feeling a little bit down because it seems that the stock can't go up. Now we've got some pretty good reprieve over the last couple of weeks in Hylian. If you haven't noticed, you know, but the stock being down 90% plus, you know, from its highs just two years ago, it almost seems like a slight give back and less of a sucker punch to see the stock kind of recover here. I don't know if it'll enter into a tailspin. Anything that is not absolutely over the moon, specific to earnings is not received well in the eyes of these markets. They have been extremely bad markets. And if you're not really beaten on the top and bottom line and really have bullish projections for the future, which a lot of companies are having struggles with that expecting that 2023 is going to be a real struggle going forward with margin compression for a lot of businesses and consumers losing confidence in what it is that they're doing and inflation riding at a fairly high clip compared to what it's been over the last decade which has been really, really low and manufactured low, I might add. We just don't know where we're going to end up. And so there's a lot of unknowns right here, but I just want to stress to you guys to understand how important it is to have independent thought understand and always revisit why it is that you got involved with the opportunity. And there's a lot of exciting things to understand about this young company. And I just want to break it down in a couple of ways that are going to help you understand my thought process when evaluating not only Hylian, but other companies that have a wonderful idea and or have the finances to see that through. And it's very important to have both and very few companies have both when they're in the early stages like Hylian and find themselves in this predicament with a recessed stock price and looking to either deploy capital to gain awareness on their company so that they can attract new investors, attract new customers, share the word, make their products performance known to the fleets that they're looking to serve. And I really want you to understand that Hylian's cash position right now, which will get more color on this week with regard to their current cash burn where we are, they are fully funded through their projected business plan and then some I do not see them running out of cash before they are able to execute along their business plan. And I look at that as getting them through mid 2024 at the very, very least. And it's not to be underscored the importance of that cash hoard that they have. It's extremely important. I do cover the micro cap space with relative frequency. And it's amazing to me how a lot of companies out there might have a market cap of $40 or $50 million and they've got $3 or $4 million in the bank. Okay. A lot of what Hylian is being valued out right now is based against that cash hoard. And I don't know how much value is really being put on their technology, their product development, any orders that have been placed on the order book of backlog and the reservations that come with the business. I would presume since in this exacerbated sell off, not only with Hylian, but the grander market itself, Hylian has suffered and I don't think they would have gone anywhere but south no matter what they did. I really think it's been that bad of markets. And what I mean by that is on the onset, there was a lot of hype around their ability to garner reservations. I know there's been a lot of heartache with the agility order, which we've heard nothing on since that I have no reason to believe that that order still isn't pending. And on the books, I do believe that agility still has that opportunity, but it's way, way premature and it's safe to understand why these companies are not making this commitment to this early on in the game. On the flip side of that, there are a lot of companies, both private and public, that are part of the Innovation Council that are placing these binding orders with Hylian and feel comfortable doing so. And I think you have to provide some level of credence toward that. Now, I think Mr. Market is probably awarding very little value to that side of the business because it is generating such anemic returns as far as the top end revenues go zero profit up to this point. They're going to have to reach a breaking point here in Catalyst where they're turning in some predictable numbers quarter over quarter before the market even gives them some credit. And they haven't turned that yet. They really haven't. But in comparison, I want you to look at the market cap of Hylian at around $450 million of market cap with their $500 million in cash hoard and ask yourself how much value you put on their ability to enter into a 2023-2024 time frame and start to generate some real revenues. That's the real question for me. And that is really the bullish thesis that I have is to suggest that they will. There's no guarantee of that. There's no guarantee that we don't get to 2023 and Hylian does what they've done for the last couple of years. And that is unfortunately, I might suggest that they've disappointed in their ability to garner over the moon interest in their product. Now, they may have that interest on the back and they may just have that brewing behind the scenes and ready to announce because they're not made official or some of the fleets right now want to keep their competitive interest a secret, which is what I would want to do. I wouldn't want to openly admit to looking at this technology because then my competition is going to understand where I'm sniffing around. So I think a lot is going to change. I think once the certification achieved, I think that's going to be one of many notches on the Hylian belt and specific to the timeline that's been laid out on previous quarters in understanding what timeline we need to walk. And I think that's going to be a big one. I think the continued fleet trials is really going to add to that product category that I talk about. So I want you guys to understand my thought process and evaluating this company and understand does Hylian has ample funding to get it to that commercialization stage that we are inevitably walking toward? Yes. Does Hylian have the product development? Remember, some companies have testing and validation and proof of concept, but they don't actually have a real product and they need funding to make sure that that idea that they have comes to fruition at some point in their future. And that's the real dilemma with microcap investing is you have to go through those deliberations and assign a value or a margin of safety that you may have in the probability of those companies that you're looking at deploying said capital to reach that end. And if they never reach the end, the company ceases to exist and it goes away or it gets gobbled up by the majors and their intellectual property that comes with it. So when I look at Hylian and I look at those two fronts with their current cash position in and of itself, healthy, you have to suggest that it's healthy at this point. The bears would suggest that they're going to burn through all of their capital and they're going to have to do a capital raise at some point into the future. Fine. You're absolutely entitled to your opinion. But until we reach that end, it is safe to say that Hylian as it stands right now is in a cash healthy position. They are in a cash rich position, at least to get them to where they suggested that cash would take them. And no, no further. Okay. At some point, this dream has to stop burning cash at 125 to 135 million dollars per quarter of cash burn, excuse me, per year of cash burn. Every quarter is about 30 million, 35 million of cash burn, around 30 million is what they're looking at right now. 35 million or so they've revised down just to touch for their yearly cash burn, which is ample cash to take them to the final stages of commercialization. And they've picked up some acquisition along the way, the Carnot generator, et cetera, et cetera. That's plenty enough time to generate whatever necessary churn. Thomas Healy, the board and the executive team thought was going to be there in way of interest that they've heard from the fleets in understanding what the fleets want on the back end in way of a product. So the question becomes where is Healy on in their product development? And do they have the necessary cash infusion to make that progression along that timeline in an efficient manner? And when I look at those two fronts, when I evaluate Healy on, I think they're very healthy on both fronts. A lot of people will say, well, why isn't Healy on selling products right now? That's kind of a futile argument. Again, everybody's entitled to their opinion to come and voice their frustration about blah, blah, where the company is and why they're not selling millions of millions of dollars worth of product right now. But it's safer and much more prudent to suggest that it's ill time to make those observations now in accordance with what the company is communicating to shareholders and customers alike as to when that expectation can be made known. So very, very important. I just want to earmark the fleet trials that are occurring, specifically highlight Wegmans here in New York, Green Path Logistics up in Canada, as well as Detmore just saw a post to see the ERX down in the Permian Basin, which is all the majors are there. So it's a great advertising. It's great to see the ERX. I was a little surprised. I wasn't sure that the ERX was quite the right application for the Permian Basin because I thought that that would have been more of a prudent application for the hybrid EX product to provide that additional horsepower for those heavy loads. But evidently, the use case has been evaluated or is currently being evaluated by Detmore Logistics. Remember, they've put in a large order backed order backed by deposits for the hyper truck ERX. And they're probably interested in that data collection initiative as a company to make sure that the ERX is going to fit into their fleets. But look at that geographic diversity amongst the Hylian community right now. And that's just three players in the space. Now, GPL is in bed with a lot of players out there. GPL is 100% run on alternative fuel solutions. So what a fantastic advocate. When you take and you multiply that factor by the many companies out there that Hylian has put out there in the public domain for public consumption, it becomes very, very safe to say that is it fair to give Hylian a zero value multiple for all of these relationships that they're establishing. Perhaps maybe if your thesis is such that those relationships will not materialize into something and that all of those customers will opt for a different product and move away from Hylian and their opportunity and the products that they bring to bear altogether. Again, entitled to your opinion, I would like to suggest that these are only the building blocks to a foundation to a future that is going to probably involve at least a good majority, if not all of these customers. Now, I'm a little biased on the product because I think Hylian has far and away the best product on the market. I believe that they do the best job in eliminating barriers for would be customers rather than actually creating barriers to entry to the BEV fleets as well as the hydrogen technology right now. I actually think that they give the most practical solution to fleets right now to enter into a lower carbon future, one that is less dependent on diesel future and in the hyper truck ERX's case, full electric and meet those demands of our largest cities here to go carbon free and be able to make those deliveries within the cities and to do that right now. So I think it's very, very exciting when we're looking at the continued fleet trials. I think all of the research and development that's gone into the learnings that are being extrapolated right now from the fleet trials by Hylian is absolutely going to pay dividends down the line and hopefully these fleets are finding out that this is indeed a very viable solution for them and they can start to really articulate what it could mean for their fleets. Look, there are still a lot of unknowns out there with regard to that give back from the fleets. That is going to be really the substantiating factor when we're evaluating the potential of Hylian based on how much interest they're able to garner and so we can start to articulate how much follow on business that could be garnered and how willing these fleets are to partner with Hylian long term and really start to understand those fleets that are putting in those initial orders. Could there be a follow on order? Will those orders increase in size and magnitude? Will it amplify and once you start to see that type of activity as a domino effect within each of the respective fleets that's when we can understand and articulate that it's not about the 10 orders backed by deposits rather the follow on order for let's say a fleet that is boasted like NFI for example of 4500 trucks to suggest that look they feel confident in making X number of orders I wouldn't suggest maybe 50 or 100 which represents a tiny portion or percentage of their fleet dare I would suggest that 25% of the NFI fleet which is imaginable if the OEMs could actually take on that order load and provide that back to the fleets now I don't know who NFI's OEM is I don't know if it's Peterbilt or Volvo or international and I don't know all of these fleets that Hylian is boasting an OEM agnostic solution for the fleets that they're not all run through Peterbilt okay now Peterbilt is going to get the first iteration but by creating that churn within the industry and their respective customers that they're looking to serve should feel for that backfill and pressure against the OEMs to actually deliver not only a truck that is boasted by Freightliner but also a truck that's that's backed by Freightliner with the Hylian solution attached to it now the real question for me is the step up into mass scale how is that going to happen what is that going to look like I'm baking in a little bit of trust in my thesis here guys and I think there's a lot of investors that have the same questions as me with regard to what this is going to look like on the back end as we approach into 2023 and 2024 are we going to be you know uh disappointed again with continued orders of five to ten that's not going to keep the lights on at Hylian Hylian needs at least 30 million in revenue per quarter to get to that break even now I think once we start to get to that 25 to 50 million dollars which represents a pretty good swath or a pretty good chunk let's just call it about you know one third of the projected cash burn that they'll incur every single year at least on the onset I expect that cash burn to increase incrementally but once we start to get to those projections and those trajectories for sales are moving north and to the to the right then we can start to put together an expected timeline for future earnings and revenue and the market is having a very difficult time and understanding of Hylian quarter over quarter is turning out revenue of a few hundred thousand dollars that's immaterial and they're not going to give it they're not going to get any credit for that because the gap between those projected earnings and what they need as a as a break even figure are so far apart and it appears on the surface that Hylian is going to run out of cash if if their trajectory cannot be presumed that the EX sales are going to garner an increase in sales or that the interest in the hypertrek ERX is such to project that the fleets are going to be overjoyed and and and provide such a level of interest that is going to allow Hylian to really scale up scale up in their commercialization efforts then this story will die on the vine okay and Hylian is not the first company that is against the wire I would suggest just like any other company okay now that cash that they have buys them time yes but the time is now to continue on building that baseline toward that commercialization and I believe that they're doing that I absolutely do they're building their team they're building their reach they're bringing on everything that they need to expand their research and development imagine the research and development that's going on right now with the Carnot generator so really pursuing a lot of different fronts right here with the ability to put the ERX into service under the fueling envelope of CNG and RNG is just fantastic I mean if they had massive scale up capability right now they could put those trucks over the road right now minus the fact that they don't have certification yet that's why I think that's going to be one of those barriers that's going to be a nice catalyst going forward for the company when they're able to achieve those certifications and I expect those certifications to come through early in 2023 the last thing I'll mention here in the weekly update to the Hylian video is the technology performance is something that does not get discussed very often they've kind of revamped this section of the Hylian.com website where they talk about the kind of the cutting edge and how the technology separates the battery management system the onboard co-pilot the predictive maintenance and the algorithmic data that is continually being updated and sent to the cloud to basically build a smarter truck and hopefully provide the logistics and data points that would perhaps maybe even prevent those down times due to breakdown and I think that this is a big value proposition for Hylian I think it's another skew of their business and in way of making an additional stream of revenue and I believe that based on our previous discussion about where I think the value is being added it's kind of hard to ignore the cash hoard that they have and I think that's what makes up a big big swath of their value now as the cash burns down the business has to pick up on that value proposition otherwise this company as they lose cash and their inability to make revenue that is you know noticeable I'm talking about tens of millions of revenue guys dare I suggest that they need to get this revenue up into the hundred million dollar category so that they can start to supplement that cash burn with top and bottom line revenues and dare I say the potential to mark march towards some inevitable profit on the bottom line I don't think the company needs to be profitable here for for many years I don't what they need to provide is the ability to garner top-end revenue and and start to really separate on some of those margins that they had projected earlier on in some of their early projections to allow some market analysts to have some comfort around Hylian's ability to scale their business it's really just that simple it's not difficult at all and whether or not these value propositions like the technology are going to be acknowledged by those companies out there that are using and enjoying the technology and might I suggest actually enter into maybe a subscription model with Hylian it'd be awesome to see these number of units out on the road at times x number of subscription models to the fleet time will tell whether or not they're able to leverage that technology and and and draw some revenue to help supplement the the top line there as we approach those metrics again I feel like Hylian right now is kind of in the ice age I think we're kind of in a in a interesting period right now where the information we have not had an order for for quite some time and and you know to solidify that that order book is something that I've called upon as being important I don't know if it'll accelerate into this year the end of this year I don't know if it'll accelerate into next year as fleets feel more comfortable that Hylian is progressing toward that ability to make good on those orders and furthermore that the OEMs will be able to handle you know a few thousand orders that could be projected to come through I mean Hylian's got to do five thousand orders if the OEM is not going to honor but more than a hundred orders you know per quarter this story will be acquired it will dissolve away Hylian has to make orders to make this thing work it's just that simple the bowls of the company understand that I'm one to profess and throw it out there you know a lot of bowls approach the story with a little bit of naive trust I'm here to tell you the the the the the the obvious case in Hylian is such that they have to improve upon that order book is it worrisome at this point that they have not built upon that order book for the last oh six eight weeks since the last order was was announced sure you know they were they were garnering some pretty good orders what's happening right now are they making orders are they not I you know it's it's an interesting period right now that we enter into a phase of you know very little transparency on what's going on and you know the presumptions start to stretch out on feeling very very confident in what's going on or feeling like is because we're not getting those orders because there's a lack of fleet interest yeah I don't know I think Thomas Healy needs to do the best job he can and continuing to provide that transparency to the very investor class that quite quite honestly are holding on right now to a thread the stock has not gone up since it's been a public stock let's be real and it has not gone up it has gone nothing but down insiders have done nothing but sell shares institutions are acquiring those shares but the confidence from the management I just reviewed a micro cap company that I'm going to be covering within the next couple of days that is 50 percent owned by the insiders it's a 40 million dollar market cap and narya will you find any type of insider selling of the company it just speaks to the conviction of the product and when you have that many stock sales that are registered to the ledger it you cannot help but to understand and to watch the continued downturn of the stock to understand that those people who sold actually made the right move right and these stock sales coming from the insiders unfortunately have not been backed up by insider buying they're not buying at these low prices why is it so out of the blue for the bear case to understand that we may end up going lower if the insiders are continually communicating that the interest behind the hyper trucker rx is just over the moon and that industry is just falling all over themselves to find this then why aren't they buying shares of the company on the inside fair question to ask only time will tell I haven't seen a lot of selling from the top man and I think that's good I think that's well timed perhaps maybe the exhausted selling perhaps maybe is has run its course and selling here at three dollars a share probably isn't in his best interest perhaps maybe exercising the right to hold is the prudent move as we march forward but guys as we approach this earnings week I would uh caution each and every investor out there to have some muted expectations mine are on a scale of one to ten my expectations are zero just being fair when we enter into these phases and if highly on does what it is that they are projected to do my confidence in what I expect from earnings call will improve right now it's zero I expect nothing I expect nothing I expect five hundred thousand dollars of revenue I don't expect anything more than that I expect that they'll have to rush to make up this ex revenue they're doing in in shop installs and how much are they making on that stuff 40 50 thousand a pop that's that's not going to keep the lights on and that's not going to pay the salaries of the employees for the inevitable future if highly on expects to have a future we'll be looking for color around progress along the timeline that is what is more important than the than the projected revenues for q3 as we waltz into the final quarter of what has been a dismal quarter all the way around for not only highly on highly a year it's been a dismal year for not only financial markets but highly on but we'll be looking at that progress we'll be looking at any alibis tomas ealy usually does a really good job of providing some nuggets of progress and the progress is multifaceted they're working on a ton of different initiatives with the carno and building the team working with their new team out of Cincinnati you know there's a lot of things going on that he can report on and and I expect to have some color on those things during the call and also it will be john pancer's opportunity to provide his first earnings delivery on an earnings call I will be pleasantly awaiting his delivery and and and hearing his command over the financials in the company and listening for any details or any insights that he may provide in addition to what sherry baker has provided over the previous years in service as the cfo and that'll be an interesting kind of a refreshing shift in listening to what john brings to the table and delivering his financial remarks so that's what I've got for this week guys coming into earnings call good luck to everybody I would expect you to pay attention sit through those earnings calls and the earnings presentations the investor presentations tomas has done a pretty good job of of addressing shareholders over the last six months the the information has been acceptable I think the pressure that he's been putting on the marketplace has been appropriate and that's appreciated from a would be sherry wolder a singular voice in the company that's long on the company and believes that their best days are in front of them that's for sure I appreciate you guys tuning in to this weekly highly on video and update if you do appreciate content like this I would invite you to subscribe to the channel I'm pretty forthcoming with my message I have no motives or intention here to somehow hype the stock I am aimed at producing some education over a company that I feel like has fallen victim to a pretty too much a tumultuous market here and I do believe that the future is bright for the company I believe that the tailwinds in this specific industry is very real I think the paradigm shift is one that is slow going but it is very real and I think highly on stands to profit from it and I think they're in the driver's seat with regard to producing and providing a product to industry that really solves a lot of the industry heartache and a lot of the industry problems right now and I think highly on unlike a lot of the other companies or one company that actually listens to their customers and it's one of many bullish reasons why I'm a bullish shareholder in the company and looking to provide that transparency from my perspective through social media on a weekly basis guys thank you so much for tuning in to the message and good luck in your investment future