 back to the Independent Investor Channel. This will serve as a closeout to 2022 for the coverage on highly on holdings. It's been a real roller coaster ride cover in the company. We will continue to cover the company, but as these full years come and they go, these are probably the most important videos that I put out in my cover of the company for you guys that are new to highly on holdings. I am a share owner in the company with probably just over about 20,000 aggregate shares, some long call contracts, as well as a base position of around 18,000 shares. I am actually establishing a new position of cash and monitoring the stock closely here as it's really sitting just south of the $3 mark. I feel like we are just dabbling along a severely disconnected bottoming of the company and based on this news here in 2022 closing and entering into 2023. I think it was the best quarter that I've covered on the company and for the summary in 2022, I think it's worth acknowledging that I've entered into quarters with zero expectations and not surprised at all by the lack of deliverance. So my bottom line up front for you guys with regard to the 2022 year-end call for closing out 2022 and closing out the quarter Q4 quarter, I was extremely impressed now this summary from some of the statistics that were put out there and pulsing the community. I think a lot of people thought that it was a muted quarter and a muted as expected quarter. I am not trying to be a stick in the mud and be disagreeable, but I do disagree with that. I do. I have a sheet of information here to talk about. I'm going to try in this summary to provide you as much of my insight as I possibly can because we are working with a severely disconnected stock from the company. I've touched on this for many, many months. The disconnect cannot be any more real than it is now. The company is being priced in the stock market as a liquidation company. Right now, market cap sits at around 550 to 600 million on any given day. We're sitting on orders of 210 slots that are ordered and backed by deposits, 210, as well as an additional 2,000 in writing reservations. You take and you qualify those just over 2,200. Let's just call them quasi orders, 210 of those we know are going to be filled by the end of this year and the remaining 2,000 reservations represents a total top line revenue potential of close to a billion dollars, 884 million to be exact. Now, if Hyliion realizes zero margin on any of those, we are talking about a massive revenue potential here, 210 of those orders we know is a foregone conclusion. 84 million of that is in the books. We know that. When we talk about a 2.1 million revenue going into close of 2022, which is an increase from 2021 going from no revenue booked to revenue booked in the last five quarters. You do have the first quarter dipping into Q4 of 2021. Then the subsequent four quarters of revenue generation for the companies being driven specifically by hybrid EX sales. Very impressive here when we're talking about a baseline in a company that's being priced for liquidation. You talk about one specific item, the elephant in the room. One of the questions in the Q&A in the latest webcast, the actual call itself, spoke about providing color on the 2024 aside from just having a crystal ball. We have more than just a crystal ball. We have reservations that have hit the books. Now, I'm not suggesting that those 2000 are going to materialize into orders. I'm not suggesting that. I figured actually where we would be if they realized, let's say half all the way through 2024, which puts the company in a significantly different position in what it's being provided credit for here as a company that's being priced at a $3 company being given no credit for future sales, zero. And we're in that market right now where good growth companies are being discounted, not being provided any type of future credit for projected sales and projected revenues. They're just not. It's a tough financial market right now. We can all agree to that. But we do know the statistics that do surround what it is that we're looking out with highly unholdings. And that is 210 orders backed by deposits and 2000 reservations. If you just kind of spec that out in revenue potential, we're talking about a potential for a billion dollar top end revenue if that gets fortified. Now, I expect that reservation backlog to grow. I expect that that order book to grow, right? So it becomes much more interesting on how much of that reservation order book they could fill in 2024. Is it 100? Is it 500? Is it half? Is it a thousand orders? Those are the things that we can start to wrap our mind around based on the information that we know on the potential for top end generating revenue potential for the company. Now, the things that I'm going to talk about here are those exciting things. And I don't mean to get you excited. You do your own due diligence. I have, I share my insights through to help people. And that's it, okay? My job is not to misconstrue you. It's not to get you hyped up on a company that you do or do not want to invest in or maybe does or does not fit into your portfolio, okay? Hylion represents right now one of the largest positions in my portfolio, which is working with around a half a million dollars of net worth here. And we're looking to potentially fortify that position going forward. As I'm monitoring the stock, if the stock continues to go down, I will look at those strategic injects closer to the $2 mark at as the base at 206 monitoring the company at here at $3. Do I think I'm going to have my opportunity? No. Do I believe that if I'm going to enter into more shares now, I'm going to have to pay up for it north of that basing mark of 206? Yes, I do. Do I think anything less than $3 a share for this company with the revenue projections that I just outlined for you is an absolute bargain? Yeah, I believe that the companies right now is trading for free. It's trading for free. You're buying the shares free. It's a token amount. Buy 100 shares of the company at $300. It's a gift. It's a freaking gift. So that's really the comparing contrast in what we know in relation to the current stock price here in March of 2023 here. And we'll reflect back on this time and we'll laugh ourselves right off of the chair because I look at it like right now we are in a position to capitalize on an opportunity that doesn't come along very often. Now let's get into some of these points here because this call was rich with information. On a scale of 0 to 10, I give Hylianna 4 in this category. They still have prospects and material hurdles in front of them with regard to their margin compression that they will have to succumb to. John Panzer talked about this and then the ability to expand upon those margins based on what is going to be anticipated as a growing demand over their product and affordification of their reservation and order book going forward. So a lot of things have to fall in line there. I'm not going to award a company anything over a five for expectations here but I think the four is accurate in representing the fact that this company is brand new. It's new and it's showing marked progress toward an end here. And a lot of that color was introduced on the webcast that was just released by Hylianna. The first thing I want to talk about is that Thomas Healy talked about scaling the solutions to commercial quicker and doing so based on the fortification of the relationships, especially with Peter Bilt and Cummins that was realized in 2022. I talked about this company being one of those companies that would surprise based on Catalyst in 2022, these relationships being fortified with Cummins assisting with and basically collaborating with Hylianna in 2022. That was information we did not have prior to 2022 and now we do have. Thomas Healy spoke about that as a key generating factor in going to commercialization quicker and with fewer barriers to entry to that commercialization end. I thought that was one of the big takeaways that I think you're going to find in this video guys as you stay with me and most people who are interested and they watch this video all the way through, you're going to find that I picked out and I've listened to the webcast not once but twice and I encourage you to do there because you're going to hear some of the things that maybe you did not pick up on the first time you listened to and I'm going to help you highlight some of the things that really stuck out to me. Those relationships with those major players like Cummins are key when we're talking about a company comparatively speaking that in the eyes of the marketplace trading south of $3 is being discounted to the extent of potential liquidation and I just think that to put a focus on that very disconnect can be very very profitable for a lot of people out there. Thomas Healy talked about the mandates the slide in the PowerPoint that was reviewed. I'm releasing a separate video on that to highlight the PowerPoint and the ACT ACF mandates as well. Thomas Healy in multiple times during the call talked about the eligibility to qualify along their entire suite of product portfolio. This is huge. When we're talking about an ERX product that is powered by CNG RNG, we're talking about a Carnot ERX and we're talking about a hydrogen fuel cell ERX, which we got solidification on the latter two in 2022. Guys, this is huge. If you guys had questions about what an agnostic ERX would look like prior to 2022, we got that answer in 2022. If you had questions about whether or not Healy on was going to develop their hydrogen fuel cell solution in house prior to 2022, we just recently received those two answers on the latter 66% of Healy on's ERX product portfolio. This is why I'm so excited about this quarter. I would give it a 10 out of 10 if the company was actually generating revenue based on the excitement that I have around these products that have yet to garner one single penny of revenue for the company. We will continue to evolve and we'll continue to cover what I feel like is very exciting, but with regard to the mandates, Thomas Healy talked about the specific eligibility to each of those credits and doubled down on the prospects of the company to be eligible for all of the mandates that are available and all of the incentives and rebates that are eligible to the fleets and to the OEMs through each of these mandates. A key takeaway for me during this call is plug-in dead. It's a bold statement. It's one that I have my personal opinion on. I would expect that you would generate your own opinion on whether or not you think that the future is all Tesla and it is all based around a plug-in future of having dead semi-trucks on the side of the road causing supply chain issues and reliability issues in an industry that for the last 100 years has been a very durable and very reliable industry in providing some certainty that our goods will end up from point A to point B in some sort of predictable fashion. BEV is failing on this front. It was discussed twice in the call. Fleets are struggling and that's a quote from Thomas Healy in the feedback that he's getting as well as a key executive in one of the companies that has recently brought on some BEV products and basically stating that as long as he's at the helm at the company, the company will never engage in the BEV opportunity again. That is a bold statement. It's one that I look at the landscape and it's very, very easy for me to discern. I know there's people out there that are just all hail Tesla at all costs. I think BEV will have its place, but it's not going to have its place in the Class 8 space and dare I might suggest that they might just be creating such a scar that they're going to have hard times integrating in the Class 5 to 7 space if they keep this up. Because I think they rushed to market. I think it is politically driven of an opportunity. I think realistically when you talk about the size of the batteries necessary to haul goods, number one and the reliance of being dependent on a grid to provide that power, it becomes economically challenging. It becomes realistically challenging and it creates hurdles to entry for the cost of some of these BEV rigs that companies are declaring now that, yes, we are struggling and we will not be going with the BEV route, not until the technology can improve. It is expected to improve, but as of now with these mandates that are looming, companies are coming back and they're struggling to identify with the BEV opportunity and how they can truly provide bottom line augmentation to keeping their customers happy in a reliable fashion by taking on the risk of moving to a BEV future right now. I think that was a key takeaway from the call and dare I suggest plug in is dead. It is dead until proven otherwise. I will continue to invest and put my money and my investing bullish thesis on this particular niche, micro niche in the industrial space in range extender vehicles. Hydrogen, which was doubled down multiple times on the call as being kind of a wave of the future as technology improves and who is going to win out over time. Hydrogen, plug in, range extender, natural gas, low emissions type of profile vehicles for certain applications and then no tailpipe solutions in BEV and hydrogen fuel cell solutions that are out there. Learnings in the expanded treat trials, excuse me, the learnings that have gone on both in summer testing and winter testing were discussed during the call and they will be integrated in this new expanded fleet trials, which is the next milestone in the progression of the company, which I thought was really, really interesting in that they have discussed the winter trials and the summer trials as being very productive. Thomas Healy talked about the learnings that have been paired off of those fleet, those trials, the winter and summer trials, but nothing that is concerning enough to potentially shift the target date for commercialization to the right. So all on track, good to go, but I felt like there was some really good learnings that weren't really discussed. There was a few broad topics that were thrown out there, but just to know that those learnings will roll into the newest iteration of the expanded fleet trial iterations of the ERX once those are ready to go. Certification is on track, this is huge. This is the second to the last milestone. There are three left and the next two are check boxes as far as finalization of those and then the last is just a rollout commercialization. So Thomas Healy talked about his satisfaction with progressing along that checklist or road map toward commercialization from Q4 of 2021, which goes back five quarters ago on when that initial rollout was presented to the shareholder community as well as the investor community on subsequent calls and doubled down on the progress that's being made as being on track toward that commercialization and certification goal. I think that's going to be a huge milestone for all I can tell based on the last performance of the company over the last, let's say 24 months. They'll earn certification. The stock will go down to a dollar. Who knows? I mean, I just kind of say that tongue-in-cheek because this company has provided, at least the stock has provided very little to no energy as far as its ability to actually see the value that I see in the company and that's totally fine. It's given, excuse me, people an opportunity to step into the stock at a very, very discounted time. And as long as those are prolonged, I'll continue to buy the stock. And like I've always said, they'll create a neon green monster out of me. It's no problem. If they want to make me a millionaire, that's totally fine. These analysts who come on during the Q&A and they continue to work with arbitrary price targets that are arbitrarily low from where the true value is in the company. I mean, look at the disconnect between where Heizen is and their price targets at around $5 to $7 trading it, $1.27 a share, highly on trading at $3 a share with being at price targets right on par with where they are now. These are supposed to be price targets that are 6 to 12 months out and highly on still is continuing to enjoy reduced price targets by these analysts who seem to be frothing at the mouth to ask all these questions about the potential of the company marching toward material opportunity for margin expansion as well as the opportunity to realize an $884 million top-end revenue mark with the current. And I might add the current reservations and orders on the books right now. Right now, that's assuming that when that $884 million is realized down the line, that they will garner zero continued reservations and zero continued orders back by reservations from now until then. So I fail to see the rationale behind the low arbitrary price points except for the fact that institutions are at a record high ownership of this company and retail investors are at a record low of ownership because the company has been segwayed off and it's been parlayed and those shares have been picked up and absorbed by the large institutions. I invest more in line with the institutions than I do with retail investors and that will continue for the remainder of my life. That's no problem. For the most part, retail investor community are full idiots and the people who I respect invest like institutions anyway. So do you want to continue to lose or do you want to continue to get on board with this idea that's actually going to turn into a progress of material investing that is much more aligned with a long-term vision and less aligned with I need to see performance in six months or I'm out or I need to see performance in a month or I'm out or the stock price has to hit X amount or I'm out. These are all rational of the stupid and idiotic and these applications have no place in investing but what can I say they're all too often resorted to as primary mechanisms to drive your investing thesis as opposed to the fundamental pieces that I'm actually outlining here I got asked on my last highly on video to actually explain my fundamental analysis on highly on that's exactly what I'm doing. This is fundamental evaluation on a company specifically where a lot of people are investing on technicals in the market right now. The S&P has to come below 4,000 or 3975 to invest and therefore it can be bought. I don't play that game. I don't. I've seen some people attempt to do technicals on highly on. I think technicals are only applicable when you have quantifiable metrics on a company that are not only forecastable but also articulatable based on past performance right now. It's anybody's guess on where this company goes and I'm trying to put some swim lanes around what we know of the company to drive a fundamental thesis on what we know and what we can potentially align as far as where this company could potentially go into the future given a very, very wide swim lane right okay. I'm expected to grow the order book that came directly from the CEO okay so the figures that I talked about here mind you a 25% realized margin on the revenue that I talked about as a potential billion dollar revenue sits at about you know 250 million on a billion dollars of sales less than that 221 million. You can see how some of these numbers can increase very, very quickly and that's why a company that basically has a material revenue now is sitting in a position to really stare down the billion dollar top end revenue and they can get there fairly easily okay. Really just a few thousand orders can really change the trajectory of the company and what they have a realistic opportunity to achieve and you might say well that's unrealistic to say that they're going to achieve that yeah I don't know when they talked about a key milestone of the company and I'm going to talk about it with regard to let's see if I can find it here in my notes the first belt spec spec line off of the Peter Belt line for Hylian are you kidding me first I've heard of it nobody's talking about it nobody's talking about that a key milestone and something that they were internally excited about I don't know if Thomas Healy slipped I don't know but I've heard it twice now on the two times I've caught the webcast but Peter built first built spec line off of the OEM line devoted for Hylian you want to tell me that they can't meet sales now they can't meet a few thousand units sold per year which puts them into the billion dollar of top end revenue sales category you start to talk about whether or not they can actually do you know 2,500 5,000 10,000 orders as originally projected in the 2020 investor presentation one that I'm very very scrutinizing on however allow a small amount of light to be shed on the fact that it is possible it is possible I think it was premature in releasing that information yes to generate hype around the company but the scarier question to ask yourself is could Hylian set themselves up in their integration with the OEM not only Peter built but their relationship with Freightliner as well to generate I don't know 2,500 units a year is that is that impossible to project when right now we're sitting on about 2,500 give or take 2,210 orders to be specific of of of of income generating potential for the company 210 guaranteed 2,000 that have been earmarked for potential conversion to orders we're looking at a billion dollars right now right now one billion of top end revenue generating sales where does that put the company in way of valuation guys it's not a three dollar stock it's a $50 stock at that point 50 that's the way stock market investing works hate to remind you of that but there's a few people in the retail investor community that think that they can apply an elementary mentality to this game and expect to win using elementary application if you want elementary application go to the Yahoo thread the cesspool of all things Hylian and and short dialogue and criticism over a company that I feel like right now is the calm before the storm and we'll have the last laugh for sure I'll be laughing my ass off all the way to the bank and it'll be fun to reflect on how that elementary application worked out for some of those people okay expected to grow the order book fleets want certification before orders I found this to be a key Thomas Healy talked about the resistance of fleets to commit to orders now prior to certification it's something I've talked about on my videos in in in past and I know there's people who listen to every word I say and they should they should it could be very very profitable for them it could be I don't know the company could go out of business and then I can shut down the highly on project and continue on with my life talking about fundamental investing this just so happens to be a micro niche on a much grander investing thesis that I have here about wealth building okay Thomas Healy alluded to the dialogue that he's getting from fleets that are very interested in the highly on product but want to see that final iteration excuse me and certification come through for the company before they'll commit to orders I found this to be extremely bullish extremely bullish to understand that there are other interested parties out there very big demand okay that also has in consequently been prompted by this Bev debacle that has come as of late and has provided more interest in the highly on solution this also was projected this isn't my conjecture this was said during the call guys you got to pay attention to this stuff if you're going to pick up what it is that you need to pick up to understand and either fortify your investing thesis going forward or discredit your investing thesis to which that you want to go ahead and surrender your investment in the company these are the hard decisions you have to make an investing this is the big leagues okay there's no minor league stock market this is the big leagues all right these are the things that you have to pay attention to but when I heard that I picked up on it the first time I was like right on I know that there's interest going on behind the scenes and I know that we will find and and really realize those sales down the line when Thomas Healy talks about the expectation to fortify the existing reservation and order backlog okay something that I've projected throughout the course of covering the company the white glove service clarity I thought this was huge I had something different in my mind this is just an agreement with the original 200 that are rolled out DSV will be part of it okay they just so happened to conveniently work and be working out of the Dallas area so without saying that DSV yes will officially be part of the white glove service in one way or another he said that they will absolutely be participating with highly on and and that came through the clarity on the white glove program to be more monitoring of the units and and allowing more eyes on the product on those first 200 understanding that they are super important to make sure that the rollout is as efficient and as seamless as possible on that rollout whereas otherwise when a fleet buys a product that they wouldn't expect that that monitoring agreement exists in other words highly auto have more of an opportunity to engage while the unit is actually in the rigor of Class 8 service in the expectation that not only will they be of course and Thomas Healy said this monitoring the the progress of the units through their 24 7 cloud computing progress which is a revenue generating opportunity down the line but the white glove service in its essence and in its core and I didn't understand this before the call and now I do is basically that over monitoring and that agreement with the fleets to understand that if they do have a problem that they will be right there and receptive to that and the opportunity to take that data off those original 200 and incorporate those learnings into future iterations is the key. Okay so think of it as more of a scrutinizing opportunity for both the fleets that take receipt of these products and an opportunity for Healy on to really get in there and understand how those original 200 are performing in the rigor by doing so with more of a monitoring scrutiny over those original 200 I think it's really really smart and initially I was like this is Class 8 trucking it's dirty why the hell do we need a white glove service? Thomas Healy elegantly put this out there in explaining what this actually means for ramping up to those initial orders yes but making sure that that core nucleus of 200 is really over scrutinized for the opportunity to not only potentially anticipate problems but to deal with problems as they as they come up whether it be small or large and to have that agreement beforehand that Healy on will be right there to make sure that those those opportunities are are are are taken advantage of and learned from okay the white glove so the key the biggest key takeaway for me is this and aside from the highs highs on collaboration but I've yet to hear people talk about this online and I'm going to talk about it now in a recent call with ACT with regard to the mandates and rollouts exemptions will not be granted this was the biggest takeaway something that Thomas Healy talked about as a big win for highly on I totally agree I've seen rollouts of major systems in the government and this is a normal posture of the government to say look the only way that we can exempt something from being applied for good reason against the merits of which I understand to be cleaner sustainability within the class 8 fleet the only way that those exemptions are going to be granted it is if there is no availability of product on the marketplace that meets the minimum performance standards in accordance with the initiative of the mandate itself okay let me clarify if there are no products available the industry is going to come back and say to hell with the environment we need to run product we're going to run so on diesel because there are no products available in the marketplace to integrate into our fleet therefore we're you know playing this catch 22 type of game to say look until the industry can provide us a solution we're asking for an extension to the mandate deadlines to continue to run diesel and not be penalized to do so ACT has clarified and said that there will be no such exemptions or extensions granted to the fleets and this is in line with everything that I've seen over my last 20 years in my current line of work and expertise on how the government deals with rollouts and big incentive change outs of major systems and machinery that do not have product availability or they do have product availability in either growing a hard line and saying you have to switch and thomas healy used this term in that they are going to be forced to to to augment these new solutions in the minimum percentages that are released and I thought that this was the one of the biggest key takeaways and I really anticipated the stock to increase in value after this call the fact that it didn't just shows the amount of negative sentiment surrounding the stock currently it's totally fine nothing new in my wheelhouse I think it's stupid I think the fact that the stock didn't drop 25% after earnings was a positive in and of itself I think with the amount of positive news in this I think the stock market's getting the stock wrong and again I'll continue to profit from it no problem I'll calmly be accumulating shares in the company at these anemic rates because basically I'm buying shares in a company free of charge and I just would say thank you very much I'll continue to buy like I said they'll create a monster out of me it's no big deal exemptions will not be offered one of the biggest takeaways there regional application for hydrogen this was also a big one that I don't hear a lot of people talking about with regard to the collaboration with hyzon and discussing the few regional opportunities with hydrogen especially in the los angeles area where they do have infrastructure there now when I've said throughout the history of covering highly on and and my negative sentiment around nicola with regard to the lack of hydrogen infrastructure that's very real that does not go away there's some discussions about nicola going bankrupt now I'm not in that camp but they have bet on a horse that the industry cannot visibly adopt now even though they may have been premature to the game thomas healy talked on multiple occasions that they still believe and have a bullish thesis on hydrogen being a big part of the future fuel in transportation okay he doubled down on it multiple times my question has always been what is the fuel cell iteration of the hypertrecchi arcs going to look like we got that answer just a couple of days ago where we did not have that answer before they've been very very tight lipped there was no discussion about collaborating with hyzon but when he talked about the regional application I think a lot of people missed the correlation between thomas healy up to this point has always suggested that long-haul trucking in the class 8 space has always been the focus of highly on did they not shift that a little bit in looking at the potential to dive into a 5 to 7 class 8 mark class market in regional application there was an an an elusive comment that was made by thomas healy as part far as the regional rollout of hydrogen availability and where hydrogen can absolutely work being such a new technology in regional application I think there's a difference between just saying okay nicola is saying we're going to dominate the class 8 space with hydrogen I don't think we're at that place now I think that highly on is well positioned to benefit from the over the road ultra long type of routes cross country but as far as the regional application in fuel availability for hydrogen fuel cell does that not just by nature of fuel availability bound bind them to regional application to start right this is where hyzon and collaboration with highly on really shines in that hyzon has customers it was alluded to in the call and highly on will be asked to go and pitch this iteration of this hydrogen fuel cell erx with the peter built chassis to those existing clients where hyzon was not able to do that before collaboration makes total sense it's the real bullish kind of top of the iceberg for this call and one that did receive some scrutiny in way of teaming up with a company that has been beat down with the market guys there's been no company out there that hasn't been beat down with the market the only company right now that people want to invest in and the statistics show that retail investors like the retards that they are are pouring into tesla in a fashion that has never been seen in the history of tesla and the stock with regard to the inflows into the company doubling off of its $100 mark now over $200 increasing by 100% people are flooding into the company right now and no other company is receiving any type of favor in the in the stock market right now hyzon's no different now hyzon has received the scrutiny justifiably so with regard to their inability to to properly account for some of the financials and some of those deficiencies in their sec filing requirements okay so the scrutiny is very very real but that doesn't mean that the technology has somehow suffered from their inability to maintain their opportunity or their requirements with the sec it doesn't mean that tomas haley earmarked them as a leader in hydrogen fuel cell and my friends over the last two years they are and they are an international player unlike highly on i just think that this collaboration fell on deaf ears i'm not surprised that it did but one that i would like to express my bullish thesis around and i'm super super happy i've always thought that at least the over the last six months highly on needed to shake things up and this is exactly what they did by acquiring carno and collaborating with and fortifying their opportunity to break into the hydrogen fuel market it puts them on a direct competition with the only player in the space aside from highly on and hyzon which is nicola and i feel like that strategic positioning cannot be understated and i think to come up with any other thesis other than maybe neutrality based on the sec submission deficiencies of hyzon can look at this as really a bullish type of positioning type of move for highly on one that they stand to benefit from significantly more than then detract from their current business model so i was i was extremely excited to hear the news and and that's just my twist on it okay the r&d spending in 80 was 81 million john pancer expressed this an increase from 58 million that was specifically around the high erx commercialization efforts those r&d efforts should actually increase here with the new initiatives surrounding r&d for carno and the r&d that is going to be committed to the hyzon project this is one bearish thing that i was kind of like you know do they really have all this money to be spending on these initiatives well if it fits into their product portfolio of offering an erx with a hydrogen fuel cell is it not worth that those r&d dollars to go toward that initiative i would argue yes but it is so an increase in r&d spending john pancer talked about the 2023 spend being close to just shy of 200 million that will be based on an unknown for the interest that they will receive and the sales that they will receive an house in building out their sales book as well as the austin texas build out in their facility which is very very necessary something that was discussed a couple of years ago and has really been put on on hold if you picked up on that in the call they are re fortifying their efforts in that build out of the austin facility to be more capable of their research and development their engineering specifications and the good work that goes on at the austin headquarters there for highly on holdings one thing that i took away from and now that we know hyzon is the hydrogen fuel cell technology collaborator going forward that there are less regulatory hooks so question during the q&a was is this going to affect the roadmap for the current erx projection timelines for commercialization thomas healy said no and to expect that an iteration of that hydrogen fuel cell will be available later this year and its path to commercialization is going to endure less rigor than the c and g r and g model because it's zero tailpipe emissions and before this call i could not deem highly on even having the potential to deem themself a zero tailpipe emission company now i can now i can every single dollar that's been fortified in this investment now has just been fortified even further because even a small amount of tailpipe emissions has to be dubbed that and now they can boast that they provide a total holistic product portfolio that can exist for those applications that yes have small tailpipe emissions through fossil fuel application c and g r and g etc with the net negative solutions especially with r and g that is absolutely very attractive as well as the no tailpipe emissions here all flying the flag of of highly on i think it's a win-win across the opportunity okay um they've been challenged on their ability to be a true contender in the hydrogen space that now has been answered this was doubled down on thomas healy when fleets have come back and said how is highly on going to position themselves to be available to fleets if we do make this commitment on the r and g side be available to segue into a hydrogen fuel cell future and i think that's why the collaboration with hyzon makes so much sense right now in that it does position them to answer those questions and say look all of these things are in the works they would not commit to a date on when that was going to be available for showcasing however it's reasonable to believe that within the next couple of years they will have that product and have all of the barriers to entry as far as oem integration complete and dare i suggest that the hydrogen model of the erx may even be significantly easier to roll out to commercialization from the learnings that they've received during this process of certification through the r and g c and g version of the hyper truck erx okay john pancer talked about the potential for negative margins they're going to lose money on these first 210 orders i could care less we're talking about a disparity between what they're going to make on the onset and what they're going to potentially garner in the future investing in highly on at this point gives the most risk reward type of profile and understanding that we're setting up for future revenue potential here based on what we know but he said that that would be a number one priority as opposed in conjunction with offering a commercially viable product that that the margin expansion was going to be the top priority in realizing that margin expansion within their business for each unit sold and said that right now it's just economically impossible to do so with the low volume higher cost of parts that need to go into these first iterations higher costs that they had to endure over the last even couple of years to procure the necessary parts to ensure that these 210 could be turned off successfully and i and so i think there's indirect benefit from incurring those high cost and taking the margin the margin compression hit now with the opportunity that they'll have by pushing those products out now and having those products available to the marketplace i think this 210 that they have doubled down on and insured shareholders would absolutely be there and be delivered on time is a real win for highly on and it really speaks to the conviction of the company to make sure that they could realize on those orders even though bringing those to the marketplace has cost more than we would have liked if they were part of a much larger type of batch order and or fitted with components that will be earmarked for margin expansion because the idea is that each and every component that goes into the erx can be bought in batch and saving on those components that go in there will only lend itself to margin expansion down the line i thought that was a key takeaway from john um what else do we got fleets are planning more attention on highly on that's based on the bev debacle here as of late which has really come to really come into focus over the last couple months with the tesla product being introduced and and just having all kinds of problems with regard to the range that they're getting out of this it's anemic and almost stupid i am a very logical observer and if there were credit to be had there i would give credit i think it's been nothing short of a disaster to be honest with you which this disaster where there has been focus on electrifying the fleets from a bev perspective a lot of those barriers to entry have only contributed to the renewed focus on highly on and thomas healy talked about this during the call in that now where they might not have garnered uh said success based on fleets focus on bev um they're starting to abandon in some unique cases the the bev altogether um which is uh creating a shift in focus to highly on and what they bring to the table with regard to their product portfolio okay uh john pancer talked about no plans to raise capital um in the near term i think with 420 and liquid assets on the books i think that's a fair statement i think we do have a capital raise at some point in our future i think we're premature of that and i think john's answer spoke to that i think once we get a little bit of strength in the stock eight to ten dollars eight to twelve dollars um ten to fifteen dollar range i think will be an optimal time for highly on to make that first big capital raise and i would like to see the hook there in opportunity in expanding globally because everything that has been discussed right now is in the acute talking about penetration and rollout in the domestic market but remember hyzon is an international player already okay so it begs that question of what this collaboration could mean for highly on to expand globally sooner than later okay and i think some of those capital raise discussions will absolutely take place within the next 12 months i don't think we're going to be looking at a capital raise from 12 to 24 months down the line um if i'm wrong on that no problem but it certainly does beg this idea that we're in kind of a kind of an interesting phase and transition uh from the company you know burning down spack dollars to get them to and fortify this position to step into uh commercialization phase in a healthy manner uh and then to assist with those uh commercial efforts down the line now remember that highly on does enjoy a capital lean business model in that how much expansion needs to happen would they build a new facility would they build a an international facility to to potentially work international footprint continuing to expand their team of experts uh and engineers is obviously going to carry with it more capex and op-ex which it would be expected to grow uh north of their 130 million dollar projection right now per year that will grow with the company right so so to solidify that and take advantage of a healthy position in the stock market and a healthy valuation which at that point would probably put them you know closer to the 850 billion dollar valuation mark is probably in order um but something that john pancer did not speak about here just outside of suggesting that the current capital on the books um totally funded through 2023 which is a non-effort spending just south of 200 million for the year um which is the highest spend year ever but we have some initiatives in the early stages that we need to see some some real progress toward he talked about the 3d printing machines to be purchased which i think is probably in conjunction with the expansion of the austin facility to start along that hundred million dollar infusion into the carno project and to get that carno project to a position where they're mass producing the carno these are some interesting initiatives that are a lot of years down the line but you're not going to be given a three dollar stock price once these things start to come into fruition guys okay you're being given a gift right now and dare I suggest the three dollar stock price right now is in it's it's laughable you're getting the company for free and things in life that are free that are this high of quality are very very rare in this life so thought I would push that out there okay so no plans to raise peter built being the first built spec line for highly on this has not been talked about it was not talked about in the discord group the most I could tell and I found that this was a big oversight and one that I wanted to shed light on in one of those things that thomas healy said was a huge milestone for the company internally and it came out on the call nobody talked about it nobody's discussed it after the fact I'm here to highlight that that was a big freaking deal if they're going to realize orders in the amounts of hundreds at a time and dare I suggest thousands and dare I dare I dare I suggest tens of thousands of orders which puts the stock north of a hundred a hundred and a half to two hundred dollars a share okay they're able to realize on what we know now we're talking about a twenty five to fifty dollar stock okay with the eight hundred and eighty four million dollars of of revenue projected now based on what we know guys we know it it's there the data is there it's how you choose to interpret the information and some may suggest that I'm conveniently interpreting the information fair enough but the information that the twenty two hundred and ten let's call them orders slash reservations that's a fact that that's not conjecture that is a fact now if I'm going to say that the company will have by twenty twenty five ten thousand orders that's conjecture that's dialogue that I try to refrain from and frame is conjecture but is it not safe to suggest that highly on is not going to improve upon their order book and reservation that their order book and reservation back order log going forward I'm not I'm not in that camp and as an investor in any company you have to be able to look at the forward potential of a total addressable market of one trillion dollars one trillion dollars we're not offering extensions we're looking at very few companies that offer zero tailpipe emissions highly on is one of those now with its collaboration and we'll have a viable product in that in that round and by the end of this year in a few short months we will have a highly on hyper truck erx that is capable of driving net negative carbon emissions with the with the use of rng very exciting times here and the eight hundred eighty four is presuming that they garner zero in all fairness to the critics of me and my message and my bullish thesis around the company I'm being fair in just saying okay I acknowledge that they won't garner any more orders the remainder of twenty twenty three which by the nature of what I've just covered in this call is physically impossible they can't do that and I'm offering it as a zero potential if they garner no more orders or reservations going forward they should be able to get close to that billion dollars of revenue whether or not it's realized over the next coming years whether it not it takes two to five years to realize some of those reservations and roll those off the reservation and tournament orders is it's it's it's irrelevant at this point the fact is that they have them on the books which speaks to the interest over the product and the prospects of the company going forward all right the last thing that I'll mention I'm not going to mention the collaboration with hyzon we touched about that that really being the governing takeaway from this call but something that I picked up on that thomas healy talked about and he hesitated before he said it he said fleets will be forced to comply and I think this comes back to one of my major takeaways from this call in understanding that we will not be wagging this proposal I believed that this has sticking power and it was reaffirmed based on that comment that there will be no extensions granted to fleets that are running currently boom diesel as we speak and as I'm filming this video we're burning diesel but in in in accordance with a cleaner sustainability goals of both the act and the acf mandates that are coming through the incentives that are being put out there to the fleets to to not to not become bad if with this but to collaborate with and to be accepted of and to allow the augmentation to happen of the fleets I think this is that this is key and when you step back and you draw a rhetorical question of where highly on will be in this guys there's no better company positioned for the augmentation of fleets in accordance with the current mandates than highly on holdings limited right now highly on is the number one player in the space with a total addressable market of over one trillion dollars currently trading on the new york stock exchange at an anemic three dollars you're getting the stock for free and it is absolutely is a pleasure of mine to present this information in the way that I have qualified in this video there's been no more important video than this 2022 closure video and as we continue to cover this company I would expect that an evolution in the story takes place in that I have always stated that the real bullish thesis in highly on exists in the unknown rather than the known and 2022 was no short of delivering on the unknowns that we were not privy to in 2021 that we are now privy to in closing down 2022 guys if you appreciate the content coming through the channel I'd invite you to subscribe to the independent ambassador channel it's one of the most badass channels on youtube I don't def around it's pretty cool I speak common place to people and that's what people resonate with these are my opinions I would invite you to go to highly on dot com draw your own distinction about the company that is the beauty of social media in coming to a consensus on not conjecture rather what we know about a company and identifying those disconnects in the market that we have going on right now this is the calm before the storm and I would invite you my friends to look at these because these opportunities do not come very often and I believe that this is an opportunity in the making one that cannot be overlooked and the one that we continually need to cover on the independent investor channel leave your comments at the bottom hit the notification bell you will be notified of future videos that I put online on youtube guys thank you so much for tuning in for the totality of this closing down of 2022 q4 conference call for highly on holdings appreciate you guys tuning in and good luck in your investment future