 Hi guys, I'd love to welcome everybody back to the independent investor channel for highly on update on the q3 earnings report. I've had my opportunity I've reviewed a lot of comments online but I wanted to finish my due diligence on both the report as well as the conference called today from 11 o'clock which I found to be night and day on the clarity between the last night's release after the post market closed down in the market at about 805 highly unreleased their their report last night and then was able to provide some excellent granularity and some clarity for me specifically around a couple topics there that will talk about. I'm very pleased. I think a lot of what was discussed on the call in response to my to takeaways last night which made me a little bit uneasy. Last night going into today I knew the stock was going to drop were used to this. Okay. This means nothing. Okay, one day drop in the market means absolutely nothing for you guys that are justifying selling the stock here. You know, to each his own. I know it's a tough hold. I know for the few people that have the conviction to hold long, and the opportunity to either scale down in the position and average down because we're used to this. Honestly, I found like the pros that I picked out of the report, and the explanation from both Thomas and Sherry on the 11 o'clock call this morning, made me even more bullish on the company that I've ever than I've ever been here we are here closing in 2021 and if you just look at all the accomplishments that has been put forward by highly on holdings and a very, very short time. It is amazing, and there's been a lot of unknowns that have come through with this company and they've pleasantly pushed. And there's been a lot of knowns that have also come through that we keep on referring to the track that we have to full commercialization we'll talk a little bit about that. But my solution here I bought more shares today I think I settled out at about 650 more shares. Nothing too crazy, but I think a note that I think you guys really should resonate with this, which I find really. It's been a market investing a long, long time and sometimes I get somewhat wrapped up in. And I don't want to be condescending here I really don't but this stock there was a post in the Yahoo thread, which I found that was pretty pretty darn good that the stock goes you nothing, and it doesn't. You have fair expectations and for whatever justifications or manifestations that you have in your mind as to whether or not you should hold long or sell in the short term, in reaction to last night's earnings. Those, those are as a result of potentially, you're not understanding or acknowledging the long term value, maybe not to the extent that you did when you initially did your due diligence enough to enter into the stock there was a wide range there of people who have unfair expectations of a company that is really trying to do it the right way. And that was made was made very clear to me on the call today about when they were asked about the European markets and we know it's there and we know it's there for the taking. We need to penetrate the US market the way that we know we know the supply chains. We know the regulatory hurdles Thomas Healy talked about those with the EPA and a couple other divisions. Those things are real. And the difference between hearing highly on talk about those very very real things that they know they're going to have to get through that's why he talks so much about the product validation that is really just kicking off right now with the hyper trucker at Wegmans today at the time of filming this video. I've just concluded the call from Sherry and Thomas and Lewis that they put forward. Today, I was fabulous as best I've ever heard Thomas Healy and I know this is going to be contrary I did join the discard group last night for the first time. I appreciate those guys welcoming me in there guys and gals for sure. I'm really appreciate it. I think I was probably a little bit disappointed I think in the reaction when at 805. The release came through. And there was some real real scathing interpretations of the report I just didn't take it that way. It's contrary to our friends over at Nicola Corporation right that released that they're paying 125 and a fine. And they've got a reservation as well for 25 of their trucks to an undnamed disclosed patron and the stock pops 25% we're off about 15 bits today which is, it means nothing. It means nothing. In the eyes of the stock market I always said look if highly on couldn't achieve perfection in the market, even at the perfection that they've been able to, to achieve over the last 18 months in my opinion. I thought they've done everything above board. I really do. I think they're competitors and I put highs on and Nicola really in the direct competitor stage with with highly on it coming into market here. I think all too often they get the nod I mean ones under investigation now for fraud. It's supposed to be positive news, and we're supposed to just forgiven forget that stock pops 25. And, and I don't know if it's just the forward leaning and open nature of highly on to provide their concerns around the supply chain. We'll talk about that a little bit. But I do want to earmark the positives here, unlike a 25 undisclosed order. I think they came out of the blue with a 40 truck 40 erx truck now. I want to premise this a little bit some of you guys are really talking about these pre orders, and they are the reservations. Okay, as as if they're non existent and I want to squash that right away. These are Monet in Monet's case they were hybrid operators for a long long time. And Thomas talked about this on the channel I think it was a response to one of the analyst questions at the end during the Q&A session. How much validation do you anticipate needing are you going to need the full million miles about validation which is a pretty lofty goal by that opinion to go for that level of value validation I think it's phenomenal I think it's smart. I think it shows that they're acknowledging not only the importance of having that as rock solid a validation as they can before they ramp up to commercial, but also the seasonality and testing the system against the rigors of weather, and how the supply chain actually affected their ability to get that winter validation in January February of next next year and unfortunately having to push that until later in the winter months, they know how important it is. And I have to, as a fundamental investor. I can't question that I can be disappointed about the timing, I can be disappointed with the stock selling off today in reaction to what was perceived to be a poor earnings call I just didn't I didn't read it that way. And I'm not going to apologize because people tune in to me to hear my unique opinion on this amazing company. This is these guys with every report are leaps and bounds across the road that is hardest to travel in their product validation stage, and they know how hard it is and they know that those validation miles are going to have to be in place. Before they go for the EPA certification and the others I apologize for the certifying entity that I'm forgetting that you guys know it's on the earnings call. And for you guys that are interested in highly on and you're not invested in the company or you're are in your long company shareholder like I am. You need to read the script and you need to go and you need to hear the webcast you can find both of those on highly on holdings.com fabulous tell you everything you need to know about the updates the company and then some. But I thought the Monet 40 erx truck order was phenomenal they can't fill the order right now anyway. So what are you getting all crazy about just calling it a reservation and therefore it's null and void. Thomas Healy about a year and a half ago gave an interview where he talked about the importance of never disclosing information that he couldn't publicly disclose. It means enough to me to know that the Monet 40 erx truck order was good enough to mention during the three three q earnings call that to me is validation enough for there more Monet is a customer that I had never heard of before. This should be a positive case. Could highly on have broken this news off and released it a month ago. I don't know. Don't really care. They chose to roll it out on the earnings call and I just think it speaks to highly on's ability to surprise to the upside and continue to deliver on all fronts. My whole bullish thesis around the Monet order. Why I put this in the pro category is this is an existing customer. But if you did your due diligence like me I didn't see Monet and any of the documents that I ever read and reviewed as a potential customer and there has to be others out there. And that's what I'm so excited about is the ability of these customers who have been had their product validation using the hybrid system. No, not the erx but to understand the ins and outs of dealing with highly on as a company customer service, the technology the durability, the driver ability, right, the savings and the cost that exists there in. What do you think Monet would have stepped to the forefront and ordered 40 erx is if they weren't happy with the initial hybrid products. Right look at this a little bit rational guys and this is being reviewed right over. Most of the pros in this were were completely glazed over in the stock sold off today. The stock market has got it wrong. It's no problem. I have no problem sitting across from a YouTube audience and telling you YouTube audience that the stock market has it wrong. On this stock, they have it wrong. These guys are leaps and bounds closer to actual commercialization what I mean by that is commercialization that actually means something. In other words commercialization that we can say that tried and true, we've done our proof of concept, and we've done it to the validation standards that we set forth we did not rush into this. We did we slow play the thing. I don't believe so. I think they're diligently and diplomatically stepping into the product validation that they know they have to do, and that's just where we are. That's that's that's the reality of it. Okay. And for you guys that are interested in the stock at all. I'm going to give you a secret and most people love my highly on videos, I love making them, because my perspective, I'm able to share. I've just pushed it up around 12,600 shares, something like that 1212,600 and some change I think is where we sit right now with the current share price. These fluctuations in this in the share price mean nothing to me they don't. And the only, the only solution that you can find in the day to day volatility of highly on holdings, the stock specifically etc. And anticipated earnings report that is, you know, getting some comments through social media threads is being somehow negative and that and that they'll never come back from it, whatever it may be, I thought it was pretty negative. Last night in the discord group and I sat and I monitored it for a while. I was kind of disappointed. I really was, because although I understand that the quality of investor that's in that discard group is a far cry from what's in the Yahoo thread that is open to everybody who wants to come in there and post their agenda with motive. Okay, I know that the highly on the discord group isn't like that but you know I was a little disappointed to see some of the initial reactions come through because you really have to give yourself some time to internalize a report like this for a company like highly on that that is ever evolving look what they've done expanding the facility, some of the pros that I'm going to talk about here in 2021. Do I think the stock should be trading at $7 and a half. No, I don't it's still oversold, but the market is not going to realize it's oversold condition to satisfy you. It's not going to happen that way. Eventually it'll flush out, but it's not going to happen at the time that you deem that it should happen, especially after an earnings report where there was a few catalysts that I'm going to talk about here, which is delayed production a little bit here over the coming couple of years. Your long term forecast in this company has to be just that you should be earmarking 2024 2025. If that's not good enough for you, you should sell the stock right now and save yourself some pain and suffering until then, because it's going to be volatile ups and downs. You're going to have it enter into the teens only to come back into the low teens, you're going to have it enter into the twenties, only to have it digress back into the teens again. It's going to be an extremely violent ride and the only solution to that volatility is to take a page out of my playbook and just buy the shares and hold them. I expressed in the Yahoo thread that I thought the holding stock was an underutilized technique a lot of the times in that investors, especially new investors feel like either they need to be doing one of two things either buying the stock on every price dip and or and or selling the stock right away in reaction to what they see on a day to day basis and I think both of those are wrong. I was really disappointed to see that over the last month highly on ran up 2027%. And it was amazing to me how many people would buy the stock at $7 and 25 cents and then go and post in the thread that how badass of an investor they were, because the stock was now trading at $7 and 47 cents. And they were up 17 cents on the on the holding and that what's everybody bitching about, you know, who are down in the stock who has owned it like me for 18 months, 18 months, and kind of trying to say look what do you all complain and about, I'm a badass investor I'm up 17 cents now, most of those folks now are in the hole again. Right. And I just think it takes a little bit of perspective to understand that the day to day really means nothing. And you need to make sure that the one, the one activity that's going to ensure the longest long term profits on this company that are rendered is going to be the ability to exercise the hold right to each and every shareholder. I can't make you do it. I'm just suggesting that as an out and really as a remedy to the day to day volatility in the company. So the Monet 40 ERX truck order, not too shabby. I think they make about $95,000 per ERX. So $4 million excuse me for a nice nice sizable order there. Okay. They increase the team to 150 team members that's fabulous, expanding business. They expanded the facility as well. That was a big deal. They rented the warehouse just behind the corporate headquarters to make more room for the new employees and to expand their capability for further R&D and their battery production facility. So great news there. You know, this is not a sign of a company that deserves a 15% sell off after after this earnings report didn't deserve it at all. I kind of felt like that was going to happen because again, highly on is held to a different standard than Nikola highs on some of these other companies. They are held to a different standard. In other words, the supply chain issues that we're going to talk about their they're seemingly only affecting highly on right now. And if in all fairness, the supply chain issues they're real, they are real, but they are affecting everybody across the market and I think the market is remaining elevated here and not really seeing the supply chain effects. You guys know when you go into Walmart, you want to get some almond milk, it's gone. You want to get one of your favorite products you're used to going in there. You know, we've been conditioned to go into supermarkets to pick out our goods, and we never ever have to deal with an empty shelf. We're dealing with that more often than not because of the supply chain effects effects and wrinkles and shipping right now with the container ships off the coast of Southern California, etc etc right these are very real effects. Highly on is not the only company. Okay, and for a marginal 200 Dow sell off day. Highly on shouldn't have been down 15% in my humble opinion based on the report that was rendered. The operating expense to 110 million. This is good. This is a cash lean, excuse me, a cash lean business structure that highly on has to operate their business on on on very light expense. There's no doubt. They're looking once they ramp up the production to allow the OEMs and the OEM hubs to do a majority of that work to deliver final product to the to the end customer. And that was pretty cool. NGL, ERX validation in GL just another one of those legacy customers with highly on that don't get talked about very often and I don't hear this from Nicola. I don't hear these established relationships that are along the lines of getting to an end customer that is going to be with them for life. Highly on has a ton of them. They have a ton of them. They're dealing with Wegmans right now up there for the official rollout of the ERX, hyper truck ERX to present them the keys and and and have them start on their validation. If Wegmans comes online, everybody else is going to fall in line. Wegmans is huge thousands of trucks. It only takes one. I think that they need to win the entire industry. They don't for you guys that are selling based on last night's earnings report. You'll regret it. You will. That's just my opinion. I don't wish you will will. I just think that you'll regret selling on an emotional reaction to a reaction that I was kind of disappointed in. I watched for a while and then I thought, okay, I got my head right and then I went in and I read and did my own due diligence on the report. I thought it was good. The things that were good were not good. We're out of highly on control. As in other words, I didn't think there was anything in the report that gave me some sort of an indication that highly on wasn't staying above bar with their application in meeting timelines in navigating or finding alternative solutions to the supply chain shortages, which fall fell in the pro category. The Wegmans delivery was huge. This is the final step. If we can get this way with the other 10 members of the Innovation Council, Wegmans being the 11th member. This is exactly what we want. We can start the clock on those million miles of validation, which Wegmans doesn't need it. They don't need it. They're good. Some of the other ones aren't going to need it either. Some of these legacy customers. I don't anticipate that NGL is going to need it. Newt hiring Vice President to commercialization came over from Ryder, which is a hyper truck Innovation Council member. So we got we got him on the team. That's fantastic. 10 years of experience and the business in commercialization. So hitting on all fronts with the management team and the expansion of the team. I failed to mention that with the Vice President of commercialization efforts. But the Wegmans deal is huge. And this is just a sign of the times when they're able to roll this out during a time like this where we've got such supply chain issues that Mr. Healy talked about on the call being so impactful that they had to wait in upwards of one year for a particular parts to hit the loading dock so that they could finish their build out of their products. They alluded to this now. There are trucks at the facility that are incomplete that are being succumbed to and victims of the supply chain shortage. There's nothing that should be true. It doesn't mean that Hylian is going out of business because they've been thrown a cog or a monkey wrench in their supply chain and those parts that they've identified. Something that I picked up that Sherry talked about as well is their ability to identify solidify those relationships. Once the supply chain issues start to materialize and become a little bit more open to markets the way that we're used to, then we can start to drive down down those costs and increase those margins for Hylian as they look to establish those relationships with their vendors. I thought that was a key takeaway for me. It's amazing the things I pick up on. The accounts receivable. This was something that Wall Street missed altogether which is pretty typical. I don't think anybody really pays attention. I think the people that paid the most attention to Hylian holdings as the short sellers. They're intimate in seeing this company fail. It's not going to fail. It's just a matter of time. They were given an out absolutely probably should have covered on the last drawdown to 675. They probably won't this time. The greed will probably drive it down. These chalks, these stock charts from day to day are predictably manipulated. They are stocks don't act like this unless they're being manipulated. Okay, and Hylian is right square in the smack of said manipulation. There's no doubt about it. That's why you're getting some of the flux of volatility, the ups and downs. It's enough to drive really anybody batshit crazy. But the large institutions, they get it. Unfortunately, the ill advised, ill prepared and an uneducated retail investor. You don't stand a chance. You don't. You're going to sell out of it. You're going to sell out for the wrong reasons because you couldn't stay in the pocket for another year, year and a half, two years to where you can really evaluate the company on its own merits. And if you don't think that those results are going to materialize over time, you're crazy. We've got all different stages of materialization of the product right now. And so the expectations into the coming years can be predictive, predictably positive based on what we're doing right now. And I'm not sure if I understand if people truly understand that those that truly understand it, they'll help they'll hold all day. And it's not going to matter about the day to day price fluctuations of the stock at all, because they understand what they own the R&D spending I thought was a positive R&D spending moved up to about 17 million. I find that those are investments in the company that will pay dividends later on. It's hard to quantify that it goes right to the bottom line as far as costs to operate the business operating expense, but it has to be done. Those things have to be done right now. I thought it was key when Sherry Baker jumped in and response to one of the analyst questions and said the most of the R&D lump sum has been already completed for the EX hybrid. And the majority the R&D spending right now is going toward the hyper truck ERX. Okay, and this is the rest assert certainty that these would be clients down the line with that certainty and really history with Hylian their involvement with them. That's going to make it that easier to sell those fleets, not only on their initial units but follow one units for years to come. That's going to be the key. Okay. So I found that to be extremely interesting, but the accounts receivable at 359 everybody missed that that was great that's only 359,000 that's sitting on the books right now in sales. So interesting enough those are some probably some hybrid units that's not on the books. I figured about 18 to 20 units I guess you guys can correct me if I'm wrong there. But that was an extreme increase from last time I think there was about 89,000 on the books last time marked increase to 359,000 and accounts receivable again, Sherry double down on the fact that this is immaterial. I totally agree. 359,000 is not going to change the needle. However, those those accounts are starting to be solidified. So this new account every new hybrid sold is one new additional unit out there on the road, providing that validation and potential for product referral from companies that are using these products and say yeah, I run the hybrid highly on system I run the hybrid EX system it works fabulous you're interested in the ERX highly on gets my endorsement they're a company that that I can stand by and say firsthand works perfectly well so it's not about the bottom line. I didn't realize revenue for the company, but the 359 I thought was telling it is a pro and it did show up on the list. So it is worth mentioning here. I'll quickly mention the cons that reading the report last night at 805. These are the two that kept coming up in the threads, especially within the discord group which I shot out to the discord group I the warm welcome is fun. I wanted to get a feel and a sense some of those folks frequent the independence investor channel catch the highly on videos anyway. We're all just trying to make sense of what's going on in a diplomatic way, not a not an emotional way, but a diplomatic way. Okay, and I thought when the earnings, I think the build up and pent up in angst of the release of the earnings probably led to, you know, the report all in flat a little bit in some of the points of clarity that I needed from the first read of the report. And those two points of clarity were number one the supply chain issues, and I got my answer today on the 11am call. And I hope you guys find it the same in that I don't blame highly on for this it's not their fault. It's not their fault that there are certain components that need to go into these products to make them go. It's that simple. Do I believe that the team is doing everything that they possibly can to find these alternatives. I do. Do I believe that the 12 month timeline that's been rolled out by Thomas Haley, and to be carefully monitored over the 12 months in respect to the supply chain is a prudent plan. It's unfortunate. He said that they're crossing their fingers a little bit hoping that things kind of shake loose on this front, and they're going to monitor it closely over the next 12 months. Does it mean the stock has to go down to solve the supply chain overnight. No, it doesn't. Highlands, just like every other big industrial industry, their hands are tied on this deal. And we're going to have to be patient until things soften up things loosen up business gets back to normal and it will just like it always does. Okay. The second thing is the comments net gas which Thomas Haley was very forward with this. He made a very, very telling statement in this and I think had we had this information last night. He had been making presumptions that the hybrid EX product would be scrapped. Okay, that that is not the key. What he said was and if you remember from the old investor presentations. The hybrid on the CNG side was aimed at supplementing 120 horsepower of deficient power in a natural gas powered truck. Okay, that's what it was aimed at. He said something interesting about this. This was the business niche or the strategic niche I think is what Thomas Healy said that they were going after to fill. Come and saw that they filled the niche with their updated natural gas engine. Now Thomas Healy said something interesting with this in that he basically said this. It's early stage by the specs of the engine what's being proposed and what's being shopped out there is that it gives equal or comparable power to a diesel truck using natural gas. So that right there puts highly on in a little bit different position here to validate it could come to where there are maintenance issues with new technology that they cannot meet the specs that they're declaring what type of product they're making. So that's why the innovation has Cummins put this through my Cummins is a big player. One I've got major respect for I put them up there with any of the majors Volvo Pinto Caterpillar, even some of the largest Detroit to diesel as well some of the best engine suppliers in the world, I put them up there right at the top I love Cummins, fabulous company. So I don't have any reason to question the integrity of the specs on the engine. At that point, he basically said look it hasn't been put to test it's in a little bit of an early stage of rollout. We acknowledge that it's there and it's aimed at satisfying a niche that we were going after. Okay, it doesn't mean that the hybrid is going out of business doesn't mean that at all. That there's a competing product out there and they'll monitor the landscape carefully to see how dominant this Cummins Nat gas engine is, and how that could potentially affect the hybrid sales going forward. Is it does it affect it at all, do they have to scrap it all together, will it impact sales, those are the things that they're going to be monitoring going forward, will the interest die off will our customers fleets going out there and will the natural gas engine exclusively. Those are things that will be monitored. The second element to this which was really telling to me in response to my, this was my number one concern. In retrospect the supply chain issues is the largest issue from the earnings report, but with regard to the Cummins and the natural gas and the, the decision point with the hybrid product. My big concern here was that the hybrid product. What was the what was the state of it last night when I read the report I was like Jesus are they doing away with it. I got a little bit of hint to this when Thomas Healy provided some insights on what type of customer feedback they're getting when they walk in the room, and they're always asking about and and showing an over interest to the ERX product okay. It made it sound like there's not as much interest in the EX product the hybrid product. Now, it has to fit a specific application a terrain application. Thomas Healy talked about this as well, whereas to go through be V the hyper truck gets it done. Are there an opportunity there to pour all of the interest into the hyper truck ERX. I don't know. We'll be monitoring that over the next 12 months to see where that product goes. There are sales on the books right now, I presume that those sales and accounts receivable are those hybrid units will see how the customers like them. Perhaps maybe there's customers out there that don't do business with Cummins. Maybe there's those out there that prefer not to do business with Cummins for whatever reason. The specs through product validation aren't quite as lofty as Cummins is projecting them to be. We'll see. And what Thomas Healy was talking about is we're going to monitor that competitive landscape going forward to see how it affects our hybrid product in the marketplace as we offer it. Okay, so really hope you appreciated this deep dive here that I did. I've completed my review of the earnings call. I was fabulous. I added 650 to today on the downturn of 15%, maybe ill advised maybe smart. For me anything sub 10 is a good buy anything for me and an opportunity to drive my cost basis even lower which is about a little less than $11 and 30 cents right now. So far off of that mark, especially for somebody with a long term goal in the stock and especially probably looking to deploy a defensive mechanism to say look, maybe I was looking for some roll out into 2022. I think we should probably bump that forward into ladder 2022 and into 2023. And if you just want to put it on the safe side. The interesting rhetorical question you want to ask yourself is, is this stock going to be trading at 750 in 2022. Is it going to be trading at 750 in 2023. Is it going to be trading at 750 into 2024 and beyond. Those are the questions and those are really the validations that I'll help you stay steadfast in your position understand what you own, not only now, but into the future. Don't you want to put yourself in a decision to look at that holding in 2024 2025 and say man I'm sure glad I didn't sell the stock. Look how bad it was. That was bad times back then in 2021. We were going through one of the worst pandemics that the world has seen. We were going through supply chain issues. We were talking about a political change in political environment. And we just passed the infrastructure bill for the first time that addressed some of the climate change issues and green initiatives that that is taking us out of the diesel era into a new era and I knew it at the time. I'm still glad I stayed steadfast on my mission with highly on because what I knew about the solution then is what I've been validated on the solution now is that it is the absolute best solution on the market to provide tangible real world bottom line results to fleets right now based on the solutions and the fuel that exist right now. The solution could be put in the hands of these companies that are demanding this product and these technology technology companies like highly on are scrambling to make that happen guys thank you so much for tuning into the message and good luck in your investment future.