 Like to welcome everybody back to the independent investor channel. My name is Ryan. I put these videos out I really think there's a lot of benefit in trying to put this highly on puzzle together. I do They've provided a ton of information publicly disclosed whether or not you want to go to scc.gov or you want to go to the highly on comm website These have been made available throughout the course of the Company going through this back merger process and now that it's publicly traded I had to go back and remind myself of some of the things that I read in the original investor presentation in this video We're going to jump into the financials that were disclosed in that speaking about projected sales over the next Four years from here going into 2024 what those revenue estimates could look like What some of the EBITDA projections look like where some of that data has come from How realistic it's going to be for highly on to meet some of those Sales projections and revenue projections going forward And I'm going to attempt to tie together what I saw in that original financials disclosure With some of the things that I've seen transpire up until now the rollout of the new innovation council for the hyper truck ERX what that's going to mean going into the latter part of 2021 and especially Into the show me year of 2022 For highly on guys are going to want to stay tuned with me on this as we jump into the financial statement On what to expect over the next coming years for highly on I Love numbers and and there's been a few attempts at breaking down the summary proposal of financials in the original corporate Presentation I'm going to save this in the link of the description of this video as well So you guys can reference this entire presentation if you're a bull or a bear on highly on If you're looking to invest or not to invest in the company I don't put out my videos to encourage you to do one thing or another. I could care less what you do, honestly I share what it is I do with my money and my investing thesis based on the due diligence that I've done for the benefit of the subscriber base and audience because Seemingly this information is available to the masses, but it's amazing how individual of an opinion Can be derived from looking at these numbers with a certain different lens or a certain different extrapolation of the data on what highly on is proposing to us and What is going to transpire over the next five years the very very important to look at this? 20% of this has already been completed. We've already moved out of 2020 and we are Firmly in this opportunity where we're looking to close down on Q1 here in 2021 so we want to look at this in context and say well is highly on being honest with what they're telling us Do they need to make sales are they making sales are they proposing that they're making sales? Are they lying about what they're doing? Who's better Nicola or highly on who's more dishonest who's telling us the truth? I'll have you know when I looked at Nicola it made it through my first layer of Evaluation and I didn't look at it again. I wasn't interested in putting $5 into Nicola at all And come to find out my instinct about that company and based on what I saw and based on my evaluation of the ceo Being yes charismatic being somewhat clownish in his application and absolutely doing a fabulous job in in making a bunch of sheep Follow what it is that he was putting down that ended up biting them because being Dishonest with would-be investors only comes up to bite you I actually think Nicola has a lot more pain to the downside and it will be a Vendication when highly on actually does crop above what Nicola's share price is right now and and they are they're quickly converging And when that convergence matches and highly on is able to somewhat disconnect From Nicola all together if you want to know about hydrogen fuel cell and Looking at the wave of the future as far as investments and and technology and innovation and proposals going forward I would bet on highly on for hydrogen fuel cell not Nicola So that's a pretty bold statement and within this investor presentation It actually alludes to that very thing in a couple of things in a couple places Agreements that they have ready to rock when the infrastructure is conducive to doing so but not until then There's way more revenue to be had here in changing the trucking industry in the short term and medium term Then putting all of your hopes into hydrogen fuel cell when the infrastructure does not freaking exist And I can speak till I'm blue in the face on this But I want you guys to understand this for yourself so to go back into the summary of financials that was Identified in the corporate presentation when the SPAC Merger was actually announced and highly on stood up their website. You could find this on their website at the time This was prior to It's actual SPAC merger being voted on approved etc etc But I there's a few key points in here because I had to go back and review this and I you know Have been a long shareholder in highly on there was a short time there when it ran up to the 50s and Came back down where I sold the stock at about 26 I went ahead and exited it because I figured that there was probably gonna be some exacerbating selling Not indicative of any of the company's financials or binding agreements or anything that they had said That was going to matter. In other words, there was a real disconnect happening between The prospects of highly on and how the stock Was trading and that's when the shorts got ahold of it and drove it down below 10 And the rest is history 2021 is done. They said they were going to sell 20 units here in column one Did they do that? Yes, they did they sold the 20 units Realized revenue of about a million dollars Nothing too crazy Rather irrelevant in the long scheme of things However, I do take away a couple things on their 2020 rollout and their 2020 estimates. Can they make sales? Yes, can they hold true on the numbers that they've projected? Yes Our fleets interested in going from point a to point z what that means is there's an interest in the product at point a And you go all the way to a finished and happy customer at point z Yes, there is 20 units were sold and installed in 2020. That's available in thomas heli's transcript On the last quarter rollout of progress on how many units were sold Now they didn't book that revenue from last year And it'll be interesting to see here in a couple days when they report Where they're going to book that revenue if there was bookable revenue there And whether or not they're going to actually show some of that on the books there I don't really care either way because it's rather insignificant to look at 2020 and just say They're not going to sell. They're not going to sell You have to really compare what it is that i'm showing you guys on this presentation And what was released on the new presentation to put the the pieces together In understanding how they're going to ramp up these total hybrid electric units sold in 2021 You'll notice the tick mark in the hyper a hyper truck erx column in 2021 is a nil There's nothing there. This starts to ramp up in 2022 The innovation council is going to supplement that gap in time to realizing the first 2022 estimates And for you guys that have come to me and told me that highly on need sales. They need sales. They need sales I will agree with you Conceptually but not in reality In reality what they need to do is they need to stick to the road map that was presented to Customers and they need to be given ample time to make sure that they can realize the penetration That is going to be had from the innovation council 10 The 10 companies that have stood up and said yep, we're going to be part of this deal Now this was a present supplies prize to me. I didn't have this information at the time I took a position in highly on at the time I did so We would have had no indication at that time that they would have been able to meet the 2023 and 2024 projections as the hyper truck erx ramps up triples From 2022 and then more than doubles from 2023 into 2024 But let's talk about the 2500 real quick in the column of 2022 Let's just assume that they make it through 2021 and they've got some positive news come back Maybe some constructive criticism Hopefully they've got some process improvement initiatives from each of the companies that are part of the hyper truck erx innovation council Okay How are they going to realize that 2500 unit sold? We'll hold on back up the truck a little bit Remember the agility pre-order and I think there's been some misconception in the agility pre-order Being up to a thousand trucks that that is not true in this investor presentation It says in two separate places that that is a binding pre-order That means that those trucks will be realized Anybody want to do the quick math on that for revenue sales? thousand trucks, yeah At 250 225 thousand dollars a piece. It's a 300 million dollar order guys. All right more importantly Not only does that suggest that the bottom line revenue in 2022 will be absolutely met with ease But also that the 250 order from a and g will also be honored And that they will have half of the orders to make up Through the innovation council into 2022 as they ramp up production and delivery Based on the interest by the Innovation council to purchase the initial hyper truck erx units Okay, now as we step forward into 2023. I just want to bring your attention to the 8500 units Of projected in 2023 Remember how many Trucks we are exposing ourselves to through the innovation council anybody remember 100,000 100,000 trucks of Trucks that are out there on the road is being represented in the innovation council So basically what this is saying is that if highly on can win one-tenth less than one-tenth Of that prospective business Keep in mind these freight liners did not join this innovation council To twiddle their thumbs. They did not join this innovation council To waste their time They joined this innovation council because they're all interested in stepping in the right direction In a way that's going to be economically feasible. It's going to be realistic in the short and medium term And it's going to move them into a greener future Maybe perhaps even realizing a net carbon negative future for their for their fleets So you look at this 8500 and you're think wow that that's incredible that that's a pretty big estimate there I beg to differ what this means to me is that this is realizing 8.5 of the total overall represented fleet From the innovation council Now some could be more some could be less The the broad reach that's represented within the core nucleus of the innovation council Could also represent other customers that thomas healy alluded to on recent interviews That are not part of the innovation council But are kind of chomping at the bit to get their hands on some of these units Now some of these units could be one two three hundred orders Right some of these orders could be upwards of a thousand just like agility has represented I think the real takeaway is to understand that whether it be a 250 order or whether it be a thousand orders These companies are ready to freaking go and they're capable of putting up these huge huge orders For highly on to start to turn this up and ramp up mass production That's why he alludes to this all the time when it's time to start to ramp up into mass production This is where it's going to really shed some light here. All right now into 2023 We're talking about breaking the billion dollar revenue mark here in 2023 absolutely possible here I think this transition from 4100 doubling to 8000 Into 2023 speaks to the transition of going from the retrofitted model on existing Trucks and turning out a lot of them off of the oem hubs Which highly on alludes to in the new investor presentation as really being a key strategic infrastructure move or an unnecessary Need for highly on to create infrastructure because the oem hubs already exist In other words, all companies need to do is say yes Check the box get it installed at the oem and that's where some of these projections are coming from And I also think that's where some of the gross profit margins Start to increase because I think that the oem margins coming off the line And the hyper truck erx margins as those start to increase Really does impact these margins at less than 30 percent increasing to 31 5 and 35.3 respectively as these numbers start to increase over time, okay, so the over 1 billion in In revenue here and then the gross profit of 320 million is just going to be absolutely fabulous for the company and then Over doubling here into 2024 Now I just want to close this video and talk about a couple things about what highly on has identified here This is interesting This 2 billion dollar mark in these 34,000 units sold here Seems really really incredible if they can match this and you start to think wow can they can they honestly sell 19,000 hyper truck erx's To these to these fleets Think about the innovation council for just a second again. I want to bring your attention back to The amount of exposure that they have not only within the the council And to customers that they have access to not only domestically but abroad Okay, this 19,000 really starts to take Take some consideration when you're talking about Knocking out thousand fleet orders of the hyper truck erx Turned off the line and meeting this bottom line 34,000 units as we step into 2024 And realize this 2 billion dollars of revenue now keep in mind Conservatively that this only reflects 2.2 percent of the 94 billion dollar annual addressable market What does that mean the 94 billion comes from the 2022 estimates of 944,000 Class 8 trucks sold annually So think about that for a second guys Almost a million units almost a million units sold And highly on is basically saying look We're anticipating that we're going to get 19,000 of them. Are they going to be able to do it? I don't know It's going to be based on the strength of the product And the amount of usefulness and bottom line efficiency that is Clotified when these are start started to roll out to the fleets and these guys are really starting to understand The bottom line savings Uh to to the companies this is going to be huge here So the 2 billion dollars in revenue estimates It is is just over 2 percent of the total market of the total number of Class 8 trucks that are sold every single year Every single year They've already identified that the chassis is going to be peter built that these are going to be built on Very exciting stuff going forward And I really wanted to spend some time on the deep financials That were turned out and I think have been forgotten about here As highly on has just been firing away on all cylinders rolling out all this exciting information About the company, but I really wanted to show you guys my interpretation Of these financials as we're really starting to go To to move forward into the to the sales growth As well as the ramping up in positive and getting this company to positive revenue Going forward All right guys, so we've come out of the financial disclosures here Amazing how all these things kind of tie in you really do need to compare What was in the original investor presentation? That of which I'll provide in the description below for you guys and the new investor presentation That brings a lot of these things together The these aren't just made up things. This is not just an empty dirt field out in the middle of nowhere These are real strategic initiatives that highly on is rolling out with regard to their hydrogen fuel cell solution with regard to their C and g r and g hybrid solution When and where those are going to transition to oem installations rather than retrofit When and if the hyper truck erx is going to start to meet their projected sales numbers 2,500 is what I've earmarked in this video going into 2022 And to my estimate they've already met half of that right now So I really think the disconnect between what's going on at the company and the underlying stock price Institutions are buying right now. I think just over 10 right now valued just at over 1.5 billion One year ago projected After initially rolling out as a SPAC was estimated at an enterprise value of 1.1 billion Have we progressed since then to realize a higher valuation here? Once highly on starts to crank out some of these numbers and starts to double and triple some of these Sales numbers or production numbers and the revenue starts starts to double triple And in some cases even greater based on their conservative estimates going into 2024 I think disguised the limit for this company no doubt about it And I roll out these informational videos to try to extrapolate what I see on especially One slide in this video is what we looked at But there's so much data there to be had in understanding whether or not highly on can meet these projections As disclosed to the public guys. I really appreciate you tuning in for this video I'm going to make sure and subscribe to the message the independent investor channel Leave your comments at the bottom of this video and share the message with anybody out there that you know is looking at Doesn't like wants to take a position in wants to argue with me about highly on share the video bring them on It's totally fine guys. I appreciate you sticking with me through the totality of this video. Good luck And your investment future