RE:KTM has Released 2 New Videos on Exro on the Backlog CDJohnny,
In keeping with the spirit, I wish to point out the following with regard to KTM's latest video
1. Quoting potential unit volumes and front loading them into a given accounting period without the delivery schedules just doesn't make sense, particularly where VMC and SEA are concerned. Neither company, particularly VMC have presented forecasts that would align with the forecasts that KTM appears to be making. Both Companies committed to unit counts, but as you will most likely read, neither committed to a particular delivery schedule.
VMC for example is hardly in a financial position to take delivery of the quantities contained in the press release given their financial position. That business will be conducted using a back to back agreement. In other words VMC will order from EXRO when they themselves get the orders for their buses. I am pretty sure that the SEA relationship will function the same way.
So while these quantities may eventually be forthcoming, it is highly unlikely that they will be delivered within the timeframe that coincides with KTMs That represents a meaningul difference when discussing matters of profitability in a given accounting period.
IN TODAY'S ENVIRONMENT CASH IS KING AND NO COMPANY WILL SPEND MONEY THAT ISN'T ATTACHED TO A RELATIVELY IMMEDIATE RETURN ON THAT CASH.
2. I feel his time estimate for the delivery of units to the Mining and Off-Road customer under NDA may be off as well. He refers to the language contained in the October 5th press release and concludes that units will start shipping in Q1 of 2024, when that press release states the following
"The agreement will begin with the supply of multiple sample units to be delivered to the customer by the end of Q1 2023. After successful testing and validation, it is anticipated that the development agreement would transition into an agreement to supply the NDA partner with series production products beginning in 2024.
So, realistically, those shipments could commence anytime throughout 2024 including as late as Q4 and are subject to successful testing and validation. We have yet to hear from the company on that matter.
As to your promotion of the ESS Business and its potential for the REAL PROFITS, I respectfully ask that you present the numbers you are using to make this statement. The BESS business is a very crowded environment as you know.
EXRO has yet to share any projections they have generated themselves or received from their channel partners that are responsible for revenue generation. This includes Re:Build, which at present has only the important role of supplying certain components including cabinetry, some testing, integration and shipping.
Regards,
S
Absent numbers, formal press releases from EXRO and its partners this is all pure conjecture and not due diligence.
If you have knowledge (not conjecture) as to