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Smith Electric Vehicles CEO Bryan Hansel argues there is a market for electric trucks and the company will succeed.
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-- -- this week.
Yesterday I reported that Smith electric accompany President Obama visited -- highlighted as an example of a green energy company leading recovery.
It received 32 million dollars in federal grants but -- the waning investor interest it canceled its IPO which was supposed to debut about a week ago week ago today.
The company said it will produce 620.
Battery powered trucks this year but as of June at Sony made 79.
In his most recent SEC filing Smith admits it's never been profitable and it's only has 800000 dollars in cash left.
Smith electric Chief Executive Officer Brian Hanson joins us from Kansas City brought Bryant you take issue with my report tell me.
Well my factually.
Wrong I've just given a series of facts tell me where I'm wrong.
I I'm not sitting -- -- your facts are incorrect.
Where that the the state of the business the momentum we have.
-- our our current financial position and in the growth for seeing is.
Is is quite honestly we're on our front foot or rationing extremely well.
How can you be doing extremely well when -- counseled your IPO.
Even about 800000 dollars cash left.
You -- anywhere in India met the target for the production of electric trucks how can you say you're doing well.
-- -- -- -- I'm trying to to move into the public market we got a tremendous lot of very positive feedback -- -- -- nicely deals refinery -- -- -- canceled the IPO essentially you'll listen I think we did we can bring in the money that we -- we will gonna bring in private investors well -- -- we couldn't bring an -- publicly at at at the value and Taiwan is sort of due primarily we have extremely and have had supportive shareholders continue to have a shareholders and and we're very confident and I know.
That that we got the financial strength and access to capital to grow the business privately which right now is the right thing to do.
Where is the market for electric trucks if you gonna make 620.
Anybody made some you know -- have you made seven -- -- by the way you tell me where is the market for electric trucks.
We've we've never had more trucks on orderly art this month September is the biggest there's not a history of our company in terms of production.
We we're we're scaling our business if you look at this -- what we did is we launched an entirely new product.
And and the foundation of that product was really an ailing us to scale our supply chain.
And really need to demand that we see so we've we've got the biggest backlog and history of the company we've got a strong supplies and neither have which really starts to enable us.
Moving into to the end of this year and next year surely certain of the volume where it needs to go so sort of make this a viable way -- that if that's your -- it that -- -- -- -- -- so why didn't.
The general public.
-- -- -- Well against institutional investors and they said they love that that the business they love the space a lot of accountable and -- of the -- -- were too early and we get them response we got as a as a business related fifteen million in revenue last year.
We're certainly we knew we -- early we're early in terms of the size of business -- that collects get a couple more quarters and we love to own your stock incisive you know with my shareholder base.
It's easy enough restaurant is money privately let's go -- -- a few more quarters -- continue to grow.
And -- really established that the install base of our next generation product in the field.
And and let's go back to the market when it's appropriate and that's exactly what we're gonna do my right fractionally in -- you never made a profit.
And you would total debt as of this moment are -- 132 million dollars an accurate.
Not at all we we we at this point I think we have.
Fifteen million in total debt on the total investment in the company.
From day one has been about a 130 million dollars but the majority of that well over a hundred million isn't just equity -- ended individual shareholders.
You're gonna assure our viewers that you -- not going out of business anytime soon.
It's not gonna happen we're creating an industry I think what I said that the royalties from our customer base.
You know just that sheer demand that we're seeing because the product works I would got over two million miles in the fleet this year.
The performance the cost savings that are that are being.
Realize by our customers is why they're back ordering the second and third time so.
You know we see an an absolute niche opportunity for electrification in urban delivery.
I think our customers realize that the product -- building today -- absolutely.
That the product for that you -- down to -- 100000 dollars cash.
Now that was -- -- we've raised fifteen million dollars since then we're gonna raise another round in the balance of the year so no I mean.
It has that that was quarter to ending balance right before we we brought in another round of capital that was above wouldn't -- had them very very consistent -- it was a private equity to put money in.
Absolutely -- -- that's how we've raised all -- today is from private equity wasn't Bain Capital wasn't.
It has advocate -- Bryan -- CEO of Smith electric would glad you're with us today we appreciate you being here thank you so.
Thank you.
