Innoviz Technologies Ltd. Price & Performance (INVZ)

And good morning, everyone. Thank you all for joining us on this call. Today, I would like to tell you about some of our recent financial developments and business accomplishments. And lay out how these live in UBI's in a transformed financial and operational position for 2025 and beyond. In 2024, Innovius recorded another strong year of financial performance full year revenues were $24,300,000 versus $20,100,000 in 2023. Exceeded the midpoint of our guidance range. During the year, we feel decreased our cash used in operations and capital [indiscernible] to $81,400,000 from $99,600,000 in 2023. In the past two months, we've taken significant steps to strengthen our financial position. We entered into approximately $80,000,000 of NRE payments plan with our key customers. We ended 2024 with $68,000,000 in cash and cash equivalent Additionally, in February, of this year, we completed a registered direct offering of our securities that generated gross proceeds of approximately $40,000,000 that should deliver approximately $12,000,000 in savings on an annualized basis. Altogether, we expect our newly strengthened liquidity position to now be a competitive advantage for Innovius. On the customer side, we recently unveiled partnership with MobileIron has resulted in programs with several new OEMs. And our integration with the NVIDIA Hyperion eight platform means that we have the potential to serve customers across all three major AV platforms.

We continue to work with a number of different programs and are expanding our production capacity by an order of magnitude. In 2025, to meet customers' future demands. Heading into 2025, we believe that Innoviz is in an excellent position to execute on our pipeline with additional programs and accelerate growth with our market leading LiDAR technology. We also feel that the time is ripe to begin exploring opportunities outside the automotive industry as well. We believe that our financial position and our prudent cash management will enable us to cross expected SOPs and expected ramp volumes in 2026 and 2027. Let me begin by telling you more about the multiyear $80,000,000 NRE payment plan that we announced in December. Under this plan, we expect to receive payments totaling approximately $80,000,000 between 2025 and 2027 with the bulk in 2025 and 2026 and over $40,000,000 already in 2025. We see the potential for this payment plan to be upsized as we are working to expand our scope of business with these and other new customers. Going into 2024, we had said that we expected $20,000,000 to $70,000,000 of annual bookings During the year, we've also announced several new programs, where we stated started work with commercial discussions [indiscernible] We see this as a testament to the confidence our customers have in us and the scale of the programs.

The payments are expected to fund the development work on our LiDAR and come before the production ramp. This does not mean we are increasing our spending on these programs. The NREs are going to cover expenditures based on ongoing previously planned efforts, allowing us to further reduce our cash burn. Expect to generate in 2025 from sales of our lighter base on existing engagements with and orders from potential new projects. [indiscernible] Two weeks ago, we announced a registered direct offering of $40,000,000 gross of our securities. These investments from two significant multibillion dollar institutions enhances our financial position and will support the company's business growth moving forward. We believe it enhances our resilience, provides additional operational runway and will be a competitive advantage to Innovis. It will help us reach key NRE milestones gross expected SOPs and ramp volumes in 2026 and 2027. The investment should also buffer potential lumpiness related to the timing of NNA repayments and has the potential to reinforce the markets and our customers confidence in our market position. In addition to the annual repayments plan, in our offering, we recently announced an optimization of our operations that is expected to result in saving of approximately $12,000,000 on an annualized basis.

In all, we believe the NREs strategic investment and operational optimization will enable Innovius' trajectory to meeting our SOPs and ramp up the Innovius II to mass production Good morning. To that end, we've reached the C Sample phase and froze the design of the lighter. With us, we remain confident in our ability to achieve our long term goals position Innovius to reach profitability and deliver significant value as we look to the end of the decade and beyond. Moving on to one of our major achievements, Last quarter, we disclosed that we've entered into several new OEM programs following our engagement with a major Level four platform partner. In December, we were very happy to announce that that partner is Mobileye, and the platform is Mobileye Drive AV level four. Earlier last year, Bobila announced that they've discontinued internal work on Lighters. And are pivoting to a third party time of flight LiDAR provider. We are very pleased that Mobileye chose Innoviz Lighters as a key feature of the platform. And we are very excited to be working with an industry leader as the world embraces autonomous driving. Innovius two Lighter with its unique capabilities, including they are.

Is a proposition that customers appreciate. And our engagement with Mobileye on this platform is a testament to that. Mobileye Drive is a comprehensive driverless system that enables fully autonomous [indiscernible] right pulling vehicles, public transport and goods delivery. Testing is already underway in Europe and North America. By leveraging Inovis expertise in lighter technology, vehicles built with the MobileEye Drive platform will deliver safe and smooth driving performance in their domains. Each vehicle is planned to have nine Inovese two lighters we expect the volumes from these programs to be very significant. We believe this will drive substantial revenue growth prospects for the company as road testing is planned to commence in 2025 with SOPs in 2026. Let me now go into the details of some of these programs. [indiscernible] technological capabilities that we've demonstrated in this platform were key to the expansion of our relationship with Mobileye. We've been engaged with VW on this program for some time. After initially displacing the original long range lighter, last year we've also displaced the show off range lighter provider for the program with the Innoviz II short range. Which covers the short and medium range and is based on our existing Innoviz II architecture.

This vehicle was both in our booth and mobilized booth during CES. And drew a lot of attention. It has three roof mounted Innoviz two long range ladders in the front of the vehicle and six Innoviz II short range liders around the vehicle to provide a full three sixty view of what's happening. This is critical because in level four vehicles, there's no driver. And so the car needs to be able to operate fully independently in all directions and understand its surroundings. The IDBAS is planned for operation in Europe North America, and The Middle East. Test vehicles are already in operation in Austin, Texas Hanover and Hamburg in Germany SOP is expected in mid-twenty twenty six. The next engagement I'll tell you about is the Holland PeopleMover It's made by a division of Bantler Corporation of Germany and its intent for public transportation. The configuration here is very similar to the ID. Buzz with a suite of nine INOVISC two short and long range ladders in addition to radars and cameras. We expect SOP in 2026. And this vehicle is slated to roll out globally across North America, Europe, The Middle East and Asia. The next vehicle we will look at is a public transportation shuttle by Schuffler which is a traditional German Tier one and the first test vehicles are expected to come out come out this year.

The last example of the L4 drive platform that I'll show you today is this two seater luxury robot XD from Verne. It's quite different from the vehicles that I just showed you, and it's a testament to the versatility of the L4 Mobileye Drive AV offerings. It's a fully autonomous electric vehicle designed for safety and comfort. From a new European OEM. The ADAS system sensor suite is quite similar to what's in the ID Buzz and the other vehicles with nine Innovius two Lighters. The validation phase is scheduled for this year with SOP at the end of twenty twenty six in Zagreb and then expanding to Germany, The UK and Saudi Arabia in 2027. We're excited to be involved with Mobileye on the ongoing adoption and proliferation of the DRIVE platform. It's 9 ninerals per vehicle the DRIVE platform is expected to grow to hundreds of thousands of flyers per year. A significant revenue opportunity for Innovius. In addition to the VW ID bus, Level four program, that we've talked about earlier, we are continuing to work with VW L4 programs on the Chauffeur platform. I'm happy to share that the development process is moving forward nicely across these We continue to move move through virus development gains successfully and are on track to meet the planned latter start of production timelines.

Another recent development that I'd like to bring to your attention is in regards to our relationship with NVIDIA We are working closely with NVIDIA team and are engaging with OEM who are exploring NVIDIA Purin 8.1 platform which now incorporates the Innovis two. At CES, we also demonstrated that our perception software has been optimized to run on the NVIDIA DRIVE AGX Orin platform. With Mobileye Qualcomm and NVIDIA, Innoviz is fully agnostic to the major AV platform. And we can meet the needs of our OEM customers regardless of their platform of choice. This is a critical value proposition and something we're very proud of. Shifting now to our pipeline. We're encouraged by the continued progression of the opportunities ahead of us and are confident in our product positioning. We're in talks with multiple OEMs on RFIs and RFQs across Europe North America, In Asia, on Level three and Level four platforms, these programs encompasses a variety of vehicles, including passenger cars, trucks, shuttles and robotaxis. We've been able to display the advantages of our technology and we've successfully completed a variety of technology technical and commercial assessments are now in the various stages of sourcing process with a number of major We have a lot to look forward to.

And the entire team is working how to convert these opportunities into additional design wins. Having just returned from Europe, in the next few weeks, I'll be traveling to Detroit and the Silicon Valley to meet many of these potential customers. In addition to the automotive opportunities that I've outlined earlier, I'd like to touch on some of the smart applications that we envision down the line. More and more, we're seeing our unique technology as being highly to areas outside the automotive domain. We see a variety of applications in development such as security, smart infrastructure, airports and ground We continue to be laser focused on the automotive opportunities directly in front of us. And on pursuing our strategy of targeting the market with the largest number of available units, However, we are also aware of longer term markets that we can create for ourselves. With our robust and mature lighter products. And our position as a geopolitically neutral lighter supplier, into markets where safety and security are critical. As we expand our capacity, we think the time is right for We look forward to sharing more with you about this in the future. Before I hand over the call to Eldao, I provide you with some color on our financial performance in 2024 and our revenue guidance for 2025. 2024, we exceeded the midpoint of our revenue guide of $23,500,000 to $25,000,000 and our NRE bookings were in line with our expectations for the year.

In 2024, we also met our operational targets of adding two to three new programs. We believe that the NRE payments that we expect in 2025 combined with sales of sliders will drive a more than twofold increase in our revenues year over year for 2025. At $50,000,000 to $60,000,000 with positive gross margin. The expected increase will in revenue will further drive down our cash burn. On the operational front, in 2025, are targeting one to three new programs and expect $20,000,000 to $50,000,000 in additional NRE bookings incremental to what we've already announced. And with that, I'll turn the call over to review our 2024 financials.

Thank you, Omar, and good morning, everyone. Since our last earnings call, we have strengthened the foundation of the company and have made meaningful strides on our path to breakeven and profitability. On October 12, on February 12, we closed a registered direct offering of our securities. With gross profit of approximately $40,000,000 This funding enhances our resiliency and extends our operational runway. It will help us reach key NRE milestones and prepare for SOP and volume production in twenty twenty six and 2027. The NRE payments planned Omer discussed earlier demonstrates our customers' commitment to Innoviz and trust in our technology. Further, the realignment we announced this February improves our cost structure in support of our ongoing efforts to streamline the company. We ended 2024 with approximately $68,000,000 in cash and cash equivalents, bank deposit, marketable security and short term restricted cash on not including the $40,000,000 gross funding I just mentioned. We are continuing to drive sequentially decreased cash burn. Resulting from our continued prudent management of our company focused on a single Innoviz II LiDAR platform and our strong revenue performance. We are very proud of our trend of consistent improvement in cash burn that we delivered over the course of the year while there may be continued lumpiness on a sequential basis, On full year basis, we expect to see considerably lower year over year burn Looking into 2025 and beyond, we remain confident in our ability to manage our expenses effectively and keep our burn down on an annualized basis.

Gross margins continued to improve quarter over quarter and in Q4, we generated gross profit for the first time. Going forward, we expect margins will as we ramp unit to volume production and as NRE revenues continue to fluctuate, from quarter to quarter, based on our customers' milestone. For the full year, we do expect gross margins to be positive. Now turning to the income statement, our full year 2024 revenues of $24,300,000 was above the mid point of our guidance range of $23,500,000 to $25,000,000 versus $20,900,000 in 2023. This represents another year in which we delivered on the top line extending our record of revenue execution. Our operating expenses for 2024 were approximately $101,000,000 a decrease of 17% from $121,000,000 in 2023. This year's operating expenses included $17,000,000 of share based compensation compared to $20,700,000 in 2023. Research and development expenses for 2024 were $73,800,000 a decrease from $92,700,000 in 2023. [indiscernible] The year's R and D expenses included $11,200,000 of share based compensation compared to $13,700,000 in 2023. 2024 R and D expenses reflected a reallocation of R and D expenses to cost of goods sold as part of the NRE revenue recognition process. To conclude, 2024 represented a transformative year of robust performance from both revenue and cash perspective.

We are encouraged by the ongoing strength of our expense management the ability to consistently meet or exceed our revenue guidance. Looking into Q1, we expect a strong start for the year [indiscernible] and work to secure additional design wins. And with that, I'll turn back the call to Omar for closing remarks. Thanks, Rodam.

Before I wrap up the call and open for Q and A, I wanted to recap some of the amazing achievements in the past year. We added several new Level four OEMs through our partnership with MobileyeDrive. We are continuing our work on Level three Mobileye Show Fair programs are collaborating on bringing solutions to the market with test vehicles in 2025 and launches in 2026. Our list of platform partners now include NVIDIA, and we can serve OEMs across all major platforms. We have a robust pipeline of RFIs and RFQs with a broad base set of OEMs on Level three and Level four programs. And we believe that our next few wins are within reach. From a financial standpoint, the $80,000,000 NARE repayments plan the $40,000,000 registered direct offering, our prudent cash management are expected to enable us to cross SOPs and ramp volumes in 2026 and 2027. And let me just add, we had a lot of news to date that we've covered, and we couldn't get to all of our technology updates. Rest assured that we are continuing to make significant breakthroughs and broaden our competitive advantages. Our superior technology, and strengthening balance sheet gives us confidence that we can achieve our goals of becoming the leading Tier one automotive leather supplier.

And with that operator, please open up the call for Q and A. Thank you.

In order to ask a question, please raise your hand using your mobile or desktop application. Once again, please raise your hand using your desktop or mobile application or press star 9 on your telephone keypad Our first question today comes from the line of Mark Delaney of Goldman Sachs.

Thank you very much for taking my questions and nice to see all the progress that the company was able to realize over the last quarter.

On the last earnings call, you spoke about one potential nomination with the top auto OEM. And you said that Innovius had passed all the audits and was in final legal negotiations. Can you give us an update on where that potential nomination stands? Yeah. So actually, I think we've we've passed the legal discussions. And we are waiting for the customer final alignment So we'll make once we'll learn on the the OEM next steps, Very helpful. Thank you for that. And my other question was around cash flow. You said the NRE revenue has positive implications for margins and cash and you're also taking cost reduction actions. So given those factors, can you give us more detail on your expectation for free cash flow this year and how much you can reduce the burn in 2025 compared to 2024?

So we said that this year, we are expecting to continue with the trend. Reducing cash burn the NRE are definitely positive Contributors to that and we expect this trend to continue. This year, next year, Okay. Any quantification of the degree of improvement that you can share, Elder?

Not at this point of time, but definitely an improvement quarter over quarter, year over year.

Yes. We stated about the realignment that is going to help us save $12,000,000 on an annual basis and of course the NRIs another contribution Well noted, I'll pass it on. Thank you.

Thank you.

Thank you. Our next question today comes from the line of Jesh Patwala of JPMorgan. Please go ahead.

Hi, good morning. Thanks for taking my questions.

I was wondering if you could share some insights around impact standpoint. From a direct impact perspective, I believe you are engaging with domestic Israeli and non Chinese Asian manufacturing partners So maybe any incremental color on production exposure and flexibility would be helpful. And then from an indirect standpoint, which I believe could be more meaningful for the business, Could you talk about how some of the RFI, RFQ Thanks and have a follow-up.

Sure. So we are still waiting for the dust to settle. To see where things land. And you know, checking the news on a daily basis. As of now, we don't see any impact on us. As you stated our partner on our plan production partner is in Asia, not in China, And so far, we're not seeing any impact. In terms of our Fais and RFQs, we see an uptick of interest in The U. S. Having that the variety of sliders that can actually serve that market is now obviously more limited. With Innovius, being, geopolitically [indiscernible] So it's actually I believe it actually serves us in favor. At this point. Understood. That's helpful, Kala.

And then just as a follow-up, you mentioned test vehicles are already on the road for some of the customers involved in the mobile iDrive platform. Just wondering if you have any data insights on the involvement of lidars in driving and perception decisions. I'm not sure how you would like to cut it, but any way to get a sense of the percentage of driving decisions that are primarily controlled by the LIDAR sensor on these vehicles as opposed to alternative sensors like the cameras and radars? Thank you.

Yeah. Okay. So actually, I think that's probably a question to Mobilize and their perception software. So I can share with you kind of like their analysis of their system, I can only say that our experience working with different customers, we always hear about the importance of ladders in very complex driving scenarios, weather conditions, etcetera, As I said it, I think on last quarter when talking with, with Waymo, the ladder taking more than 90% weight of the decision making coming from the lighter, meaning very LiDAR centric.

On mobile, I will will let them comment.

Understood, Omar. Thank you and good luck.

Thank you.

Thank you. As a reminder, order to ask a question, please raise your hand using your mobile Our next question today comes from the line of Casey Ryan of Westpark Capital. Please go ahead.

Thank you. You guys are too high-tech for me. I'm still back in the only phone there. Can you hear me now?

Yes.

Okay, perfect. So I wanted to touch on one thing You mentioned briefly NREs of $20,000,000 to $50,000,000 that could be booked in $25,000,000 Can you just tell us what getting an NRE booked means as far as like what it looks like. And then what triggers those payments to actually be recognized It seems like those might be two different things.

Sure. So whenever we are engaged in a pursuit of a new business with an OEM, whether it's Level three or Level four, and those programs require let's say, support by us then obviously, this effort that is Done. Before the ramp up of the production it is paid by the customer and we refer to it as The sum could vary between basically, the type of the program, the length of the development, and it could be different between different customers It can be within $20,000,000 to even $50,000,000 or sometimes even more. Per customer. So once we are nominated and we kick off these activities, these NREs are paid to us It could be paid over milestones, it could be paid over quarters, This is these are things that are discussed with the customer. In terms of how we recognize or not recognize I'll hand it over to Odao to talk about it.

Basically, we are trying to and so far we succeeded to have all the NREs retro revenues and we do so based on the milestones. Once we meet the milestones, we get the acceptance from the client and then we can recognize it.

As an example, so this $80,000,000 payment plan course, we have an alignment with the customer on milestones that we are planned to meet this year. And those are very tangible and defined deliveries that are used by the customer to basically test our deliveries and, of course, pay us accordingly. It's a good alignment between the different teams. And helping us to push things forward.

Okay. Thank you. Well, that's helpful. One thing you noted about the $80,000,000 of NRE I think, was that it was from existing OEM partners, if I'm remembering the press release correctly. We didn't say that about these new potential NREs. So can we optimistically infer something about where these additional NREs might come from?

It could come also from the existing, but it also would come from new ones. So once you're engaged into a program, there are continuous changes and sometimes even new requirements coming from the customer. Such as they want a new LiDAR, the short range, but not just long range. And these activities might require additional effort by us which means that we'll need to take it more and are useful. So this $20,000,000 to $50,000,000 that we expect or target to book this year it could be from the existing customers, from additional tasks that we're going to have or from new customers that we're going to support.

Okay, terrific. That's helpful. And then, just a couple more questions quickly. On the Mobile iDrive platform, can we infer things if MobileEye talks about wins and customers we always associate Innovis with those wins or are there potentially other LIDAR vendors So as Mobileye and Innovius announced when we made the announcement that the Mobileye Drive is using only Inovis two, sensors.

There is and that's Mobileye Plan [indiscernible] and Mobili on either side. Of course, we are working with others, and they are allowed to work with others as well. But the Mobileye plan right now and de facto That's the case where they are using Innoviz LiDARs across their different customers.

We started our collaboration with MobilEye on the Volkswagen platform [indiscernible] to develop the same platform for all of their other customers and offload it to and use it to other customers. And that's what led to eventually get to an agreement and they benefit from it from the I mean, obviously, from the volume that will drive lower cost for both sides. And as the press release mentioned, that future customers of Mobileye would use the same platform. The same generation will use Innovius two And I think it's that's our expectation. [indiscernible] And then one positive comment you made, Eldar, about gross margins across the year for 2025, you expect them to be positive. Is it fair for us to think it's sort of positive for the whole year not necessarily every quarter? I realize we have sort of fluctuations in production per quarter, but just wanted to make sure that really we're just talking about the year in aggregate Yes. It's on an annualized basis, again, because the fluctuations that we might experience Because of meeting these milestones, and do they fall in which quarter. So it can fluctuate quite a bit But on an annualized basis, we do expect a positive gross margin.

I'll comment also on the guidance for the year. I mean, we were also contemplating again about the guidance between quarter and quarter and year because it's always very difficult to really foresee all of the opportunities that might come up during the year. There were many things that happened to us during 2024, which allowed us to actually see additional opportunities, secure more wins, and expand our NNA repayment plan, etcetera, we've still decided to put out our revenue guidance which we feel that we can commit to we do see several opportunities that will be able to book additional wins and additional NREs and we'll update you as we go on.

Okay. That's terrific. And that's that, you know, it's helpful color. But like, I'm sort of in [indiscernible] you know, targets are sort of less meaningful than the annual, you know, target of being positive. For gross margin. And I think If we're saying there's a possibility to be You know, maybe your initial guidance is too conservative. I think we'll all be happy with that too. So, very exciting quarter and thank you for the update. Sure. Thank you. Our next question comes from the line of Kevin Garrigan of Rosenblatt Securities.

Please go ahead.

Hey, Omar. Hey, Aldar. Thanks for taking my questions. And let me echo my congrats on all the progress. For the VW ID Buzz program, what if any milestones still have to reach in preparation for SOP?

Okay. So we're approaching the c sample. [indiscernible] And we are in a ramp up of our high volume manufacturing site with our manufacturing partner Basically, just to explain what what I just said in terms of c sample, So we moved from the B to the C sample B sample is where you are completing all of the design validation, you freeze the design, the c sample means that you are already producing the unit in the production that is going to serve the customer which is meeting all of the automotive requirements. The see sample stage is where you are testing all of the production validation [indiscernible] tolerances related to different batches of components, your producing in higher volumes to see the lighter to lighter accuracy and stability of the process And once the production validation is completed, then you can actually reach the SOP, which is targeted for us beginning of next year, and that's basically the last milestone for us before we can serve our customer and launch. We've already met the design freeze, which means that we've also met what is referred to as a point cloud freeze, It's a very important milestone because it actually allows the customer to ramp up its fleet and start doing data collection It's maybe one of the most important times in the development stage of a program because equipment, equipping a fleet of vehicles start collecting data which are going to be the base for the development of the of the overall software of the car, is a very critical point because if at some point you learn that any reason something needs to be changed in the LIDAR, in the point cloud, you basically need to scrap a lot of data that was collected It's very extensive, I would say, effort and therefore reaching design freeze and point freeze is a very critical point in time which I would say probably the most influential on the ability of the program to eventually launch at time.

On time because you there is a very long process of data collection in different environments, in different test conditions, use cases, where the customer eventually need to develop its own software validated So from from our perspective, in terms of enabling our customers to meet their SOP on time, Using our liners for data collection, we've already crossed that point.

In a very good way. I'm very happy and very pleased with the quality that our ladder is providing to our customer, we have crossed we've met all of the KPIs The Liar is very high quality in terms of stability, image quality, meeting all of the range and really different parameters that are very challenging. Especially in different weather conditions in dirty window and really I've seen the test reports that were presented just a few days ago, it's actually [indiscernible] one of our new customers that we would try to show them that we've reached the point cloud freeze I think the level of professional effort that was done by the team really gives us a huge compliments from different customers I think it's really due to the fact that this is the actually the second time that Innovius has met that point. You know, this is not our first time we're going to the to the market with a lighter We've met the point cloud freeze [indiscernible] we know the importance of it. We feel that at this point of time Innoviz to is actually enabling our customers to [indiscernible] surpass their targets in terms of being able to fulfill their KPIs, use experience KPI I think that Innoviz II is a great product.

And we look forward to see the progress of our customers which by the way we are already I'm getting from time to time feedbacks. From the leaders of these OEMs telling me how great experience it is when they are using, they are getting demos from either Mobili or other customers, and thanking us for the great work that we do. So it is exciting. It's great to see our product on the road. And that our customers are enjoying it. [indiscernible] That's fantastic. And I appreciate the color on that. And then just as a a follow-up, there's been a lot of news surrounding autonomous driving kind of coming out of China and Chinese OEMs making progress with their platforms. Can you just give us an update on BMW China and how you see this platform being competitive versus Chinese OEMs? Sure. So first of all, I would say that I think China is always the crystal ball, you know, of the the rest of the market.

And the way that they are pushing the envelope in terms of bringing new capabilities and more sensors into the car is something that I think many OEMs around the world are very much aware of. And in a way also helping to push things forward. BMW level three platform, which was developed also for the Level three road, is basically waiting for the approval for level three on the road. I'll let BMW announce I would say, their plans once that happens. I believe that right now there is no level three available on the road with the experience that BMW using our lighters There's a huge, huge huge difference between a level two system and a level three. I'll go as far as say that if you are using a LiDAR for a level two car, the lighter can possibly reset every five minutes and nobody cares. No. It's, the eventually, the car is still supervised by the driver, In order to allow Level three where the driver is not looking on the road, you need an order of magnitude higher quality. Basically, the only time where the driver is asked, it should be asked to reengage is when the ladder might be dirty or something and has ten seconds to, to react.

With our LiDARs, as possibly we've said in previous quarters, Even that is not required because of our lighter resilience to dirt. So we believe that with the sensor that Innovius is providing the user experience of level three and level four would be substantially better. [indiscernible] Perfect.

You have no further questions. Please proceed.

Okay. Thank you. Thanks everyone for joining us today. We look forward to updating you on our next quarter and continued progress we are making here at IMOYS.

You very much.