Yahoo Finance

Participants

Gregory Poilasne; Chief Executive Officer, Director; Nuvve Holding Corp

David Robson; Chief Financial Officer; Nuvve Holding Corp

Presentation

Operator

Good day, and welcome to the Nuvve Holding Corporation Second Quarter Earnings Conference Call.
(Operator Instructions)
Please note today's event is being recorded. On today's call are Gregory Poilasne Chief Executive Officer; and David Robson, Chief Financial Officer of Nuvve.
Earlier today, Nuvve issued a press release announcing its quarterly report and fiscal year report. Following the prepared remarks, we will open up the call for questions. Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Nuvve's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections.
These risk factors are discussed in these filings with the SEC and in the earnings release issued today, which are available on our website. Nuvve undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances.
With that, I would like to turn the call over to Gregory Poilasne, Chief Executive Officer of Nuvve. Gregory?

Gregory Poilasne

Thank you, and good afternoon to everyone here today. Welcome to our Q4 2024 and Fiscal Year 2024 Results Call. I'm not going to try to sugarcoat it, 2024 has been an extremely challenging year. I should say horrible for the first time since 2021, our revenue went down compared to last year. We know that we are not an isolated case as it has been for most of the companies in our industry with many of them going out of business.
(inaudible) have been hearing us across the board. Concerning our K-12 school bus business, during the first two quarters of the year, many of the school district partners were expecting to receive the final EPA approval letters, which arrive sometimes with up to 6-month delay, posting them to hold on their purchase orders until they got the final approval later for their grants.
Q3, Q4 then picked up, but the damage has already done. In the same way, our hub projects have been impacted with delays due to their financing taking more time than initially thought. And though we are confident that our financing will go through, we are still finalizing some terms. But we did not step passive. First of all, we have been working hard on reducing our costs, especially our cash expenses.
For fiscal year 2024, both our cash and noncash operating expense, excluding cost of sales went down by 33% compared to our fiscal year 2023 expenses. We are working every day on reducing our cash expenses, trying to minimize the impact into our operations, product development and product qualification.
I will give you more insight in a few minutes. We have also been working hard on expanding our business in order to reduce our exposure to governmental funding, especially federal subsidies and accelerate revenue. With this potential reduction in electric vehicle subsidies, we have decided to move more aggressively into the stationary battery business. Our GIVE platform is very good at managing hard to predict batteries availability from electric vehicles such as school masses. It also does an exceptional job at managing stationary batteries and can help extract more value from these batteries.
From our perspective, stationary batteries are essential to provide grid monetization either behind a meter or in front of the meter, keeping the cost of energy equitable. We have now announced our first Battery-as-a-Service model in the United States. Our Battery-as-a-Service business model for electric cooperative allows the co-ops to deploy stationary batteries reducing their exposure to consent or peaks, a situation where the system is experiencing a peak consumption while the transmission system they are connected to is also experiencing a peak.
These peaks make the cost of the kilowatt hour very expensive. Our service allows co-ops to keep the cost of energy low by reducing peaks while also providing more resiliency to their members. We are also expanding our stationary business battery -- stationary battery business in Japan as we announced recently.
The Japanese battery aggregation market has been expanding rapidly and value for our platform like ours is strong. Therefore, we have announced a couple of weeks ago, we're establishing a new entity in Japan. This company is in the process of pursuing capital raising activities locally. Now intends to keep a controlling interest in the new entity while bringing aboard local investors to support the local business and key capital needs. This is our second approach to reducing our cash expenses sharing some equity of our local subsidiaries while leveraging our existing expenses in Japan in addition to generating potential future cash flow for Nuvve holding for services and access to the platform.
Now the last but not the least, back in the US, we have also been selected by the state of New Mexico to deploy a variety of electric vehicle and the corresponding infrastructure. The addressable market opportunity is estimated at $400 million of capital deployment, which is large, complex and requires a significant focus from our organization. which is why we have decided that Ted Smith, our COO and President, will be 100% focused on this opportunity and will become the CEO of our local organization.
That has been driving this effort from the beginning and have created an amazing consortium of companies that we have -- that we will be announcing very soon. The purpose for which the company is organized is to serve as the designated local presence for the execution of the state purchase agreement, SWPA awarded to Nuvve Holding Corp.
pursue on the Electrify New Mexico initiative and to develop construct finance and operate a comprehensive suit of green energy and transportation electrification solution in New Mexico and surrounding states.
These business activities include without limitation: a, turnkey electric vehicle charging infrastructure and related site development services; b, vehicle to grade B2G technology deployment and aggregation; c, stationary battery energy storage system; d, microbit and resilience hubs; e, electric corridor charging network and depot charging system; f, vehicle procurement, leasing and financing; and g, the valuation, acquisition, removal and replacement of internal conversion engine, ICE vehicle fleets and related infrastructure to accelerate flection.
This new LLC will also seek investment for local investors while leveraging Nuvve Holding existing cash expenses and providing potential future cash flow to newly holding through services provided to the new LLC. In summary, though 2024 is extremely challenging, we have been able to survive it sometimes at an expensive price. During this period, we have been working on transforming the company, but we feel that we are now very well positioned as a grid modernization and vehicle-to-grid company to close on our key opportunities and accelerate our business expansion working with both Cappello Global and ROTH Capital.