RFI Q3 2024 CC, post 12:
Moderator: Our next question comes from Leonard Litzow. Please state your question.
LL: Good afternoon, Joe.
JH:Hey, Leonard.
LL: I noticed in Gauzy's original S1 report, they said that they had sold out all of their manufacturing, they had contracts on it all for the year.
LL: Is that what happened?
JH: Yes. Most of that that they reported in their most recent revenue guidance was related to their production of the end products for aircraft in their French facility. And if you notice the lead on that was that they got permission from the union to add a shift. So, those kind of things don't really those problems don't really exist in all parts of the world, but in some areas it's harder to get unions to agree to do things.
Happy to say also that the union issue with some of the architectural applications is 0 to non existent because of the nature of it.
LL:Okay. Those are both positive things.
JH: Very much so. And the other thing to keep in mind, Len, is that part of this was because of the war and sometimes good decisions come out of bad situations. When they went public, I'm sure they got more than their fair share of question about what happens if something happens to their Tel Aviv facility.
So they started expanding even before this, because they're planners, emulsion production outside of Israel. But when that happened, they stepped up that process. So expanding emulsion and film production capability was something that very much was in the works.
And I will say that in the automotive market, I mean, you see these very stellar growth rates that have been consistently high. This year, they've been asked to exceed what their requirements were for that for certain customers and they've done it. They stepped up to the plate and they got it done. So neither them nor us are companies that like to turn down good business.
LL: Okay. Which means that the Q4 should be pretty exciting.
JH: I think every quarter going forward is going to be exciting. And, well, let me leave it at that.
LL: Thank you for that, Joe.
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