Business Update: Fleet Utilization, Cost Savings, and Industry AI Impact

, you know, kind of a productive result. But there is this framework that they have put forward that they say 97% of their membership approves, wherein it allows studios to use what they call synthetic performers in exchange for a fee paid to SAG.

And that's got to be the hangup with it. And I, I guess I didn't see the, the article from a couple days ago, but I mean, there's a lot of news articles about AI technology.

Boogeyman.

AI is the boogeyman everywhere right now.

Um, but where that—

what that really means for us here is introducing that concept is a very big paradigm shift. Because it's going to change the calculus across which— it's going to change the calculus across which studios really think about budgets. Like, do we need this background scene or do we need these 3 stars and these synthetic performers in the background? You know, it'll be interesting to see kind of like how that plays out. But All that is to say, we're not losing money. And we are fighting for every incremental dollar won while still looking for every, you know, dollar that is able to be cut.

And we have, I think, some updates on that.

But we're okay. How are you guys? I heard Jeff talking about tornadoes, so sounds like you'll miss some tornadoes over there.

In Indiana, yeah.

So I have a question, like you're kind of talking about the industry. Can you— what's your opinion on the Paramount, Netflix, Warner Brothers saga? How does that impact you, if at all?

Um, well, Warner's was never— it has the benefit— Warner's has a better— Paramount buying Warner's has a better chance of helping us than Warner's on standalone or Warner's to Netflix. Um, because we do more with Paramount. In terms of shows and the relationships with the team there than we do with Warner's, full stop.

Um, are you gonna—

are you gonna—

are you gonna keep your relationships with Paramount? You know, Taylor Sheridan, you know, are splitting up somewhat, you know, it's a 3-year breakup, but are Are you— do you have the ties with when Taylor starts doing his own thing? Are you got ties with that too, or—

well, that'll be at Universal, so that's another— that's where we are probably have our strongest relationships, is at Universal.

Okay, good.

Um, but that's 2029, so yeah, hold it out till then. Um, yeah, but candidly, no, I'm not gonna do that. Well, I'll give you this. I think that over the next 2 to 3 years, you will see production, the production company level decision makers, so that 101 studio kind of level, I think you will see those types of companies shift towards becoming mini studios unto themselves, where there is an opportunity to transact with each of them kind of individually. Which, you know, 101 already does. We're having some of those conversations with others. I think you'll see kind of a fracturing and a decentralization of that type of decision-making out of these big 5 and into the production company level.

Have you done anything with the Madison?

We did trucks. They do take a decent amount of trucks from us. Um, it's hard for us to do trailers outside unless a show is originating in Los Angeles. It's hard for us to do trailers in another market.

Um, I would just thought it's very much like the Yellowstone, you know, setting up in Montana, you know, on site. A lot of it was shot on site, so You did, you did the Yellowstone trailers up in Montana, so I was thinking it would have been similar to that. We did both Paramount shows.

There's that, and then there's still just the kind of legacy relationship piece. It's kind of like a crapshoot what transport coordinator is getting assigned to what show. Like, I would, I would attribute honestly the early Avon success this year to A lot of the coordinators and shows that we had in '24 that we had trucks and trailers on did not shoot in 2025, but they are in 2026 here in this first, like, kind of quarter. So we're seeing that dynamic continue to kind of play out. So there's this long-term kind of move to work directly with the production companies, but there's still, you know, crapshoot whether or not your coordinator gets assigned to a given production if you're going to get, um, you know, meaningful amounts of equipment on that.

And you think it'd be a little more corporate than it is up to the individual?

It'd be a lot easier if it were. Um, but, JD, I'm just going through our dashboard.

So who's— so would they use Coyote trailers, or what trailers would they use up in Montana then?

They use the—

they've got trailers up there.

They have a 101 Studio specifically has a rebate type structure with 101 or with Ben. With BI. Oh, so for the most part, the vast majority of their trailers are provided there, um, and operated out of like, I think, a Texas locale or, um, Atlanta.

Yeah, right. I mean, they've got all those shows down in Texas. They kind of have a lock on that market. With 101 or Paramount?

Yeah, I think the thing that we have and are continuing to focus in on is our economies of scale continue to improve and the diversified revenue mix that we have insulate us from, I think, a lot of the conventional concentration. And so like we are. With the other piece that I think you will see start to matter more is price. Like, I think that if we are able to win on price consistently moving forward, we will start to win more. The same thing that every other company in the space is doing, the studios are also doing where they're, you know, optimizing down to the paper cups and paper plates at catering. So if we're able to, you know, offer even on a show-by-show basis, if we're able to take a deep discount on bulk equipment across the board, um, we are—

I don't know, I would say we're getting better at seeing opportunities for that to happen earlier and working to win those more diligently.

JD really kind of leading that effort on a company-wide sales.

As long as, as long as the discounts don't go below profitability, then that hurts. It's not good for anybody.

Right.

And we would That's really where if we have the production supply tie-in piece, we have way more margin to work with, right?

Like, we have so many more levers that we can pull on too.

So even if we are, for whatever reason, giving someone a trailer for—

I'm throwing, I'm throwing a number out here, but like $1,200 a week. Um, but we have the location services, production supply stuff over here like company-wide, these things balancing out and probably make more than we would have if we had like, you know, just kept trailers at some other rate but didn't have that. I don't know, JD, if you want to expound on that.

Yeah, it's to the— it's further to the point that the most valuable rental for our company is a long-term rental, and we'd rather take a significant price discount to get that vehicle out on the road or trailer out on the road for 3 months because the gross margin of any vehicle that's out on rent with us is incredibly high. Trailers more so because there's not as much maintenance and repair that needs to be done on the engine or things like that. So we've found success where we need to go in and be price leaders, getting that— those trailers out on the road, and it's still being incredibly valuable to us because that doesn't prevent us from getting the next customer who may be a return customer who's willing to pay full freight. I think that's why we're seeing stronger trailer utilization this year compared to previous years. I think we're at 42% utilization right now across trailers, which is about 10% up, 15%, 10 to 15% up from last year this time.

And that utilization is going to continue to go up in the spring or not.

Yeah. So we have a couple more shows that we expect to get more equipment on. Um, I think our first, uh, season of trailers that's going to roll out is the paper— roll off is the Paper, which I believe rolls off at the end of April. Um, and we're tracking a show called Poser for Netflix, which we've got a couple of pieces of equipment on. Um, Baywatch, which just started up, should be continuing to get more equipment. Um, so there will be some overlap there. Um, things start rolling off paper at the end of April and then in June, but that there will be more shows coming after that.

So, um, when you say, yeah, we're at 42% and that's up 10 to 15%, are you saying that's up from like 2025? Yeah, from 32% to 42%. Are you saying the, the percentage is up percent.

So year over year, in 2025, in March, we did 25%, uh, 24% utilization in the month of March for our trailer fleet.

Okay, so that— yeah, so you're talking almost— it's almost doubling your utilization.

Yeah, and I'm— and I— to be clear, I'm taking a snapshot in time. So at this moment, 42% utilized, there's going to be some variability throughout the month.

Okay. Okay.

That's a snapshot.

So this dashboard that James pulled up here, um, I kind of get a— we get a pulse check on the business every, every Monday to see how things are going. Um, the trailer here, what you're going to see is 38.2% utilized as of Monday, and we're at 42% as of today, because more trailers went out this week. So I would expect our blended average when we look at this next week will be about 40% for the month of March.

We're phasing this dashboard out for this one, um, as we move to a different system and just kind of pull some stuff in. But this pulls— well, JD, why don't you explain through this?

Um, yeah, so this is more of a pulse of what's going on. I wouldn't say this is a revenue replacement. Um, if you look at those line items there, it's basically all of the orders. It doesn't have a timeline specific. So in January, customers came in and made $1.9 million of reservations for Avon. We know that about 20% of those are probably going to fall off or go through as unfilled for any number of reasons, whether it's overbooking or they were over— they knew they, they didn't know— they, they knew they needed the vehicle, but they made it a bunch of different shops around town. So they just wanted to make sure they had redundant reservations, things like that. But that can be spread out over the course of the next 3 months if someone makes a reservation today. So that 1.9 number January kind of showed, all right, we're going to anticipate strength in February, March, April because we're booking out reservations in advance. Uh, so that's what I— that's what kind of how this serves us. It doesn't necessarily show what the revenue will be for that month, uh, more of a trend, like a temperature check.

Yeah.

What is your, like, truck utilization right now?

So it's 45.5 when we pulled that information on Monday. Um, let me get you—

I'm pulling Webplan right now. Are you in it?

Yeah, I'm in it. I have it pulled up.

Let's show them this fancy piece of technology.

Yeah.

Is this one of your old systems?

So we're currently 48. You're getting 47.3. I'm getting 48.1% utilized. I think I have a different filter on. So I think that 45 number is probably going to hold pretty strong. I would say anywhere in that range from 45, 50 to 45% on the vehicle side because we see spikes and dips as the week goes on. Which I will say will be our strongest month in the last, I don't know, year, partially because we offloaded some of the vehicles and partially just because we're seeing more business than we have in the past.

Well, Class 13 doing continually better. Yeah, that's the highest number I've seen it this week or last couple weeks. Class 13 is cube trucks.

Yeah, I mean, you can show, uh, Class 40. I mean, I know this is great timing.

I saw one yesterday.

Oh really? Yeah, we're fully utilized on our studio-specific shorty 40s.

We did it, guys! Company saved for the next 2 weeks. Company saved.

So I think we are like to, to kind of tie it all back to the conversation we've been having for 6 months. We wanted to get our fleet into the, to the appropriate size so that our demand kind of matched our supply. I think we're getting closer there. I still think there's incremental changes that can be made in the margins, and we're being very opportunistic with that. Like we've made some vehicle sales for some of our box trucks where the incremental 67th 5-ton doesn't make that much of a difference. But to be able to sell it for $49,000 goes a lot further than just keeping that on hand for whenever the 67th customer comes in. So we're still optimizing on the margins there, but being more opportunistic. Another just piece of information that I gave Christie yesterday, but I'll give to the group, that vehicle sale we made with that auction house back in October, we are we definitely got more of the value than the auction will because they're actually selling it for about breakeven, slightly under, um, what they bought it from us for. So we were able to realize all that liquidity, um, and not need to go through a laborious auction process, and we're still making out. We did a good job liquidating those assets. So just a data point there.

Do you have any pending sales in the pipeline?

Um, yes, so there we have 2 cube trucks, um, that are 2015 and 2017. One sold for $37,000, one sold for $29,500. We have deposits on hand with those customers to kind of lock in that vehicle. They haven't taken it from us yet, but they've committed to purchasing it with a non-refundable deposit. So those are both on hand. We're still exploring the passenger van and cargo van sales, but I will say that we've seen more demand than we would have anticipated. So I'm more hesitant to take those out of service than I would have been in January. Um, just seeing how we've done there, but we still are exploring because those are more liquid. We can, we don't have to really develop any sales there when we want to pull the trigger. We have buyers lined up that can facilitate a purchase tomorrow. Um, so we're still monitoring that.

Are you going to share your cash flow with us, Katie?

Oh yeah, happy to. I've got it pulled up here.

Um, we don't want to see that. Can I, uh, such a fun time.

Can I get sharing?

Hold on, hold on.

I have it pulled up too, if easier. Go ahead.

Is this big enough, James?

For the first time ever, you just started out without anyone having to ask.

Yeah. Okay. So in the highlighted yellow cells, you can see the debt service payments. You'll notice there's no red cells anticipated for the end of month or end of week balances, but it doesn't mean we're not going to drop pretty close down to zero. Um, like I've said before, but to reiterate, a lot of these numbers are based on us making the exact payment on the exact timeline that is written into our lease agreements. We know there's some flexibility there with certain landlords, and then we can, we can stretch those terms. So some of those really low dips, we can kind of smooth across other weeks as needed.

Um, from a quick note on that, we've had a pretty— I had a pretty frank conversation with almost every landlord and just said, we are restarting the business. We're taking the business off— basically, the business is starting to walk on its own again. Like, we're giving them honestly the same level of visibility that we are sharing with you guys right now of like, this is the situation. We keep in close regular contact with them and they appreciate that visibility and are in exchange, or, you know, offering us flexibility that we have not really had to lean on too much yet. Um, but facing that one head on.

Yeah. Do you have your cash flow sweep in the cash flow yet or no?

Um, no, we do not. That's— I mean, this is on a cash basis. Our financial performance is on accrual basis, so it'd be hard to tie those two together.

So, right, because I think the payment would be— when did we decide that Probably the first one will be the week of—

45 days after quarter 1 ends.

Yeah. Yeah.

Yeah.

Yeah, I don't think there's— I mean, no one's expecting a lot for the first quarter. Right. If any, frankly.

We have one month calculated that we agree on.

What did you agree on?

$24,000 and change, right, JD?

Yeah, $24,490-something. So not to be specific, but it's not calculated on a month.

It's calculated on a quarter, right?

Yes, it's calculated on a quarter. It sounds like these— it sounds like Christie's eager to get visibility into what else is coming. But I mean, that calculation— so are you talking about for January? So you're talking about for January, which means there would be— I think there was after kind of the adjustments, that was probably $50,000. But there was no payment really made to First Works during that month. There was $230,000 made in February. And then depending on what EBITDA ends up at for February. JD, do you have rough or preliminary on that yet?

Uh, it's— it'll be about our payment. I would estimate it's in the $2 to $2.50 range. I don't know for sure.

You're talking about January or for February, right?

February, yes. So maybe quarter 1 free cash flow, so we can fund you know, the party at ICRA this year. You know, there's always—

we'll see you there.

Yeah. Any other questions on the cash flow while we have it up? I mean, the— this line here is just our collections. I think our collections have been pretty strong. If you look at just an average over the last 4-5 weeks, we're close to $500,000 a week of collections. And we project out that $475,000 number is kind of a fill for the, um, the Q1 revenue number that we base kind of all of our assumptions and cash flow decisions on. There's obviously upside to that if we achieve greater than 1.9 and vice versa. But we do think there is, just based on what we're seeing here, even though we know where we've been for January and February, I think we can continue to at least keep this pace up for March.

Kristi, do you have a copy of this already or? If not, JD, could you send Christy a copy?

Yeah, I'll send her the updated version. Yeah, I need the AR aging too, your most recent one. 'Cause we gotta do some analysis.

Yep, you got it.

Thank you. JD, it would be helpful too, just in the future, to have these, you know, a day ahead of time before we have our calls, our monthly call.

Yeah.

Happy to send them over if that's possible.

I'll make a note of that.

How's the— I asked for the AR aging. How is that looking right now?

So here is the AR aging that we track on a week-to-week basis. We're at 910. I look more at the current more so than this older stuff. You can see that we have taken some chunks out of the older items, but we don't really consider this for cash flow purposes. Um, we had a bit age into this bucket, which I brought up with our, our team. There's something related to the paper, the paper, the, the show. The paper has been a little slow to pay. Um, so if you look at it comparatively, these two are effectively the same, the current and the over 30, but just more has slid into over 30. Um, so making sure that doesn't get too old. Um, that's very recent items. Um, still a pretty significant chunk of our cash flow collection on a weekly basis is from credit card revenue. It's, I would say, on average about 50/50. You can see up here, this first line is credit card collections and the second is checks and ACHs. So we do have regular recurring revenue coming in. Um, it tends to happen a lot on the Avon side, but there is some on the HDR side as well. Um, and then for the purposes of the AR aging, we have excluded Verstow for the time being just because it's a de minimis amount. Um, and there's some uniqueness to the way that they close invoices that it doesn't give an accurate representation of what they are actually, uh, what they actually have outstanding. Um, but their collections, we've had good overlapping— seasonality is not the right word for it, but when HDR has a lower week, versatile will pick up the slack, and when Avon has a lower week, HDR will pick up the slack. And that's why you're seeing this so smooth. If we were dependent just on Avon, this might look a lot more lumpy. Same with any of the other companies. But by having these three in the mix, but they're all separate kind of collection streams, we've had a nice smooth collection rate.

So Jeff, Ryan, Joe, you good on this part?

Yeah, I'm good. I was just, I guess my mind kind of drifted. I was wondering, just because we've been talking about it a lot and the increase in fuel prices, is that impacting much? I mean, are you providing any services as far as, I don't know, fuel and generators or anything like that?

Do you want to take that, James?

You want me to?

Yeah, sure. So, I mean, fuel costs in general are always just passed along to customers if they're bringing it back empty.

On the HDR, really service and delivery side, JD and that team sharpened their pencils and I think were able to push through a—

what was it—

effective 10% price increase across really all of the production supplies and I think maybe some labor. Services fees as well.

Yeah, it was blended 10%.

Blended 10%. Um, and then we have—

I don't want to say—

we definitely don't have cool hedging, like, features that, like, you might maybe look into if we get time, but we do have a pretty low cost per gallon source, um, on-site with our tanks there. Um, and, you know, we don't have— if, if we're having to go out of pocket for fuel, 4 to 5 times getting billed back to a customer at a premium.

Okay. Yeah. Say our average, um, pass-along cost on fuel is $12 per gallon.. And you're seeing it probably on average about 5 to 5.5 if you have to fill up at a gas station. So we still do have a margin when people return the vehicles empty.

Right.

I don't think I have any other questions. I mean, it's, it's just good that I mean, things are going according to plan and a bit more. I know you don't want to say positive, but positive.

Don't say it. Why would you say it? Why would you even say it? Why would you even say it after we've gone this entire time?

I will just punctuate the cash flow forecast of what I was talking about at the top.

It's the— I mean, we're extremely attuned to the margin of error. That this speaks to. Both Garrett and I are still off salary, like $0 for going on 2+ months now. And we're continuing to find every dollar we can pull out of the company in order to make that number go up in lieu of ongoing uncertainty around what is next month's revenue mix. I think versatile, we still feel pretty confident in ability to get that into a consistent $300,000-plus a month level. I think that's going to take the balance of this year to achieve, barring some kind of meaningful landing a meaningful agreement with a meaningful company, which we have a couple in the pipeline.

But that's really where I would—

if I were a betting man, I'd say that's where our kind of revenue upside and escape velocity is going to come from. And we will have very little visibility into it because if Avon and HDR have 7 days of visibility for 80% of their revenue, they have two. And so, you know, $50,000 to $70,000 can fall in there, or $25,000 can fall in their lap for tomorrow. And you just have to be able to move on it.

But yeah. I think for us, one more thing that we need to discuss internally is the accountant accounting changes, accountant cost savings there. JD, I know you gave us that breakdown. Um, we still need to talk about it internally, um, see where we're gonna land on that.

Okay.

Um, just as it was an extensive cost savings.

Yeah, just as an update, um, we have Um, a, what would you call it, an employment agreement done, um, with a new accounting manager. It'll be $5,500 a month. Um, that plus a junior accountant, both of these will be Latin American based, should be about $8,000. Um, those, once they are on staff, there'll be a 1-month overlap with our current team to do the handoff of all the processes and procedures. Once they roll off, that will save us— their cost is $30,000 a month, so our net cost savings will be $22,000 a month, um, with, I expect, to be increased at the same level, if not increased performance. Um, obviously that's optimistic, but I do think it's possible. Um, and then with the, the, uh, compilation instead of a review, you that would save us an additional $75,000 this year. Um, so looking at an all-in run rate cost savings of a little over $300,000, uh, which we believe can be executed on by— it would probably April, I'd say May.

Yeah, I'd say May. Where's this— where's the staff located currently?

No, the one you're hiring. Oh, she's, uh, Argentinian based. So her name is Maria. She's worked for, um, she has a KPMG audit background, um, works remote obviously, but she has a very strong accounting acumen. I think she's good for a senior accounting role. And we would be replacing people who are a service that provides offshore accounting already. Um, so it wouldn't be disruptive. It wouldn't be like taking someone who's currently on staff on site and moving that overseas and that being a tough transition. We already have that fully outsourced workflow. Um, it's just a cheaper way to go direct rather than having a service do it. Okay, how'd you find her? Uh, there's a service, um, called somewhere.com. Um, there's there's a dozen of them out there, but they source the candidates for you. You pay them a placement fee. Um, and then, or once you have an employee signed up and they're, they're now in your employee, you pay them a one-time placement fee. Um, and their involvement is, is finished after that. So yeah, that's where, that's where we stand right now with it. Um, Christie, I don't know if you want to um, have the conversation to see if that makes sense or if there's anything else that we can provide. Uh, we do have our accounting team going on a compilation, uh, assuming that we're getting a compilation done with the intention of being able to provide that before April 30th. So if we— we want to make sure that scope of work is actually accurate before we continue on.

And would that be a full— like, uh, it's at the MT level, right?

That where you're getting it? We currently have it scoped to the Avon Rental Holdings level. Okay. So that would exclude Hollywood Depot Rentals and Merch Chow Performance. Right.

Okay. That was how we had it configured when it was a review.

Right. And as far as the compilation, I mean, you're talking about a full package of notes included with it, like their assessment.

Are you talking about the accountant's, like, analysis?

No, just like the notes to the financial statements. And typically you review a dozen notes. A lot of time— I wouldn't say a lot of times, but sometimes we get compilations in and it's just, you know, the income statement, balance sheet, and cash flow.

And let me confirm whether that's part of their scope or not.

Ryan, do you want to jump on a call with the firm and just kind of And we did that with Christy last year. If you want, we're happy to facilitate a phone call with them so you can kind of explain. So it's not us being like, hey, they said they want notes.

Like, you could actually say—

you can actually— I can. I think Christy knows too what we're talking about. And I mean, it'd be a pretty probably short conversation, but I'd be happy to. Jump on it.

Yeah, or just an email, whatever, however you—

whatever it is.

We just don't want to be— we don't want it to get lost in translation. So if it's an email or a phone call, um, we're happy to just make sure that, that, you know, is prioritized and acknowledged. But in terms of like non-real estate meaningful cost takeouts, this is the biggest one we have line of sight to. Right now. We are fending off staffing requests with a stick just from how lean we've been running for how long. It's working and it's forcing, and we know that people will always rent-seek, but the longer we can remain in this pot, I mean, you saw that everyone sees the numbers. We show people the numbers like this is what it is.

So like, like we have to figure out a better way to do it.

And so it is, you know, acting as a forcing mechanism to increase efficiency, just figure out ways to get it done. And really a credit to our team, credit to Richard and his team on the ops side. They have come a long way in a very short amount of time. And we know we still have work that— or we have opportunities there that are going to take longer to realize, but we have higher confidence in achieving them. So yeah, getting this additional system rolled out over the coming months on the back end, I would anticipate by the end of the year we're able to realize even more cost savings from the personnel side, maybe. Just from an efficiency standpoint. Now, the big caveat on that is going to come down to how successful we are at actually unifying a singular kind of operations team working across all the business units. Because there's not— there is some semblance of specialization within that, but I have high confidence in our team to train to a level and to keep costs down. I've been very impressed. I will say it's— I would be very frustrated if I was off salary and they were blowing out like OT costs or labor costs somewhere else, but that has not been the case. So it does feel— I mean, I think we're doing everything we can. So I guess the message here is please don't make us do an accounting review and have to like erode that margin of error even further.

What else?

I'm sorry, I lost the last thing. Yeah, mine's like been flickering. I've been on my phone, but Last thing is we should have the inspection back soon, or the appraisal. So how did it go on site?

Any qualms?

All good?

I think we call that a no news is good news, Christy.

I think, um, but our team is very good at the inspections. They've done enough of them for First Source at this point. Our team knows how to navigate those.

I think like, if someone dares to ask Richard or one of his juniors a question on a technical basis about any of the systems, like, they need to clear their calendar because they get a world of information.

But Haven't heard anything. I really have no reason to be concerned. I think, like, I don't know.

I think the condition that the vehicles are kept in, again, credit to Richard and his team on that, that, you know, they show well, the systems and kind of the infrastructure present well in conjunction with that, and the sales values we're able to achieve kind of on the secondary market or even the primary on the auction piece. A lot of why we were able to achieve that premium there was because the condition of the vehicle they're in. So I have no, at this point I have no cause for, I guess, concern.

Yeah.

What have you heard, Kristi? They are technically working for you.

They don't like to share information with us, right? Like, they're like, I think we've asked them a question like, yeah, I don't know, I'll have to talk to the bank about it.

Okay.

Yeah, the only time I hear from them is they'll be like, can we share this with your client? And I'm like, yes, please, please, please. Um, so I don't know, I think the trailers will be interesting. I'm glad that we'll get more preview on the trucks because I think there were some conversions or outfits there that we just didn't have good preview to. So I think That'll be good, and hopefully the two will balance each other out.

Yeah, I mean, you heard my interrogation of them when it came to trailer valuation on the day. Just to preview it for y'all, it's like, how the hell do you honestly think you're going to assign numbers to these things in terms of secondary market value? And just like, where, where are you getting these numbers?

And genuinely wanting to know because it would be helpful.

Um, so I too am anxious to kind of get that back, um, and just kind of see where they landed and understanding that that just kind of is— it is what it is.

Like, so yeah, I mean, at the end of the day, our trucks show really well. I'm saying on the trailers, I think they're just going to use a percentage of cost and and based on their history of, you know, low demand. And they'll just decide what, what discount's appropriate. I mean, the replacement cost— I mean, there's some value because you can't replace them for anywhere as close to what— I mean, the value is at some price. It's competing against, you know, new. So if there's ever demand for new again, these will have value.

So that's—

I mean, I guess the difficulty—

my— not to get like a philosophical discussion on them, but my point of contention was that the value of them is not like scrap or like the metal or the components. The value is what you're able to cash flow them for. And that is a methodology—

that is a valuation methodology that can be used.

Yeah, right. But I would say it's as thin as valuing the asset itself because of the lack of predictability around it. So I think when they explained basically percentage of cost, Sorry?

Yeah, yeah, I don't think they're gonna use income basis. I think they're gonna use some percentage of cost.

And like I was saying, like I think when they explained that, I was like, fine, but even like, yeah, it's probably the best you can do. We're probably better off if they're, for them to not use 2025 as income base.

So, no.

All right. I got to run to another appointment. Anything else? We'll get back to you on the, you know, review here fairly soon. We can meet internally. I think it was good feedback you shared with us to help us understand.

Okay.

Yeah.

And then we'll make a note to make sure that we get the materials out to you guys at least a day ahead. And that'll be the cash flow forecast.

Yeah.

Kind of revenue visibility by the end of the day before. So we have a little bit of time before the call.

Yeah.

Okay.

Be helpful.

Sure.

We'll do—

we'll spend more time on looking at that next time.

All right, great.

All right, thanks, you guys.

Thanks.