🔋NetMelc🔋

Z3 Cube retrofit was about $13mm in Q2. If it was also $13mm in Q3, that's about 16% margin that can be quickly recovered. Also, Eos gave some customer(s) a sweetheart deal and ASP was down about 5% in Q3. They said ASP would rebound in Q4. That's 21% of the negative margin that will easily be removed. Q3 gross margin was -53%. Potentially that would have been -33% in Q3 without the above 2 factors. And presumably scrap was still 8% of revenue in Q3. That is supposed to go away in Q1 mostly because of better environmental control and more QC stations integrated into Line 2. Now you're at -25% gross margin. Line 2 is supposed to drop conversion costs enough to remove another 20% of the negative gross margin. So, that makes it -5% gross margin. Line 1 did run for almost all of October, so all of the above won't be true of Q4, but it is coming and seems pretty reasonable to accept Eos guidance that they will Gross Margin positive in Q2'27.