Welcome to ZenniHome Introductory Webinar & Q&A

Transcript:

Kenna Hettinger:
Thank you so much, Bob, for joining us. We are now live.

Bob Worsley:
Thank you, Kenna. Appreciate this opportunity to be with everyone today. We decided that one of our weekly webinars here early on would be designed around the opportunity to just tell you our story, our pitch, and take some questions from those of you in the audience. We're grateful for all of you that have tuned in already and expect that we'll see quite a few more folks join us here in a few minutes. So what I would like to do is just jump into this and present. This will take 15 or 20 minutes. And then if you wouldn't mind thinking what your questions might be, and we'll open this up and try to get as many people through a Q&A as we can possibly get today. So with that, I'll just share my screen here and go from there. So once again, I'm assuming that this is a working Canada. Please let me know if it's not. We are currently going through our Zeni home pitch. Our mission is to produce the highest quality, affordable or attainable housing anywhere in the world. That is smart, transforming, scalable, sustainable, I'll add stackable and built with the speed and precision. of robotic manufacturing. This is what we're doing. In America, the site built housing market is about 95% of everything built. In Sweden, on the other hand, a company that took our example when George Romney was in charge of HUD, Sweden went home and really implemented prefab in a big way, and today Sweden builds 80% of all of their homes in factories. So we've really partnered up and looked carefully at the Swedes to see what they've learned since the 1970s when America kind of went back to just site building and doing less prefab. There's two kinds of prefab homes though. There's the HUD manufactured homes where you see mobile panelized manufactured homes there. And then there's the newer thing that is current building code, IBC. international building code, international residential code, building to the same exact standards as site-built homes. And that's what we do. We are in the second category there to the right. We're a volumetric construction company. We build everything and equip it, paint it, put furnishings in it, and deliver everything from the factory to the job site. We have two models. This is very, very important. We'll talk today a little bit about snowflakes, basically a new floor plan. And we don't do that. We have, where people are sending different sets of plans to a factory to be built, that's basically have two models like a car. If we were talking Tesla today, it would be to live, but it's small. It's really designed talking about maybe Tesla Model Y for this model, the smaller model. It's a one bedroom or a studio. unit with everything in it that you need for a couple or one person. We have taken full advantage of the shipping container standardization worldwide, eight feet wide, 20 feet long. And we bumped the height from eight feet to 10 and a half feet to give a more spacious feel and a more elegant, luxurious feel on the inside. And we put two of these together because we don't think it's possible to live comfortably in 8 feet wide. And so we have a 16 foot wide home. 20 foot by 16 is 320 square feet with lots of deck space. And then we have in addition a model that's two bedrooms and is two 40 foot containers married together. And that is our larger unit. And you can see they're highly designed. We did not convert shipping containers. We are using shipping container dimensions in order to be comfortable with the units, inside the units, and comfortable shipping the units. We are green, smart, and robotic. We think that it's important that if you're going to have a smaller space, to be living in, that it has to have furniture designed and architected to fit and work in that space. So we have designed our homes around the Ori furniture that was developed at MIT in 2015 to 2019. And they went commercial at that point. So our homes are designed in our unit. And you can see that the bed goes up and down and then down that. We have the, this is a king size bed. I'm actually setting on the sofa right now. Um, um, a living room during the day. It's also an office. So this is a bedroom at night. Uh, this is a, um, this is a during the day in one side of the unit. And we'll show you the other side in a moment. So we believe that one room can become actually. three rooms if you design properly and use this new transforming furniture. As a result of that, you can live larger in a smaller space. Smaller space means more affordable. You're not paying for as many square feet. So that's what we're doing with the transforming furniture. We have built them to be shipped because they are in the dimensions of shipping containers. This is a step deck because we added two and a half extra feet. of height from a normal shipping container. We do a step deck on the semi trailer and then it fits perfectly 40 feet long. If we have the smaller unit, it's two 20 foot unimide to deliver one small home. And it's built to be shipped by truck that make one. So it takes two semis to deliver one large home. One sent by train, by ship with no special permits, no escort cars going down the road, no special routes. So that's what we think is beautiful about the dimensions we're using. We have a factory in Page, Arizona. We hired workers affected by the Navajo Generating Station was the largest coal plant west of the Mississippi in the United States. Well over two gigawatts generating station shutdown. They let a thousand people go in 2019. Uh, this factory, the Nata ho, Jen Canyon, and the really monument Valley and other beautiful areas in that area of power generated by this coal plant, the environmental community had been at war with them because the grant that, uh, Lake Powell, um, and they just wanted it gone. And finally the environmental community succeeded in closing it. And we, uh, looked at that as an opportunity to have these thousand highly trained workers that are Navajo members of the nation who are some of the best code welders in the world, fantastic craftsmen, carpenters, electricians, plumbers, et cetera. And as we were, as we found out, sure enough, we opened the factory. We have 120 people working there today. and we have over 300 people waiting to come to work that have applied to work for us. You might remember this is what happened in 2020. Several billion dollars of this coal plant capital cost went down that day on December 20th, 2020. And this very large coal plant became history. Look at the scenery though, you can see why there was an effort to not have any air pollution in that pristine, beautiful country there on the Navajo. We have those from San Francisco South to Mexico, Salt Lake City area, and Page, Arizona. next to Lake Powell. So we walked in for all the buildings that were left over and we leased the facility and we planned four of these around the country. This one that covers most of the southwest, all this all the California, West Coast, the Phoenix, Arizona, Tucson area, all the way the Mexican border population, which is arguably the fastest. We cover Vegas, Denver, Albuquerque, out of the Page facility. We can address roughly a 90 million US part of the United States in this first factory, all within a one truck day of our factory. And then we're looking at a Midwest and a Southern, we may end up being in Atlanta or Eastern Kentucky, Western Pennsylvania. We're still looking at sites for the fourth site there. And with this, we'll be able to do well over a billion dollars of revenue factory, our plant. So we are excited about this first step. We have another one that we plan to build in probably Moses Lake, Washington from these four factories. We are a factory that does not build in wood. We are steel. This is one of our chassis. There are two chassis for every home. This is a 40-foot long, eight-foot wide, 10 and a half foot tall steel chassis. It's a little deceptive here. These are 12-inch by three-inch. channels on the bottom all the way around. The corners are all six by six, five eighths inch thick steel. This is all red steel built and fabricated three miles from our factory at Page Steel. And these units come over in these pieces. We put them on the squaring jig, get it perfectly square. The tensile, the strength of steel is because of its durability, tensile strength, lifespan, and stackability. And then we basically make sure everything's welded so that the box stays in square. Our light gauge steel in panels are galvanized for 140 years before they rust. And the red steel is painted. This steel will last much, much longer than anything would. And the beauty is you can stack this. five stories above a one-story podium, which is what we're doing on our first project in Mesa, Arizona, 90 units over a concrete podium, a grocery store. And we fully expect that will be completely wonderful without any exterior steel or exoskeleton. We just bolt these together after the welding on the squaring station. There's no more... Welding everything's done by bolting after this as we put the units together We are crafted from durable and sustainable recycled steel. We engineer homes to one millimeter precision, enabling us to do these structures over five very tall building and five stories high over podium. The top floor of our building is at 75 feet. With steel, you can do this mid-rise very comfortably. We fully expect to implement advanced manufacturing, KUKA ABB or ABB robots that will help minimize the need for heavy lifting, manufacturing company, advanced manufacturing and heavy work. This will look much, much more like a car manufacturing factory than it will a current home factory manufacturing facility that you would see today. We built these two units we talked about here on the left and the homes we built to put on the ground. For seeing far right picture is our 29 West project in downtown Mesa. That is 90 homes and they're the same home, the family homes or casitas or ADUs, the same exact unit stack. And so you'll see the grocery store on the main floor there. This is at a light rail stop on light rail in Mesa at center and main. next to the Mesa Art Center, the new film school, Sydney Poitier Film School for ASU, and the Mesa City Hall. The city loves this, the state of Arizona loves this design. It's fully approved and permitted, and we started building on this site. We're having our groundbreaking for the foundations that are going in on Monday at 10 o'clock in Mesa. We have 90 units on one half of an acre. with 28 parking spaces and a small grocery store under podium. So that's even before we've done a public 100,000 view, that is the density that would be rivaled in many large cities with high-rise apartments, 90 units on a half acre. We have over 40,000 people that have inquired and want these unit backlog. It's about 75% multifamily developers. People that launch, all of that has been done by word of mouth through being viral a bit and unpaid organic traffic. And over 400 now, it's well over 500 on unprompted fan generated content. Today, if you looked at our 40,000 soft order developer, development community is just unable to handle the cost of labor, the unavailability of labor and materials, and what they love is they can basically place an order, have a fixed price and know that most of the cost of this building is going to be done in a factory on time at a certain cost with no change orders. They love that idea. That's the future. The other 22% is government. This could be Navajo Nation wanting affordable housing. It could be FEMA housing. It could be housing for migrants on the border seeking asylum, et cetera. We also have 3% of our units that are coming from people wanting an off-grid, an ADU or a single family home in the backyard. Our first units are installed and operable in downtown Mesa. You can schedule a tour to see them any time you'd like. I say any time. We don't do Sunday. We don't do Monday. But you can see it Tuesday through Saturday and just get online and schedule that. We also will give tours of our factory and page. We've been in production since the first quarter of 2023. We have some units covered and ready to go to customers and outside our factory today. and loading in some of the boxes that will go into the 29 West project that's the 90 units over podium. We have perfected the two base units that can be used individually just as a rambler type home out anywhere around your pool, in your backyard, et cetera. Or those same units can be stacked as we talked about on this 29 West project. Our 29 West project can be duplicated here in the state of Arizona. without re-engineering another apartment building anywhere in the state. The State Department of Housing has approved this complex and we already know of one other company that wants to build this a block away from the one in Mesa on Center Street in Mesa. So we're excited we'll see this unit with different color cladding popping up everywhere. What's fun is you can now do this, though, in any configuration that you would like. This is a triplex. Imagine a studio apartment on the bottom and then two two-bedroom units above it, just connected with stairs. Here's a triplex on a 16 by 40-foot slab or a piece of land. And this gives you a sense of all the different combinations. We have the two units, the small and the large. One's half the size of the other. And they can be stacked small on top, small on the bottom. We can turn them for interest and architectural intrigue sideways perpendicular to each other. The brown color you see is our chases that connect power and water to the ground. There's a triplex there, there's a fourplex, and then there's two of our larger units just offset. I'm actually building one of these right now about four blocks from here that has the two two-bedroom stacked offset to get a garage underneath. By constraining ourselves to the same base units, the large and the small, it allows us to have the factory set up to build with unprecedented speed, quality, and cost, just like cars. We don't build cars anymore, custom or on-site. We think it's time to stop building homes and apartments that way, hotels, dorms, extended stay hotels, et cetera. We can do this in a factory and do it at speed. with quality and cost. Here are units fully finished in the factory. These are just getting ready for cladding to be assembled. You can see they have windows. The miraculous thing here is we don't see any breaking of windows because the steel chassis is so stiff. It protects the glass. It doesn't twist and bounce around en route. These were some of our first units we shipped. If you'll notice in the far right hand picture, the pick points. I think unlike any other unit in America, the pick points are on top of the box with hooks and the strapping does not go under the unit. It's completely picked from on top. This is infinitely more easy when you're stacking these on a building. You're not cutting straps, wasting $750 straps. You can pick it. Undo the pick points at the top just like other steel picks. And when you unstrap these, the glass and everything is intact. So they're so strong, you can just pick these from the top and ship them, ship them, load them on trucks, unload them from trucks that way. This gives you a sense of how we do a one unit on the ground. We pour the podium, the concrete piers, put a steel receiver on top of that. The first box is set, the second box is set. pops up and is finished on site. This comes with the unit, debris soleil. The solar units come with the unit, if that's what you want. We connect the utilities on the outside. We spend a day or two on the inside doing the mate line or the marriage line where things crossed over the middle and you're done. You can move in. Most common comment from customers is these feel much bigger than I expected when you walk in. So people look at the square footage and they feel like there's a shocking amount of space inside and because of the robotic furniture it gives each room three uses. So we don't do custom floor plans, we don't do a new custom build. You order this like you'd order a car. You choose a unit, the smaller the large. You pick your exterior interior colors, it comes furnished. The space and the transforming furniture has been optimized by world-class designers and it obviates the need for a custom floor plan because it's just an open plan and the furniture creates the room you want when you want it. The large market, $2 trillion US housing units sold each year. and not units, but dollars of housing sold every year. And then we have about 150 billion just in the Southwest here where we will be shipping from page. The two big crises in America is the shortage of housing. Six and a half million homes were short. And the second issue is affordability. They've almost doubled in price since 2000. So you have affordability and availability that is causing this double whammy to our housing situation and has created shortages and made it impossible for many people to be able to even afford a home. We're competitively positioned to build highly designed, sophisticated, but yet attainable cost homes. We have a lot of really awesome competitors that build beautiful units that are in the bottom quadrant there on the right-hand side, but they are more expensive. And then we have competitors that are doing a more bare bones approach, less designed, but trying to get the price. to be less expensive and we respect them for what they're trying to do. We're trying to hang in that upper right quadrant where we have a high design and a very affordable price. For three years, we've meticulously refined our design, the prototyping, certification, licensing, and engineering. So as we come out of the silo here, we have a great team here. As we debut, we stand as an industry front runner, we believe. strides ahead of the competition with what we're launching. We're all, myself and Connie and Chris, PwC alums, CPAs, Connie also worked at IBM. When I was 35, I started SkyMall, the implied shopping catalog taken several companies public. I think that's probably in our future here as well, given the retail interest in our product. Steven James and Trevor Barger are the two top, master planners and architects, architectural guys in Utah and Arizona. Trevor has master planned DC Ranch for us, started and authored the original Daybreak master plan community in Salt Lake. Well over 2,000, 3,000 homes, Beato, Eastmark and many other very high end master plan communities. Steven James, beautiful, beautiful development award winning national awards. Steven is a genius. He's the one that designed our units from scratch. Has a very fine taste, has written books, kind of Scandinavian trained designer architect from the University of Minnesota where they really like Scandinavian architecture, which works really well for us because Scandinavian is minimalist. It's also boxy and we're after all creating everything out of a box. So we think he's been great there. Chris Loeffler, one of our major shareholders in our seed round and also is the owner of the first mid-rise project at 29 West. Had breakfast with him this morning, very excited. Mindy Rex was the co-founder of the largest and most advanced factory in America today up in Boise, Idaho called AutoVol. Stands for an automated factory for volumetric units. And they build thousands of units for California out of Boise, Idaho. Their factory was finished. It's 500,000 square feet, quite automated. And they're getting about five or six homes a day out of that factory. Very, very impressive board. What does the future look like? We're poised for rapid expansion. We're actively working on a joint venture with the Navajo Nation. We're in discussions to manufacture homes for their housing needs as well. The quote we're using now with the president of the nation, President Boone Nigran, is these are homes built on the Navajo Nation by Navajo workers for Navajos to live in. And so... very excited about steel and longevity. Their homes typically don't last more than 20 or 30 years. Very tough shape because they're very lightly built wood frame manufactured housing, built to HUD code. And they're excited to have some really high quality stuff that will last 50 to 100 years. Zeni Home X is our in-house laboratory where we're looking at innovations. We love Ori, we also love Bumblebee, what they're doing in San Francisco, the Google guys there. We're looking for other companies to come and show us some automated walls that move and new innovations and we plan to incorporate those to the extent that we can. We also have factory and licensing expansion. We'll be in all the states, US states and Canada. And then we're looking to expand these other three locations so we can hit all of the United States and Canada. population. This year we'll do about 23 million in revenue. Next year 70 million will be profitable in 2024. And we're hoping in 2025 to be in the 150 range. We think we'll have a true hockey stick here based on the interest we have in our units. We hope to save 30% of cost in building and 50% of schedule. When you start doing ground site work, we will be building your boxes. When you finish your site work and your podium is cured, the units will be arriving fully finished and furnished to be set on that podium. So it makes the schedule half as long. We're raising capital right now to complete the first multi-accelerate this growth. In the next few years, we will come up with a family project. We hope everything will be set by the end of this year. And people will be moving in mid-year next year. We want to broaden our regional presence by installing homes in very visible areas in the surrounding states. And then we want to scale the factory, add shifts, personnel and facilities, add on to our facility and page, which we'll talk about in just a moment. We're investing in the future of housing and hope you will join us. We are on WeFundr. If you go to wefundr.com, backslash is any home. You'll see that we've raised over a million dollars there this last month. We also have an opportunity zone for those who are sheltering capital gains, short or long term, and a Reg D accredited investor offering. So in total, we're raising $25 million, five crowdfunding, and 20 with opportunities on a Reg D accredited investor investments. So what's next for us? We want to expand our factory in Page to be the most productive housing factory in the world. That's what President Nygren wants as well, the president of the Navajo Nation. So we've hired the Swiss, the Swedish folks to come in and show us how to do that. And here's a little video that shows what we're planning to do. This is Navajo Generating Station without the power plant. The white box is any home, our current box where we fabricate today. We have all these paved areas and leasable, the land has been leased on a 75 year lease to be here. This is what the Swedes are recommending. We think we can get between 25 and 50 homes a day out of this facility. It's 300,000 square feet smaller. than the AutoVol facility in Boise that's 500,000. But because we're staying with the same exact basic units, one and two, small and large, and then modularize how they get assembled, we're able to build in a smaller footprint, but get more volume out without changing and building snowflakes in that factory. So as you go into the building, you'll see here that we have, we use combi lifts that haul containers. in ports of call. The one we have now is from Oakland. There will be cold foam rollers, cold form of forming machines. We have the most advanced and fastest one in the world right now in our factory. It's a half a million dollar machine. It can make a mile and a half of light gauge steel studs. We use 16 gauge galvanized steel studs. And we can make them well and a half an hour with all the penetrations and screw dimples and everything so that these can just be screwed together by the robot. You then have a somewhat manual process to get the electrical harnesses, the plumbing in those walls that are sheetrocked and ready to go. There's insulation that then gets installed here. And then you go to a cladding phase where the outside cladding is attached. And these fully complete units, floors, ceilings, and walls, then get married into our car, you might say, car chassis. That's being built on the opposite side of the factory there. And these squared chassis, like you saw in our current factory, then receive the floors, the ceilings installed, and the walls in this step. And then you have a completed unit that is being finished. The corners are being taped and taped and sheetrocked there. Cabinet finishes. The kitchens and bathrooms will come in as pods, fully finished, and get insect-sick. Things that we can get 8 to 12 homes a day set because we're just bolting them together. Trucking pace, unless you want to store them on site and then have a shuttle bring in the units. So then. You know, you go out the door and go into storage, waiting for directions from the apartment or multifamily developer to tell us, yes, you've got all of our units completed. Let's set up a trucking schedule to get these coming to you. Typically, synergy with the modules over to be stacked. So that's the factory of the future. That'll be the most productive factory in the world if the Swedes are right and we can get that production. production volume. The joint venture we're putting together with the Navajo tribe will be called Hoshoni home. It's a word more culturally sensitive than zeni. It means beauty, peace, and harmony. It's a very kind of really significant word in the Navajo language, Hoshoni home. The Navajo people would love to live in a Hoshoni home. What we're doing there with the Navajos, we signed a 75-year And it has an obligation for us to enter into a joint venture to build Navajo nation homes for them. So we're working with Navajo entities right now to see who will be our 51% partner in the joint venture. There are several Navajo enterprises we're talking to. And then they want to, in the joint venture agreement, they want to market, license, distribute and sell homes to other Native American nations all over North America. First Nations in Canada and every other Native American nation in America. So this could be a solution for housing for people that had really bad housing since the formation, frankly, of the reservations in the 1800s. So it's time to give them something that will last and that they can be proud of. This is me two weeks ago, the president of the Navajo Nation. Signing a... Yes.

Kenna Hettinger:
Uh, Bob, we're not seeing your screen anymore. Do you mind

Bob Worsley:
Yes,

Kenna Hettinger:
sharing

Bob Worsley:
what did

Kenna Hettinger:
it again?

Bob Worsley:
I do? How many slides have we missed here?

Kenna Hettinger:
Just the one right after you

Bob Worsley:
So

Kenna Hettinger:
finished

Bob Worsley:
this one.

Kenna Hettinger:
taking us through the factory. So just the last slide.

Bob Worsley:
Okay. Can you see that now? Kana, can you see it?

Kenna Hettinger:
It's coming up for me. It's loading, but that might be my internet, but it is,

Bob Worsley:
Great,

Kenna Hettinger:
I think we'll be

Bob Worsley:
great.

Kenna Hettinger:
able to see

Bob Worsley:
Thank

Kenna Hettinger:
it soon.

Bob Worsley:
you.

Kenna Hettinger:
Thanks Bob.

Bob Worsley:
Okay.

Kenna Hettinger:
Perfect. There

Bob Worsley:
So

Kenna Hettinger:
it

Bob Worsley:
this

Kenna Hettinger:
is.

Bob Worsley:
is President Boo Nigran, 36-year-old Bill Gates, recipient of college scholarship, full ride. His wife was full of scholarship, went to Stanford Law School, top of her class. Boo graduated from USC and ASU in construction management and his MBA, got his PhD in leadership. at USC, shocked the Navajo Nation when he beat the 65-year-old Jonathan Nez, the youngest president in history, 36 years old, has a woman vice president, never happened before as well. He came to our factory on March 17th, right after he was inaugurated, went to our factory and said, I don't want to sign your lease unless you agree to do a joint venture with us. I want you to build our Navajo housing. And so we... worked from March 17th until two weeks ago to get this lease signed to. We're very proud to. And then just to give you a quick sense of how excited. He was, he spoke at 11 o'clock that morning at the Navajo Housing Conference. And with a little bit of luck, you can hear him speaking here about what he thinks of what we're doing together. So he's pretty excited there. I'm going to just think we're done here. So I'm going to stop sharing my screen and open this up for conversation. We're very excited to work with a visionary young man who has great ambition. We're just finishing right now. the, let me just escape here and get back to our live screen. Can you see me again now, Kenna? Okay, great. Okay, so we have

Kenna Hettinger:
still seeing

Bob Worsley:
the youngest

Kenna Hettinger:
your screen

Bob Worsley:
president

Kenna Hettinger:
right now.

Bob Worsley:
in Navajo

Kenna Hettinger:
Oh, there

Bob Worsley:
history

Kenna Hettinger:
we go. Yes.

Bob Worsley:
who's a construction guy with a PhD. Bill Gates funded his education. Bill Gates is a good friend of his. They just spoke together at the NAU commencement in Flagstaff last month. So we're very excited to have him as our president. They have hundreds of millions of dollars of ARPA money, CARES money, housing money, to build houses on the nation. But they didn't have a mechanism to provide those with the quality that they wanted and the price that they wanted. So this is funds are available. Now we have a housing factory available that can provide them to them, the model, the style they want, the colors that they want. And we'll have many years. of home building for them in PAGE. So all funded by the federal government. Okay, Kenna, how do we want to take questions? I see a lot of chats here, so how do you want to do this?

Kenna Hettinger:
Yeah, we've gotten lots of great questions in the chat. I slacked you all of them as they've come in. So if you wanna go to your Slack, you can see all of them in a list or you'll be able to

Bob Worsley:
Okay,

Kenna Hettinger:
see them in

Bob Worsley:
let's

Kenna Hettinger:
the chat.

Bob Worsley:
take the

Kenna Hettinger:
I can

Bob Worsley:
first

Kenna Hettinger:
also

Bob Worsley:
one you think

Kenna Hettinger:
read

Bob Worsley:
I should

Kenna Hettinger:
some

Bob Worsley:
answer

Kenna Hettinger:
off to

Bob Worsley:
and

Kenna Hettinger:
you,

Bob Worsley:
we'll go

Kenna Hettinger:
whatever

Bob Worsley:
from there and I'll

Kenna Hettinger:
your

Bob Worsley:
get

Kenna Hettinger:
preference

Bob Worsley:
my Slack

Kenna Hettinger:
is.

Bob Worsley:
up here.

Kenna Hettinger:
Okay, perfect. And I apologize because I don't have your names associated with these, but someone did ask if this recording will be made available after the webinar ends. And yes, all of our webinars are uploaded to our website. We'll share that link with you once it's uploaded. So if you missed anything today, don't worry. We are going to upload this recording and you'll have access to it. After this is over. Let's see, this was a fun question. Someone is wondering if the units can be shipped by rail. They're in

Bob Worsley:
Yes,

Kenna Hettinger:
Canada

Bob Worsley:
and the answer to

Kenna Hettinger:
and

Bob Worsley:
that is

Kenna Hettinger:
they

Bob Worsley:
absolutely.

Kenna Hettinger:
think that it could bring down the cost

Bob Worsley:
Anywhere

Kenna Hettinger:
for

Bob Worsley:
you can

Kenna Hettinger:
a

Bob Worsley:
ship

Kenna Hettinger:
multi-unit

Bob Worsley:
containers.

Kenna Hettinger:
development.

Bob Worsley:
The only difficulty we might have on trains is that if they were counting on a double decker railcar we did go an extra two and a half feet tall. You'll notice high cubes can only be stacked on a train one deep, one high, and we'll have that same difficulty. It'll be a single unit on a train, but it definitely is the width and the length that fits perfectly for container transport, transcontinental intermodal transport. Kenneth, do you have another one you'd like me to answer? Let's just have you screen these for me. Yes, the

Kenna Hettinger:
Yeah, definitely.

Bob Worsley:
decks

Kenna Hettinger:
Another

Bob Worsley:
and

Kenna Hettinger:
person

Bob Worsley:
awnings

Kenna Hettinger:
is wondering

Bob Worsley:
are included.

Kenna Hettinger:
if the patios

Bob Worsley:
The brise

Kenna Hettinger:
are included.

Bob Worsley:
soleils are included. The automated beds are included. And washer, dryer, refrigerator, all your kitchen appliances are included. So we like to say you could move right in with a suitcase. If you want to add a few other little pieces to make it yours, feel free to do that. but we're trying to make this as complete, as finished, and furnished as possible.

Kenna Hettinger:
Awesome. Next

Bob Worsley:
Yes,

Kenna Hettinger:
question,

Bob Worsley:
we have

Kenna Hettinger:
Bob. Have you started mass

Bob Worsley:
currently

Kenna Hettinger:
production

Bob Worsley:
well over

Kenna Hettinger:
and how long does

Bob Worsley:
200

Kenna Hettinger:
it take to

Bob Worsley:
units

Kenna Hettinger:
have a

Bob Worsley:
in

Kenna Hettinger:
unit

Bob Worsley:
the

Kenna Hettinger:
made?

Bob Worsley:
queue. In addition to the 90 unit multifamily project that's going to be built here in Mesa. We've got well over several million dollars of deposits that we've taken for the units that are committed. So we will, we'll be working hard this year to get all of the units out for the, the hundred unit project, the 90 unit project. We've got another 14 that are built and going out to customers before that. And then we're going to try to really get quicker at this and hope to get, we're going to start out here about one a day, one home a day, and hope very quickly to move to three homes a day. And until we get that expanded facility where we can do 25 to 50 homes a day, we're probably going to be in our current facility kind of stuck in the neighborhood of three per day. So that's about a thousand homes a year in that current factory and we hope to get that number up in the five, six, seven thousand homes a year from the new expanded facility in page.

Kenna Hettinger:
Perfect. And on that note, we did have some people asking how long the backlog is, how long until I get my home. So I encourage all of you to reach out to support at zenihome.com. I'll throw that into

Bob Worsley:
So,

Kenna Hettinger:
the chat.

Bob Worsley:
I'm going to go

Kenna Hettinger:
If you're still waiting on an answer from

Bob Worsley:
ahead

Kenna Hettinger:
us

Bob Worsley:
and start

Kenna Hettinger:
for your

Bob Worsley:
the

Kenna Hettinger:
specific unit, please

Bob Worsley:
presentation.

Kenna Hettinger:
send an email to support at zenihome.

Bob Worsley:
So, I'm

Kenna Hettinger:
You'll

Bob Worsley:
going

Kenna Hettinger:
probably get a response from me, but that way

Bob Worsley:
to

Kenna Hettinger:
I

Bob Worsley:
start

Kenna Hettinger:
can see your order and everything

Bob Worsley:
with the

Kenna Hettinger:
and

Bob Worsley:
presentation

Kenna Hettinger:
get you the right answer. So. I'll drop

Bob Worsley:
of the

Kenna Hettinger:
that in the

Bob Worsley:
first

Kenna Hettinger:
chat.

Bob Worsley:
item,

Kenna Hettinger:
And

Bob Worsley:
the

Kenna Hettinger:
if you have specific questions about your order, please reach out. Next question for you, Bob, can you purchase several

Bob Worsley:
Yes,

Kenna Hettinger:
units and

Bob Worsley:
in

Kenna Hettinger:
have

Bob Worsley:
fact,

Kenna Hettinger:
them

Bob Worsley:
as

Kenna Hettinger:
connected

Bob Worsley:
we've negotiated

Kenna Hettinger:
so you

Bob Worsley:
with

Kenna Hettinger:
can

Bob Worsley:
the Navajo

Kenna Hettinger:
walk from

Bob Worsley:
Nation,

Kenna Hettinger:
inside

Bob Worsley:
they want

Kenna Hettinger:
one

Bob Worsley:
up

Kenna Hettinger:
to

Bob Worsley:
to

Kenna Hettinger:
the

Bob Worsley:
five

Kenna Hettinger:
inside

Bob Worsley:
bedrooms,

Kenna Hettinger:
of the other?

Bob Worsley:
three baths for some of the larger families. And so we have a beautiful combination of the two two-bedroom units with a beautiful interstitial space between them for gathering, and then a one-bedroom unit on the end of that. So essentially you would have five bedrooms, three baths, and we don't change anything in the factory. These come and sit down and mate together beautifully. So we can do one, two, three, four, five bedrooms, one, two, three bathrooms very easily. And then if you're willing to stack, we can even get more than that. I guess you could even start adding more on a rambler style. So feel free to put these together as you see fit. We have lots of ideas that we'll share with you. Thank you. We had our

Kenna Hettinger:
Okay,

Bob Worsley:
structural

Kenna Hettinger:
next

Bob Worsley:
engineers

Kenna Hettinger:
question. Are you planning on

Bob Worsley:
three

Kenna Hettinger:
building

Bob Worsley:
years

Kenna Hettinger:
for

Bob Worsley:
ago.

Kenna Hettinger:
extreme weather events

Bob Worsley:
They

Kenna Hettinger:
like

Bob Worsley:
had very

Kenna Hettinger:
hurricanes?

Bob Worsley:
simple marching instructions. This has to work in Miami with hurricanes. It has to work in Los Angeles on the San Andreas fault for earthquakes, and it has to work in Park City, Utah. If it can meet those three cities, then it's good enough to go into our mass production box. We're overbuilding, of course, to do that, but we wanted to have the factory be able to print this. make the same thing every time and not be in this snowflake business of building different things for different areas. So we are overbuilding, but we are designed to be 95% of any place you would want to build a home in Canada, anywhere in North America. And we hope to be in Hawaii once it's really bad as well. So you know, these set on stilts and everything. If you had If you wanted to be near the beach and get at least some feet off the ground, that's what we're for. We're built to be on pylons. It could be on 10 foot tall pylons so that a tsunami would have to be pretty big to impact your beach house. So that's what we're doing.

Kenna Hettinger:
Patricia

Bob Worsley:
Patricia,

Kenna Hettinger:
is wondering

Bob Worsley:
we just

Kenna Hettinger:
with all the windows

Bob Worsley:
went

Kenna Hettinger:
what are you

Bob Worsley:
off.

Kenna Hettinger:
seeing for utility

Bob Worsley:
We just

Kenna Hettinger:
bills in

Bob Worsley:
did

Kenna Hettinger:
Arizona?

Bob Worsley:
a grid connect here in Mesa. It's 116 degrees. I think today out here I'm sitting in a very comfortable air conditioned space inside of our unit. In fact, I promised before I did the event today that I would show people this beautiful unit that we have here. I'll walk around in just a moment and give you a bit more of a tour, but it's very comfortable inside. We are doing our best to make sure that this is very efficient. These can come with solar panels, inverters, and batteries installed. These can be grid-free or grid-connected, grid-tied. We were grid-free here until two weeks ago. We're now doing, we did a grid connect, and we will be publishing shortly what the utilities look like. Solar generated power and grid power with the net difference. So we will be sharing that with you shortly. We have a lot of insulation. There are six inch stud walls, floors, ceilings, steel studs with rock wool. We have another two inches of foam in the panel on the outside to prevent thermal bridging through that steel into the unit. So it's going to be very energy efficient. We'll prove it and put it up for everybody to see here in the next 30 days when we get our first bill when we're grid-tied.

Kenna Hettinger:
Bill is wondering of the

Bob Worsley:
We have

Kenna Hettinger:
thousand

Bob Worsley:
120

Kenna Hettinger:
folks who lost jobs

Bob Worsley:
employed

Kenna Hettinger:
with the closure

Bob Worsley:
there,

Kenna Hettinger:
of the coal

Bob Worsley:
Navajos,

Kenna Hettinger:
plant how many

Bob Worsley:
that

Kenna Hettinger:
are

Bob Worsley:
were

Kenna Hettinger:
currently

Bob Worsley:
working

Kenna Hettinger:
employed

Bob Worsley:
at

Kenna Hettinger:
at your

Bob Worsley:
SRP.

Kenna Hettinger:
page factory?

Bob Worsley:
Vast majority of them were. And then we have 300 of them that lost their jobs that are waiting for us to be able to hire them. We hope to go to a second shift here shortly. We have plenty of work. We're just working through all the issues, first production units, working through the kinks, and then we fully expect to hire a second shift. the new facility will require even more people. So we'll have, if we don't hire everybody back, it'll be the vast majority.

Kenna Hettinger:
Okay, we have a question here from Barbara about the furniture included.

Bob Worsley:
Yeah, thank

Kenna Hettinger:
So

Bob Worsley:
you.

Kenna Hettinger:
she was wondering

Bob Worsley:
I should

Kenna Hettinger:
about

Bob Worsley:
have

Kenna Hettinger:
the automated

Bob Worsley:
clarified.

Kenna Hettinger:
beds.

Bob Worsley:
We

Kenna Hettinger:
She

Bob Worsley:
do

Kenna Hettinger:
read that

Bob Worsley:
have

Kenna Hettinger:
the ceiling

Bob Worsley:
the

Kenna Hettinger:
bed

Bob Worsley:
transforming

Kenna Hettinger:
was an extra

Bob Worsley:
furniture

Kenna Hettinger:
cost.

Bob Worsley:
included.

Kenna Hettinger:
You wanna talk about that?

Bob Worsley:
This particular bed that I'm setting on is an extra, it's a premium price, but you will have furniture that does all the transforming that we're showing you here in the base price. If you want to upgrade to this unit, that's the extra 15,000.

Kenna Hettinger:
Thanks. Okay, we have a lot more questions, but we are running short on time. So don't worry, we have all of your questions saved. We will be sure to reach out to you after the webinar if we weren't able to answer it today. But Bob, I wanna give you a little bit of time at the end here just to talk about the investment opportunities

Bob Worsley:
Yes,

Kenna Hettinger:
available

Bob Worsley:
and I forgot

Kenna Hettinger:
and

Bob Worsley:
to

Kenna Hettinger:
then

Bob Worsley:
mention the price.

Kenna Hettinger:
if

Bob Worsley:
The

Kenna Hettinger:
you

Bob Worsley:
small

Kenna Hettinger:
wanted to

Bob Worsley:
unit is $90,000

Kenna Hettinger:
walk around the home since you're there as well.

Bob Worsley:
unless you want to add solar or some extra thing to it. The larger unit is $125,000. And so per door in an apartment building, you can kind of be in the $100 range mix. The first building we're building is studio apartments and two thirds, the two bedroom. As I walk around the unit here, I'd like to make sure that you understand that we have ADA approved bathrooms. So developers that are, I'll have my wife here if you'll open some of these things for me here, Chris. The refrigerator here is the first thing we'll show you. You have a beautiful Bosch refrigerator here, full washer dryer, I mean full freezer. refrigerator down below the freezer. We're walking into the kitchen here. Beautiful galley kitchen. I wish I would have done a better job of not making you stick as I spin this thing around, but you can see how spacious it really feels. As I go from the kitchen into, we have a stackable washer and dryer. here. You want to close that up honey and show them that the cabinets look really nice when the when that's not being used. Now I'm going into the bathroom. The bathroom is full ADA compliant. It's what we call a European wet bathroom where everything is goes to the drain. Got a beautiful Toto toilet there. And beautiful sink. So bathroom is full ADA compliant for wheelchair access. Now we'll go to the second bedroom, which is as you approach it, you'll see we have a dining room, spacious enough to have a nice group over for dinner. And then as we go into that dining room, we have an office that has a a really lovely high tech. This is an example for the, I think, someone asked the question about Ori's Extra. This is a wilding bed product out of St. George, Utah, sold to the Ritz Carlton. So these kinds of things can be done included in the price. So you get all of the transforming nature of the furniture. but it doesn't have to be the robotic furniture. You'll notice the office never moved. The telephone, the printer, everything stayed on the desk, went under the bed automatically. So just, that's where you get your two bedrooms. This end of the home is a dining room. It's an office, it's a bedroom. The other end of the home that we just were in is the master bedroom. It's the, in fact, let's go ahead and, Chrissy, why don't you show them how the Ori furniture works here? Let's first go into a walk-in closet. So this is a... So here's a walk-in closet on motor. And it literally can walk into the closet here that disappears during the day. Your clothes don't need to be in a big old room, you know. You can absolutely live with this closed. So. Now there's the unit. There's the Ori closet closing. You don't need to be in there. And then we'll go to the Ori bed, which is very cool. And we'll take and show you how the bed works here. The bed comes down out of the ceiling. This can be voice command or. Um... or it can be used on an app on your phone. You'll notice the things on the ground, it doesn't matter. It just sits on top of the sofa, sits on top of the coffee table. And when you wanna put it away after you get up in the morning, it has a very, it has UL approved sensors so little kids and pets can't be caught under it or in it. Chris, if you'll put the bed back up. So there's the bed going back up to be stowed in the ceiling. So no more dust bunnies under your bed. You actually use that room throughout the day, the course of the day. And so that's I can take you over to the small unit here. Looks like we have guests in it taking a tour. So I'll just give you a visual from here. There's the small unit, the studio unit, with two families touring it right now. Last week, 11 homes were sold on these tours. We're not actively advertising it. So. This is, we know that there's a lot of interest in there. Can you, could you see it or did I make you ill?

Kenna Hettinger:
No, I could see it. It looked good. I know we had some people who had a hard time seeing it. So I'll post the link. If you want to come see them for yourselves, they are there in Mesa. Like Bob mentioned, we offer tours and we are also working on

Bob Worsley:
We

Kenna Hettinger:
getting

Bob Worsley:
need a

Kenna Hettinger:
a tour

Bob Worsley:
proper

Kenna Hettinger:
up online

Bob Worsley:
photographer

Kenna Hettinger:
for anyone who

Bob Worsley:
to

Kenna Hettinger:
can't

Bob Worsley:
do

Kenna Hettinger:
make

Bob Worsley:
this,

Kenna Hettinger:
it

Bob Worsley:
not

Kenna Hettinger:
out to

Bob Worsley:
me.

Kenna Hettinger:
Mesa. So we definitely want everyone to be able to come see these.

Bob Worsley:
Thank you. OK, well, we appreciate it. And

Kenna Hettinger:
You did a great

Bob Worsley:
we do

Kenna Hettinger:
job,

Bob Worsley:
have,

Kenna Hettinger:
Bob.

Bob Worsley:
I see a question on preferred lenders. And we do have lenders, both in Arizona and most of the other states that are Fannie Mae, Freddie Mac. These units attach to the ground, and therefore you can get a regular 30-year mortgage like a stick frame home. And somebody asked if you can add the solar later, for sure. We'll share this information. The address of the models is 29 South Robeson in Mesa. The thing for on Monday, 90 unit project that we're doing a groundbreaking is at 29 West Main Street. So we must like 29, the number 29, both of our addresses are 29 South Robeson, 29 West Main. So come and see us and then we'll welcome you as well in page. for a tour of our factory. We're very open and with our information and what we're trying to do here, and please again, $250 minimum investment on crowdfunding. So join our shareholder family for just $250. And then if you have $25,000 burning a hole in your pocket, we have the accredited investor. uh reg d offering either opportunity zone or non opportunity zone uh doesn't matter which way you go there and we'd love to have you become part of our shareholder family help us grow we'll eventually go public i'm sure this is a company i've taken two companies public sky mall uh and then we had a power company that we took public um so i'm very comfortable with that when i was at pricewaterhouse i took companies public for a living So I understand the ropes. It's not easy, but it's nice when people want to exit and take their investment, take their gains and move on. So that will probably happen in the next two or three years. So thank you. Appreciate everyone being here with us. We took just an hour. Perfect. Thank you, Kenna. See you soon.

Kenna Hettinger:
Thanks, Bob, and thanks all for joining us.