In keeping with our expectations shared in our recent Form 10-Q filing of November 10, 2022, we are assembling the new AOT internals this week. As we have stated in the past, there were several previously established design criteria incorporated into the new AOT design. Our observations and confirmations resulting from the component testing required time to capture and properly illustrate for our vendors. Although this process took a little longer than we had expected, it was necessary none the less.

This delay alone would not have caused us to miss our initial timetable. However, our vendors had significant orders placed ahead of ours which consumed much of their capacity and their backlogs increased significantly. We were able to reduce the delay by offering incentives and worked intensively with vendors to outsource some gating items to shorten project completion times.

We expect all of our remaining parts to be delivered shortly after Thanksgiving and with no further delays anticipated, immediate Hydrostatic testing to follow. In parallel with testing preparation, we have also been able to capitalize on new potential industry development partners.

Christopher Gallagher

SVP