Form DEFA14A BOXABL Inc.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
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the Securities Exchange Act of 1934 (Amendment No. )
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| ☐ | Preliminary Proxy Statement |
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| ☐ | Definitive Proxy Statement |
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| ☐ | Soliciting Material under §240.14a-12 |
| BOXABL Inc. |
(Name of Registrant as Specified In Its Charter)
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Interview #1 (Inside the Future of Affordable Housing)
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Good afternoon, everybody.
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Welcome to a special interview here.
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And you’re going to enjoy this one.
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Obviously,
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it’s the future of factory built houses.
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But first,
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all information presented here is for
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educational and informational purposes
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only, not intended as financial advice.
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So always do your due diligence.
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And now that we got that out of
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the way,
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let me introduce our special guest.
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It’s Galliano Tiramani.
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It’s a really cool name, Galliano.
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And he is the founder and CEO of
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Boxable.
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And I’m
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I’m telling you,
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this company is really cool.
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I really like it, Galliano.
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So please welcome to our show.
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And I have a lot of questions for
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you.
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Hey, thanks so much for having me.
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Yeah,
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we are working on a really ambitious
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solution to change the way houses are
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built.
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Yeah, no, it’s really cool.
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What originally inspired you to start
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Boxable?
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And is there any specific moment where you
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realized like housing definitely needed to
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change?
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Yeah,
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so it was actually myself and my father
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that started the company.
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And many years ago,
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he had built a house and he built
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it using traditional modular construction.
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And he just experienced all the friction,
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all the problems with that and thought
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there has to be a better way.
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So he drew up the idea to fold
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the house up.
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You can see that behind me in the
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image there.
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And that was kind of the core innovation
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that makes everything else possible.
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Because when we looked at factory built
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housing and we said,
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why hasn’t this taken off?
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Why aren’t all houses built in a factory?
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Because obviously all the modern products
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are built in a factory.
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Your computer, your clothes, your car,
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your cell phone, everything.
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Because that results in the lowest cost,
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most available, highest quality product.
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The reason housing is not built that way
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is it’s just too big.
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And even the factory guys that exist now,
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which is about ten percent of the market,
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we’ve got ninety percent building houses
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on site.
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Those guys can’t ship the houses.
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And because they can’t ship cost
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effectively,
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they have small factories and it’s not
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mass production.
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So our initial innovation was.
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solve the shipping problem and that’s
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going to enable us to do a true
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mass production and when i’m saying mass
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production i’m talking like on the scale
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of the automaker so if you’ve ever seen
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a video of a tesla or ford factory
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if you want to look on you know
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youtube for that it’s amazing advanced
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mass production automation they’re they’re
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putting cars out of those factories every
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sixty seconds or less
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so that’s how we want to do it
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with houses and we’re already at one hour
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just in our kind of initial first shot
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at the factory so we’re out here proving
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the concept and making the case for more
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capital to scale this thing because if we
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can make those fast factories go faster
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the cost comes down dramatically on the
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housing
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Wow.
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And you can put a house together,
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like manufacture this thing in under an
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hour.
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That’s pretty impressive, I must say.
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Yeah.
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So we have about four hundred thousand
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square feet of manufacturing space in Las
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Vegas.
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We have over one hundred employees and the
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output of the factory for our first
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product that you see behind me there,
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that’s the Casita.
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That’s like, you know,
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every roughly one hour we’re able to put
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that house out.
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Wow, that’s amazing.
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So before Boxabl,
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what experience or business has prepared
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you for something like this?
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I mean,
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you’re taking on manufacturing in a
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housing company.
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That’s pretty wild.
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You were saying how your dad built a
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house,
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but what were you up to before this?
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Yeah, so I’ve always been an entrepreneur,
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always found an angle,
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an inefficiency in the market,
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dive into it,
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learn everything there is to know,
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and kind of come up with a better
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way to do things.
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So the company started with myself,
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my father Paolo, and Kyle.
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So the three of us,
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they’re both engineers,
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so experts at creating like,
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three-D solid models on the computer.
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Paolo previously had built
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or had a bunch of successful products
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including um you know a special kind of
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toolbox that sold over a billion dollars
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in home depot and then kyle is an
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engineer but his background was a
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home building with his family business.
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And then myself,
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I kind of hit two industries successfully
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that were kind of hot,
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which was Bitcoin and marijuana.
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So ended up getting into Bitcoin space
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around twenty twelve,
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did really well with that,
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had an exchange.
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And then on the marijuana side,
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it was kind of some
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back to manufacturing actually,
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because I wasn’t necessarily growing
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marijuana.
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We were doing that,
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but the main business was processing the
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waste product from the plants into oil.
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So we had this really big lab set
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up.
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It looked crazy.
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It was kind of like Breaking Bad,
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you know,
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with all the stainless steel equipment.
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So kind of similar to Boxable because
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started with very little information and
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started learning about the market and the
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industry.
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scaled up this manufacturing process,
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found a better way to do it that
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was cheaper and faster, scaled that up,
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found the customer, started selling.
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And then while I was working on that,
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I was looking for another project and
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ended up getting into Boxabl with the
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first idea for it.
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And then that quickly became the bigger
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opportunity.
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And so I put all my eggs in
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that basket.
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That’s a fascinating story.
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I like it.
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You learned a lot,
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especially in the cannabis industry and
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doing all that stuff.
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You don’t realize how much you learn in
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that industry.
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I’ve actually been in that space for a
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while.
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It’s a fascinating space for sure.
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So do you see Boxables like a construction
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company or a manufacturing company or
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could it even be a technology company?
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Yeah, it’s really about technology.
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Everything we’re doing is about innovating
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and developing technology.
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So that’s what we’ve been doing for years
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now.
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We’ve been learning,
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refining the technology,
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increasing the manufacturing setup,
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and you know just a huge amount of
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solutions for all the friction points that
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exist because there’s a lot that has to
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be figured out to make this possible to
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make this work at scale and i think
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that’s something a lot of people don’t
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necessarily see they see this tiny house
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product and they think oh they’re just
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building a tiny house but there’s much
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more going on beyond that and then
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additionally we plan to have um
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you know to be more than just the
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manufacturer of these room modules we want
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to do kind of the full scope of
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services so you know everything from you
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know the various things that go into the
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manufacturing to the you know the
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different technology software we need to
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execute and then also uh developing real
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estate you know to to end up you
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know putting houses on the market that are
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dramatically cheaper than uh anything else
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out there is the goal
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Yeah,
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you guys are looking at actually being
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able to build like entire communities,
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aren’t you?
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Yeah, that’s the vision.
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And that’s what has to happen for this
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to work because the scale required to push
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the cost down to the point where people
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are like, well,
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am I going to build the old way,
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which is going to take me nine, twelve,
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eighteen months?
00:07:22.425 —> 00:07:23.485
Am I going to be dealing with all
00:07:23.526 —> 00:07:25.247
these subcontractors, the framer,
00:07:25.286 —> 00:07:26.048
the electrician?
00:07:26.507 —> 00:07:27.848
you know this huge pain in the ass
00:07:27.869 —> 00:07:28.949
or am i just going to skip all
00:07:28.968 —> 00:07:32.630
that have certainty on you know my project
00:07:32.670 —> 00:07:35.151
on the cost on the quality uh skip
00:07:35.232 —> 00:07:38.192
all that that pain and just deliver these
00:07:38.273 —> 00:07:41.274
units finished um and and you know we
00:07:41.293 —> 00:07:43.095
need to do really big scale to bring
00:07:43.115 —> 00:07:45.475
the cost down to the point where it’s
00:07:45.495 —> 00:07:47.156
a no-brainer for these developers and i
00:07:47.197 —> 00:07:48.716
think as we continue to move forward in
00:07:48.757 —> 00:07:50.538
case studies go out that are successful
00:07:50.557 —> 00:07:52.059
and people look at it and say well
00:07:52.819 —> 00:07:54.060
maybe they really cracked the code on
00:07:54.100 —> 00:07:54.339
this.
00:07:54.399 —> 00:07:56.060
We’ll get more buy-in from these bigger
00:07:56.422 —> 00:07:56.841
builders.
00:07:56.882 —> 00:07:58.362
You know, we have, for example,
00:07:58.403 —> 00:08:00.384
DR Horton as one of our customers and
00:08:00.404 —> 00:08:00.964
investors.
00:08:01.404 —> 00:08:02.805
So that’s the biggest home builder in the
00:08:02.846 —> 00:08:04.406
country because, you know,
00:08:04.427 —> 00:08:06.108
they know what the issues are with
00:08:06.129 —> 00:08:06.488
housing.
00:08:06.528 —> 00:08:08.629
They know what the issues are with factory
00:08:08.649 —> 00:08:09.130
built housing.
00:08:09.170 —> 00:08:11.132
They know why they haven’t been able to
00:08:11.211 —> 00:08:11.913
use that before.
00:08:12.572 —> 00:08:13.413
And, you know,
00:08:13.434 —> 00:08:16.255
so they saw something in us that made
00:08:16.295 —> 00:08:16.956
them think, you know,
00:08:16.975 —> 00:08:18.778
maybe these guys are onto something.
00:08:19.622 —> 00:08:20.565
That’s interesting.
00:08:20.665 —> 00:08:22.593
What were like the hardest early years of
00:08:22.632 —> 00:08:25.242
boxable and how long have you been around
00:08:25.283 —> 00:08:25.463
for?
00:08:26.617 —> 00:08:28.379
We started just with the idea in twenty
00:08:28.418 —> 00:08:28.999
seventeen,
00:08:29.038 —> 00:08:30.839
delivered the first prototype in like
00:08:30.899 —> 00:08:31.819
around twenty twenty,
00:08:32.759 —> 00:08:34.480
went back with another prototype a year
00:08:34.520 —> 00:08:35.081
after that.
00:08:35.480 —> 00:08:37.261
And then eventually we ended up getting a
00:08:37.322 —> 00:08:38.322
military contract.
00:08:38.763 —> 00:08:42.644
So we had this big military contract and
00:08:43.024 —> 00:08:44.565
it was just me and a couple of
00:08:44.585 —> 00:08:46.485
guys in a garage with some prototypes.
00:08:47.405 —> 00:08:48.567
And I said to the military,
00:08:48.966 —> 00:08:49.927
the Department of Defense, like,
00:08:50.187 —> 00:08:51.847
are you sure you guys want to award
00:08:51.888 —> 00:08:52.427
this to us?
00:08:52.927 —> 00:08:54.369
You know, we don’t have a factory,
00:08:54.408 —> 00:08:54.869
we don’t have
00:08:55.089 —> 00:08:56.948
employees you know we don’t really know
00:08:56.969 —> 00:08:57.869
how to build this thing and they were
00:08:57.889 —> 00:08:59.629
like sure let’s do it so you know
00:08:59.649 —> 00:09:01.230
we took that and and ran with it
00:09:01.470 —> 00:09:03.250
and uh i think what we achieved was
00:09:03.289 —> 00:09:05.030
amazing we ended up going really big
00:09:05.211 —> 00:09:07.750
really early on we leveraged that into
00:09:07.791 —> 00:09:11.152
this big factory and this big uh crowdfund
00:09:11.432 —> 00:09:13.251
and got things going scaled up and
00:09:13.371 —> 00:09:15.753
delivered that in full but there have been
00:09:15.932 —> 00:09:18.253
you know massive speed bumps all along the
00:09:18.293 —> 00:09:20.293
way things just trying to derail us
00:09:20.332 —> 00:09:22.693
because what we’re doing is just like
00:09:22.734 —> 00:09:23.754
fighting back against
00:09:24.995 —> 00:09:26.895
um the standard way of doing things at
00:09:26.937 —> 00:09:29.219
like at every turn you know so so
00:09:29.239 —> 00:09:31.020
when you try and disrupt you know an
00:09:31.041 —> 00:09:32.741
ingrained industry like that it’s very
00:09:32.782 —> 00:09:36.025
difficult so similar to like uber you know
00:09:36.066 —> 00:09:39.328
uber taking on the taxi uh medallion
00:09:39.448 —> 00:09:41.630
companies or airbnb dealing with
00:09:41.831 —> 00:09:44.094
legislation for you know short-term
00:09:44.134 —> 00:09:47.317
rentals um just doing things very very
00:09:47.356 —> 00:09:48.538
differently um
00:09:49.677 —> 00:09:52.320
It’s been quite challenging and what we’re
00:09:52.340 —> 00:09:53.940
doing is not easy at all.
00:09:53.980 —> 00:09:56.581
It’s an extremely ambitious endeavor and I
00:09:56.620 —> 00:09:59.423
think it has an extremely large upside if
00:09:59.462 —> 00:10:00.623
we get it right.
00:10:00.682 —> 00:10:04.664
That is to say that we want to
00:10:04.684 —> 00:10:06.926
build more houses than anyone has ever
00:10:06.946 —> 00:10:08.807
done before at a lower cost than anyone
00:10:08.826 —> 00:10:09.267
done before.
00:10:09.866 —> 00:10:10.528
And, you know,
00:10:10.567 —> 00:10:13.028
housing market is a huge demand for this
00:10:13.048 —> 00:10:13.789
and no one can beat it.
00:10:13.909 —> 00:10:16.772
So we’ve got numbers published like five
00:10:16.812 —> 00:10:18.712
million housing units short in the United
00:10:18.753 —> 00:10:19.092
States.
00:10:20.254 —> 00:10:21.955
You know, obviously rent is high.
00:10:21.995 —> 00:10:23.676
People are spending a large percentage of
00:10:23.716 —> 00:10:24.797
their income on housing.
00:10:25.236 —> 00:10:28.198
We’ve got ten, you know,
00:10:28.399 —> 00:10:29.360
in the last ten years,
00:10:29.779 —> 00:10:30.539
housing has doubled.
00:10:31.801 —> 00:10:33.722
And income is not, obviously.
00:10:35.083 —> 00:10:37.546
So just a really big upside if we
00:10:37.586 —> 00:10:38.908
can prove that we have a better way
00:10:38.927 —> 00:10:39.427
to do this.
00:10:39.628 —> 00:10:40.950
And I think as we continue to prove
00:10:41.009 —> 00:10:41.110
it,
00:10:41.789 —> 00:10:43.611
the capital markets will keep throwing
00:10:43.792 —> 00:10:45.634
resources at us to scale this thing.
00:10:46.942 —> 00:10:47.423
Yeah,
00:10:48.063 —> 00:10:50.806
I can only imagine the big construction
00:10:50.846 —> 00:10:53.427
building companies would have lobbyists
00:10:53.548 —> 00:10:55.409
out there trying to prevent you from being
00:10:55.429 —> 00:10:57.471
able to pass this along and be able
00:10:57.490 —> 00:10:59.232
to tap into their resources.
00:10:59.373 —> 00:11:00.052
Yeah,
00:11:00.072 —> 00:11:02.835
so there’s a lot of different frictions
00:11:02.855 —> 00:11:04.976
that we’ve bumped into and problems there.
00:11:04.996 —> 00:11:06.337
And there’s a lot of special interests.
00:11:06.398 —> 00:11:09.360
So there’s a whole list of reasons why
00:11:09.419 —> 00:11:10.441
someone wouldn’t want this.
00:11:11.282 —> 00:11:12.643
Anything from,
00:11:12.663 —> 00:11:14.684
if I’m trying to ship houses to Texas,
00:11:15.345 —> 00:11:15.544
well,
00:11:15.784 —> 00:11:17.765
the Texas people don’t want money leaving
00:11:17.785 —> 00:11:18.245
their state.
00:11:19.125 —> 00:11:21.907
Or if I’m trying to do affordable housing
00:11:21.947 —> 00:11:22.687
in your neighborhood,
00:11:22.768 —> 00:11:24.408
you might not want low cost housing in
00:11:24.427 —> 00:11:24.967
your neighborhood.
00:11:25.928 —> 00:11:27.688
And then we have bureaucrats and
00:11:27.749 —> 00:11:30.250
regulators and people making money out of
00:11:30.289 —> 00:11:31.029
this whole thing,
00:11:33.331 —> 00:11:35.072
approval processes for parts,
00:11:35.951 —> 00:11:37.231
all kinds of different things that we’re
00:11:37.272 —> 00:11:37.852
bumping into.
00:11:37.893 —> 00:11:39.432
But luckily the market is so big,
00:11:39.452 —> 00:11:40.854
the demand is so big that we are
00:11:40.874 —> 00:11:43.333
finding our niche and then we’ll have a
00:11:43.374 —> 00:11:44.595
foothold and we’ll grow it from there.
00:11:45.325 —> 00:11:48.227
Do you think some of these regulations on
00:11:48.248 —> 00:11:50.089
the things that you’re mentioning is why
00:11:50.188 —> 00:11:52.751
factory built housing hasn’t really scaled
00:11:52.951 —> 00:11:54.773
successfully before, I would say?
00:11:54.833 —> 00:11:57.495
And I would say what makes you different?
00:11:57.515 —> 00:11:58.756
You’re kind of explaining it,
00:11:58.797 —> 00:12:01.139
but is that why you think that you’re
00:12:01.359 —> 00:12:02.600
going to be able to do it because
00:12:02.620 —> 00:12:04.682
the other companies haven’t been able to
00:12:04.701 —> 00:12:05.383
do what you’re doing?
00:12:06.403 —> 00:12:06.923
Yeah, I mean,
00:12:07.023 —> 00:12:08.504
we’re definitely taking a very different
00:12:08.524 —> 00:12:10.085
approach than the other guys out there.
00:12:10.125 —> 00:12:12.606
We have a lot of different solutions.
00:12:13.626 —> 00:12:16.349
I think we’ve solved the things that
00:12:16.389 —> 00:12:19.029
stopped these factories from scaling and
00:12:19.071 —> 00:12:21.292
with the scale will come the lower cost.
00:12:21.772 —> 00:12:24.293
But definitely, you know,
00:12:25.073 —> 00:12:27.615
tremendous amount of pushback,
00:12:28.176 —> 00:12:29.496
but also opportunities there.
00:12:29.557 —> 00:12:30.817
For example, you know,
00:12:30.837 —> 00:12:32.438
we spent some time in Washington, D.C.
00:12:32.479 —> 00:12:32.979
recently,
00:12:33.599 —> 00:12:36.181
and after that we saw I think it’s
00:12:36.201 —> 00:12:38.481
called the Road to Housing Act and also
00:12:38.501 —> 00:12:39.982
an executive order from the president.
00:12:40.423 —> 00:12:41.384
So those are going to have a big
00:12:41.464 —> 00:12:42.825
impact on our business.
00:12:42.845 —> 00:12:46.706
I won’t dove into the details there,
00:12:46.746 —> 00:12:48.248
but we’re really excited about how that’s
00:12:48.268 —> 00:12:50.509
going to play out on our process for
00:12:50.570 —> 00:12:52.191
actually getting the housing approved.
00:12:52.711 —> 00:12:53.010
And then
00:12:54.898 —> 00:12:57.938
we have this kind of different way of
00:12:57.958 —> 00:12:59.759
getting the housing approved right now,
00:13:00.220 —> 00:13:02.480
which means that if you build a regular
00:13:02.500 —> 00:13:02.841
house,
00:13:03.062 —> 00:13:04.402
you’re gonna have the building department
00:13:04.481 —> 00:13:05.523
coming to your job site,
00:13:05.643 —> 00:13:06.643
you’re gonna be scheduling them,
00:13:06.702 —> 00:13:07.864
they’re gonna come and they’re gonna do
00:13:07.884 —> 00:13:10.485
inspections at multiple points during your
00:13:10.524 —> 00:13:10.745
build.
00:13:10.784 —> 00:13:12.025
Maybe they’ll inspect your electrical,
00:13:12.086 —> 00:13:13.586
they’ll inspect your framing, whatever.
00:13:14.126 —> 00:13:14.667
For us,
00:13:15.206 —> 00:13:16.727
we kind of skip all that and it
00:13:16.788 —> 00:13:18.489
actually gets inspected
00:13:19.369 —> 00:13:21.890
uh in our factory by a private third
00:13:21.910 —> 00:13:24.152
party that we hire so that’s a huge
00:13:24.192 —> 00:13:25.812
amount of friction taken out of the
00:13:25.852 —> 00:13:28.534
process for our customer and we’ve done so
00:13:28.575 —> 00:13:30.936
well at that for example in california
00:13:31.035 —> 00:13:33.717
we’ve qualified for reduced inspections so
00:13:33.778 —> 00:13:36.119
california doesn’t even inspect all our
00:13:36.139 —> 00:13:38.660
houses anymore you know so that’s huge i
00:13:38.681 —> 00:13:40.121
mean imagine imagine how
00:13:40.981 —> 00:13:42.884
how that’s throwing a wrench into the
00:13:42.903 —> 00:13:44.725
process for the other builders when they
00:13:44.745 —> 00:13:47.008
have to deal with some local regulator
00:13:47.028 —> 00:13:48.590
coming out and making comments on
00:13:48.610 —> 00:13:51.092
everything they’re building.
00:13:51.113 —> 00:13:52.374
A certain percentage of our houses in
00:13:52.394 —> 00:13:54.836
California just don’t even get inspected.
00:13:54.897 —> 00:13:57.860
So that’s really huge for us.
00:13:58.479 —> 00:14:00.399
yeah that’s actually a big deal and uh
00:14:00.480 —> 00:14:02.400
people don’t realize inspections for
00:14:02.461 —> 00:14:04.361
housing i kind of know the background on
00:14:04.402 —> 00:14:06.442
this yeah you would have insulation
00:14:06.503 —> 00:14:08.683
inspections you would have your uh
00:14:08.744 —> 00:14:10.965
electrical plumbing every kind of
00:14:11.004 —> 00:14:12.625
inspection you can imagine but not only
00:14:12.664 —> 00:14:14.966
that when you file for a permit you
00:14:14.985 —> 00:14:16.427
got to pay the money for that you
00:14:16.447 —> 00:14:18.168
got to wait for the inspectors to come
00:14:18.248 —> 00:14:19.668
out you’re talking a lot of time a
00:14:19.688 —> 00:14:22.350
lot of money and uh boxables just kind
00:14:22.370 —> 00:14:24.150
of skipping all that that’s pretty
00:14:24.171 —> 00:14:24.750
impressive
00:14:25.110 —> 00:14:26.972
And being able to actually get the,
00:14:27.352 —> 00:14:28.354
you know, like you said,
00:14:28.653 —> 00:14:31.056
you’re inspecting it in the factory with a
00:14:31.096 —> 00:14:31.735
third party.
00:14:32.136 —> 00:14:32.836
That’s awesome.
00:14:32.876 —> 00:14:34.398
So you’ve been able to actually, like,
00:14:35.078 —> 00:14:36.799
get your regulations correct and
00:14:36.860 —> 00:14:38.221
everybody’s on board with it.
00:14:38.240 —> 00:14:38.721
That’s awesome.
00:14:38.881 —> 00:14:39.182
Yeah.
00:14:39.422 —> 00:14:41.864
And with scale comes, like,
00:14:41.903 —> 00:14:43.846
a tremendous amount of solutions on all
00:14:43.885 —> 00:14:46.128
those fronts because this is a system
00:14:46.168 —> 00:14:48.548
that’s built to enable, you know,
00:14:48.568 —> 00:14:50.591
a very fragmented industry where you have,
00:14:50.650 —> 00:14:50.910
you know,
00:14:50.971 —> 00:14:52.251
thousands and thousands of different
00:14:52.272 —> 00:14:54.354
players and builders all working
00:14:54.474 —> 00:14:55.875
you know, operating.
00:14:56.095 —> 00:14:57.917
And so the government feels that they need
00:14:57.956 —> 00:14:58.917
to micromanage that.
00:14:59.317 —> 00:15:01.019
But if we are a big corporation,
00:15:01.318 —> 00:15:01.519
you know,
00:15:01.558 —> 00:15:03.259
handling all this from start to finish,
00:15:03.399 —> 00:15:04.620
we think they’re going to feel more
00:15:04.660 —> 00:15:06.582
comfortable taking a more hands off
00:15:06.682 —> 00:15:07.823
approach and we’re going to be able to
00:15:07.864 —> 00:15:10.846
streamline things and reduce costs.
00:15:11.025 —> 00:15:11.086
Wow.
00:15:11.678 —> 00:15:13.422
I’m looking at your website is really
00:15:13.461 —> 00:15:13.621
cool.
00:15:13.642 —> 00:15:15.124
We have a lot of cool stuff on
00:15:15.163 —> 00:15:17.027
there and it shows you basically how like
00:15:17.067 —> 00:15:20.311
you unfold the old the house I guess
00:15:20.331 —> 00:15:21.273
when you’re delivering it.
00:15:21.293 —> 00:15:23.155
But what was the breakthrough idea behind
00:15:23.275 —> 00:15:24.577
foldable home design?
00:15:24.618 —> 00:15:25.879
Like how did you even come up with
00:15:25.918 —> 00:15:26.139
that?
00:15:27.232 —> 00:15:27.393
Yeah,
00:15:27.413 —> 00:15:29.855
that was really the initial innovation
00:15:30.155 —> 00:15:32.418
that we felt solved the problem that
00:15:32.477 —> 00:15:34.340
stopped factory-built housing from
00:15:34.399 —> 00:15:34.799
scaling.
00:15:35.280 —> 00:15:37.163
Because if you look at, for example,
00:15:37.503 —> 00:15:40.446
the manufactured home guys,
00:15:41.005 —> 00:15:42.607
they ship these wide loads.
00:15:44.929 —> 00:15:47.633
they have the truck carrying the the house
00:15:47.852 —> 00:15:49.254
then they also have another vehicle
00:15:49.774 —> 00:15:52.636
following behind it with lights and flags
00:15:52.716 —> 00:15:54.698
on it a follow car an escort vehicle
00:15:55.219 —> 00:15:57.861
so right there it’s kind of like game
00:15:57.942 —> 00:15:59.602
over you know you’re not going to be
00:15:59.643 —> 00:16:02.586
able to do that cost effectively so most
00:16:02.605 —> 00:16:04.648
of these existing factories only ship to a
00:16:04.687 —> 00:16:06.769
small radius around their factory because
00:16:06.789 —> 00:16:07.750
if they try to go more than a
00:16:07.791 —> 00:16:08.631
few hundred miles
00:16:09.272 —> 00:16:10.371
It’s just too expensive.
00:16:10.871 —> 00:16:13.513
And it even says that in the SEC
00:16:13.533 —> 00:16:15.072
filings for some of these major
00:16:16.033 —> 00:16:16.793
manufacturers.
00:16:17.113 —> 00:16:19.533
And the result of that is small shipping
00:16:19.573 —> 00:16:20.774
radius, small factory,
00:16:21.014 —> 00:16:22.053
no economies of scale.
00:16:22.533 —> 00:16:23.955
They’re not able to get the costs down
00:16:23.995 —> 00:16:25.254
to where we think we’ll be able to
00:16:25.274 —> 00:16:26.174
get our costs down.
00:16:26.554 —> 00:16:27.294
So that’s huge.
00:16:27.955 —> 00:16:29.936
And that was Paolo early on.
00:16:30.096 —> 00:16:31.796
That was really his first patent that he
00:16:31.836 —> 00:16:32.515
filed on this.
00:16:33.135 —> 00:16:34.437
And it’s kind of what makes everything
00:16:34.476 —> 00:16:35.076
else possible.
00:16:37.238 —> 00:16:38.217
That’s pretty interesting.
00:16:38.238 —> 00:16:40.100
And how do you respond to some critics
00:16:40.120 —> 00:16:41.240
that would say like, you know,
00:16:41.321 —> 00:16:44.702
modular housing is historically struggled
00:16:44.722 —> 00:16:46.244
with a quality of perception.
00:16:46.323 —> 00:16:46.644
I mean,
00:16:46.745 —> 00:16:48.566
people don’t generally think modular
00:16:48.586 —> 00:16:49.726
housing is the greatest.
00:16:50.187 —> 00:16:52.509
How would you what would you say to
00:16:52.548 —> 00:16:52.749
that?
00:16:54.062 —> 00:16:55.783
Yeah, I know that, you know,
00:16:55.802 —> 00:16:58.684
like mobile home park type stuff has had
00:16:58.725 —> 00:17:00.005
issues with that where they’re really
00:17:00.046 —> 00:17:01.606
trying to go super low cost and
00:17:01.687 —> 00:17:02.827
compromising on quality.
00:17:03.249 —> 00:17:04.469
But that’s not what we’re doing.
00:17:04.528 —> 00:17:06.290
We’re actually building to the regular
00:17:06.330 —> 00:17:06.911
building code.
00:17:07.451 —> 00:17:09.712
So our house is not a mobile home.
00:17:09.972 —> 00:17:12.355
It’s a replacement for a traditional house
00:17:12.375 —> 00:17:14.195
that would look and feel no different than
00:17:14.215 —> 00:17:16.137
the house you might live in.
00:17:16.698 —> 00:17:18.439
So, you know,
00:17:18.459 —> 00:17:19.680
if you compare what we’re doing in the
00:17:19.720 —> 00:17:23.042
factory with a CNC cutting a piece of
00:17:23.803 —> 00:17:26.365
uh material versus a guy with a with
00:17:26.445 —> 00:17:29.630
a saw out out in the field um
00:17:29.730 —> 00:17:31.893
i i think the quality there’s going to
00:17:31.913 —> 00:17:34.335
be no no comparison there like you know
00:17:34.556 —> 00:17:36.958
um we we have you know extreme degree
00:17:37.199 —> 00:17:39.701
of standardization and repeatability the
00:17:39.721 —> 00:17:41.042
ability to use automation
00:17:43.125 —> 00:17:45.208
far superior quality control systems than
00:17:45.228 —> 00:17:48.811
they would have in a site project um
00:17:48.912 —> 00:17:50.472
and i think you know if anyone who
00:17:50.493 —> 00:17:52.715
tours our factory kind of notices that how
00:17:52.756 —> 00:17:55.578
clean and nice it is and uh i
00:17:55.618 —> 00:17:57.901
think our houses are going to be way
00:17:57.941 —> 00:17:59.722
way better quality than traditional house
00:18:00.867 —> 00:18:01.087
Yeah,
00:18:01.107 —> 00:18:03.210
and that’s an interesting point you bring
00:18:03.289 —> 00:18:03.609
up, too,
00:18:03.650 —> 00:18:05.571
because obviously machinery and things
00:18:05.592 —> 00:18:05.971
like that,
00:18:05.991 —> 00:18:07.692
they’re going to make things very precise,
00:18:07.732 —> 00:18:08.334
like you said.
00:18:08.673 —> 00:18:09.954
And when you’re out on a job site
00:18:09.974 —> 00:18:11.576
and you got guys working and they’re using
00:18:11.615 —> 00:18:12.237
hand saws,
00:18:12.497 —> 00:18:13.698
you’re going to be off a little bit
00:18:13.738 —> 00:18:14.999
of a quarter of an inch here.
00:18:15.019 —> 00:18:16.180
And then, you know,
00:18:16.200 —> 00:18:18.781
you have to shim it underneath and things
00:18:18.821 —> 00:18:19.342
like that.
00:18:19.362 —> 00:18:21.243
You’re not using shims in your factory.
00:18:21.304 —> 00:18:21.344
No.
00:18:21.644 —> 00:18:22.924
No, it’s a no-brainer.
00:18:22.944 —> 00:18:24.125
I mean,
00:18:24.265 —> 00:18:26.385
and if you think about like having an
00:18:26.425 —> 00:18:28.647
assembly line where you have a really long
00:18:28.688 —> 00:18:29.367
assembly line,
00:18:29.508 —> 00:18:32.229
the product is moving past the worker.
00:18:32.609 —> 00:18:34.530
They’re doing repeatable tasks over and
00:18:34.590 —> 00:18:36.892
over again versus being out on a job
00:18:36.932 —> 00:18:39.032
site and just doing kind of custom work
00:18:39.173 —> 00:18:40.292
with a skilled tradesman.
00:18:41.453 —> 00:18:41.653
You know,
00:18:41.693 —> 00:18:43.734
the difference in labor there is massive
00:18:43.755 —> 00:18:46.256
by having that assembly line going and
00:18:46.557 —> 00:18:47.277
quality as well.
00:18:48.415 —> 00:18:49.836
Yeah, and I can only like you’re saying,
00:18:49.876 —> 00:18:51.598
like being able to keep that cost down
00:18:51.618 —> 00:18:53.259
because what you’re explaining to right
00:18:53.299 —> 00:18:54.320
there is like, you know,
00:18:55.201 —> 00:18:57.743
you might not be using union guys,
00:18:57.784 —> 00:18:59.105
but we’ll just use that example.
00:18:59.404 —> 00:19:01.686
Plumbers, electricians, all these trades,
00:19:01.846 —> 00:19:03.587
they cost a fortune to bring in and
00:19:03.627 —> 00:19:04.489
do a lot of work.
00:19:04.588 —> 00:19:06.170
And you’re kind of just doing it all
00:19:06.351 —> 00:19:07.692
yourself in a factory,
00:19:08.071 —> 00:19:10.794
which obviously has to scale down the cost
00:19:10.854 —> 00:19:11.174
of it all.
00:19:11.815 —> 00:19:12.395
Yeah.
00:19:12.435 —> 00:19:14.637
So for example, our factory,
00:19:14.718 —> 00:19:16.500
we don’t even necessarily have
00:19:16.539 —> 00:19:17.181
electricians.
00:19:18.261 —> 00:19:20.384
Instead of having a guy who’s very skilled
00:19:20.923 —> 00:19:22.246
and doing custom electrical work,
00:19:22.786 —> 00:19:24.567
we have a guy and we take him
00:19:24.627 —> 00:19:26.309
off the street and train him and say,
00:19:26.329 —> 00:19:26.569
look,
00:19:26.750 —> 00:19:31.214
cut this wire to ten feet over and
00:19:31.255 —> 00:19:31.756
over all day.
00:19:32.556 —> 00:19:33.836
Yeah, it’s amazing.
00:19:33.936 —> 00:19:35.636
I mean, it’s a brilliant concept,
00:19:35.737 —> 00:19:36.096
honestly.
00:19:36.136 —> 00:19:38.218
So let’s talk about that long term.
00:19:38.258 —> 00:19:40.419
What does the success of Boxable kind of
00:19:40.439 —> 00:19:40.798
look like?
00:19:40.979 —> 00:19:43.180
Are you looking at like millions of homes
00:19:43.519 —> 00:19:45.381
trying to do international expansion?
00:19:45.441 —> 00:19:47.161
And we already talked about the community.
00:19:47.181 —> 00:19:48.501
So you said you want to tap into
00:19:48.541 —> 00:19:48.801
that?
00:19:49.892 —> 00:19:49.971
Yeah,
00:19:50.092 —> 00:19:52.732
so right now we look at our factory,
00:19:52.752 —> 00:19:54.094
which is a big operation, you know,
00:19:54.114 —> 00:19:55.355
four hundred thousand square feet,
00:19:55.414 —> 00:19:57.576
hundred plus employees capable of
00:19:57.615 —> 00:19:59.916
producing probably thousands of modules
00:19:59.957 —> 00:20:00.797
out of that factory,
00:20:01.557 —> 00:20:04.078
kind of as proof of concept and,
00:20:04.278 —> 00:20:04.538
you know,
00:20:04.558 —> 00:20:06.559
making the case for greater scale.
00:20:07.059 —> 00:20:09.021
So that’s what we’re working on right now.
00:20:09.462 —> 00:20:11.304
We’ll keep seeing these projects come out.
00:20:11.424 —> 00:20:12.885
You can go on our website and click
00:20:12.905 —> 00:20:15.729
projects and see hundreds of houses we’ve
00:20:15.888 —> 00:20:16.569
deployed already.
00:20:16.990 —> 00:20:19.752
And then we’ll keep plugging away at that
00:20:19.913 —> 00:20:22.655
and then hopefully max out our current
00:20:22.675 —> 00:20:24.417
factory capacity and then be back
00:20:24.877 —> 00:20:26.599
to do something on the next level of
00:20:26.660 —> 00:20:28.741
scale with the full automation,
00:20:29.321 —> 00:20:30.903
with a pitch to say, look,
00:20:31.384 —> 00:20:32.345
what we’ve proven so far,
00:20:32.365 —> 00:20:33.506
look where our costs are now.
00:20:33.986 —> 00:20:35.667
And then if we go ahead and take
00:20:35.688 —> 00:20:36.588
things up a notch,
00:20:37.128 —> 00:20:38.651
our costs are going to come down more,
00:20:38.711 —> 00:20:40.653
our speed is going to come down more.
00:20:41.252 —> 00:20:42.134
And ideally,
00:20:42.213 —> 00:20:44.316
I think Boxville needs to be building and
00:20:44.355 —> 00:20:46.857
developing its own communities versus
00:20:46.877 —> 00:20:48.660
trying to sell a product to builders,
00:20:48.680 —> 00:20:49.701
because that’s what we’re doing now.
00:20:50.381 —> 00:20:51.521
But I think if we get to the
00:20:51.561 —> 00:20:53.104
scale that we need to be at to
00:20:53.124 —> 00:20:54.084
do the mass production,
00:20:54.444 —> 00:20:55.665
we’re going to have so many houses,
00:20:55.705 —> 00:20:57.307
so many room modules that we’re going to
00:20:57.326 —> 00:20:59.388
be needing to be the ones deploying them.
00:20:59.969 —> 00:21:01.931
So, you know, in the future,
00:21:02.030 —> 00:21:04.291
I would like to be putting houses on
00:21:04.332 —> 00:21:06.473
Zillow at twenty percent less than the
00:21:06.513 —> 00:21:09.155
house next door at scale.
00:21:09.557 —> 00:21:10.857
And I think that’s how we capture the
00:21:10.877 —> 00:21:12.398
full scope of this.
00:21:13.928 —> 00:21:14.828
That would be amazing.
00:21:14.909 —> 00:21:15.808
And I don’t know,
00:21:15.909 —> 00:21:17.328
I just see like a big niche in
00:21:17.429 —> 00:21:19.829
international for this for some reason.
00:21:19.890 —> 00:21:21.351
I would assume that you’d have to probably
00:21:21.411 —> 00:21:23.471
build a factory internationally to be able
00:21:23.832 —> 00:21:25.571
to really scale it properly.
00:21:25.632 —> 00:21:26.673
But I don’t know,
00:21:26.712 —> 00:21:28.353
I just could picture these being huge
00:21:28.393 —> 00:21:29.794
internationally for some reason.
00:21:30.173 —> 00:21:30.973
Oh, yeah, for sure.
00:21:31.034 —> 00:21:31.213
I mean,
00:21:31.233 —> 00:21:32.734
there’s places where they’re doing far
00:21:32.775 —> 00:21:34.454
more building than the US,
00:21:34.515 —> 00:21:35.836
especially emerging countries.
00:21:35.915 —> 00:21:36.496
And, you know,
00:21:36.516 —> 00:21:37.895
the same principles that are going to make
00:21:37.915 —> 00:21:39.997
this work in the US will apply everywhere.
00:21:40.616 —> 00:21:43.038
So once we really dial in the formula
00:21:43.097 —> 00:21:44.117
here, improve it,
00:21:44.178 —> 00:21:45.519
we’ll be looking to duplicate that
00:21:45.558 —> 00:21:45.919
elsewhere.
00:21:47.019 —> 00:21:49.700
And so how important are your automation
00:21:49.740 —> 00:21:50.420
and robotics?
00:21:50.440 —> 00:21:51.480
Do you use that a lot?
00:21:51.540 —> 00:21:53.201
Is that like a lot of your warehouse?
00:21:53.240 —> 00:21:54.902
Or is a lot of people hands on?
00:21:54.942 —> 00:21:55.682
How does that work?
00:21:56.488 —> 00:21:57.449
I think that, you know,
00:21:57.469 —> 00:21:59.390
we get a certain amount of automation just
00:21:59.410 —> 00:22:01.571
by using standard equipment.
00:22:02.132 —> 00:22:03.953
So you have like a CNC, for example,
00:22:04.134 —> 00:22:05.355
that can just cut anything we need.
00:22:06.415 —> 00:22:07.576
And then, you know,
00:22:07.757 —> 00:22:10.858
later on we’ll drop in that kind of
00:22:10.898 —> 00:22:11.740
custom automation.
00:22:12.220 —> 00:22:12.740
But really,
00:22:12.840 —> 00:22:14.883
I believe the big benefit we’ll get is
00:22:14.962 —> 00:22:17.124
actually not from the automation,
00:22:17.144 —> 00:22:19.125
but from having a large assembly line.
00:22:19.453 —> 00:22:21.375
So the more that you split up the
00:22:21.434 —> 00:22:22.855
work and the stations,
00:22:23.316 —> 00:22:24.776
the less inefficiencies you see.
00:22:24.855 —> 00:22:27.817
So if someone’s doing one task per station
00:22:27.916 —> 00:22:29.958
versus ten tasks per station,
00:22:30.417 —> 00:22:32.638
then you might drop your labor costs
00:22:32.858 —> 00:22:35.180
significantly because there’s just like
00:22:35.279 —> 00:22:37.300
even if a guy doesn’t have to pick
00:22:37.381 —> 00:22:37.500
up
00:22:40.761 —> 00:22:42.522
a screwdriver and put it down and pick
00:22:42.603 —> 00:22:44.845
up a set of pliers like stuff like
00:22:44.865 —> 00:22:46.566
that if he’s just only holding the
00:22:46.586 —> 00:22:49.627
screwdriver you know it adds up big time
00:22:50.087 —> 00:22:51.909
so you know we’re focused on using the
00:22:51.929 —> 00:22:54.230
standard automation and then scaling up
00:22:54.270 —> 00:22:55.830
the size of the assembly line and then
00:22:55.871 —> 00:22:57.471
once we’re really dialed in with a product
00:22:57.491 —> 00:22:59.133
that really works and has a market fit
00:22:59.473 —> 00:23:00.875
then we’ll go back and say all right
00:23:00.894 —> 00:23:02.095
guys now we want to do a hundred
00:23:02.134 —> 00:23:03.135
million in automation
00:23:04.585 —> 00:23:05.625
Nice.
00:23:05.724 —> 00:23:06.965
I’ve noticed Boxable,
00:23:07.066 —> 00:23:08.287
I’ve seen you guys online,
00:23:08.326 —> 00:23:10.086
I’ve noticed you guys are pretty well
00:23:10.126 —> 00:23:13.328
talked about now in the retail fundraising
00:23:13.368 —> 00:23:14.009
and everything.
00:23:14.249 —> 00:23:16.710
How’d you build all that momentum and the
00:23:16.730 —> 00:23:18.351
community support around you guys?
00:23:19.388 —> 00:23:21.451
So early on,
00:23:21.471 —> 00:23:23.152
we put several million dollars of our own
00:23:23.291 —> 00:23:25.233
money into getting things started and then
00:23:25.273 —> 00:23:26.035
realized, all right,
00:23:26.174 —> 00:23:27.476
we need outside capital now.
00:23:28.016 —> 00:23:29.277
So I just had a lot of people
00:23:29.376 —> 00:23:30.137
asking to invest.
00:23:30.238 —> 00:23:31.638
And I said, is that possible?
00:23:31.679 —> 00:23:32.720
Figured out how to do it with this
00:23:33.019 —> 00:23:36.442
SEC qualified offerings and ended up
00:23:36.682 —> 00:23:38.904
raising two hundred thirty million dollars
00:23:38.964 —> 00:23:39.285
plus.
00:23:39.925 —> 00:23:42.648
from about seventy thousand investors.
00:23:42.729 —> 00:23:43.930
So we have a huge,
00:23:43.970 —> 00:23:46.712
huge following from all types of different
00:23:46.732 —> 00:23:49.115
investors and that’s really paid off
00:23:49.355 —> 00:23:50.115
really well for us.
00:23:50.497 —> 00:23:52.618
We’ve been able to leverage that crowd,
00:23:52.659 —> 00:23:53.980
leverage their enthusiasm,
00:23:54.840 —> 00:23:56.603
their views and their comments on the
00:23:56.623 —> 00:23:58.305
internet and just spread huge awareness.
00:23:58.444 —> 00:24:00.686
We also have an incredible amount of
00:24:00.867 —> 00:24:01.708
people coming in
00:24:02.969 —> 00:24:04.951
as customer leads from that awareness.
00:24:05.570 —> 00:24:06.791
So we’ve had hundreds of thousands of
00:24:06.872 —> 00:24:09.894
inquiries into purchasing the product as
00:24:09.954 —> 00:24:10.214
well.
00:24:10.555 —> 00:24:13.617
So it’s great.
00:24:13.637 —> 00:24:15.659
Being kind of famous is great.
00:24:15.679 —> 00:24:16.660
You can take advantage of it,
00:24:16.680 —> 00:24:17.721
but there’s also a little bit of a
00:24:17.760 —> 00:24:18.821
dark side too.
00:24:19.182 —> 00:24:20.643
So you have a certain amount of people
00:24:20.663 —> 00:24:23.285
that are just crazy and say crazy stuff.
00:24:24.226 —> 00:24:26.166
So it’s fun.
00:24:26.807 —> 00:24:27.627
That actually...
00:24:28.729 —> 00:24:30.590
The dark side to that actually was,
00:24:31.291 —> 00:24:35.636
for us, resulted in an SEC investigation.
00:24:36.217 —> 00:24:38.038
So a little while back,
00:24:38.859 —> 00:24:41.343
we had so much rumors going on online
00:24:41.363 —> 00:24:42.683
that were just totally false.
00:24:43.224 —> 00:24:45.606
We got investigated by the SEC.
00:24:46.067 —> 00:24:48.450
So they sent me a bunch of subpoenas,
00:24:48.549 —> 00:24:49.731
requested all our information,
00:24:49.771 —> 00:24:50.332
reviewed over.
00:24:51.153 —> 00:24:52.894
i think five hundred thousand of our
00:24:52.933 —> 00:24:56.556
documents and uh the result was they came
00:24:56.576 —> 00:24:58.737
back and said you know we’re not charging
00:24:58.777 —> 00:25:00.778
you guys so i don’t think the due
00:25:00.798 —> 00:25:03.898
diligence gets any better than that so you
00:25:03.919 —> 00:25:05.579
know when people say crazy things online
00:25:05.599 —> 00:25:07.520
i’m like great thanks for starting a rumor
00:25:07.980 —> 00:25:09.741
that you know can damage the company but
00:25:10.182 —> 00:25:12.702
by the way um it’s not true we’ve
00:25:12.722 —> 00:25:15.164
already had the the full um
00:25:15.924 —> 00:25:16.204
you know,
00:25:16.265 —> 00:25:18.227
proctologist examination from the federal
00:25:18.247 —> 00:25:18.446
government.
00:25:18.467 —> 00:25:20.847
So I think now, you know,
00:25:20.867 —> 00:25:22.490
I mention it because, you know,
00:25:22.509 —> 00:25:25.371
the due diligence doesn’t get really any
00:25:25.571 —> 00:25:26.412
stronger than that,
00:25:26.551 —> 00:25:28.272
than having the federal government
00:25:28.313 —> 00:25:29.114
investigate you.
00:25:29.233 —> 00:25:31.556
So that was stressful when it happened
00:25:31.915 —> 00:25:32.936
because it was all new to me.
00:25:33.277 —> 00:25:34.798
And I was like, oh shit, you know,
00:25:35.178 —> 00:25:35.798
what did we do?
00:25:36.558 —> 00:25:37.980
But it just turned out to just be
00:25:38.039 —> 00:25:38.840
a bunch of bullshit.
00:25:39.800 —> 00:25:40.541
And so,
00:25:40.801 —> 00:25:42.123
so we were happy with that result.
00:25:42.987 —> 00:25:43.126
Yeah,
00:25:43.146 —> 00:25:44.708
it’s never the day that you look forward
00:25:44.768 —> 00:25:46.728
to when the SEC contacts you.
00:25:46.748 —> 00:25:47.709
It’s like, oh, man,
00:25:47.729 —> 00:25:49.048
this might be the worst day of my
00:25:49.088 —> 00:25:49.709
life right here.
00:25:49.729 —> 00:25:50.869
And then they drag it on for a
00:25:50.950 —> 00:25:51.349
long time.
00:25:51.390 —> 00:25:52.990
How long did that drag on for for
00:25:53.009 —> 00:25:53.150
you?
00:25:53.250 —> 00:25:55.711
So we were aware that it was going
00:25:55.790 —> 00:25:56.611
on for about a year.
00:25:57.612 —> 00:25:59.872
They did a really thorough investigation
00:25:59.932 —> 00:26:01.353
and they contacted a lot of people.
00:26:01.952 —> 00:26:04.114
And, you know,
00:26:04.453 —> 00:26:06.295
I think another interesting thing was a
00:26:06.335 —> 00:26:07.835
lot of times with these investigations,
00:26:08.654 —> 00:26:10.316
they don’t notify you when it’s over.
00:26:11.395 —> 00:26:13.436
but they decided to notify us.
00:26:13.876 —> 00:26:15.198
So they decided to write us a letter
00:26:15.238 —> 00:26:15.998
and saying, you know,
00:26:16.038 —> 00:26:17.638
we’re not charging you with anything.
00:26:18.098 —> 00:26:19.700
And I think that speaks volumes to,
00:26:20.200 —> 00:26:22.520
you know, how we actually operated,
00:26:22.580 —> 00:26:25.982
how we actually steered the ship because,
00:26:26.202 —> 00:26:27.604
you know, we did the right thing,
00:26:27.703 —> 00:26:27.903
you know,
00:26:27.923 —> 00:26:29.203
every step of the way and we’ll continue
00:26:29.243 —> 00:26:29.664
to do so.
00:26:30.404 —> 00:26:31.965
What kind of celebration do you have when
00:26:32.006 —> 00:26:32.826
you get that letter?
00:26:32.885 —> 00:26:33.026
Like,
00:26:33.046 —> 00:26:34.267
do you go out to like the greatest
00:26:34.326 —> 00:26:35.207
dinner you ever had?
00:26:35.287 —> 00:26:36.968
Like, what do you do after that?
00:26:37.008 —> 00:26:37.887
Like, you’re so happy.
00:26:37.968 —> 00:26:39.088
How do you celebrate that?
00:26:41.469 —> 00:26:43.096
It was definitely very emotional when I
00:26:43.115 —> 00:26:44.039
got the letter.
00:26:45.048 —> 00:26:46.990
because it’s a serious thing.
00:26:47.910 —> 00:26:49.270
People go to jail.
00:26:49.330 —> 00:26:50.932
And they drag you around for a long
00:26:50.971 —> 00:26:51.231
time.
00:26:51.271 —> 00:26:52.432
It costs you money, time,
00:26:52.472 —> 00:26:53.834
and you’re sitting there worrying about if
00:26:53.854 —> 00:26:54.933
you’re going to jail or not.
00:26:54.973 —> 00:26:55.795
That’s why I’m asking,
00:26:55.815 —> 00:26:57.756
because that’s serious allegations.
00:26:58.517 —> 00:26:59.356
Not allegations,
00:26:59.396 —> 00:27:01.117
but just serious things that they’re
00:27:01.178 —> 00:27:01.798
looking into.
00:27:01.858 —> 00:27:03.519
But anyway, what lessons did you learn?
00:27:03.539 —> 00:27:06.000
The other thing that really sucked about
00:27:06.040 —> 00:27:09.442
it was SEC is there to protect investors,
00:27:09.884 —> 00:27:11.144
but then we ended up having to spend
00:27:11.404 —> 00:27:13.185
investor money on the law firms.
00:27:14.626 —> 00:27:16.108
to basically investigate ourselves and
00:27:16.148 —> 00:27:17.589
provide this information to them.
00:27:18.090 —> 00:27:20.093
So it probably cost millions of dollars
00:27:20.133 —> 00:27:23.656
just burned just off of kind of
00:27:23.676 —> 00:27:25.719
shenanigans on the internet.
00:27:25.959 —> 00:27:28.761
And one thing that I found out was
00:27:28.961 —> 00:27:29.762
a lot of the press
00:27:32.486 —> 00:27:33.967
you know that obviously they love the fake
00:27:34.007 —> 00:27:36.048
news so what they would do is they
00:27:36.067 —> 00:27:37.749
would create these like salacious
00:27:37.788 —> 00:27:40.069
headlines they would take something and
00:27:40.109 —> 00:27:41.911
misconstrue it and put it in the headline
00:27:42.270 —> 00:27:43.551
and then that would scare other people and
00:27:43.571 —> 00:27:45.313
they would start talking about it so you
00:27:45.333 —> 00:27:48.154
know we were severely damaged by you know
00:27:49.295 —> 00:27:51.977
our writers intentionally misleading
00:27:52.017 —> 00:27:55.057
people and writing kind of nonsense about
00:27:55.157 —> 00:27:58.299
us that wasn’t true um and scaring people
00:27:58.720 —> 00:27:59.641
and so that sucked
00:28:00.193 —> 00:28:01.214
Yeah, it must drive you nuts.
00:28:01.255 —> 00:28:02.135
But at the end of the day,
00:28:02.175 —> 00:28:02.777
like you said,
00:28:02.797 —> 00:28:05.519
the SEC did a full-out investigation.
00:28:05.539 —> 00:28:06.840
It’s not like they just do a little
00:28:06.881 —> 00:28:07.682
investigation.
00:28:07.721 —> 00:28:08.982
When they come in to investigate,
00:28:09.002 —> 00:28:09.864
they’re investigating.
00:28:09.903 —> 00:28:11.066
So if they sent you a letter and
00:28:11.086 —> 00:28:11.885
said you were cleared,
00:28:12.346 —> 00:28:14.068
obviously you’re saying like, hey guys,
00:28:14.409 —> 00:28:15.609
we weren’t doing anything wrong.
00:28:15.891 —> 00:28:17.732
They would have told you and we’re going
00:28:17.752 —> 00:28:19.193
to continue to do everything right.
00:28:19.213 —> 00:28:20.556
So that is great to hear if they
00:28:20.596 —> 00:28:21.916
sent you the letter saying that.
00:28:22.096 —> 00:28:22.837
But yeah, I can
00:28:22.998 —> 00:28:24.641
imagine the stress you went through there
00:28:24.801 —> 00:28:26.704
what other lessons did you learn as you
00:28:26.724 —> 00:28:28.749
were raising capital from like retail
00:28:28.788 —> 00:28:31.212
investors versus i guess uh traditional
00:28:31.252 —> 00:28:32.075
capital firms
00:28:32.796 —> 00:28:33.715
Yeah, I mean, overall,
00:28:33.736 —> 00:28:35.057
it’s been a great experience.
00:28:35.076 —> 00:28:37.317
I highly recommend it to most founders.
00:28:38.519 —> 00:28:40.799
One good thing about stuff like that and
00:28:40.819 —> 00:28:43.740
about just the haters in general is I
00:28:43.760 —> 00:28:48.502
think they make you stronger and perform
00:28:48.563 —> 00:28:51.423
better because then if there is something
00:28:51.463 —> 00:28:54.046
that you’re not on top of,
00:28:54.506 —> 00:28:56.366
you’ll focus on it and fix it.
00:28:56.567 —> 00:28:58.968
So they bring to attention the stuff where
00:28:59.008 —> 00:29:00.587
you can do better and then you end
00:29:00.627 —> 00:29:01.449
up better at the end.
00:29:02.442 —> 00:29:02.623
Yeah,
00:29:02.663 —> 00:29:03.903
as long as you don’t let them bother
00:29:03.923 —> 00:29:04.023
you,
00:29:04.044 —> 00:29:05.785
you keep your positive attitude and your
00:29:05.865 —> 00:29:06.246
energy,
00:29:06.266 —> 00:29:08.166
and you just keep on moving forward.
00:29:08.186 —> 00:29:08.768
And like you said,
00:29:08.807 —> 00:29:10.929
you actually look into what they’re saying
00:29:11.169 —> 00:29:12.609
because they might have a point on things.
00:29:12.630 —> 00:29:13.510
You’re like, hey, you know what?
00:29:13.611 —> 00:29:14.872
I could probably change this and make it
00:29:14.932 —> 00:29:15.152
better.
00:29:15.231 —> 00:29:16.212
Thanks for that heads up,
00:29:16.232 —> 00:29:18.354
but can you stop bashing me online about
00:29:18.374 —> 00:29:18.594
it?
00:29:18.674 —> 00:29:19.295
But yeah,
00:29:19.315 —> 00:29:21.236
is there a moment during that fundraising
00:29:21.276 —> 00:29:23.137
where you really realized that Boxable,
00:29:23.637 —> 00:29:23.958
I guess,
00:29:23.978 —> 00:29:26.319
had become much bigger than a niche
00:29:26.339 —> 00:29:28.260
startup because it was really getting that
00:29:28.701 —> 00:29:30.423
momentum, as you were saying?
00:29:31.484 —> 00:29:31.744
Yeah,
00:29:31.865 —> 00:29:34.125
I remember early on just waking up and
00:29:34.145 —> 00:29:36.426
looking on my computer and seeing massive
00:29:36.446 —> 00:29:37.946
amounts of money flowing in from the
00:29:37.967 —> 00:29:38.586
crowdfunding,
00:29:38.926 —> 00:29:40.587
like just crazy volumes of money.
00:29:40.647 —> 00:29:43.328
And I was like, holy shit, holy shit,
00:29:43.368 —> 00:29:44.429
we’re on to something here.
00:29:44.509 —> 00:29:46.109
That’s amazing.
00:29:46.849 —> 00:29:48.430
uh and then just in general like you
00:29:48.450 —> 00:29:49.451
know what we’ve done what we’ve
00:29:49.471 —> 00:29:51.211
accomplished uh the scale of the
00:29:51.250 —> 00:29:53.612
manufacturing we have now how we whipped
00:29:53.652 —> 00:29:57.252
that up from nothing from uh just some
00:29:57.292 —> 00:29:59.593
guys with an idea no experience in capital
00:29:59.613 —> 00:30:01.473
raising no experience in manufacturing
00:30:01.874 —> 00:30:04.213
little experience in housing related stuff
00:30:04.733 —> 00:30:06.914
i think we’ve done an amazing job and
00:30:07.154 —> 00:30:08.755
you know this is a very hard industry
00:30:08.795 —> 00:30:11.076
that this is a graveyard
00:30:11.536 —> 00:30:12.817
It’s littered with failures.
00:30:12.977 —> 00:30:15.396
If you ask Rock how many modular house
00:30:15.436 —> 00:30:16.478
companies have failed,
00:30:16.877 —> 00:30:18.838
it’s a ridiculously long list.
00:30:19.358 —> 00:30:22.319
And I’ve studied that extensively.
00:30:22.400 —> 00:30:26.082
So I think we’ve figured out what to
00:30:26.122 —> 00:30:27.102
do and what not to do.
00:30:27.602 —> 00:30:31.242
And we understand our thesis and what our
00:30:31.604 —> 00:30:33.903
innovations are going to do for making
00:30:33.923 —> 00:30:34.904
this work at scale.
00:30:36.106 —> 00:30:38.028
So what advice would you give other
00:30:38.087 —> 00:30:39.808
founders trying to raise capital in
00:30:40.289 —> 00:30:42.471
difficult market conditions like today?
00:30:42.490 —> 00:30:44.051
Because they are pretty crazy market
00:30:44.071 —> 00:30:45.532
conditions today.
00:30:46.054 —> 00:30:47.654
The big one for me was to not
00:30:47.734 —> 00:30:50.356
let the investors take over the company
00:30:50.936 —> 00:30:52.117
and to keep control.
00:30:52.458 —> 00:30:54.398
And we did that with the crowdfunding.
00:30:54.699 —> 00:30:57.701
If we had taken some VC funding or
00:30:57.721 —> 00:31:00.242
some other private equity funding on,
00:31:00.522 —> 00:31:02.104
then we would have lost control.
00:31:02.163 —> 00:31:03.484
We would not have been able to steer
00:31:03.505 —> 00:31:04.826
the ship the way we wanted to.
00:31:04.885 —> 00:31:05.886
And I don’t think we’d be here.
00:31:07.488 —> 00:31:10.989
So highly recommend crowdfunding to
00:31:11.028 —> 00:31:11.449
investors,
00:31:11.509 —> 00:31:13.829
especially if you have an audience that
00:31:13.849 —> 00:31:16.151
can understand your product and why it
00:31:16.611 —> 00:31:17.211
makes sense.
00:31:18.051 —> 00:31:20.813
And then the marketing for the
00:31:20.833 —> 00:31:22.772
crowdfunding is gonna pay off in other
00:31:22.833 —> 00:31:25.534
areas for customers, for employees.
00:31:25.594 —> 00:31:27.295
A lot of our employees found out about
00:31:27.375 —> 00:31:29.395
us and moved to work for the company
00:31:29.415 —> 00:31:30.915
because they saw all this marketing
00:31:30.955 —> 00:31:32.317
content online.
00:31:33.507 —> 00:31:34.346
That’s pretty cool.
00:31:35.086 —> 00:31:38.107
What crowdfunding platforms did you kind
00:31:38.147 —> 00:31:38.488
of use?
00:31:38.508 —> 00:31:39.848
Were there a bunch of them or one
00:31:39.888 —> 00:31:40.469
in particular?
00:31:40.528 —> 00:31:40.828
All of them.
00:31:41.229 —> 00:31:42.028
All of them?
00:31:43.169 —> 00:31:43.449
Yeah, got it.
00:31:43.469 —> 00:31:44.809
You made sure you spread it around.
00:31:45.109 —> 00:31:45.549
Yeah.
00:31:45.589 —> 00:31:47.250
So for me, it was like, you know,
00:31:47.269 —> 00:31:47.890
first of all,
00:31:47.950 —> 00:31:51.530
we used the platforms that can be
00:31:51.590 —> 00:31:52.211
self-hosted.
00:31:53.231 —> 00:31:54.211
I like DealMaker.
00:31:54.731 —> 00:31:55.912
They’re currently the best ones.
00:31:56.532 —> 00:31:57.653
And, you know,
00:31:58.873 —> 00:32:00.813
You can host on your website and basically
00:32:00.833 —> 00:32:02.473
create a button where someone clicks to
00:32:02.513 —> 00:32:02.874
invest.
00:32:03.413 —> 00:32:07.474
And then you can control the marketing,
00:32:07.714 —> 00:32:11.816
control the pixel to track the users and
00:32:11.855 —> 00:32:15.776
serve them ads and the whole big picture.
00:32:16.997 —> 00:32:19.356
But we also listed on WeFunder,
00:32:19.416 —> 00:32:20.656
StartEngine, and Republic.
00:32:20.737 —> 00:32:22.678
Those are the top crowdfunding platforms
00:32:22.778 —> 00:32:24.137
where they’ll advertise your offering on
00:32:24.178 —> 00:32:24.657
their site.
00:32:25.258 —> 00:32:26.439
And that just allowed us to get in
00:32:26.459 —> 00:32:27.778
front of that additional audience
00:32:28.378 —> 00:32:29.799
But we but we already we were the
00:32:29.900 —> 00:32:32.060
ones that generated the audience and any
00:32:32.080 —> 00:32:33.480
founders that want to do crowdfunding
00:32:33.500 —> 00:32:34.701
should realize that they’re going to have
00:32:34.721 —> 00:32:36.102
to generate their own audience.
00:32:36.162 —> 00:32:37.403
No one’s going to go and give it
00:32:37.442 —> 00:32:38.682
to them.
00:32:38.702 —> 00:32:39.743
No, that’s fascinating.
00:32:39.763 —> 00:32:43.766
That whole crowdfunding idea and like how
00:32:43.786 —> 00:32:44.865
it works and everything.
00:32:44.905 —> 00:32:46.287
And it is quite popular.
00:32:46.366 —> 00:32:46.646
I mean,
00:32:46.767 —> 00:32:48.548
look how much that’s a lot of money
00:32:48.567 —> 00:32:49.548
you raised right there.
00:32:49.587 —> 00:32:49.887
Yeah,
00:32:49.907 —> 00:32:51.788
I think we’re the number one for that.
00:32:51.888 —> 00:32:53.710
So pretty cool.
00:32:54.730 —> 00:32:55.990
Just kind of learning as we go.
00:32:57.605 —> 00:32:59.946
So how do you balance like retail or
00:33:00.007 —> 00:33:02.367
retail investor enthusiasm with like the
00:33:02.428 —> 00:33:05.189
realities of scale in this manufacturing
00:33:05.229 —> 00:33:05.689
business?
00:33:05.709 —> 00:33:06.569
Because I mean,
00:33:06.970 —> 00:33:10.290
retail investors are retail investors.
00:33:10.310 —> 00:33:11.471
Let’s put it that way.
00:33:11.491 —> 00:33:13.413
They’re a different breed sometimes.
00:33:13.692 —> 00:33:15.913
Yeah, I mean, you know.
00:33:17.008 —> 00:33:19.531
We try to be very transparent,
00:33:19.551 —> 00:33:21.875
show everything that we’re doing online.
00:33:22.955 —> 00:33:23.958
If people like it, great.
00:33:23.998 —> 00:33:26.480
If they don’t, that’s fine too.
00:33:26.961 —> 00:33:28.304
So I think it’s...
00:33:31.124 —> 00:33:34.347
know being being great for us um but
00:33:34.387 —> 00:33:35.689
you know like i said before even if
00:33:35.729 —> 00:33:39.093
people are are angry online about
00:33:39.133 —> 00:33:41.095
something or other and they find funny
00:33:41.134 —> 00:33:42.876
stuff to get angry about too you know
00:33:42.896 —> 00:33:44.358
like they’ll probably be mad about like my
00:33:44.398 —> 00:33:47.122
hat or something after this um but it’s
00:33:47.142 —> 00:33:48.963
fine because all it does is just draws
00:33:49.023 —> 00:33:49.944
more attention you know
00:33:51.445 —> 00:33:52.906
I don’t know that all press is good
00:33:52.946 —> 00:33:56.268
press, but mostly it is.
00:33:56.387 —> 00:33:58.607
Any views we can get are welcome.
00:33:58.627 —> 00:34:00.449
If you think we’re doing something and
00:34:00.469 —> 00:34:02.509
we’re on to something, great.
00:34:02.709 —> 00:34:03.169
Awesome.
00:34:03.288 —> 00:34:04.410
I agree with you.
00:34:04.869 —> 00:34:06.789
Why did you guys pursue the old SPAC
00:34:06.849 —> 00:34:09.510
route instead of staying private longer or
00:34:09.550 —> 00:34:11.251
pursuing a traditional IPO?
00:34:11.311 —> 00:34:12.452
Is there a reason behind that?
00:34:13.563 —> 00:34:15.445
I think we were at the point where
00:34:15.485 —> 00:34:18.306
we were ready to be public and ready
00:34:18.347 —> 00:34:19.809
to take things up a level.
00:34:20.409 —> 00:34:23.371
And then I think the SPAC allows us
00:34:23.411 —> 00:34:26.795
to continue leveraging retail as we go
00:34:26.835 —> 00:34:29.536
into it and also to continue calling the
00:34:29.556 —> 00:34:29.956
shots.
00:34:30.418 —> 00:34:32.539
So we were able to do our own
00:34:32.579 —> 00:34:32.900
deal,
00:34:33.420 —> 00:34:34.641
set it up the way we wanted it
00:34:34.722 —> 00:34:36.583
instead of having the investment bank and
00:34:36.603 —> 00:34:38.324
the institutional investors set it up the
00:34:38.344 —> 00:34:39.085
way they wanted it.
00:34:39.204 —> 00:34:40.867
So that’s why I ended up choosing that.
00:34:42.164 —> 00:34:44.746
And how did you meet your SPAC sponsor
00:34:44.786 —> 00:34:45.086
team,
00:34:45.146 —> 00:34:46.927
and what qualities were you really looking
00:34:46.947 —> 00:34:49.130
for in a partner?
00:34:49.791 —> 00:34:52.992
We talked to a whole bunch of them
00:34:53.452 —> 00:34:56.554
and ended up with Larry and FGMC,
00:34:56.635 —> 00:34:57.976
and they’ve just been so great.
00:34:57.996 —> 00:35:00.297
They totally understand why what we’re
00:35:00.318 —> 00:35:01.619
doing could be really big.
00:35:01.679 —> 00:35:03.300
They’ve been very cooperative in
00:35:03.340 —> 00:35:05.621
structuring things the way we wanted to,
00:35:06.523 —> 00:35:07.262
and we love those guys.
00:35:07.282 —> 00:35:08.204
They’ve been great so far.
00:35:09.143 —> 00:35:12.427
So right now, currently, it’s FGMC,
00:35:12.467 —> 00:35:15.472
like you had said, FG merger, two-corp,
00:35:15.552 —> 00:35:17.213
and then the new stock ticker is going
00:35:17.233 —> 00:35:18.735
to be BXBL.
00:35:19.117 —> 00:35:20.759
And is there a timeframe for that new
00:35:20.798 —> 00:35:23.141
stock ticker when it will change over?
00:35:23.789 —> 00:35:24.048
Yeah,
00:35:24.068 —> 00:35:27.829
so right now it’s trading as FGMC and
00:35:27.849 —> 00:35:30.130
then we have the shareholder vote on June
00:35:30.170 —> 00:35:30.550
ninth.
00:35:30.891 —> 00:35:32.851
And if it’s successful,
00:35:33.851 —> 00:35:36.351
we’ll switch to BXPL shortly after that.
00:35:36.572 —> 00:35:38.632
So it’ll be exciting to see how it
00:35:38.711 —> 00:35:41.293
all plays out and we’ll keep pulling every
00:35:41.333 —> 00:35:44.954
lever we can to make it a success.
00:35:45.074 —> 00:35:47.094
What misconceptions do you think investors
00:35:47.134 —> 00:35:49.454
have about SPACs today, in your opinion?
00:35:51.373 —> 00:35:53.074
You know, obviously, like,
00:35:53.114 —> 00:35:54.974
there’s a lot of drama around SPACs.
00:35:54.994 —> 00:35:57.155
There’s a lot of companies that weren’t
00:35:57.197 —> 00:35:57.876
really companies.
00:35:57.896 —> 00:35:59.878
They were just kind of ideas that took
00:35:59.898 —> 00:36:00.657
advantage of that.
00:36:01.878 —> 00:36:03.059
I think, you know,
00:36:03.780 —> 00:36:06.302
not all SPAC deals are bad.
00:36:07.242 —> 00:36:09.382
I think it depends on the details.
00:36:09.664 —> 00:36:10.523
So, you know,
00:36:10.804 —> 00:36:12.965
we’ve avoided some of these things that
00:36:12.985 —> 00:36:14.405
can be pitfalls for SPACs.
00:36:15.047 —> 00:36:17.487
And our company is, you know,
00:36:17.768 —> 00:36:19.047
the real deal you know we do have
00:36:19.088 —> 00:36:21.168
this large manufacturing facility we’ve
00:36:21.188 —> 00:36:24.269
put up homes all around the country we
00:36:24.309 —> 00:36:26.891
have an amazing you know innovation here
00:36:26.931 —> 00:36:29.110
that has a really big upside on it
00:36:29.130 —> 00:36:31.512
so um yeah i think we’re going to
00:36:31.532 —> 00:36:33.713
do well with it do you think there’s
00:36:33.753 —> 00:36:35.932
any extra advantages of being a publicly
00:36:35.972 —> 00:36:38.653
comp publicly traded company like boxable
00:36:39.114 —> 00:36:40.934
um over being staying private
00:36:42.286 —> 00:36:45.547
Yeah, I think that it’s going to...
00:36:45.728 —> 00:36:49.168
So one big thing for me is the
00:36:49.208 —> 00:36:52.949
crowdfunding took a lot of my bandwidth.
00:36:53.989 —> 00:36:56.650
So I’ll be happy to be done with
00:36:56.690 —> 00:36:59.670
that and be raising capital through the
00:36:59.690 —> 00:37:00.871
stock market instead.
00:37:01.210 —> 00:37:02.431
And then I’ll be able to focus more
00:37:02.490 —> 00:37:03.931
on the business.
00:37:04.190 —> 00:37:07.012
So that’s something I’m happy for.
00:37:08.344 —> 00:37:10.786
And what do you think about the whole
00:37:10.847 —> 00:37:11.947
housing crisis,
00:37:11.987 —> 00:37:13.730
like the affordability of a house,
00:37:13.789 —> 00:37:14.329
I would say?
00:37:14.891 —> 00:37:16.592
You think the industry actually needs to
00:37:16.652 —> 00:37:19.355
make any changes or regulations or
00:37:19.394 —> 00:37:19.755
anything?
00:37:19.775 —> 00:37:20.835
What do you think about that?
00:37:21.996 —> 00:37:24.498
Yeah, I think if you look at... Sorry,
00:37:24.559 —> 00:37:25.860
one sec.
00:37:25.920 —> 00:37:28.222
Can you hear me all right?
00:37:28.282 —> 00:37:29.764
Yeah, yeah, you’re good.
00:37:29.784 —> 00:37:30.565
The call just came in.
00:37:30.684 —> 00:37:31.644
I wanted to interrupt.
00:37:32.887 —> 00:37:33.666
So I think that...
00:37:35.202 —> 00:37:35.461
you know,
00:37:35.661 —> 00:37:37.722
ninety percent of buildings are being
00:37:37.742 —> 00:37:40.003
constructed using what’s called stick
00:37:40.023 —> 00:37:40.885
frame construction.
00:37:41.405 —> 00:37:43.626
And that’s where you have guys, you know,
00:37:43.826 —> 00:37:46.467
out in the weather, you know,
00:37:46.487 —> 00:37:48.688
climbing on a ladder with with hand tools,
00:37:48.809 —> 00:37:50.568
building things, these things by hand,
00:37:50.608 —> 00:37:52.250
custom one at a time.
00:37:52.789 —> 00:37:53.271
That’s like
00:37:54.331 —> 00:37:55.213
That’s like the way,
00:37:55.452 —> 00:37:57.195
like nothing’s done like that since the
00:37:57.355 —> 00:37:58.456
industrial revolution.
00:37:59.456 —> 00:37:59.637
You know,
00:37:59.657 —> 00:38:01.179
and if any other modern products were done
00:38:01.199 —> 00:38:02.601
like that, there’d be problems with it,
00:38:02.641 —> 00:38:04.663
just like there’s problems with housing.
00:38:05.143 —> 00:38:08.527
So I think, you know, if we can...
00:38:09.547 —> 00:38:11.369
transition that in the factory and and
00:38:11.449 —> 00:38:14.711
skip all that um it’s just a really
00:38:14.751 —> 00:38:17.074
big upside so like consider this like
00:38:17.494 —> 00:38:19.376
imagine you want to buy a car and
00:38:19.396 —> 00:38:20.577
instead of buying a car and it comes
00:38:20.597 —> 00:38:22.858
from a factory you buy a car and
00:38:22.878 —> 00:38:25.039
then some guys show up in your driveway
00:38:25.199 —> 00:38:28.782
with a bunch of hand tools and sheet
00:38:28.802 —> 00:38:30.925
metal and welding torches and just start
00:38:30.965 —> 00:38:33.365
building that thing and for the next like
00:38:34.206 —> 00:38:35.789
twelve months or just in your driveway
00:38:35.809 —> 00:38:36.369
building it.
00:38:37.170 —> 00:38:37.630
Obviously,
00:38:37.891 —> 00:38:39.353
the cost is going to be ridiculous.
00:38:39.414 —> 00:38:40.956
The quality is going to be poor.
00:38:41.315 —> 00:38:42.317
It’s going to be slow.
00:38:43.539 —> 00:38:45.141
And that sounds like ridiculous,
00:38:45.701 —> 00:38:47.643
but that’s not ridiculous for housing.
00:38:47.684 —> 00:38:48.925
That’s the way housing is done.
00:38:49.445 —> 00:38:52.146
So if we take that example and switch
00:38:52.186 —> 00:38:53.728
it into housing and say, all right, well,
00:38:53.748 —> 00:38:56.009
we’re taking everything out of the site
00:38:56.148 —> 00:38:57.429
and we’re putting it in a factory where
00:38:57.449 —> 00:38:58.809
it’s efficient and we’re solving the
00:38:58.849 —> 00:39:00.630
problems that make it possible that have
00:39:00.650 —> 00:39:01.972
made it not possible to do it in
00:39:01.992 —> 00:39:03.032
the factory in the past.
00:39:03.552 —> 00:39:04.572
I think we’re going to come out really
00:39:04.612 —> 00:39:05.032
far ahead.
00:39:06.317 —> 00:39:07.998
Yeah, that’s funny that you say that.
00:39:08.057 —> 00:39:08.838
That’s for sure.
00:39:08.898 —> 00:39:10.458
And what do you think the biggest
00:39:10.498 —> 00:39:12.820
misconception people have about Boxable?
00:39:12.840 —> 00:39:15.161
Like we were talking about modular homes.
00:39:15.201 —> 00:39:15.780
People, I guess,
00:39:15.800 —> 00:39:17.501
have that idea of a trailer park.
00:39:17.521 —> 00:39:19.101
Is that what people think when they look
00:39:19.121 —> 00:39:19.382
at these?
00:39:19.402 —> 00:39:21.782
Because look at the website, Boxable.com,
00:39:21.822 —> 00:39:22.103
guys.
00:39:22.163 —> 00:39:23.704
I mean, these things are awesome.
00:39:23.724 —> 00:39:25.065
You’re going to want one in your backyard.
00:39:25.105 —> 00:39:25.704
I’m not kidding.
00:39:26.655 —> 00:39:27.416
Yeah,
00:39:27.456 —> 00:39:29.018
we haven’t had too many problems with the
00:39:29.039 —> 00:39:30.922
trailer park misconception.
00:39:31.463 —> 00:39:35.628
I think that’s not our product.
00:39:35.648 —> 00:39:37.070
That’s not what we’re doing.
00:39:38.371 —> 00:39:41.135
I think one thing is a lot of
00:39:41.155 —> 00:39:42.737
people say, oh, they’re not really...
00:39:43.498 —> 00:39:44.320
building houses.
00:39:45.239 —> 00:39:46.061
But like I said before,
00:39:46.081 —> 00:39:47.061
you can go to our website,
00:39:47.201 —> 00:39:48.822
oxbowl.com slash projects,
00:39:49.202 —> 00:39:50.083
and you can see, you know,
00:39:50.103 —> 00:39:52.125
these houses being deployed all around the
00:39:52.164 —> 00:39:52.565
country.
00:39:53.144 —> 00:39:54.465
And then additionally, you know,
00:39:54.485 —> 00:39:57.427
we launched with this Casita tiny house
00:39:58.088 —> 00:39:58.628
product.
00:39:58.809 —> 00:40:00.090
You know, it’s not super tiny.
00:40:00.130 —> 00:40:02.331
It’s roughly three hundred sixty square
00:40:02.351 —> 00:40:05.393
feet, ships with a kitchen, bathroom,
00:40:06.934 —> 00:40:09.476
electrical, plumbing, flooring window,
00:40:09.516 —> 00:40:10.958
everything done in the factory,
00:40:10.998 —> 00:40:11.717
ships to site,
00:40:11.757 —> 00:40:13.440
sets up in just a day.
00:40:14.460 —> 00:40:15.922
And that’s how we started the company,
00:40:16.181 —> 00:40:17.202
but that’s not the vision.
00:40:17.242 —> 00:40:19.423
The vision is a system of room modules
00:40:19.905 —> 00:40:22.266
that stacks and connects to build a whole
00:40:22.306 —> 00:40:23.987
range of different types of houses.
00:40:24.047 —> 00:40:25.009
So, you know,
00:40:25.068 —> 00:40:26.090
and we have that ready now.
00:40:26.329 —> 00:40:28.251
There’s videos of that on our YouTube and
00:40:28.271 —> 00:40:29.612
on our website.
00:40:29.632 —> 00:40:30.934
If you go to the developer page,
00:40:31.173 —> 00:40:32.394
you can see, you know,
00:40:32.414 —> 00:40:33.375
right now we can build
00:40:34.115 —> 00:40:36.836
all the other types of houses so you
00:40:36.856 —> 00:40:38.637
know we are not you know a tiny
00:40:38.677 —> 00:40:41.719
house company uh we’re not a trailer park
00:40:41.878 —> 00:40:44.159
house company um you know we’re building
00:40:44.760 —> 00:40:48.641
regular uh residential apartment building
00:40:48.800 —> 00:40:51.822
single family type of houses that’s the
00:40:51.862 —> 00:40:54.382
vision for the company so yeah
00:40:55.306 —> 00:40:57.510
no they’re beautiful i mean i’m looking at
00:40:57.530 —> 00:40:59.432
the website and these things are gorgeous
00:40:59.492 —> 00:41:00.934
even that little small one how do you
00:41:00.994 —> 00:41:03.699
say casita is that what you said yeah
00:41:03.739 —> 00:41:05.842
the idea there was to start and target
00:41:05.882 —> 00:41:08.344
california because in california they’ve
00:41:08.425 —> 00:41:10.208
legalized putting a small house in the
00:41:10.248 —> 00:41:10.728
backyard
00:41:11.289 —> 00:41:12.690
Oh, well, actually really popular.
00:41:12.769 —> 00:41:14.351
They’ve got about twenty percent of new
00:41:14.371 —> 00:41:16.152
construction in California is actually
00:41:16.253 —> 00:41:17.193
backyard houses.
00:41:17.713 —> 00:41:18.594
So we thought, all right,
00:41:18.614 —> 00:41:19.994
that’s a good place to start.
00:41:20.054 —> 00:41:21.597
And we’ll start with this small product
00:41:21.637 —> 00:41:22.958
and get our foot in the door.
00:41:23.018 —> 00:41:23.958
And we did.
00:41:24.599 —> 00:41:25.860
And now we’re moving on to what we’re
00:41:25.880 —> 00:41:26.860
calling phase two,
00:41:26.900 —> 00:41:28.902
which is the rest of the building system,
00:41:29.141 —> 00:41:30.922
the different size rooms that connect
00:41:30.943 —> 00:41:33.164
together like Legos to build most
00:41:33.184 —> 00:41:35.746
different other residential structures.
00:41:36.516 —> 00:41:37.817
Yeah, no, when you just said Legos,
00:41:37.836 —> 00:41:39.217
I was picturing it like Legos,
00:41:39.237 —> 00:41:40.338
like you were talking about,
00:41:40.358 —> 00:41:42.121
like stacking them together and they
00:41:42.181 —> 00:41:42.961
stick, you know,
00:41:43.081 —> 00:41:44.483
and you have a whole community.
00:41:44.543 —> 00:41:45.844
It’s almost like building Legos.
00:41:45.903 —> 00:41:46.744
I have a five year old.
00:41:46.764 —> 00:41:48.065
He’s way in the Legos now.
00:41:48.126 —> 00:41:49.686
So we play with like I was literally
00:41:49.746 —> 00:41:51.409
picturing that like when you were saying
00:41:51.429 —> 00:41:51.728
that stack.
00:41:52.528 —> 00:41:53.429
you just said Legos.
00:41:53.469 —> 00:41:55.190
But yeah, it’s kind of that concept.
00:41:55.210 —> 00:41:56.291
But with houses, it’s like,
00:41:56.612 —> 00:41:57.351
it’s really cool.
00:41:57.371 —> 00:41:58.592
Like who doesn’t love Legos?
00:41:58.972 —> 00:42:01.353
And you’re making it with houses for sure.
00:42:02.934 —> 00:42:05.596
If you had like unlimited capital and then
00:42:05.635 —> 00:42:07.637
like there was zero regulations going on,
00:42:07.657 —> 00:42:09.177
what do you think Boxable would look like
00:42:09.197 —> 00:42:09.577
in ten years?
00:42:09.597 —> 00:42:10.938
Do you think everybody would want one of
00:42:10.958 —> 00:42:11.159
these?
00:42:11.318 —> 00:42:12.119
I kind of think so.
00:42:12.519 —> 00:42:14.981
I honestly do.
00:42:15.041 —> 00:42:18.163
Yeah, we would be, you know,
00:42:19.385 —> 00:42:20.387
really scaled up,
00:42:20.829 —> 00:42:22.634
we’d be doing our own communities.
00:42:23.576 —> 00:42:26.922
I think people would have no problem
00:42:29.280 —> 00:42:32.041
seeing what we’re doing and seeing the
00:42:32.081 —> 00:42:32.902
scale of this thing.
00:42:33.443 —> 00:42:35.045
And I think we’ll get there.
00:42:35.125 —> 00:42:37.847
We’ve done well with capital raising so
00:42:37.867 —> 00:42:38.067
far.
00:42:38.106 —> 00:42:39.327
I hope we continue to,
00:42:40.108 —> 00:42:41.289
and I hope we can keep going big
00:42:42.150 —> 00:42:44.751
because we definitely started big out the
00:42:44.771 —> 00:42:46.532
gate and that’s the vision here.
00:42:47.233 —> 00:42:48.655
We have to go really big for this
00:42:48.695 —> 00:42:50.056
to work the way I want it to.
00:42:51.621 —> 00:42:53.262
Yeah, and like you were saying,
00:42:53.463 —> 00:42:56.806
California has backyard housing as legal
00:42:56.827 —> 00:42:57.067
there.
00:42:57.086 —> 00:42:57.807
That’s pretty wild.
00:42:57.887 —> 00:42:58.909
Now I’m in New Jersey.
00:42:59.188 —> 00:43:01.711
Is there any states that Boxable is not
00:43:01.771 —> 00:43:02.293
legal in,
00:43:02.353 —> 00:43:04.394
or you can have one in any state?
00:43:05.637 —> 00:43:07.438
So we have right now, let’s say...
00:43:08.987 —> 00:43:09.427
I don’t know,
00:43:09.467 —> 00:43:12.690
roughly twenty states that we can sell
00:43:12.710 —> 00:43:13.090
into.
00:43:13.510 —> 00:43:14.851
And, you know,
00:43:14.871 —> 00:43:16.092
we have to go state by state and
00:43:16.112 —> 00:43:16.771
get the approval.
00:43:16.831 —> 00:43:19.514
So we’re just picking where we think the
00:43:19.534 —> 00:43:20.373
big markets are.
00:43:20.954 —> 00:43:21.375
For example,
00:43:21.394 —> 00:43:23.596
we just got Texas like last week.
00:43:24.137 —> 00:43:24.416
Oh, no.
00:43:24.476 —> 00:43:26.438
So like California, Texas, New York,
00:43:26.478 —> 00:43:28.059
like that’s a really big chunk of the
00:43:28.079 —> 00:43:28.699
population.
00:43:28.798 —> 00:43:31.380
So we didn’t want to go too crazy
00:43:31.420 —> 00:43:34.762
trying to get every, you know,
00:43:34.802 —> 00:43:36.963
the whole country right away and just
00:43:36.983 —> 00:43:38.684
focus our resources and our energy.
00:43:40.635 —> 00:43:41.556
California is big enough.
00:43:41.576 —> 00:43:42.496
You know, we can do,
00:43:42.536 —> 00:43:43.918
we can have a huge business just in
00:43:43.938 —> 00:43:45.298
California, a massive business.
00:43:46.139 —> 00:43:47.221
And also, you know,
00:43:47.240 —> 00:43:48.461
we need to go where we can go
00:43:48.501 —> 00:43:49.902
where the housing’s more expensive,
00:43:50.443 —> 00:43:50.663
you know?
00:43:50.684 —> 00:43:52.144
So like in my, in my pitch deck,
00:43:52.184 —> 00:43:54.567
we have the national average housing costs
00:43:54.646 —> 00:43:56.688
and then our costs and, you know,
00:43:56.967 —> 00:43:58.228
but we don’t even actually care about the
00:43:58.248 —> 00:44:00.590
national average cause you know, we don’t,
00:44:00.630 —> 00:44:02.552
we don’t need to worry about selling into
00:44:02.612 —> 00:44:04.273
West Virginia where housing is cheapest.
00:44:05.275 —> 00:44:06.295
We’re going to go to the high price
00:44:06.376 —> 00:44:07.135
markets first.
00:44:07.215 —> 00:44:08.958
So the situation is even better for us.
00:44:09.746 —> 00:44:10.007
Yeah.
00:44:10.047 —> 00:44:11.969
And like you were saying, California,
00:44:12.028 —> 00:44:14.030
New York and like the major markets,
00:44:14.409 —> 00:44:15.971
the smaller markets are just going to
00:44:15.990 —> 00:44:16.672
adapt to it.
00:44:16.692 —> 00:44:17.652
They’re going to want it.
00:44:17.711 —> 00:44:19.574
It’s like that almost with everything I
00:44:19.614 —> 00:44:20.114
feel like.
00:44:20.153 —> 00:44:21.875
So you hit the major markets.
00:44:21.894 —> 00:44:22.356
And like you said,
00:44:22.396 —> 00:44:24.657
if California has backyard housing legal,
00:44:24.996 —> 00:44:26.739
I can only imagine how many you sell
00:44:26.759 —> 00:44:28.780
because that must be huge right there just
00:44:28.820 —> 00:44:29.900
in California alone.
00:44:30.833 —> 00:44:30.974
Yeah,
00:44:31.014 —> 00:44:32.315
I think they did like about twenty
00:44:32.355 —> 00:44:33.295
thousand last year.
00:44:34.195 —> 00:44:36.536
So we’re we’re we’re pushing forward on
00:44:36.556 —> 00:44:37.757
that heavily right now.
00:44:37.996 —> 00:44:40.197
We’re wrapping up our our sales force.
00:44:40.237 —> 00:44:43.018
We’re dialing in our online sales process.
00:44:43.719 —> 00:44:45.739
We’re aggressively going after building up
00:44:45.760 —> 00:44:48.481
that ADU accessory dwelling unit backyard
00:44:48.521 —> 00:44:50.481
housing business in California.
00:44:51.639 —> 00:44:53.159
And I can see it being popular in
00:44:53.199 —> 00:44:53.940
California.
00:44:53.960 —> 00:44:56.302
And I could see like other states actually
00:44:56.342 —> 00:44:58.384
contacting you guys and saying, hey,
00:44:58.403 —> 00:44:58.764
you know,
00:44:59.264 —> 00:45:01.586
can we get this into our state because
00:45:01.626 —> 00:45:03.128
it’s actually affordable housing?
00:45:03.208 —> 00:45:04.128
And it’s really nice.
00:45:04.188 —> 00:45:05.670
I mean, look at these models, guys.
00:45:05.690 —> 00:45:06.451
They’re beautiful.
00:45:06.871 —> 00:45:07.911
And like you said, I mean,
00:45:07.931 —> 00:45:09.152
it’s obviously affordable.
00:45:09.172 —> 00:45:10.393
You’re cutting out a lot of costs.
00:45:10.414 —> 00:45:11.213
Let’s put it that way.
00:45:11.233 —> 00:45:13.056
Yeah, they certainly are.
00:45:13.076 —> 00:45:14.516
We just had a visit from a state.
00:45:16.262 —> 00:45:19.045
This week, actually, you know,
00:45:19.164 —> 00:45:20.846
and that’s happened a few times where they
00:45:20.865 —> 00:45:22.266
see what we’re doing and they have some
00:45:22.847 —> 00:45:23.987
big housing issue they’re trying to
00:45:24.027 —> 00:45:24.329
address.
00:45:24.349 —> 00:45:25.969
So we’ll see how we can partner with
00:45:25.989 —> 00:45:26.670
them in the future.
00:45:26.690 —> 00:45:28.512
And honestly, like I said,
00:45:28.592 —> 00:45:30.813
I live in New Jersey near an area
00:45:30.833 —> 00:45:33.454
and I could see this working so perfect
00:45:33.494 —> 00:45:34.255
in this area.
00:45:34.275 —> 00:45:35.496
It’s a low income area,
00:45:35.536 —> 00:45:36.396
but it’s not that.
00:45:36.737 —> 00:45:38.197
It’s just they have a lot of housing
00:45:38.277 —> 00:45:40.139
issues and this they have Rohan.
00:45:40.199 —> 00:45:40.400
I mean,
00:45:40.480 —> 00:45:42.260
this would be perfect for that area.
00:45:42.561 —> 00:45:44.041
As soon as I saw it online,
00:45:44.121 —> 00:45:44.862
I thought about it.
00:45:45.143 —> 00:45:46.523
And I have a buddy that does all
00:45:46.563 —> 00:45:48.503
the construction over there.
00:45:48.523 —> 00:45:50.184
It’s kind of funny and the demolition.
00:45:50.224 —> 00:45:51.525
But yeah, I was thinking about it.
00:45:51.605 —> 00:45:52.144
I was like, wow,
00:45:52.164 —> 00:45:54.045
this is crazy because this would work
00:45:54.085 —> 00:45:55.206
better than what they’re doing,
00:45:55.226 —> 00:45:56.146
to be honest with you.
00:45:56.186 —> 00:45:57.467
But hey, what do I know?
00:45:57.726 —> 00:46:01.748
But what’s some people that like kind of
00:46:01.807 —> 00:46:02.327
inspire you?
00:46:02.407 —> 00:46:04.309
I guess like an Elon Musk or something
00:46:04.369 —> 00:46:06.068
or other innovators.
00:46:06.409 —> 00:46:08.349
Who else inspired you early on?
00:46:08.369 —> 00:46:10.471
Because you definitely have a mindset and
00:46:10.490 —> 00:46:11.391
you’re an entrepreneur.
00:46:11.431 —> 00:46:12.951
You can just tell by what you’ve done
00:46:12.990 —> 00:46:14.391
in your past and just the way you...
00:46:14.952 —> 00:46:17.692
think about things oh yeah we we love
00:46:17.711 —> 00:46:19.313
that guy i mean he’s uh uh you
00:46:21.233 —> 00:46:24.114
know certainly you know being being
00:46:24.134 —> 00:46:26.813
helpful to us throughout this process um
00:46:26.853 —> 00:46:29.534
we did actually sell uh the first house
00:46:29.715 —> 00:46:31.735
ever to him uh and it ended up
00:46:31.775 —> 00:46:36.536
getting installed in uh spacex texas and
00:46:36.556 —> 00:46:39.215
he talked about it in an interview um
00:46:39.755 —> 00:46:42.677
and uh and i think we filed uh
00:46:42.797 —> 00:46:43.077
one of our
00:46:43.777 —> 00:46:45.498
purchase orders with Tesla,
00:46:45.518 —> 00:46:46.918
our contract with them,
00:46:48.398 —> 00:46:51.460
and then promotion surrounding anything
00:46:52.121 —> 00:46:53.481
related to him is great.
00:46:53.521 —> 00:46:54.342
We welcome that.
00:46:55.782 —> 00:46:58.083
Even if you look at Tesla,
00:46:59.103 —> 00:46:59.963
like early days,
00:47:00.864 —> 00:47:03.746
just starting out with this big
00:47:03.885 —> 00:47:05.206
manufacturing facility,
00:47:06.166 —> 00:47:07.648
very capital intensive,
00:47:07.847 —> 00:47:08.827
innovative product.
00:47:10.188 —> 00:47:12.829
kind of the same trajectory, hopefully,
00:47:12.849 —> 00:47:14.170
that they were on,
00:47:14.230 —> 00:47:17.469
I think is kind of relevant to us.
00:47:18.570 —> 00:47:19.710
Although, you know,
00:47:20.630 —> 00:47:22.831
they took something that already was
00:47:23.291 —> 00:47:25.851
factory built cars and they changed and
00:47:25.871 —> 00:47:26.512
they made it better.
00:47:27.291 —> 00:47:28.791
But we get an even an extra step
00:47:28.811 —> 00:47:30.413
beyond that by bringing something that’s
00:47:30.472 —> 00:47:33.032
not even factory built into the factory.
00:47:33.213 —> 00:47:34.052
And then on top of that,
00:47:34.092 —> 00:47:35.594
all these other innovations to make the
00:47:35.634 —> 00:47:36.974
product better.
00:47:38.434 —> 00:47:40.097
So I think that’s a cool comparison.
00:47:40.878 —> 00:47:41.099
Yeah,
00:47:41.119 —> 00:47:43.603
you think Boxable could eventually become
00:47:43.643 —> 00:47:45.105
like the Tesla of housing?
00:47:46.708 —> 00:47:47.489
Certainly hope so.
00:47:47.688 —> 00:47:47.949
That’s...
00:47:50.235 —> 00:47:51.757
be great yeah i could honestly see this
00:47:51.797 —> 00:47:54.338
happening i mean uh it’s quite amazing i’m
00:47:54.378 —> 00:47:57.960
not gonna lie and uh galliano you got
00:47:58.001 —> 00:48:00.141
an amazing concept here in business i
00:48:00.202 —> 00:48:02.103
really like it a lot i really appreciate
00:48:02.123 —> 00:48:04.824
you hopping on here and uh obviously the
00:48:04.905 —> 00:48:07.146
website is boxable.com guys it’s
00:48:07.327 —> 00:48:11.068
boxabl.com if you don’t know it and we’re
00:48:11.128 —> 00:48:14.050
talking about the the stock ticker is fgmc
00:48:14.110 —> 00:48:16.213
right now it’s a spac merger and it’s
00:48:16.233 —> 00:48:17.773
going to become bxbl
00:48:18.454 —> 00:48:20.675
um you said june ninth or seventh i
00:48:20.695 —> 00:48:22.356
forget the date you said shareholder vote
00:48:22.416 —> 00:48:24.516
is june ninth june ninth okay so june
00:48:24.556 —> 00:48:26.257
nine shareholder vote to see if it’s going
00:48:26.277 —> 00:48:29.199
to become bxbl and yeah just an incredible
00:48:29.239 —> 00:48:30.719
company guys you got to go check this
00:48:30.860 —> 00:48:32.840
out hey guys are on x at uh
00:48:32.900 —> 00:48:35.181
boxable as well anything else you want to
00:48:35.282 —> 00:48:36.882
uh leave us with that we didn’t cover
00:48:37.061 —> 00:48:37.623
um today
00:48:38.322 —> 00:48:38.483
No,
00:48:38.523 —> 00:48:40.427
we welcome anyone to come visit our
00:48:40.467 —> 00:48:41.550
factory in Las Vegas.
00:48:41.570 —> 00:48:42.672
We’ll give you the full tour.
00:48:43.012 —> 00:48:45.036
Please check out our videos on YouTube,
00:48:45.177 —> 00:48:45.878
Instagram.
00:48:46.619 —> 00:48:48.543
Head over to the website and reach out
00:48:48.583 —> 00:48:49.744
if anyone has any questions.
00:48:50.443 —> 00:48:50.903
Yeah, no,
00:48:50.923 —> 00:48:52.545
I really appreciate you taking time out
00:48:52.585 —> 00:48:54.164
and joining us today and telling us all
00:48:54.206 —> 00:48:56.666
about Boxable because I am fascinated by
00:48:56.686 —> 00:48:56.726
it.
00:48:56.746 —> 00:48:57.606
When I looked at it, I was like,
00:48:57.626 —> 00:48:58.487
wow, I could see this.
00:48:58.527 —> 00:48:59.166
Like I said,
00:48:59.226 —> 00:49:01.327
immediately my mind jumped to an area in
00:49:01.347 —> 00:49:01.869
New Jersey.
00:49:01.909 —> 00:49:03.108
So if you want, I’ll talk to you.
00:49:03.128 —> 00:49:04.289
Maybe we can get you over there.
00:49:04.710 —> 00:49:06.349
And I could honestly,
00:49:06.449 —> 00:49:08.170
it would work out way better than what
00:49:08.190 —> 00:49:08.670
they’re doing.
00:49:08.731 —> 00:49:10.032
And I know what they do over there.
00:49:10.092 —> 00:49:11.771
I actually was an inspector for twenty
00:49:11.791 —> 00:49:13.012
years, over two decades.
00:49:13.052 —> 00:49:14.873
I was a fire inspector and housing
00:49:14.914 —> 00:49:15.454
inspector.
00:49:15.793 —> 00:49:17.576
So I worked with the city over there.
00:49:17.675 —> 00:49:18.596
I know what they’re doing.
00:49:18.896 —> 00:49:20.898
And, yeah, immediately I was just like,
00:49:21.219 —> 00:49:22.780
why aren’t they doing this over there?
00:49:22.800 —> 00:49:24.380
This makes way more sense than what
00:49:24.400 —> 00:49:25.242
they’re trying to do.
00:49:25.561 —> 00:49:26.882
And they’re just blowing through money
00:49:26.902 —> 00:49:27.903
left and right.
00:49:27.943 —> 00:49:28.563
It’s crazy.
00:49:28.583 —> 00:49:29.925
So, yeah, I don’t know.
00:49:30.045 —> 00:49:31.166
I may have to talk to you soon
00:49:31.206 —> 00:49:32.628
about that because I’m telling you,
00:49:32.668 —> 00:49:34.289
I think that’s the best opportunity I
00:49:34.309 —> 00:49:34.989
would ever have,
00:49:35.030 —> 00:49:36.431
to be completely honest with you.
00:49:36.490 —> 00:49:37.851
And, guys, like I said, check it out,
00:49:37.911 —> 00:49:38.893
Boxable.com.
00:49:39.273 —> 00:49:40.853
i almost if i if these things were
00:49:40.893 —> 00:49:42.434
legal in new jersey i have no idea
00:49:42.494 —> 00:49:44.096
you probably don’t send them here yet i’d
00:49:44.155 —> 00:49:45.976
want one in my backyard honestly this
00:49:46.016 —> 00:49:47.958
thing’s awesome it’s like a little hangout
00:49:47.978 —> 00:49:49.818
back there you can have like anything back
00:49:49.998 —> 00:49:51.478
i mean check these things out they are
00:49:51.539 —> 00:49:53.940
so cool these houses and uh and yeah
00:49:53.960 —> 00:49:55.561
it was great talking to you i really
00:49:55.581 —> 00:49:57.882
appreciate all that insight there and make
00:49:57.922 —> 00:49:59.983
sure you uh keep us up to date
00:50:00.023 —> 00:50:01.965
on what’s going on with the company please
00:50:01.985 —> 00:50:04.005
appreciate it thank you for your time
00:50:04.556 —> 00:50:05.300
Yeah, thank you.
00:50:05.340 —> 00:50:06.987
And everybody, check out Boxable.
00:50:07.027 —> 00:50:08.032
Thanks for tuning in,
00:50:08.152 —> 00:50:09.778
and we will see you next time.
Interview #2 (AMA #121)
WEBVTT
00:00:02.998 —> 00:00:04.519
Good morning, everyone here.
00:00:04.698 —> 00:00:06.559
Thank you for coming to AMA number one
00:00:06.578 —> 00:00:09.439
twenty one with BoxBowl founder and CEO
00:00:09.980 —> 00:00:11.121
Galeano Taramani.
00:00:11.801 —> 00:00:14.221
The current ticker for the stock is FGMC.
00:00:14.641 —> 00:00:15.303
And as you know,
00:00:15.563 —> 00:00:17.884
that will de-SPAC and with a ticker of
00:00:17.923 —> 00:00:20.123
BXBL in the near future,
00:00:20.143 —> 00:00:21.065
in the next few weeks.
00:00:21.445 —> 00:00:22.024
Thank you, everyone.
00:00:22.065 —> 00:00:24.686
That’s coming from Reddit, our SPACs,
00:00:24.905 —> 00:00:25.606
StockTwits,
00:00:26.446 —> 00:00:29.448
the Discord servers and everywhere else.
00:00:29.487 —> 00:00:30.647
So thank you so much, everyone.
00:00:30.707 —> 00:00:31.669
And welcome, Galeano.
00:00:31.708 —> 00:00:32.228
How are you doing?
00:00:33.207 —> 00:00:34.390
Hey, thank you so much for having me.
00:00:34.429 —> 00:00:35.070
I’m doing great.
00:00:35.530 —> 00:00:36.313
And like you said,
00:00:36.332 —> 00:00:38.155
my company is Boxable and we are building
00:00:38.195 —> 00:00:39.237
houses in a factory.
00:00:40.378 —> 00:00:42.100
Yeah, it’s very impressive.
00:00:42.479 —> 00:00:42.719
You know,
00:00:42.820 —> 00:00:47.862
before we get into the company details and
00:00:47.902 —> 00:00:49.061
everyone, as you’re aware, you know,
00:00:49.082 —> 00:00:50.283
we have over forty sponsors,
00:00:50.423 —> 00:00:52.404
Boxable being one of them and do your
00:00:52.463 —> 00:00:53.323
own due diligence.
00:00:53.404 —> 00:00:55.664
But the firms and companies we bring are
00:00:55.704 —> 00:00:58.305
the ones that have interest and a lot
00:00:58.345 —> 00:00:59.545
of people want to know more about.
00:01:00.447 —> 00:01:02.447
So tell us a little bit about yourself
00:01:02.466 —> 00:01:03.768
a little bit more like.
00:01:04.567 —> 00:01:05.947
We want to know how you got to
00:01:05.987 —> 00:01:08.409
where you are today and what gave you
00:01:08.429 —> 00:01:10.209
the idea to start even this company.
00:01:10.569 —> 00:01:12.409
How did that happen?
00:01:12.709 —> 00:01:13.090
Yeah, you know,
00:01:13.109 —> 00:01:15.411
I’ve been an entrepreneur my whole life.
00:01:15.531 —> 00:01:17.570
I’ve always been able to, you know,
00:01:17.590 —> 00:01:19.992
find an angle, dig in, become obsessive,
00:01:20.572 —> 00:01:21.852
learn everything there is to know.
00:01:22.451 —> 00:01:25.453
And we started the company with myself,
00:01:25.753 —> 00:01:26.692
my father, Paolo,
00:01:26.733 —> 00:01:27.853
and another guy named Kyle.
00:01:28.313 —> 00:01:29.453
They’re both engineers,
00:01:29.513 —> 00:01:31.073
so they’re experts in like,
00:01:31.134 —> 00:01:31.954
solid modeling.
00:01:32.454 —> 00:01:32.954
Paolo’s
00:01:33.734 —> 00:01:34.674
uh, kind of an inventor.
00:01:34.715 —> 00:01:37.137
He’s created products before, for example,
00:01:37.456 —> 00:01:39.156
a toolbox that sells at home Depot.
00:01:39.197 —> 00:01:41.317
It’s done over a billion dollars in sales.
00:01:41.838 —> 00:01:44.959
And then, uh, Kyle has a background in,
00:01:45.319 —> 00:01:45.480
uh,
00:01:45.500 —> 00:01:46.881
construction business with his family
00:01:46.900 —> 00:01:47.361
business.
00:01:48.081 —> 00:01:48.802
Um,
00:01:48.822 —> 00:01:50.822
the last two big wins that I had
00:01:50.861 —> 00:01:54.504
was, uh, a Bitcoin business back in, uh,
00:01:54.543 —> 00:01:57.364
started that around and also a marijuana
00:01:57.405 —> 00:01:58.084
business as well.
00:01:58.105 —> 00:02:00.186
Okay.
00:02:00.846 —> 00:02:01.626
And, uh,
00:02:03.501 —> 00:02:04.903
From those experiences,
00:02:05.584 —> 00:02:07.364
jumping from a marijuana business to a
00:02:07.405 —> 00:02:08.186
housing business,
00:02:08.205 —> 00:02:09.646
that’s like a pretty big leap.
00:02:11.468 —> 00:02:13.110
Was there any other connections that you
00:02:13.150 —> 00:02:14.170
made during this time?
00:02:15.372 —> 00:02:15.793
Yeah,
00:02:15.812 —> 00:02:17.114
the marijuana business was actually
00:02:17.153 —> 00:02:17.854
manufacturing.
00:02:18.215 —> 00:02:21.377
So we set up a pretty advanced lab
00:02:21.396 —> 00:02:23.057
to process the waste product of the
00:02:23.098 —> 00:02:27.740
marijuana into oil for those various types
00:02:27.800 —> 00:02:29.661
of like marijuana oil products.
00:02:30.322 —> 00:02:31.983
So it was a similar thing where I
00:02:32.062 —> 00:02:35.485
started by seeing a need in the market,
00:02:35.504 —> 00:02:36.566
seeing something I thought I could do
00:02:36.605 —> 00:02:41.427
better, dialing in the engineering,
00:02:41.649 —> 00:02:42.068
the R&D,
00:02:43.381 —> 00:02:44.262
ramping that up,
00:02:44.382 —> 00:02:45.943
then having a lot of product and figuring
00:02:46.022 —> 00:02:47.304
out how to sell it.
00:02:47.544 —> 00:02:49.526
But the original idea for Boxable actually
00:02:49.566 —> 00:02:50.406
came from Paolo.
00:02:50.466 —> 00:02:54.068
He built a modular house in Connecticut
00:02:54.248 —> 00:02:56.790
and he experienced a lot of issues with
00:02:56.911 —> 00:02:58.412
modular house and building construction in
00:02:58.431 —> 00:03:00.272
general and thought there has to be a
00:03:00.312 —> 00:03:02.875
better way to do this and also wondered
00:03:02.935 —> 00:03:06.197
why factory-built housing hasn’t taken
00:03:06.257 —> 00:03:07.677
market share because right now about
00:03:07.739 —> 00:03:08.318
ninety percent of
00:03:08.618 —> 00:03:10.640
New houses are built just using
00:03:10.841 —> 00:03:12.141
traditional site construction.
00:03:12.162 —> 00:03:13.082
So they’re going out.
00:03:13.522 —> 00:03:15.104
Everyone’s driven by a job site that’s
00:03:15.163 —> 00:03:17.306
there for six, nine, twelve months.
00:03:17.645 —> 00:03:19.046
They’re going out with hand tools,
00:03:19.467 —> 00:03:22.650
with expensive skilled labor in the
00:03:22.669 —> 00:03:23.491
weather, in the heat,
00:03:23.531 —> 00:03:25.893
in the snow and building these things.
00:03:25.953 —> 00:03:28.534
And it’s really unlike the way we build
00:03:28.754 —> 00:03:30.116
anything else in the modern world.
00:03:30.195 —> 00:03:32.478
Everything is built in a factory on an
00:03:32.497 —> 00:03:34.520
assembly line using mass production.
00:03:35.199 —> 00:03:35.919
except housing.
00:03:36.120 —> 00:03:37.700
So there’s a bunch of reasons why that
00:03:37.721 —> 00:03:40.662
hasn’t transitioned into the factory.
00:03:41.182 —> 00:03:42.983
And we think we’ve solved those issues,
00:03:43.443 —> 00:03:45.003
and that we can do a really scaled
00:03:45.063 —> 00:03:46.844
up mass production like no one’s ever done
00:03:46.865 —> 00:03:47.264
before.
00:03:47.585 —> 00:03:48.985
And the result of that has to be
00:03:49.105 —> 00:03:50.947
the lowest cost housing solution ever
00:03:50.986 —> 00:03:51.366
created.
00:03:52.969 —> 00:03:53.711
That’s amazing.
00:03:53.830 —> 00:03:54.092
You know,
00:03:54.132 —> 00:03:56.153
it’s always like those life experiences,
00:03:56.313 —> 00:03:57.876
especially if you have a business-oriented
00:03:57.895 —> 00:03:59.498
mind and an engineering-oriented mind,
00:03:59.938 —> 00:04:01.760
you try and find solutions and providing
00:04:01.822 —> 00:04:02.241
value.
00:04:02.603 —> 00:04:03.883
So that’s very neat to see that in
00:04:03.903 —> 00:04:04.525
you as well.
00:04:05.165 —> 00:04:06.467
So you started Boxable.
00:04:06.508 —> 00:04:07.508
When did that happen?
00:04:07.549 —> 00:04:07.949
What year?
00:04:08.840 —> 00:04:10.621
So we started around twenty seventeen just
00:04:10.661 —> 00:04:13.822
with the idea and then twenty nineteen and
00:04:13.861 —> 00:04:15.962
twenty twenty we around there we brought
00:04:16.142 —> 00:04:17.963
prototypes to the builder show in Las
00:04:17.983 —> 00:04:21.504
Vegas and just kind of were dipping our
00:04:21.545 —> 00:04:24.526
toe in the water and ended up getting
00:04:24.567 —> 00:04:25.846
traction and people thought what we were
00:04:25.867 —> 00:04:26.487
doing was cool.
00:04:26.547 —> 00:04:28.127
So we kept pushing forward.
00:04:28.588 —> 00:04:30.408
We put several million dollars of our own
00:04:30.449 —> 00:04:32.230
money in to get the company up and
00:04:32.250 —> 00:04:32.529
running.
00:04:33.029 —> 00:04:34.550
And then eventually we ended up getting a
00:04:34.591 —> 00:04:35.632
military contract.
00:04:35.672 —> 00:04:36.973
So at that point,
00:04:36.992 —> 00:04:38.613
it was just me and a few guys
00:04:38.713 —> 00:04:40.334
in a garage with a few prototypes.
00:04:40.714 —> 00:04:44.358
We got a large military contract and took
00:04:44.398 —> 00:04:45.158
that, ran with it,
00:04:45.218 —> 00:04:46.899
leveraged it into a big factory,
00:04:47.439 —> 00:04:49.740
got millions of dollars in equipment,
00:04:49.821 —> 00:04:50.401
set that up,
00:04:50.442 —> 00:04:52.002
hired hundreds of people and turned on
00:04:52.023 —> 00:04:54.904
this huge manufacturing process using
00:04:54.944 —> 00:04:56.446
building materials and methods that were
00:04:56.466 —> 00:04:57.846
very different than the traditional way of
00:04:57.887 —> 00:04:58.487
doing things.
00:04:58.807 —> 00:05:00.548
But we managed to pull it off and
00:05:00.588 —> 00:05:00.908
deliver
00:05:03.490 —> 00:05:03.730
Actually,
00:05:03.750 —> 00:05:05.651
they went from Vegas to Florida and then
00:05:05.692 —> 00:05:08.595
on a boat to Cuba for Guantanamo Bay.
00:05:09.035 —> 00:05:11.978
And that was really a wild experience
00:05:11.997 —> 00:05:14.338
getting that up and running from nothing.
00:05:14.540 —> 00:05:16.221
And then things have been really exciting
00:05:16.261 —> 00:05:17.601
since then and continue to grow.
00:05:18.463 —> 00:05:20.303
How did you get a military contract so
00:05:20.343 —> 00:05:22.105
quickly from Idea,
00:05:22.346 —> 00:05:23.367
almost from your garage?
00:05:23.387 —> 00:05:23.567
Like,
00:05:24.208 —> 00:05:26.129
how did they even come across what you
00:05:26.149 —> 00:05:26.810
had to present?
00:05:28.240 —> 00:05:28.740
Yeah,
00:05:28.839 —> 00:05:30.281
it was pretty wild that that happened.
00:05:30.661 —> 00:05:33.884
And I think it all ties back into
00:05:33.944 —> 00:05:35.826
how we’ve leveraged marketing and social
00:05:35.865 —> 00:05:36.185
media.
00:05:36.625 —> 00:05:38.067
Because early on,
00:05:38.367 —> 00:05:39.369
I was trying to figure out how do
00:05:39.428 —> 00:05:40.949
I get interest in the product?
00:05:40.990 —> 00:05:42.130
How do I find customers?
00:05:42.790 —> 00:05:45.713
And I started trying social media.
00:05:45.812 —> 00:05:49.096
So getting in front of people who had
00:05:49.136 —> 00:05:49.937
relevant channels,
00:05:49.997 —> 00:05:51.877
like one of the first things we did
00:05:51.918 —> 00:05:53.740
was this girl on YouTube had a channel
00:05:53.759 —> 00:05:54.000
about
00:05:54.500 —> 00:05:56.440
housing and i did a video with her
00:05:56.461 —> 00:05:58.442
and i instantly saw results you know web
00:05:58.482 —> 00:06:00.382
traffic inquiries up so i kept running
00:06:00.401 —> 00:06:02.843
with that and we leveraged it to get
00:06:03.084 —> 00:06:05.163
you know huge huge following so now we
00:06:05.204 —> 00:06:08.805
have probably done a billion views online
00:06:09.406 —> 00:06:11.307
use that to raise capital for the company
00:06:11.367 —> 00:06:13.827
to find employees to find customers we
00:06:13.867 —> 00:06:15.309
ended up with hundreds of thousands of
00:06:15.488 —> 00:06:17.108
customer inquiries as a result of that
00:06:17.149 —> 00:06:19.649
marketing too and we hope that will also
00:06:21.810 —> 00:06:23.653
serve us well as a public company,
00:06:23.673 —> 00:06:25.733
but just without awareness.
00:06:25.754 —> 00:06:26.415
That’s amazing.
00:06:27.696 —> 00:06:30.096
We read about your crowdfunding campaign
00:06:30.437 —> 00:06:32.939
and how spectacularly successful it was.
00:06:33.420 —> 00:06:34.180
Can you tell us,
00:06:34.480 —> 00:06:36.302
was it mostly through Facebook and
00:06:36.362 —> 00:06:36.862
YouTube?
00:06:37.201 —> 00:06:38.002
How did you do this?
00:06:39.487 —> 00:06:42.048
So we ended up getting over seventy
00:06:42.069 —> 00:06:45.069
thousand investors investing two hundred
00:06:45.089 —> 00:06:47.389
thirty million plus dollars into the
00:06:47.430 —> 00:06:47.870
company.
00:06:48.511 —> 00:06:49.870
And so that was really exciting,
00:06:49.911 —> 00:06:51.851
just having so many people see what we’re
00:06:51.891 —> 00:06:53.992
doing and get interested in it to the
00:06:54.031 —> 00:06:56.392
point where they wanted to get involved.
00:06:56.992 —> 00:06:58.574
And I guess, you know,
00:06:58.733 —> 00:07:01.915
I figured out that in order to get
00:07:02.535 —> 00:07:03.014
views.
00:07:03.536 —> 00:07:04.855
We had to put out good content that
00:07:04.875 —> 00:07:06.396
would catch someone’s eye within the first
00:07:06.516 —> 00:07:08.057
few seconds of the video and stop them
00:07:08.077 —> 00:07:08.677
from scrolling.
00:07:09.059 —> 00:07:10.218
I think that’s what it’s all about with
00:07:10.238 —> 00:07:10.839
social media.
00:07:11.360 —> 00:07:12.880
Stop someone from scrolling for a couple
00:07:12.901 —> 00:07:14.742
of seconds and then the algorithm feeds it
00:07:14.762 —> 00:07:15.422
to more people.
00:07:15.901 —> 00:07:16.942
So I just ran with that.
00:07:17.403 —> 00:07:18.644
I tried to get in front of other
00:07:18.663 —> 00:07:19.764
people’s audiences.
00:07:20.324 —> 00:07:23.766
We did a really kind of hardcore marketing
00:07:23.987 —> 00:07:24.307
funnel
00:07:24.906 —> 00:07:27.788
with you know retargeting sms email
00:07:27.827 —> 00:07:30.569
campaign and just got really good at
00:07:30.588 —> 00:07:32.829
spreading the word so it’s cool because we
00:07:32.850 —> 00:07:35.069
can turn that on anytime we want so
00:07:35.531 —> 00:07:37.250
when we’re ready to sell something when
00:07:37.271 —> 00:07:38.791
we’re ready to promote a new product when
00:07:38.812 —> 00:07:40.132
we’re ready to get a certain type of
00:07:40.151 —> 00:07:42.892
customer i can just get really dialed in
00:07:43.173 —> 00:07:45.173
on the marketing and reach the audience we
00:07:45.194 —> 00:07:45.634
want to reach
00:07:46.574 —> 00:07:47.254
That’s amazing.
00:07:47.754 —> 00:07:50.875
And then a lot of these initial investors
00:07:51.074 —> 00:07:53.336
are continuing to be unboxable.
00:07:54.156 —> 00:07:55.617
That’s going to definitely help in this
00:07:55.677 —> 00:07:56.677
fact transaction.
00:07:57.076 —> 00:07:57.257
Now,
00:07:57.336 —> 00:07:59.077
just turning in direction to the
00:07:59.117 —> 00:08:00.577
engineering aspect of these homes,
00:08:01.057 —> 00:08:02.678
you said they’re made in factories in a
00:08:02.718 —> 00:08:03.778
car style format.
00:08:04.098 —> 00:08:07.163
Can you tell us from scratch how that
00:08:07.202 —> 00:08:07.723
actually works?
00:08:09.345 —> 00:08:11.226
Is there like a moving conveyor belt
00:08:12.168 —> 00:08:14.370
through the factory floor that moves a
00:08:14.511 —> 00:08:17.014
unit that gets different components added
00:08:17.654 —> 00:08:19.396
by different people who are specialized?
00:08:20.517 —> 00:08:21.660
How does that work actually?
00:08:22.492 —> 00:08:22.891
Yeah,
00:08:22.911 —> 00:08:25.413
I think assembly line mass production is
00:08:25.452 —> 00:08:27.434
critically important to what we’re doing.
00:08:28.053 —> 00:08:32.215
We see all other modern products are built
00:08:32.335 —> 00:08:33.796
in a factory except for housing.
00:08:33.875 —> 00:08:35.797
And it’s this huge product categories,
00:08:35.817 —> 00:08:37.797
like trillion dollars that’s still being
00:08:37.836 —> 00:08:39.738
built by skilled craftsmen.
00:08:40.158 —> 00:08:41.958
So I always compare it to automobile
00:08:41.979 —> 00:08:42.639
manufacturing.
00:08:43.119 —> 00:08:46.799
If you look at a Ford factory or
00:08:46.820 —> 00:08:49.240
a Tesla factory, it’s absolutely amazing,
00:08:49.421 —> 00:08:50.902
massive long assembly line,
00:08:51.822 —> 00:08:53.363
automation, robotics,
00:08:53.683 —> 00:08:55.705
and they’re pushing cars out of those
00:08:55.725 —> 00:08:58.647
factories at the rate of every one minute
00:08:58.706 —> 00:08:59.207
or less.
00:08:59.368 —> 00:09:00.989
So most car factories are putting out a
00:09:01.048 —> 00:09:02.509
car every one minute or less.
00:09:03.030 —> 00:09:04.231
And so, you know,
00:09:04.392 —> 00:09:05.952
we think it’s a no brainer that houses
00:09:05.972 —> 00:09:07.134
should be built like that.
00:09:07.734 —> 00:09:07.953
And
00:09:09.092 —> 00:09:11.475
The way it works in our factory is
00:09:11.514 —> 00:09:14.236
we have an assembly line, the cars,
00:09:14.356 —> 00:09:18.921
the houses are basically on a track and
00:09:18.941 —> 00:09:20.322
they get pushed through the factory.
00:09:20.721 —> 00:09:23.144
And then each station does a specific job.
00:09:24.144 —> 00:09:25.985
And really with a factory,
00:09:26.265 —> 00:09:27.748
the bigger the assembly line you have,
00:09:27.827 —> 00:09:29.288
and the more you break up those jobs
00:09:29.349 —> 00:09:30.789
into smaller jobs,
00:09:31.190 —> 00:09:32.211
the more efficient it gets.
00:09:32.331 —> 00:09:34.052
And you can remove a tremendous amount of
00:09:34.072 —> 00:09:34.893
labor like that.
00:09:35.274 —> 00:09:36.514
So we’re basically producing these
00:09:36.554 —> 00:09:38.076
standardized room modules
00:09:38.556 —> 00:09:39.797
mass producing them in our factory,
00:09:39.836 —> 00:09:42.839
we can produce a house about every one
00:09:42.879 —> 00:09:43.559
hour right now.
00:09:44.159 —> 00:09:46.381
And already we’re seeing that we’re coming
00:09:46.501 —> 00:09:49.583
out way ahead on price and quality and
00:09:49.624 —> 00:09:50.063
speed.
00:09:50.684 —> 00:09:52.865
And we’ll continue to develop that and
00:09:52.905 —> 00:09:53.407
grow that.
00:09:53.907 —> 00:09:56.969
And I think another good way to explain
00:09:57.028 —> 00:09:58.971
it is imagine that you ordered a car.
00:09:59.750 —> 00:10:00.871
And some guys,
00:10:01.072 —> 00:10:02.272
instead of the car showing up from the
00:10:02.292 —> 00:10:02.731
factory,
00:10:02.772 —> 00:10:05.432
some guys show up in your driveway with
00:10:06.193 —> 00:10:08.754
a drill and sheet metal and a welding
00:10:08.774 —> 00:10:11.255
torch and a spray paint or whatever.
00:10:11.275 —> 00:10:13.056
And they start building the car in the
00:10:13.076 —> 00:10:13.475
driveway.
00:10:13.556 —> 00:10:14.397
Obviously, that would be.
00:10:15.037 —> 00:10:17.197
ridiculous it would take months and months
00:10:17.238 —> 00:10:18.298
and months it would be extremely
00:10:18.317 —> 00:10:22.000
inefficient extremely high cost and you
00:10:22.039 —> 00:10:24.480
know that sounds crazy but that’s how it
00:10:24.519 —> 00:10:26.541
is with houses that’s the regular way to
00:10:26.581 —> 00:10:28.861
do it and you know we just think
00:10:28.881 —> 00:10:30.763
we’re going to see a huge gain by
00:10:30.802 —> 00:10:33.104
doing it in the in the factory and
00:10:33.964 —> 00:10:34.104
uh
00:10:34.624 —> 00:10:36.346
Other people have tried this,
00:10:36.405 —> 00:10:38.087
but it’s really failed to gain market
00:10:38.107 —> 00:10:38.427
share.
00:10:38.889 —> 00:10:41.471
And the reason for that is all ties
00:10:41.511 —> 00:10:43.833
back to shipping because houses are really
00:10:43.874 —> 00:10:44.094
big,
00:10:44.634 —> 00:10:46.035
so it’s hard to ship them cost
00:10:46.076 —> 00:10:46.596
effectively.
00:10:46.797 —> 00:10:49.419
So a regular modular factory is shipping a
00:10:49.460 —> 00:10:50.881
wide load on the highway that’s very
00:10:50.922 —> 00:10:51.701
expensive to ship.
00:10:52.202 —> 00:10:53.663
So when you ship a wide load on
00:10:53.683 —> 00:10:54.225
the highway,
00:10:54.345 —> 00:10:55.546
not only do you have the truck carrying
00:10:55.566 —> 00:10:55.886
the load,
00:10:56.267 —> 00:10:58.488
But you have a car following the truck
00:10:58.508 —> 00:11:00.427
carrying the load, a flag car,
00:11:00.447 —> 00:11:02.568
an escort vehicle with lights and flags.
00:11:02.589 —> 00:11:04.288
You might have seen them on the highway
00:11:04.308 —> 00:11:04.708
before.
00:11:04.908 —> 00:11:08.669
And the result of that is just really,
00:11:08.730 —> 00:11:10.870
really high shipping costs.
00:11:11.350 —> 00:11:14.051
And then those factories don’t have a big
00:11:14.091 —> 00:11:15.432
shipping radius from the factory.
00:11:16.971 —> 00:11:19.852
like the filing SEC filings from like
00:11:19.972 —> 00:11:21.092
Cavco or Champion,
00:11:21.153 —> 00:11:23.572
it even says in their filings as one
00:11:23.592 —> 00:11:24.474
of their disclosures,
00:11:25.153 —> 00:11:27.453
we have small regional factories because
00:11:27.494 —> 00:11:29.735
we can’t ship cost effectively more than a
00:11:29.794 —> 00:11:31.995
two hundred mile radius from the factory.
00:11:32.554 —> 00:11:34.775
And so what we’ve done is we’ve solved
00:11:34.796 —> 00:11:35.755
that shipping problem.
00:11:36.615 —> 00:11:38.456
Not only are we shipping on a highway
00:11:38.517 —> 00:11:42.418
legal load that doesn’t require a an
00:11:42.457 —> 00:11:43.177
escort vehicle,
00:11:43.217 —> 00:11:43.857
but we’re shipping
00:11:44.798 —> 00:11:46.778
probably double what could be shipped on a
00:11:46.818 —> 00:11:47.479
regular truck.
00:11:48.759 —> 00:11:52.720
And then that means we can ship houses
00:11:52.860 —> 00:11:53.659
all around the country.
00:11:54.220 —> 00:11:55.181
The numbers still crunch.
00:11:55.520 —> 00:11:56.520
And if we can ship them all around
00:11:56.541 —> 00:11:56.900
the country,
00:11:56.921 —> 00:11:58.081
then we can have a big factory.
00:11:58.441 —> 00:11:59.721
And then we can take advantage of
00:11:59.922 —> 00:12:01.721
economies of scale and mass production.
00:12:02.322 —> 00:12:03.942
And what we’ll see happen there
00:12:04.602 —> 00:12:07.423
is the more we scale manufacturing and the
00:12:07.443 —> 00:12:09.004
assembly line and the mass production,
00:12:09.044 —> 00:12:10.566
the lower the labor costs will go,
00:12:10.765 —> 00:12:12.927
the lower the material costs will go.
00:12:12.947 —> 00:12:15.067
We’ll get lots of other efficiencies along
00:12:15.087 —> 00:12:15.288
the way.
00:12:15.307 —> 00:12:16.807
And we’re already seeing that happen now
00:12:16.847 —> 00:12:19.549
because even our first product that we
00:12:19.570 —> 00:12:22.130
launched with the Casita is far lower cost
00:12:22.150 —> 00:12:24.412
than any of the competitors have going
00:12:24.591 —> 00:12:24.991
right now.
00:12:25.091 —> 00:12:27.352
So we think we’ve done a really good
00:12:27.393 —> 00:12:29.134
job proving the concept now and we’ll
00:12:29.153 —> 00:12:30.735
continue to scale it and continue to
00:12:30.794 —> 00:12:33.235
command resources to grow it and make it
00:12:33.255 —> 00:12:33.755
more efficient.
00:12:34.501 —> 00:12:36.104
So going back to the transportation,
00:12:36.585 —> 00:12:37.686
how are you guys making a difference?
00:12:37.706 —> 00:12:39.128
You said you solved the transportation
00:12:39.168 —> 00:12:39.609
problem.
00:12:40.129 —> 00:12:41.490
You still need to ship the homes.
00:12:41.772 —> 00:12:43.614
Are they shipped in a smaller components
00:12:43.634 —> 00:12:45.476
like connected together on site?
00:12:45.517 —> 00:12:47.499
Like how did you guys achieve that?
00:12:48.283 —> 00:12:51.046
Yeah, so this first product we have,
00:12:51.566 —> 00:12:54.328
the Casita, is like one room module,
00:12:54.408 —> 00:12:56.071
one building block in our system.
00:12:56.410 —> 00:12:59.274
So we mass produce rooms that connect
00:12:59.313 —> 00:13:01.235
together like Legos and then are kind of
00:13:01.515 —> 00:13:03.518
clad and customized on site.
00:13:03.857 —> 00:13:04.558
By doing that,
00:13:04.639 —> 00:13:06.380
we can create like the full range of
00:13:06.421 —> 00:13:08.001
residential building products.
00:13:08.482 —> 00:13:09.484
And the way we ship it is the
00:13:09.504 —> 00:13:10.544
house actually folds up.
00:13:11.044 —> 00:13:14.826
So each room is about twenty feet wide,
00:13:14.966 —> 00:13:16.287
but then it folds down to eight and
00:13:16.307 —> 00:13:17.268
a half feet wide.
00:13:17.567 —> 00:13:18.668
However, it’s still finished,
00:13:18.788 —> 00:13:21.089
so we still fit in their kitchen,
00:13:21.109 —> 00:13:23.169
bathroom, electric, plumbing, windows,
00:13:23.210 —> 00:13:23.710
flooring,
00:13:24.149 —> 00:13:25.410
everything we could possibly get done in
00:13:25.431 —> 00:13:26.030
the factory.
00:13:26.171 —> 00:13:28.091
We get done in the factory where it’s
00:13:28.652 —> 00:13:29.471
cost effective.
00:13:29.913 —> 00:13:32.313
So that was kind of the key innovation
00:13:32.333 —> 00:13:34.293
that enables us to do everything else we
00:13:34.313 —> 00:13:36.235
do with solving that shipping problem.
00:13:36.274 —> 00:13:37.355
And if you check out our website,
00:13:37.375 —> 00:13:39.155
you’ll see how the folding works.
00:13:39.856 —> 00:13:40.456
It’s pretty cool.
00:13:42.168 —> 00:13:43.948
yeah so everyone will be sharing that
00:13:43.989 —> 00:13:48.111
video on artifacts and and on twitter and
00:13:48.812 —> 00:13:50.432
and discord just to show you because it’s
00:13:50.452 —> 00:13:52.514
very cool but ask that question so people
00:13:52.575 —> 00:13:55.056
know that this is the difference right
00:13:55.316 —> 00:13:57.216
they solve the transportation issue which
00:13:57.256 —> 00:13:59.259
makes it you know able to deliver beyond
00:13:59.278 —> 00:14:01.100
the two hundred mile radius which has uh
00:14:01.159 —> 00:14:03.000
hard capped and limited the other firms
00:14:03.020 —> 00:14:04.182
that sell modular homes
00:14:04.902 —> 00:14:06.802
Going down into the engineering inside the
00:14:06.842 —> 00:14:09.183
house, how do you solve the electrical,
00:14:09.323 —> 00:14:11.703
the septic, water distribution?
00:14:12.065 —> 00:14:12.764
How does that work?
00:14:13.044 —> 00:14:16.605
Do you guys have single outlets on the
00:14:16.645 —> 00:14:17.125
exterior?
00:14:17.667 —> 00:14:19.427
How does it connect to a traditional
00:14:19.606 —> 00:14:21.827
housing grid in terms of when these houses
00:14:21.847 —> 00:14:23.288
get moved to, let’s say,
00:14:23.327 —> 00:14:24.489
some suburb in Chicago?
00:14:25.443 —> 00:14:26.063
Yeah,
00:14:26.244 —> 00:14:27.745
so there’s lots of little innovations
00:14:27.764 —> 00:14:30.245
going on and lots of kind of problems
00:14:30.285 —> 00:14:32.426
solved and friction points and issues that
00:14:32.466 —> 00:14:34.307
we’ve dialed in on along the way.
00:14:34.986 —> 00:14:36.827
One of those is the utility connections.
00:14:36.927 —> 00:14:38.388
So in most houses,
00:14:38.427 —> 00:14:40.568
you’re going to have the utilities going
00:14:40.609 —> 00:14:42.469
straight down through the floor into the
00:14:42.489 —> 00:14:43.110
foundation.
00:14:43.669 —> 00:14:45.169
And then because of that,
00:14:45.230 —> 00:14:46.490
you’re going to have to prepare a more
00:14:46.530 —> 00:14:47.030
complex
00:14:47.691 —> 00:14:48.951
foundation, like a slab.
00:14:49.133 —> 00:14:50.494
So if you’ve ever seen a slab in
00:14:50.514 —> 00:14:51.195
a building site,
00:14:51.215 —> 00:14:53.256
you’ll see there’s rough plumbing coming
00:14:53.298 —> 00:14:54.097
up through the slab.
00:14:54.619 —> 00:14:57.022
So our solution was to do that all
00:14:57.842 —> 00:14:59.544
inside of our box and then have it
00:14:59.585 —> 00:15:02.528
all come out one spot on the exterior
00:15:02.748 —> 00:15:03.710
wall, not the floor.
00:15:04.169 —> 00:15:06.169
That way there’s less planning and less
00:15:06.210 —> 00:15:08.071
cost when you’re doing that slab.
00:15:08.471 —> 00:15:10.571
So that’s just one little thing we’ve done
00:15:11.032 —> 00:15:11.851
to dial that in.
00:15:12.331 —> 00:15:13.751
And basically, you know,
00:15:14.312 —> 00:15:16.653
whether it’s us deploying the unit or the
00:15:16.673 —> 00:15:18.712
customer buying the unit and deploying it
00:15:18.732 —> 00:15:19.253
themselves,
00:15:19.572 —> 00:15:21.014
they’re going to be preparing the ground,
00:15:21.374 —> 00:15:23.553
the utilities, all that stuff,
00:15:23.573 —> 00:15:24.274
the foundation.
00:15:24.735 —> 00:15:26.115
And then we’re just going to come in
00:15:26.154 —> 00:15:27.195
and drop our unit down.
00:15:27.595 —> 00:15:28.916
It’ll set up in a day or two
00:15:29.535 —> 00:15:30.176
and ready to go.
00:15:31.336 —> 00:15:31.797
Amazing.
00:15:32.177 —> 00:15:33.577
And then you can connect the utilities on
00:15:33.618 —> 00:15:34.177
the outside.
00:15:34.197 —> 00:15:35.818
You just plug them in and you don’t
00:15:35.839 —> 00:15:38.160
have to really plan too much how to
00:15:38.181 —> 00:15:39.442
map it all out on the foundation.
00:15:39.461 —> 00:15:40.442
Yep.
00:15:40.543 —> 00:15:41.962
Another question folks are asking,
00:15:42.063 —> 00:15:43.804
we know the company is in Nevada.
00:15:44.524 —> 00:15:48.107
I’m Canadian, Canadian-American,
00:15:48.908 —> 00:15:49.969
live in a cold region.
00:15:50.609 —> 00:15:52.510
Would these houses also work in a cold
00:15:52.530 —> 00:15:52.850
region?
00:15:54.042 —> 00:15:54.322
Yeah,
00:15:54.381 —> 00:15:57.465
so another cool thing that we’ve done that
00:15:57.485 —> 00:16:00.027
makes our product special is that we’ve
00:16:00.047 —> 00:16:01.868
had to engineer a product that works
00:16:02.268 —> 00:16:04.330
everywhere so that we can mass produce one
00:16:04.350 —> 00:16:06.471
product and ship it to all of the
00:16:06.572 —> 00:16:08.312
United States or North America.
00:16:08.712 —> 00:16:09.874
So in order to achieve that,
00:16:09.894 —> 00:16:11.554
we’ve had to dial in the various
00:16:11.595 —> 00:16:14.216
requirements, whether it’s energy,
00:16:15.197 —> 00:16:17.580
structural strength, earthquake ratings,
00:16:18.620 —> 00:16:19.360
whatever it is,
00:16:19.741 —> 00:16:21.682
so that whether we put our house in
00:16:22.443 —> 00:16:22.464
a
00:16:24.106 —> 00:16:25.707
Florida where there’s high winds or
00:16:25.927 —> 00:16:27.408
California where there’s earthquake
00:16:27.448 —> 00:16:29.068
requirements it’s going to meet all of
00:16:29.089 —> 00:16:30.409
that so we’ve actually been able to
00:16:30.509 —> 00:16:33.951
engineer kind of a superior building
00:16:33.971 —> 00:16:36.852
product that beats out traditional houses
00:16:37.133 —> 00:16:38.533
on those various ratings.
00:16:39.955 —> 00:16:41.235
Okay, that’s amazing.
00:16:41.736 —> 00:16:43.697
Then the question now a lot of folks
00:16:43.758 —> 00:16:46.179
are asking is in terms of different
00:16:46.220 —> 00:16:46.681
states,
00:16:47.660 —> 00:16:50.003
do you meet their expectations for like a
00:16:50.264 —> 00:16:52.745
habitable unit in order to build these
00:16:52.785 —> 00:16:53.986
homes and place them there?
00:16:54.366 —> 00:16:56.668
Are you waiting some licenses or are you
00:16:56.729 —> 00:16:58.309
okay to sell this to any of the
00:17:00.032 —> 00:17:01.173
states that we have in the country?
00:17:02.385 —> 00:17:02.566
Yeah,
00:17:02.625 —> 00:17:05.608
so we go through the state regulatory
00:17:05.648 —> 00:17:07.730
programs where we apply and get approved.
00:17:08.290 —> 00:17:10.653
And what we’re building is built to the
00:17:10.673 —> 00:17:12.794
same building code as the house you might
00:17:12.814 —> 00:17:13.295
live in now.
00:17:13.355 —> 00:17:15.415
So it’s the regular residential building
00:17:15.435 —> 00:17:18.659
code that’s determining how strong or safe
00:17:18.759 —> 00:17:20.799
or energy efficient the house is.
00:17:21.361 —> 00:17:22.281
And we
00:17:24.157 —> 00:17:26.019
Go through the state programs to get
00:17:26.058 —> 00:17:26.480
approval.
00:17:26.519 —> 00:17:28.560
So right now we’ve got a bunch of
00:17:28.580 —> 00:17:29.101
states.
00:17:29.461 —> 00:17:31.163
Um, you know, big one is California.
00:17:31.182 —> 00:17:32.384
That’s very important for us.
00:17:32.403 —> 00:17:34.424
That’s where we see a really big business.
00:17:34.444 —> 00:17:36.086
We just got Texas last week.
00:17:36.105 —> 00:17:37.247
So we’re going kind of for the high
00:17:37.287 —> 00:17:38.807
population states.
00:17:38.847 —> 00:17:40.269
First and.
00:17:40.989 —> 00:17:42.230
You know, that’s, um.
00:17:43.451 —> 00:17:45.291
kind of a different way of getting houses
00:17:45.332 —> 00:17:47.032
approved by going through the state
00:17:47.054 —> 00:17:47.433
programs,
00:17:47.473 —> 00:17:48.775
because the traditional builder goes
00:17:48.795 —> 00:17:50.516
through the local building department.
00:17:50.855 —> 00:17:52.757
And we do get some significant benefits by
00:17:52.797 —> 00:17:55.719
doing it that way, because, for example,
00:17:55.919 —> 00:17:57.800
in a regular job site,
00:17:57.881 —> 00:17:58.701
you’re going to have the building
00:17:58.740 —> 00:18:00.201
department coming out multiple times
00:18:00.221 —> 00:18:01.742
during the job to inspect.
00:18:01.782 —> 00:18:03.304
So you do your framing, they inspect,
00:18:03.324 —> 00:18:04.785
you do your electrical, they inspect,
00:18:04.805 —> 00:18:05.806
you have to make an appointment.
00:18:05.846 —> 00:18:07.446
It’s a government bureaucrat coming to
00:18:07.467 —> 00:18:09.828
your job site and it’s not very efficient.
00:18:10.429 —> 00:18:11.549
And you can imagine like
00:18:12.557 —> 00:18:15.258
let’s say in the back to the car
00:18:15.738 —> 00:18:18.318
you know factory example if the government
00:18:18.358 —> 00:18:19.900
inspector had to come out and inspect
00:18:20.440 —> 00:18:23.300
every ford f-one that came off the factory
00:18:23.340 —> 00:18:25.501
line that would just be a big problem
00:18:25.942 —> 00:18:27.982
so um we’re able to go through these
00:18:28.022 —> 00:18:29.682
state programs and for example in
00:18:29.722 —> 00:18:31.584
california we were actually the first
00:18:31.604 —> 00:18:33.724
factory to qualify for reduced inspections
00:18:34.164 —> 00:18:36.066
so now in california they don’t even look
00:18:36.125 —> 00:18:36.205
at
00:18:36.905 —> 00:18:39.808
every house that we make they just trust
00:18:39.828 —> 00:18:42.691
that our quality control systems and their
00:18:42.730 —> 00:18:45.532
spot checks mean that we’re doing a good
00:18:45.553 —> 00:18:48.276
job and when you’re doing um things in
00:18:48.296 —> 00:18:51.018
a factory and you’re doing repeatability
00:18:52.278 —> 00:18:54.701
and uh standardization you’re gonna get a
00:18:54.740 —> 00:18:56.923
far higher quality level than some guys
00:18:57.042 —> 00:18:58.765
out you know in the rain and the
00:18:59.345 —> 00:19:01.747
and the the hot weather or whatever you
00:19:01.767 —> 00:19:02.508
know with a nail gun
00:19:04.201 —> 00:19:05.941
that is true that’s a remarkable
00:19:05.961 —> 00:19:07.721
achievement you know they must see that
00:19:07.741 —> 00:19:09.481
your quality is pretty consistent so they
00:19:09.521 —> 00:19:11.902
require less inspections right because
00:19:11.981 —> 00:19:13.363
it’s so systematic in the way you build
00:19:13.383 —> 00:19:15.383
your homes rather than one off for each
00:19:15.482 —> 00:19:17.663
one in each property moving on to the
00:19:17.703 —> 00:19:20.824
business side of boxable uh and obviously
00:19:20.844 —> 00:19:22.704
we don’t have to go through areas which
00:19:22.744 —> 00:19:25.224
is not your expertise if it’s by someone
00:19:25.285 —> 00:19:26.505
else in the company which we can bring
00:19:26.565 —> 00:19:28.246
next time or whether you don’t want to
00:19:28.266 —> 00:19:29.405
talk about them and that’s fine
00:19:30.726 —> 00:19:33.528
so are you guys profitable right now or
00:19:33.587 —> 00:19:35.528
how or do you guys have to uh
00:19:35.549 —> 00:19:37.530
go at economies of scale to become
00:19:37.570 —> 00:19:39.172
profitable where are you guys at right now
00:19:39.392 —> 00:19:43.234
that’s the question yeah yeah so um we’ve
00:19:43.355 —> 00:19:46.376
spent a lot of time developing and setting
00:19:46.477 —> 00:19:49.660
up a massive factory um you know that’s
00:19:49.700 —> 00:19:50.900
been a lot of r d a lot
00:19:50.940 —> 00:19:52.481
of engineering a lot of regulatory
00:19:52.501 —> 00:19:55.564
approvals uh what we’re doing is uh
00:19:56.371 —> 00:19:58.252
extremely ambitious and extremely
00:19:59.233 —> 00:19:59.854
difficult.
00:20:00.375 —> 00:20:02.757
It’s very capital intensive.
00:20:03.397 —> 00:20:07.101
It’s a big play with a big upside.
00:20:07.882 —> 00:20:10.104
But we do have this factory that we’ve
00:20:10.144 —> 00:20:11.644
spent several hundred million dollars
00:20:12.046 —> 00:20:12.586
setting up,
00:20:12.846 —> 00:20:13.946
and it’s now just kind of
00:20:14.867 —> 00:20:16.869
ramping up as far as the production
00:20:16.990 —> 00:20:17.390
output.
00:20:17.430 —> 00:20:19.291
So we have to make a certain amount
00:20:19.311 —> 00:20:22.614
of houses per year to be profitable.
00:20:23.134 —> 00:20:24.174
And, you know,
00:20:24.255 —> 00:20:26.717
we’re definitely heavily focused on on
00:20:26.777 —> 00:20:27.317
sales now.
00:20:27.698 —> 00:20:29.419
But under our current square footage,
00:20:29.480 —> 00:20:30.881
as our factory is set up now,
00:20:31.280 —> 00:20:32.102
we can produce
00:20:33.171 —> 00:20:35.753
probably thousands of room modules.
00:20:35.874 —> 00:20:37.836
So quite a lot of revenue of that
00:20:37.876 —> 00:20:40.299
factory is at full capacity,
00:20:40.400 —> 00:20:41.500
hundreds of millions of dollars.
00:20:41.922 —> 00:20:43.624
So that’s what we have now.
00:20:43.703 —> 00:20:45.445
And it’s just a matter of filling in
00:20:45.486 —> 00:20:46.727
the pipeline with projects.
00:20:47.228 —> 00:20:49.009
And one thing that’s been a little bit
00:20:49.029 —> 00:20:49.971
of a challenge that
00:20:50.551 —> 00:20:51.874
people don’t necessarily understand is
00:20:52.375 —> 00:20:53.916
when we’re selling a housing product like
00:20:53.936 —> 00:20:54.217
this,
00:20:54.438 —> 00:20:56.820
it’s not a little small widget that you
00:20:56.840 —> 00:20:57.662
can order online.
00:20:57.701 —> 00:20:59.183
I can put it in FedEx envelope and
00:20:59.203 —> 00:20:59.744
ship it to you.
00:21:00.065 —> 00:21:00.846
There’s quite a big,
00:21:01.186 —> 00:21:05.051
long sales cycle for houses because it’s a
00:21:05.092 —> 00:21:05.732
big decision.
00:21:05.772 —> 00:21:07.335
Like some of our customers might be
00:21:07.875 —> 00:21:08.195
you know,
00:21:08.576 —> 00:21:10.396
buying fifty million dollars worth of
00:21:10.436 —> 00:21:11.537
houses, for example.
00:21:11.896 —> 00:21:13.576
Then on top of that, you have financing,
00:21:13.596 —> 00:21:14.718
you have permitting,
00:21:15.038 —> 00:21:16.778
and then you have site land preparation.
00:21:17.198 —> 00:21:18.679
So all that can take a long time.
00:21:18.739 —> 00:21:19.558
So a customer,
00:21:19.999 —> 00:21:21.898
even if they want to buy our product,
00:21:22.460 —> 00:21:23.920
there’s a little bit of a lead time
00:21:23.960 —> 00:21:26.101
between them making the decision and then
00:21:26.221 —> 00:21:27.161
us actually selling.
00:21:27.560 —> 00:21:29.421
So we’re working really hard with our
00:21:29.461 —> 00:21:31.721
sales team and our leads to go and
00:21:32.261 —> 00:21:34.663
you know book these orders and we expect
00:21:34.682 —> 00:21:36.423
that that will start to snowball over time
00:21:36.443 —> 00:21:38.424
as we see the projects that came in
00:21:38.444 —> 00:21:40.486
the door you know six months ago or
00:21:40.506 —> 00:21:43.086
a year ago start coming to fruition today
00:21:43.686 —> 00:21:47.269
um yeah that’s amazing uh we’re gonna go
00:21:47.308 —> 00:21:48.929
to our first break uh commercial break
00:21:49.189 —> 00:21:50.809
thank you everyone that’s here from reddit
00:21:51.049 —> 00:21:53.351
stock twist discord and x today we have
00:21:53.391 —> 00:21:57.353
galiano termani uh ceo and founder of
00:21:57.432 —> 00:21:59.554
boxable current tickers fgmc
00:22:00.233 —> 00:22:02.336
also one of our sponsors for today as
00:22:02.375 —> 00:22:04.478
we provide this show hundreds of thousands
00:22:04.518 —> 00:22:07.842
of viewers across the web this company is
00:22:07.882 —> 00:22:10.605
very innovative in terms of making a
00:22:10.644 —> 00:22:13.166
disruption in the housing market where as
00:22:13.247 —> 00:22:15.609
everyone knows it’s very difficult to get
00:22:15.630 —> 00:22:17.171
a house because there’s there’s a tight
00:22:17.211 —> 00:22:17.652
supply
00:22:18.172 —> 00:22:19.673
Each house is individually made,
00:22:20.113 —> 00:22:22.012
and they’re solving both how it’s made in
00:22:22.053 —> 00:22:24.193
a factory-like setting and also the
00:22:24.233 —> 00:22:24.954
transportation,
00:22:24.994 —> 00:22:27.575
making it very foldable and modularized,
00:22:27.976 —> 00:22:30.717
and also solving the big state problems by
00:22:30.797 —> 00:22:34.038
attacking first and providing value to the
00:22:34.057 —> 00:22:36.919
larger states like Texas, Florida,
00:22:37.019 —> 00:22:37.818
and California,
00:22:38.058 —> 00:22:40.039
and the other states thereafter.
00:22:40.079 —> 00:22:41.200
So thank you so much, everyone,
00:22:41.240 —> 00:22:42.300
for showing up today.
00:22:43.141 —> 00:22:43.340
Now,
00:22:43.500 —> 00:22:45.402
going back into the business aspect and
00:22:45.442 —> 00:22:46.722
the statewide distribution,
00:22:47.222 —> 00:22:48.403
you said those big states,
00:22:48.784 —> 00:22:50.703
and I’m assuming the other states like New
00:22:50.743 —> 00:22:52.825
Hampshire and so forth and Massachusetts
00:22:52.845 —> 00:22:54.605
will come soon after, I’m assuming, right?
00:22:56.007 —> 00:22:56.307
Yeah,
00:22:56.386 —> 00:22:57.867
there’s two ways we’re approaching it.
00:22:58.107 —> 00:23:01.048
One is we have our first product,
00:23:01.068 —> 00:23:02.690
that’s the casita.
00:23:02.950 —> 00:23:04.590
So that’s like a three hundred sixty
00:23:04.631 —> 00:23:06.030
square foot studio apartment.
00:23:06.590 —> 00:23:08.172
And then that’s one box.
00:23:08.332 —> 00:23:09.353
And then we can stick a couple of
00:23:09.373 —> 00:23:10.893
those together and create a larger house,
00:23:10.932 —> 00:23:12.013
like a one or two bedroom.
00:23:12.753 —> 00:23:14.655
and so we’re producing that right now
00:23:14.695 —> 00:23:17.417
we’re selling that right now and we have
00:23:17.698 —> 00:23:19.900
customer who may want a bunch of units
00:23:19.920 —> 00:23:21.422
who’s a developer or builder or they have
00:23:21.442 —> 00:23:24.144
some larger project or we have a customer
00:23:24.183 —> 00:23:26.286
that’s an individual that wants one for
00:23:26.306 —> 00:23:28.426
themselves so in markets where we think
00:23:28.468 —> 00:23:30.608
there’s a big demand for a backyard house
00:23:30.648 —> 00:23:32.530
like for example california where they’ve
00:23:32.570 —> 00:23:34.692
passed a bunch of laws legalizing that and
00:23:34.712 —> 00:23:36.054
you actually see twenty percent of new
00:23:36.074 —> 00:23:37.875
construction in california is the backyard
00:23:37.915 —> 00:23:38.155
house
00:23:38.556 —> 00:23:41.538
And then lots of other cities and states
00:23:41.718 —> 00:23:43.679
adding in rules to allow for that.
00:23:44.640 —> 00:23:46.421
We’re going and targeting the standard
00:23:46.441 —> 00:23:50.323
approval for that product to deploy those
00:23:50.383 —> 00:23:51.983
for backyard ADUs.
00:23:52.545 —> 00:23:53.986
And then separately,
00:23:54.026 —> 00:23:55.405
if someone wants to do a big order,
00:23:55.946 —> 00:23:58.468
we’ll go and get that approval as part
00:23:58.488 —> 00:23:58.949
of that order.
00:23:59.009 —> 00:24:01.109
So if someone comes in as a bigger
00:24:01.150 —> 00:24:02.810
customer in a state that we are not
00:24:02.851 —> 00:24:03.431
approved yet,
00:24:04.112 —> 00:24:05.692
we’ll just go ahead and get that approval
00:24:06.012 —> 00:24:07.334
while they’re getting their project ready.
00:24:07.634 —> 00:24:10.576
during that time of preparation.
00:24:11.056 —> 00:24:13.478
So who are your customers now?
00:24:13.577 —> 00:24:15.298
Are they individual folks that want to put
00:24:15.318 —> 00:24:16.318
a house in their backyard?
00:24:16.700 —> 00:24:19.601
Are they like home developers that want to
00:24:19.642 —> 00:24:21.041
put twenty homes in one area?
00:24:21.962 —> 00:24:23.364
What is the mix of customers you have
00:24:23.403 —> 00:24:24.724
right now?
00:24:24.765 —> 00:24:25.505
So we’ve done
00:24:28.940 —> 00:24:29.420
Famously,
00:24:29.460 —> 00:24:32.021
the first customer was actually Elon Musk.
00:24:32.582 —> 00:24:33.323
That was pretty cool.
00:24:33.343 —> 00:24:34.923
He bought one of our first prototypes.
00:24:34.962 —> 00:24:39.726
We deployed it at SpaceX in Texas.
00:24:40.826 —> 00:24:44.669
Now we actually have Tesla as a new
00:24:44.709 —> 00:24:45.729
customer after that.
00:24:47.430 —> 00:24:47.789
We did...
00:24:48.931 —> 00:24:49.971
military based housing.
00:24:50.612 —> 00:24:53.172
We’ve done lots of backyard units.
00:24:53.692 —> 00:24:55.792
We’ve done like clamping communities,
00:24:57.253 —> 00:24:58.894
other little communities around the
00:24:58.913 —> 00:25:00.815
country, workforce housing,
00:25:02.355 —> 00:25:04.056
all kind of different use cases for this
00:25:04.096 —> 00:25:05.276
first project.
00:25:05.496 —> 00:25:08.977
And then we’re just now ready to roll
00:25:09.076 —> 00:25:10.557
out the kind of the rest of our
00:25:10.597 —> 00:25:11.298
building system.
00:25:11.438 —> 00:25:12.877
So what we did was we started with
00:25:12.897 —> 00:25:14.338
the smallest box in the system,
00:25:14.979 —> 00:25:17.420
and then now we’ve developed and built
00:25:18.140 —> 00:25:19.221
the rest of the boxes,
00:25:19.260 —> 00:25:21.541
so the larger boxes that will stack and
00:25:21.561 —> 00:25:23.644
connect together to build really most
00:25:23.723 —> 00:25:25.444
other residential buildings like a single
00:25:25.484 —> 00:25:27.026
family home or an apartment building.
00:25:27.506 —> 00:25:29.667
So we think we can build the bulk
00:25:29.708 —> 00:25:32.009
of what is needed by the market as
00:25:32.048 —> 00:25:33.529
far as different types of houses,
00:25:34.550 —> 00:25:35.250
communities.
00:25:35.852 —> 00:25:37.792
Another customer is worth mentioning is DR
00:25:37.813 —> 00:25:38.113
Horton.
00:25:38.173 —> 00:25:39.874
They’re the largest home builder in the
00:25:39.913 —> 00:25:40.193
country.
00:25:40.213 —> 00:25:41.234
They’re one of our investors.
00:25:44.173 —> 00:25:45.594
a place in order for a hundred units
00:25:45.653 —> 00:25:48.555
just to do a little tract home community.
00:25:49.275 —> 00:25:50.575
And so, you know,
00:25:51.675 —> 00:25:53.596
what we’re working with right now is we’re
00:25:53.615 —> 00:25:54.557
calling it phase two.
00:25:54.997 —> 00:25:57.278
So that’s the bigger room modules also
00:25:57.377 —> 00:25:59.479
uses different materials,
00:25:59.499 —> 00:26:01.419
different manufacturing methods.
00:26:01.459 —> 00:26:03.819
So like everything we’ve been learning and
00:26:03.859 —> 00:26:05.401
working on for the last few years with
00:26:05.441 —> 00:26:05.840
Casita,
00:26:06.320 —> 00:26:08.442
We’ve taken all those lessons and solved a
00:26:08.502 —> 00:26:11.085
whole bunch of other issues and frictions.
00:26:11.525 —> 00:26:12.846
And we’ve dumped that all into our phase
00:26:12.885 —> 00:26:14.067
two, which we’re launching now.
00:26:14.626 —> 00:26:17.009
And so for that phase two product lineup,
00:26:17.509 —> 00:26:19.750
we’re looking for bigger developer
00:26:19.790 —> 00:26:20.311
customers.
00:26:20.811 —> 00:26:22.673
And we’re showing them basically, okay,
00:26:22.712 —> 00:26:23.493
this is our product.
00:26:23.653 —> 00:26:25.134
This is the type of houses you can
00:26:25.154 —> 00:26:26.455
get for it that meets the need for
00:26:26.476 —> 00:26:27.116
your project.
00:26:27.537 —> 00:26:29.317
This is the pricing we can expect.
00:26:29.659 —> 00:26:31.099
We think it’s better pricing than you can
00:26:31.160 —> 00:26:31.619
site build.
00:26:31.960 —> 00:26:33.521
And we think it’s going to shave six
00:26:33.561 —> 00:26:35.182
months off your timeline.
00:26:35.883 —> 00:26:37.826
uh so you know we just built those
00:26:37.865 —> 00:26:39.847
initial units and we’re just now talking
00:26:39.867 —> 00:26:42.329
to customers for those bigger orders and
00:26:42.371 —> 00:26:43.711
hopefully we’ll be announcing some of
00:26:43.731 —> 00:26:44.492
those projects soon
00:26:45.068 —> 00:26:47.410
Yeah, that’s very, very interesting news.
00:26:47.430 —> 00:26:50.332
You know, we kind of saw this,
00:26:50.892 —> 00:26:51.092
you know,
00:26:51.112 —> 00:26:52.653
from Gatewatch community and Reddit that,
00:26:52.833 —> 00:26:53.073
you know,
00:26:53.113 —> 00:26:54.693
you guys had this relationship with Elon.
00:26:55.114 —> 00:26:55.773
Very interesting.
00:26:55.814 —> 00:26:57.234
And we wish you guys a great success
00:26:57.275 —> 00:26:58.615
on that as they continue to grow their
00:26:58.655 —> 00:26:59.256
spaceport.
00:27:00.076 —> 00:27:01.836
The other question folks are asking is why
00:27:01.896 —> 00:27:02.478
SPAC route?
00:27:02.557 —> 00:27:02.837
You know,
00:27:02.938 —> 00:27:05.219
you guys appear to be well-funded,
00:27:05.499 —> 00:27:06.759
good fundraising campaign,
00:27:07.259 —> 00:27:08.259
doing an excellent job.
00:27:08.641 —> 00:27:09.760
Why go down the SPAC route?
00:27:09.800 —> 00:27:13.303
Why just not IPO directly or go other
00:27:13.323 —> 00:27:13.482
way?
00:27:14.365 —> 00:27:16.166
stay private i think i think since the
00:27:16.207 —> 00:27:17.887
beginning of the company you know we’ve
00:27:17.928 —> 00:27:20.048
tried really hard to maintain control of
00:27:20.068 —> 00:27:23.009
the company not be doing what a large
00:27:23.029 —> 00:27:25.692
institutional investor would would tell us
00:27:25.771 —> 00:27:28.313
or or you know be kind of taken
00:27:28.393 —> 00:27:30.473
over by the by the investor private equity
00:27:30.493 —> 00:27:33.115
or something like that and so um the
00:27:33.134 —> 00:27:34.695
spac is going to allow us to continue
00:27:34.715 —> 00:27:37.856
to leverage uh retail and maintain control
00:27:37.896 —> 00:27:38.857
of the company and kind of
00:27:39.357 —> 00:27:40.900
roll things out the way we think it
00:27:40.920 —> 00:27:41.500
should be done.
00:27:41.619 —> 00:27:44.462
So it was just one of the ways
00:27:44.502 —> 00:27:46.586
that made sense for us to go public
00:27:46.605 —> 00:27:47.346
when we looked at it.
00:27:47.846 —> 00:27:49.909
And here we are.
00:27:50.288 —> 00:27:52.030
So I think it was a good fit
00:27:52.372 —> 00:27:53.952
and we’ll see how things play out.
00:27:54.453 —> 00:27:57.115
The crowdfunding was interesting because
00:27:57.696 —> 00:27:59.136
When we ran these campaigns over the
00:27:59.176 —> 00:27:59.498
years,
00:27:59.557 —> 00:28:02.338
we would see a big amount of investors
00:28:02.378 —> 00:28:03.578
coming at the beginning because like
00:28:03.659 —> 00:28:05.318
anyone who’s interested in the company
00:28:05.358 —> 00:28:07.619
comes in as a lead and is watching
00:28:07.720 —> 00:28:10.381
us and can’t invest because the offering
00:28:10.401 —> 00:28:12.521
is not turned on, would be waiting.
00:28:12.741 —> 00:28:13.842
And then as soon as we turn the
00:28:13.902 —> 00:28:14.321
offering on,
00:28:14.342 —> 00:28:15.682
we’d see a big flood of investors
00:28:16.502 —> 00:28:18.723
uh early on in the campaign and then
00:28:18.763 —> 00:28:20.685
kind of a lull during the middle where
00:28:20.726 —> 00:28:22.307
we’d be gathering new leads and people
00:28:22.326 —> 00:28:23.707
would be waiting on the sidelines kind of
00:28:23.727 —> 00:28:25.028
making their decision and then when the
00:28:25.067 —> 00:28:27.368
campaign was about to end uh we’d see
00:28:27.569 —> 00:28:29.550
a bunch of them jump in at the
00:28:29.631 —> 00:28:32.512
end as well um and then so we’ve
00:28:32.613 —> 00:28:34.693
actually had to turn all that crowdfunding
00:28:34.794 —> 00:28:37.955
off about eight months ago and uh
00:28:39.105 —> 00:28:40.727
while we were going through the SPAC
00:28:40.767 —> 00:28:41.346
process.
00:28:41.926 —> 00:28:45.028
So we’ll see how that plays out once
00:28:45.088 —> 00:28:47.210
investing is turned back on effectively by
00:28:47.269 —> 00:28:49.270
becoming BXBL on the stock market.
00:28:50.105 —> 00:28:52.826
yeah so the ticker it will be bxbl
00:28:52.866 —> 00:28:56.347
on the spec everyone currently fgmc and if
00:28:56.367 —> 00:28:58.588
you want to buy the commons there’s rights
00:28:58.628 —> 00:29:01.349
also trading on on the market then the
00:29:01.369 —> 00:29:03.130
next question folks are asking is when do
00:29:03.150 —> 00:29:05.230
you expect this transaction to close i
00:29:05.270 —> 00:29:07.270
know it’s really hard to say that because
00:29:07.290 —> 00:29:10.051
it depends on how fast the paperwork moves
00:29:10.471 —> 00:29:11.972
but what’s your thoughts on that
00:29:12.980 —> 00:29:13.141
Yeah,
00:29:13.161 —> 00:29:14.501
I’m hoping that we’re at the finish line.
00:29:14.541 —> 00:29:17.663
We’ve got the S-IV already and then we’ve
00:29:17.703 —> 00:29:20.345
got the shareholder vote for June ninth.
00:29:20.904 —> 00:29:22.965
So we expect trading to commence shortly
00:29:23.026 —> 00:29:23.467
after that.
00:29:24.487 —> 00:29:25.827
Perfect.
00:29:25.907 —> 00:29:26.548
What do you think?
00:29:27.288 —> 00:29:29.009
What’s your vision of success one year
00:29:29.130 —> 00:29:31.191
after you de-SPAC from your perspective?
00:29:32.461 —> 00:29:36.823
So I think the goal is to continue
00:29:36.863 —> 00:29:38.263
pushing hard on sales,
00:29:38.344 —> 00:29:40.625
bring that factory up to full capacity,
00:29:41.085 —> 00:29:43.286
launch the phase two products,
00:29:43.405 —> 00:29:44.566
do communities with those.
00:29:45.106 —> 00:29:47.508
And basically what we think is gonna
00:29:47.567 —> 00:29:49.407
happen is that we’re gonna do these
00:29:49.428 —> 00:29:49.969
projects
00:29:50.785 —> 00:29:51.806
We’re going to come in with the case
00:29:51.846 —> 00:29:52.446
studies on them.
00:29:53.127 —> 00:29:55.009
And then more and more people are going
00:29:55.029 —> 00:29:55.990
to start to notice that.
00:29:56.471 —> 00:29:57.392
And they’re going to say, wow,
00:29:58.113 —> 00:29:59.894
these guys came in under budget.
00:30:00.556 —> 00:30:02.657
They shaved six months off the timeline.
00:30:02.979 —> 00:30:04.019
We didn’t have to deal with any
00:30:04.079 —> 00:30:04.881
subcontractors.
00:30:04.921 —> 00:30:06.362
We didn’t have to deal with any weather
00:30:06.402 —> 00:30:07.604
delays.
00:30:07.644 —> 00:30:09.705
We knew what our pricing was out the
00:30:09.746 —> 00:30:10.026
gate.
00:30:11.488 —> 00:30:14.410
that as those successful projects come in
00:30:14.430 —> 00:30:15.730
and we show that to the market,
00:30:15.770 —> 00:30:16.531
to the customers,
00:30:17.011 —> 00:30:18.093
that they’re going to flood in because
00:30:18.113 —> 00:30:19.233
they’re going to see that this is a
00:30:19.733 —> 00:30:20.375
way easier,
00:30:20.394 —> 00:30:21.836
faster way to do what they want to
00:30:21.855 —> 00:30:21.955
do,
00:30:21.976 —> 00:30:25.058
which is develop land and flip projects.
00:30:25.558 —> 00:30:27.840
So ideally,
00:30:27.881 —> 00:30:29.382
all the work we’ve been doing on sales,
00:30:30.182 —> 00:30:31.723
especially lately as we’ve ramped up our
00:30:31.763 —> 00:30:34.346
sales force and our online sales process
00:30:34.526 —> 00:30:37.107
will come to fruition and we’ll fill up
00:30:37.127 —> 00:30:38.568
that factory and then we’ll be back to
00:30:38.588 —> 00:30:39.769
the capital markets to say,
00:30:40.190 —> 00:30:40.871
look what we’ve done.
00:30:42.392 —> 00:30:43.192
And by the way,
00:30:43.251 —> 00:30:45.594
what we’re doing now isn’t the end game.
00:30:46.394 —> 00:30:49.096
I consider this to be a small proof
00:30:49.136 —> 00:30:50.137
of concept factory,
00:30:50.218 —> 00:30:51.519
even though it is a big operation.
00:30:51.538 —> 00:30:52.880
We have four hundred thousand square feet
00:30:52.920 —> 00:30:54.080
of manufacturing space.
00:30:54.441 —> 00:30:55.981
We can build thousands of room modules,
00:30:56.021 —> 00:30:56.541
we believe.
00:30:57.123 —> 00:30:59.064
And I think that, you know,
00:30:59.203 —> 00:31:00.424
we’re going to go back to the capital
00:31:00.444 —> 00:31:02.386
market and say, look, here’s the proof.
00:31:03.386 —> 00:31:05.827
of the better way to build that we’ve
00:31:05.847 —> 00:31:06.367
figured out.
00:31:06.468 —> 00:31:08.308
Now give us more resources to scale this
00:31:08.328 —> 00:31:09.670
thing even more.
00:31:10.769 —> 00:31:12.851
And here’s what we think is going to
00:31:12.891 —> 00:31:14.932
be the gains in productivity and cost
00:31:14.971 —> 00:31:16.872
reductions by taking things up a notch,
00:31:16.912 —> 00:31:17.992
by doing a bigger factory,
00:31:18.053 —> 00:31:20.834
by adding in automation and all that
00:31:20.933 —> 00:31:22.814
amazing stuff and bringing that factory
00:31:23.255 —> 00:31:26.296
down from one hour per house down to,
00:31:27.736 —> 00:31:29.196
in my dreams, one minute per house.
00:31:30.461 —> 00:31:31.240
similar to a car,
00:31:31.842 —> 00:31:32.981
the way that cars are being made right
00:31:33.021 —> 00:31:33.202
now.
00:31:33.442 —> 00:31:33.903
Exactly.
00:31:33.942 —> 00:31:34.303
And, you know,
00:31:34.363 —> 00:31:36.203
all the all the technology exists to do
00:31:36.223 —> 00:31:38.164
this kind of very advanced mass
00:31:38.184 —> 00:31:38.586
production.
00:31:38.645 —> 00:31:39.145
And frankly,
00:31:39.165 —> 00:31:41.106
cars are harder and more complicated to do
00:31:41.626 —> 00:31:42.887
because they have more parts.
00:31:43.228 —> 00:31:44.209
And, you know,
00:31:44.308 —> 00:31:46.789
we think that the housing has some unique
00:31:46.890 —> 00:31:48.951
challenges and we think we’ve solved those
00:31:49.010 —> 00:31:50.592
so that we can actually make mass
00:31:50.632 —> 00:31:51.252
production work.
00:31:51.712 —> 00:31:53.273
And, you know, if we have done that,
00:31:53.334 —> 00:31:53.773
in fact,
00:31:54.134 —> 00:31:55.875
the opportunity is just incredibly big
00:31:55.914 —> 00:31:56.635
because this is
00:31:57.256 —> 00:31:59.277
you know, it’s housing, it’s, you know,
00:31:59.317 —> 00:31:59.997
trillion dollars.
00:32:00.057 —> 00:32:01.938
So, you know,
00:32:02.038 —> 00:32:03.919
if we can produce housing at far lower
00:32:03.959 —> 00:32:05.759
costs than anyone else, faster,
00:32:06.199 —> 00:32:09.141
and we can make it easier for the
00:32:09.161 —> 00:32:10.201
builder, for the customer,
00:32:11.020 —> 00:32:12.342
we think people are going to continue to
00:32:12.362 —> 00:32:14.021
recognize that and then resources are
00:32:14.041 —> 00:32:15.603
going to flood in to scale this thing.
00:32:15.623 —> 00:32:18.743
And then even the state of the market
00:32:18.804 —> 00:32:19.444
and housing,
00:32:20.164 —> 00:32:21.585
we have a five million housing unit
00:32:21.605 —> 00:32:22.806
shortage in the United States.
00:32:23.326 —> 00:32:26.247
we have uh home prices doubling in the
00:32:26.267 —> 00:32:28.167
last decade obviously you know incomes
00:32:28.208 —> 00:32:30.647
have not doubled it’s just a huge huge
00:32:30.688 —> 00:32:33.788
problem that no one can solve and the
00:32:33.828 —> 00:32:36.190
building things the traditional way no
00:32:36.210 —> 00:32:37.911
amount of resources is ever going to build
00:32:38.570 —> 00:32:41.372
enough houses the traditional way you know
00:32:41.392 —> 00:32:43.372
you just can’t you know unless you make
00:32:43.392 —> 00:32:45.192
it more efficient there’s just not going
00:32:45.212 —> 00:32:47.534
to be you know ten times more builders
00:32:47.574 —> 00:32:49.153
tomorrow to build these things but if we
00:32:49.173 —> 00:32:50.434
can do in a factory we think we
00:32:50.474 —> 00:32:51.095
can produce
00:32:51.795 —> 00:32:53.955
you know, way more housing faster.
00:32:54.615 —> 00:32:55.817
So that’s what we’re trying to do here.
00:32:55.896 —> 00:32:56.817
And we think at the end of the
00:32:56.856 —> 00:32:57.156
day,
00:32:58.057 —> 00:33:00.057
this is a project that can have massive
00:33:00.939 —> 00:33:02.980
positive impact on the on the United
00:33:03.019 —> 00:33:04.961
States and the planet by just bringing
00:33:04.980 —> 00:33:05.961
down the housing costs.
00:33:06.795 —> 00:33:06.934
No,
00:33:06.974 —> 00:33:09.116
this is a tremendous value your company is
00:33:09.156 —> 00:33:09.477
bringing,
00:33:10.018 —> 00:33:12.159
helping bring down the cost of homes,
00:33:12.479 —> 00:33:13.779
especially for all these young folks that
00:33:13.799 —> 00:33:14.921
can’t get homes these days, right?
00:33:15.221 —> 00:33:16.462
The average age of a home buyer is
00:33:16.502 —> 00:33:17.682
now forty two or forty three.
00:33:17.703 —> 00:33:18.463
Can you believe that?
00:33:19.964 —> 00:33:21.346
Five years ago it was thirty eight.
00:33:22.326 —> 00:33:24.228
Ten years before that, it was thirty four.
00:33:24.268 —> 00:33:24.788
You know what I mean?
00:33:24.867 —> 00:33:27.308
It’s getting harder and harder to achieve
00:33:27.328 —> 00:33:28.148
that American dream.
00:33:28.648 —> 00:33:30.069
My question to you now is,
00:33:30.529 —> 00:33:31.890
are you seeing any opposition?
00:33:31.930 —> 00:33:33.250
Because there’s some people out there,
00:33:33.750 —> 00:33:35.050
some industries that don’t want home
00:33:35.070 —> 00:33:36.011
prices to go down.
00:33:36.451 —> 00:33:38.211
They want to restrict supply.
00:33:38.551 —> 00:33:39.932
Have you met any opposition?
00:33:41.912 —> 00:33:43.792
yeah so that’s been really the biggest
00:33:43.813 —> 00:33:45.734
challenge that frankly i didn’t expect
00:33:45.795 —> 00:33:47.256
because i thought this would be well
00:33:47.296 —> 00:33:49.576
received and it is by most people who
00:33:49.616 —> 00:33:52.239
have kind of good intentions but you know
00:33:52.259 —> 00:33:54.019
that’s what slowed us down and that’s
00:33:54.039 —> 00:33:56.521
where we you know haven’t you know hit
00:33:56.541 —> 00:33:57.942
the milestones where we thought we would
00:33:58.282 —> 00:34:01.246
was because of pushback and uh regulatory
00:34:01.286 —> 00:34:03.767
pushback and you know so so like i
00:34:03.826 —> 00:34:05.868
said what we’re doing is is very hard
00:34:05.888 —> 00:34:07.009
it’s a problem that no one else has
00:34:07.049 —> 00:34:08.891
been able to solve and there’s been many
00:34:08.931 —> 00:34:10.331
bumps in the road and there will continue
00:34:10.751 —> 00:34:13.775
to be so you know whether you know
00:34:13.835 —> 00:34:16.097
you have a state where they see us
00:34:16.336 —> 00:34:19.619
as taking away uh jobs and money out
00:34:19.639 —> 00:34:21.802
of their state um we’ve had issues where
00:34:22.262 —> 00:34:24.184
some states will approve us fast like i’ve
00:34:24.204 —> 00:34:29.228
had uh one state approved us uh literally
00:34:29.248 —> 00:34:30.648
i had a call with them and the
00:34:30.688 —> 00:34:33.110
next week they fed access a license i’ve
00:34:33.130 —> 00:34:35.253
had other states that takes a year to
00:34:35.273 —> 00:34:36.534
get approved so
00:34:37.974 —> 00:34:40.737
And I think it’s because a there’s a
00:34:40.817 —> 00:34:42.679
certain level of just mindless
00:34:42.699 —> 00:34:43.378
bureaucracy.
00:34:44.179 —> 00:34:46.900
There’s also people that don’t want jobs
00:34:46.942 —> 00:34:48.943
and businesses money going out of the
00:34:48.963 —> 00:34:49.322
state.
00:34:49.623 —> 00:34:50.884
So they kind of slow us down that
00:34:50.923 —> 00:34:51.184
way.
00:34:52.284 —> 00:34:54.527
There’s an issue where if people perceive
00:34:54.567 —> 00:34:55.807
what we’re selling as.
00:34:56.527 —> 00:34:59.210
a low-income type of product.
00:34:59.251 —> 00:34:59.751
And it’s not.
00:35:00.130 —> 00:35:01.172
It’s a very high-quality,
00:35:01.211 —> 00:35:04.375
very upscale feel if you go into one
00:35:04.394 —> 00:35:04.976
of these houses.
00:35:05.036 —> 00:35:07.617
But just the nature of trying to offer
00:35:07.978 —> 00:35:09.079
a house that’s low-cost,
00:35:09.119 —> 00:35:11.262
people don’t want necessarily a low-cost
00:35:11.601 —> 00:35:13.003
housing development in their neighborhood.
00:35:13.023 —> 00:35:15.425
So they call it NIMBY,
00:35:15.485 —> 00:35:16.726
not in my backyard,
00:35:16.766 —> 00:35:17.567
where they don’t want...
00:35:18.327 —> 00:35:19.929
new housing going in so they try and
00:35:19.949 —> 00:35:23.072
block it that way but luckily it’s such
00:35:23.092 —> 00:35:24.413
a big problem and it’s such a big
00:35:24.452 —> 00:35:26.275
market that we we can find our niche
00:35:26.295 —> 00:35:27.996
we have found our niche there’s plenty of
00:35:28.036 —> 00:35:30.277
places for us to operate in and as
00:35:30.318 —> 00:35:32.760
we grow um you know we’ll push back
00:35:32.780 —> 00:35:34.722
we’ve already seen big progress with the
00:35:34.742 —> 00:35:35.342
regulatory
00:35:35.802 —> 00:35:37.405
So we spent some time in Washington.
00:35:37.445 —> 00:35:38.146
And after that,
00:35:38.206 —> 00:35:40.509
we ended up with an executive order from
00:35:40.528 —> 00:35:41.108
the president.
00:35:41.230 —> 00:35:43.391
We also have the Road to Housing Act.
00:35:43.972 —> 00:35:45.974
And I won’t dive into the details,
00:35:46.034 —> 00:35:47.516
but I think those are going to really
00:35:47.737 —> 00:35:49.940
benefit the business with those regulatory
00:35:49.960 —> 00:35:51.782
changes to make it easier to do things.
00:35:52.384 —> 00:35:55.326
right the nimby issue is a problem for
00:35:55.346 —> 00:35:57.126
a lot of progress in our country right
00:35:57.706 —> 00:36:00.088
a lot of progress is being halted because
00:36:00.128 —> 00:36:02.210
people don’t want certain developments in
00:36:02.250 —> 00:36:03.471
their background whether it’s energy
00:36:03.530 —> 00:36:05.791
projects whether it’s new housing ideas
00:36:05.811 —> 00:36:08.193
and technology just taking this one step
00:36:08.233 —> 00:36:10.715
further do you expect when you start
00:36:10.755 —> 00:36:13.135
making the modularized ones single family
00:36:13.155 —> 00:36:15.617
homes any obstacles maybe like
00:36:16.498 —> 00:36:19.639
you know, like HOAs objecting?
00:36:19.820 —> 00:36:21.541
Do you guys have an approach around that?
00:36:21.601 —> 00:36:23.061
Or do you feel like the new legislations
00:36:23.081 —> 00:36:24.563
that are coming down will help solve all
00:36:24.583 —> 00:36:25.222
those issues?
00:36:25.943 —> 00:36:27.284
I think like, you know,
00:36:27.503 —> 00:36:31.065
this is not a problem specific to Boxabl.
00:36:31.967 —> 00:36:33.327
This is a problem for any type of
00:36:33.367 —> 00:36:34.427
housing, any type of builder.
00:36:34.467 —> 00:36:36.568
We’re just going to make the situation
00:36:36.708 —> 00:36:37.048
better.
00:36:37.429 —> 00:36:38.469
And so, you know,
00:36:38.670 —> 00:36:40.871
we’re also going from just this Casita
00:36:40.891 —> 00:36:41.291
product
00:36:42.672 —> 00:36:43.713
which is viewed a certain way.
00:36:43.733 —> 00:36:45.876
Maybe it’s viewed as a tiny home or
00:36:45.896 —> 00:36:49.219
a low cost home into building just
00:36:49.280 —> 00:36:49.960
everything else.
00:36:50.541 —> 00:36:51.422
So at that point,
00:36:51.943 —> 00:36:53.885
it’s not much different than another
00:36:53.925 —> 00:36:55.867
single family home going up in the
00:36:55.887 —> 00:36:56.449
neighborhood.
00:36:56.548 —> 00:36:58.670
So we think that’s just gonna open up
00:36:58.751 —> 00:37:00.974
our market and where we can operate.
00:37:01.373 —> 00:37:04.775
But California, frankly, has been great,
00:37:04.835 —> 00:37:05.996
and we didn’t expect that.
00:37:06.137 —> 00:37:08.137
They’ve passed a ton of laws to encourage
00:37:08.538 —> 00:37:08.958
housing.
00:37:09.219 —> 00:37:10.719
There’s a lot of building going on there,
00:37:11.219 —> 00:37:12.641
and we think we’re going to build a
00:37:12.820 —> 00:37:14.762
tremendous business.
00:37:14.782 —> 00:37:15.802
For a lot of industries,
00:37:15.922 —> 00:37:17.043
military is a big client.
00:37:17.063 —> 00:37:18.384
Do you expect more contracts from the
00:37:18.423 —> 00:37:19.264
military in the future?
00:37:20.338 —> 00:37:22.800
Yeah, we are actively pursuing government,
00:37:23.340 —> 00:37:23.980
military.
00:37:24.420 —> 00:37:28.481
We did this pilot project in Guantanamo
00:37:28.501 —> 00:37:28.922
Bay, Cuba.
00:37:28.942 —> 00:37:31.083
And it was really crazy because they gave
00:37:31.103 —> 00:37:31.943
me this contract.
00:37:32.143 —> 00:37:32.804
I had nothing.
00:37:32.903 —> 00:37:34.244
It was just me,
00:37:34.744 —> 00:37:36.264
a couple of guys in a garage.
00:37:36.445 —> 00:37:38.806
And the Department of Defense came and
00:37:38.846 —> 00:37:39.766
they placed this order.
00:37:39.987 —> 00:37:41.367
And I said to them, hey, guys,
00:37:41.666 —> 00:37:42.467
we don’t have a factory.
00:37:42.487 —> 00:37:43.327
We don’t have employees.
00:37:43.367 —> 00:37:44.248
Are you sure you want to do this?
00:37:44.288 —> 00:37:45.108
They placed the order.
00:37:45.708 —> 00:37:47.849
And against all odds, we managed to
00:37:48.570 —> 00:37:49.271
pull that off.
00:37:50.231 —> 00:37:52.554
And I think if anyone examines how we
00:37:52.574 —> 00:37:53.155
went about that,
00:37:53.175 —> 00:37:54.878
and how quickly we scale that up,
00:37:55.398 —> 00:37:56.880
it’s pretty impressive that we’re able to
00:37:57.380 —> 00:37:58.001
pull it off.
00:37:58.581 —> 00:37:59.983
And, you know, we do see,
00:38:01.706 —> 00:38:02.728
we do have, you know,
00:38:02.748 —> 00:38:05.050
a sales force going after the military and
00:38:05.070 —> 00:38:05.550
the government.
00:38:05.871 —> 00:38:06.913
And there’s definitely lots of
00:38:08.414 —> 00:38:09.793
And the interesting thing that happened
00:38:09.853 —> 00:38:14.396
was with that first order, you know,
00:38:14.516 —> 00:38:16.518
there was no regulatory issues.
00:38:16.838 —> 00:38:21.019
There was no slowing down of the project
00:38:21.039 —> 00:38:22.161
because it was just the government.
00:38:22.221 —> 00:38:23.141
And they just came in and said,
00:38:23.161 —> 00:38:23.702
we’re buying it.
00:38:23.942 —> 00:38:24.822
You know,
00:38:24.842 —> 00:38:26.143
we didn’t even have to get any approval
00:38:26.164 —> 00:38:26.523
for that.
00:38:26.603 —> 00:38:27.925
So we kind of started off with this
00:38:27.965 —> 00:38:30.027
false sense of security where we got,
00:38:30.447 —> 00:38:32.469
you know, hey, these are easy to sell.
00:38:32.528 —> 00:38:33.510
And, you know,
00:38:33.590 —> 00:38:35.751
we don’t have to do any approvals or
00:38:35.791 —> 00:38:36.152
anything.
00:38:36.172 —> 00:38:37.534
And then quickly we found out it was
00:38:37.554 —> 00:38:39.295
a little more difficult to do that.
00:38:39.434 —> 00:38:41.396
So then we had some time with the
00:38:41.416 —> 00:38:43.177
company where we had to fight through
00:38:43.659 —> 00:38:44.820
getting these approvals.
00:38:44.940 —> 00:38:45.880
And now that we have them,
00:38:46.701 —> 00:38:48.103
we’re seeing things are starting to ramp
00:38:48.182 —> 00:38:48.342
up.
00:38:48.422 —> 00:38:49.583
So I think we’re going to have a
00:38:49.643 —> 00:38:50.744
big shift in the next year.
00:38:51.635 —> 00:38:52.297
That’s amazing.
00:38:52.637 —> 00:38:52.876
Well,
00:38:53.858 —> 00:38:54.918
this brings us to the end of the
00:38:54.958 —> 00:38:55.380
program.
00:38:55.780 —> 00:38:57.742
We hope that same spirit at the beginning
00:38:58.041 —> 00:38:59.103
with your first contract,
00:38:59.182 —> 00:39:00.844
the rest of your contracts go that way.
00:39:01.885 —> 00:39:03.327
Thank you everyone who’s here for Reddit
00:39:03.407 —> 00:39:06.030
AMA number one twenty one with Boxable
00:39:06.050 —> 00:39:07.972
founder and CEO Jaliano Tarimani.
00:39:08.371 —> 00:39:11.135
The stock ticker is FGMC on D-SPAC BXBL.
00:39:11.534 —> 00:39:13.336
Transactions expected to close in the next
00:39:13.376 —> 00:39:13.918
few weeks.
00:39:14.858 —> 00:39:16.157
Please do your due diligence.
00:39:16.438 —> 00:39:17.938
This is one of the firms we’re covering
00:39:17.958 —> 00:39:19.199
and one of our sponsors as well.
00:39:19.599 —> 00:39:20.900
Thank you so much, Eliano.
00:39:21.340 —> 00:39:23.340
The next episode will be from the factory
00:39:23.380 —> 00:39:25.001
floor in the next few weeks.
00:39:25.121 —> 00:39:27.101
We’re arranging that and we’re looking
00:39:27.121 —> 00:39:27.760
forward to that.
00:39:28.001 —> 00:39:29.181
Any last words, Eliano?
00:39:29.822 —> 00:39:30.362
Yeah.
00:39:30.382 —> 00:39:31.621
Thank you for your interest, guys.
00:39:31.681 —> 00:39:33.181
Please check out all our videos on
00:39:33.282 —> 00:39:33.822
YouTube.
00:39:33.842 —> 00:39:35.063
You can do a really deep dive.
00:39:35.103 —> 00:39:36.722
We post everything about what we’re
00:39:36.742 —> 00:39:37.302
working on.
00:39:37.784 —> 00:39:39.023
You can check out the factory,
00:39:39.063 —> 00:39:40.284
the scale of what we’re doing,
00:39:40.704 —> 00:39:42.304
and we welcome everyone to come visit us
00:39:42.364 —> 00:39:43.724
in Las Vegas if you’re ever in town.
00:39:44.476 —> 00:39:44.797
Amazing.
00:39:44.818 —> 00:39:45.679
Well, thank you so much.
00:39:45.739 —> 00:39:46.501
And thank you, everyone.
00:39:46.521 —> 00:39:46.862
Take care.
00:39:47.181 —> 00:39:47.443
Bye bye.
About BOXABL: BOXABL is transforming the housing market with its modular building systems designed to deliver affordable, high-quality homes at unprecedented speed. Founded in 2017, BOXABL’s innovative approach has attracted worldwide attention as it aims to solve housing challenges for individuals and communities alike. BOXABL’S flagship product, the Casita, is a 361 square foot studio unit with a full kitchen, bathroom, and utilities. The Casita unfolds on-site in less than an hour and is manufactured inside BOXABL’s facilities. BOXABL also has announced the Baby Box, a smaller 120 square foot unit built to RV code, intended for simpler, no foundation setups. BOXABL is also developing stackable and connectable box models that can be combined to form townhomes, multifamily units, or larger single-family homes.
For more information about BOXABL and its innovative products, visit www.boxabl.com.
About FG Merger II Corp.
FG Merger II Corp. is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.
https://fgmerger.com/
Additional Information About the Proposed Transaction and Where to Find It
Additional information about the transaction, including a copy of the merger agreement has been filed by FGMC in a Current Report on Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”). The proposed transaction has been submitted to shareholders of FGMC for their consideration. FGMC has filed a registration statement on Form S-4 (the “Registration Statement”) with the SEC, which has been declared effective, and a prospectus pursuant to Rule 424(b) under the Securities Act (the “Prospectus”), which includes the definitive proxy statement distributed to FGMC’s shareholders in connection with FGMC’s solicitation of proxies for the vote by FGMC’s shareholders in connection with the proposed transaction and other matters described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to BOXABL’s shareholders in connection with the completion of the proposed transaction. The definitive proxy statement/prospectus and other relevant documents have been mailed to BOXABL stockholders and FGMC shareholders as of the record date established for voting on the proposed transaction. Before making any voting or investment decision, FGMC and BOXABL shareholders and other interested persons are advised to read the definitive proxy statement/prospectus, as well as other documents filed with the SEC by FGMC in connection with the proposed transaction, as these documents contain important information about FGMC, BOXABL and the proposed transaction. Shareholders may obtain a copy of the definitive proxy statement/prospectus, as well as other documents filed by FGMC with the SEC, without charge, at the SEC’s website located at www.sec.gov or by directing a written request to FG Merger II Corp., 104 S. Walnut Street, Unit 1A, Itasca, Illinois 60143 or to BOXABL 5345 E North Belt Rd Las Vegas NV 89115.
Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “plan,” “project,” “will,” “estimate,” “intend,” “expect,” “believe,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements on current expectations and projections about future events. These statements include: projections of market opportunity and market share; estimates of customer adoption rates and usage patterns; projections of development and commercialization costs and timelines; expectations regarding BOXABL’s ability to execute its business model and the expected financial benefits of such model; expectations regarding BOXABL’s ability to attract, retain, and expand its customer base; BOXABL’s deployment of Casita; BOXABL’s expectations concerning relationships with strategic partners, suppliers, governments, regulatory bodies and other third parties; future ventures or investments in companies, products, services, or technologies; development of favorable regulations and government incentives affecting BOXABL’s markets; the potential benefits of the proposed transaction and expectations related to its terms and timing; and the potential for BOXABL to increase in value.
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of BOXABL and FGMC.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that BOXABL is pursuing an emerging technology, faces significant technical challenges and may not achieve commercialization or market acceptance; BOXABL’s historical net losses and limited operating history; BOXABL’s expectations regarding future financial performance, capital requirements and unit economics; BOXABL’s use and reporting of business and operational metrics; BOXABL’s competitive landscape; BOXABL’s dependence on members of its senior management and its ability to attract and retain qualified personnel; the capital requirements of BOXABL’s business plans and the potential need for additional future financing; BOXABL’s ability to manage growth and expand its operations; potential future acquisitions or investments in companies, products, services or technologies; BOXABL’s reliance on strategic partners and other third parties; BOXABL’s ability to maintain, protect and defend its intellectual property rights; risks associated with privacy, data protection or cybersecurity incidents and related regulations; the use and regulation of artificial intelligence and machine learning; uncertainty or changes with respect to laws and regulations; uncertainty or changes with respect to taxes, trade conditions and the macroeconomic environment; the combined company’s ability to maintain internal control over financial reporting and operate a public company; the possibility that required regulatory approvals for the proposed transaction are delayed or are not obtained, which could adversely affect the combined company or the expected benefits of the proposed transaction; the risk that shareholders of FGMC could elect to have their shares redeemed, leaving the combined company with insufficient cash to execute its business plans; the occurrence of any event, change, or other circumstance that could give rise to the termination of the merger agreement; the outcome of any legal proceedings or government investigations that may be commenced against BOXABL or FGMC; failure to realize the anticipated benefits of the proposed transaction; the ability of FGMC or the combined company to issue equity or equity-linked securities in connection with the proposed transaction or in the future; and other factors described in FGMC’s filings with the SEC. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings and potential filings by BOXABL, FGMC or the combined company resulting from the proposed transaction with the SEC, including under the heading “Risk Factors.” If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, these statements reflect the expectations, plans and forecasts of BOXABL’s and FGMC’s management as of the date of this communication; subsequent events and developments may cause their assessments to change. While BOXABL and FGMC may elect to update these forward-looking statements at some point in the future, they specifically disclaim any obligation to do so. Accordingly, undue reliance should not be placed upon these statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this communication, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
An investment in FGMC is not an investment in any of its founders’ or sponsors’ past investments, companies or affiliated funds. The historical results of those investments are not indicative of future performance of FGMC, which may differ materially from the performance of our founders’ or sponsors’ past investments.
Participants in the Solicitation
FGMC, BOXABL and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitation of proxies from FGMC’s shareholders in connection with the proposed transaction. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of FGMC’s and BOXABL’s shareholders in connection with the proposed transaction as set forth in the joint proxy statement/prospectus filed by FGMC and BOXABL with the SEC. You can find more information about FGMC’s directors and executive officers in FGMC’s and BOXABL’s joint proxy statement/prospectus dated May 12, 2026, and in periodic reports filed by FGMC with the SEC. You can find more information about BOXABL’s directors and executive officers in its Annual Report on Form 10-K, filed with the SEC on March 27, 2026. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in the proxy statement/prospectus when it becomes available. Shareholders, potential investors and other interested persons should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources described above.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This communication is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of the securities described herein in the United States or any other jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or exemptions therefrom. INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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