Greetings. Welcome to Faraday Future Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to John Schilling, Director of Public Relations, Communication, and Government Affairs. Thank you. You may begin.

Good evening everyone and thank you for joining Faraday Future's second quarter 2026 earnings call. My name is John Schilling, Global Director of Public Relations, Communications, and Government Affairs at Faraday Future. Today I am joined by our global CEO, Y.T. Jia. Before we begin, please note that today's discussion will include forward-looking statements based on current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. We encourage you to review our SEC filings for a detailed discussion of these risks. We undertake no obligation to update forward-looking statements except as required by law. Following prepared remarks, we will address a selection of stockholder questions submitted in advance. With that, I'll turn the call over to YT, our founder and global CEO.

Thank you, John, and thank you for joining us here today. In today's call, I will provide an update on FF's second quarter The second quarter validated our core growth model, where EAI devices serve as the entryway, real world data as the fuel, and the EAI brain and developer platform as the driving engine. FF made a pivotal transition, moving from strategic framework into execution. Scaled Delivery, and Commercial Scenario Deployment. Centered around our core pillars, we have established an initial closed-loop flywheel. Device deployment feeds real-world scenario data, which drives EAI brain training, leading to skills and solution upgrades, and ultimately fueling further device deployment for EAI robotics business. As of the end of the first quarter, second quarter, and July 2026, cumulative sales and shipments totaled 22,242 and 394 units respectively, demonstrating a continued upward trend in volume. Given the strong momentum, our annual shipment target has been updated to 2,000 units. To drive broader adoption, We also launched the EAI Robotics Education Ecosystem for both B2C consumer and B2B education markets. By integrating robot bodies, AI programming curricula, developer tools, skills ecosystems, and real interaction data, led by entry-level products like FX Navi, we are lowering the barrier to physical AI learning and empowering young learners to evolve from AI users into AI creators. Based on this progress, the company has completed the strategic upgrade to its four-core full-stack AI ecosystem in the second quarter, further defining its development roadmap around four core pillars. the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform, and the EAI Data Factory. All four pillars are now in active implementation, with the EAI Devices business already in commercial deployment and the EAI Brain, Data Factory, and Industry Productivity Solutions and Developer Platform establishing their initial operating foundations. At the same time, these efforts position us well to proactively prepare for potential future ICTS-related regulatory developments. Meanwhile, we continue to advance our built-in USA strategy, accelerating the development of U.S. domestic robotics manufacturing capabilities and a trusted robotics industry value chain. Leveraging the strategic market window created by the recent FCC policy, we are accelerating the establishment of a U.S.-centered robotics ecosystem, further strengthening FFAI's strategic leadership position in the U.S. embodied AI robotics industry. Looking ahead, we remain committed to advancing the development of America's embodied AI robotics industry and reinforcing the United States' global leadership in embodied AI and robotics. Now, let me now walk through our product technology and business update. In the second quarter of 2026, we upgraded our robotics strategy to continue establishing targeted commercial execution. Our strategy evolved from three-in-one ecosystem to the four-core full-stack AI ecosystem by adding industry productivity solutions and developer platform as the fourth core, alongside the EAI Brain, EAI Devices, and EAI Data Factory. Let's dive into each of these core solutions individually.

Let's begin with the EAI Brain.

Under our One Brain Multiple Forms architecture, the EAI Brain serves as the core intelligence layer. During the quarter, we made significant progress across multiple fronts. We completed the initial development of our core technology framework for the Embedded AI Robot Brain. Establishing a comprehensive stack that encompasses AI interaction, vision language action, VLA models, robotic manipulation, and whole body motion control. Leveraging NVIDIA G-Route, we are continuously advancing VLA model fine-tuning and training on real robot data. Following the NVIDIA Sonic Roadmap, we are making steady progress in whole body motion control R&D. In the latest phase of testing, Our whole-body motion model achieved a motion tracking success rate of approximately 98% on standard simulation benchmarks, validating FFAI's ability to rapidly integrate cutting-edge global AI technologies and enable cross-platform migration and autonomous adaptation across different robot form factors. In parallel, we completed the initial basic capabilities for our universal teleoperation swarm control platform, enabling unified management across diverse hardware configurations. On the algorithmic side, world model training on Dream Zero reached key phase milestones to improve predictive control. We also launched our official robot control app on the iOS App Store and successfully completed an automated patrol demonstration for our self-developed security software. Collectively, these efforts have preliminarily established the foundational architecture and core enablers in collegiate teleoperation and fleet management necessary to support large-scale robot deployment in the future. Turning to the physical touchpoint of our technology, the EAI devices. We believe FF has established an early commercial leadership position in the U.S. embodied AI robotics market, supported by growing sales and deployments across multiple robot form factors. As of the end of the second quarter, cumulative sales and shipments totaled 242 units, increasing to 394 units by the end of July. All deliveries maintained our strict standard of payment before delivery with positive product growth margins. We have also advanced Stradition cooperation with Triple I Group and Sequoia Education Group to deploy robots in educational settings. On the distribution side, Roboshop, one of the leading robotics-focused e-commerce platforms, completed procurement evaluations and confirmed dropshipping support, while channel expansion with DSMA progressed. We recently launched our three-phase built-in USA acceleration program in alignment with recent the FCC guidance on robot compliance. Moving from localized AI platform to assembled in the USA and ultimately made in the USA, this initiative strengthens our domestic supply chain. To directly catalyze hardware sales, AI Crypto Holdings Inc. an independent public listing company controlled by FFAIXC designated Roboshare as its top operating priority for the second half of the year. Debut at Automate 2026, AIXC provides the protocol, identity, and settlement layers, while FFAIXC acts as the lead hardware and asset foundation. This model unlocks continuous utilization, extended use and network value after the sale. We have also onboarded our previously sold and newly purchased robots onto Roboshare under custody agreements, allowing us to effectively transform our robots into income-generating assets, lowering total cost of ownership for buyers and directly driving new FFAI terminal sales. Moving on to the EAI Data Factory, the financial engine and fuel of our four-pillar AI ecosystem. This core layer has formed a complete commercial closed loop, generating initial sample payments and positioning the segment for significant profit growth. Our primary customers' potential order value could reach over $400,000 at the high end, and price negotiations remain ongoing with a top-tier data company. To expand operational scale, we engaged over 20 supplier partners and reached initial agreements with two partners for Southeast Asia data collection sites. On the software side, decentralized collection tools were completed and deployed on the robotics units, while centralized collection and upload software was demonstrated at Automate in June. HQ collection expanded across three scenarios using Futurist, Faber S1 and Faber T1 units supported by self-developed remote teleoperation software optimized for Faber. Finally, turning to industry productivity solutions and the developer platform, converting our full-stack AI into tailored complete solutions. The industry productivity solution strategy will initially focus on four major market segments, education, industrial applications, security and inspection, and other existing markets. We will accelerate the development and delivery of complete solutions tailored to the distinct real-world needs of each industry. Within education, we established California's first education innovation lab in cooperation with leading partner institutions. For the developer platform, we completed a full business closed loop deploying our EAI Soul Framework, Brain Block Modular Architecture, Open SDK, and API interfaces in the second quarter. We officially launched the FF EAI Robotics Open Source and Open Developer Platform, featuring both general and youth developer editions, alongside four core developer tools. Redwood Education joined as a flagship ecosystem partner, generating hardware sales, and establishing a benchmark organization for educational development. The developer community now covers key segments including individual developers, educational institutions, secondary development companies, youth developers and security slash inspection solution providers. The platform has built a robust ecosystem pipeline with over 20 qualified developer organizations and industry partners under active engagement. Subsequent to the quarter, the developer platform continued its expansion, and multiple developers identified clear needs for robot purchases, testing and real-world deployment. The developer platform is progressively building an end-to-end business conversion pipeline. From developer acquisition and skill solution development to robot sales and skilled deployment. On product planning, the roadmap has been refined to include general, use and dedicated skill stores. End-to-end technical validation and system optimization have been completed across the full workflow, from onboarding and tools to skill development, publishing, deployment and robot execution. These efforts have notably enhanced functionality Stability and Developer Experience, laying a solid foundation for scaling developer onboarding, accelerating skill creation, and expanding the ecosystem. Now, let me walk through our financial results for the second quarter and the first six months of 2026. For the second quarter of 2026, total revenue reached $836,000. representing an increase of over 1,500% compared to $54,000 in the second quarter of 2025 and a 64% increase compared to $512,000 generated in the first quarter of 2026. For the first six months of 2026, cumulative revenue grew to $1.35 million compared to $370,000 in the prior year period. This growth was primarily driven by scaling product deliveries within our EAI robotics segment, where we continue to achieve positive product growth margins. This top-line momentum reflects accelerating commercial adoption across our robotics portfolio. By exceeding our first half shipment targets, we are demonstrating clear market traction and validating the strength of our device data brain evolutionary flywheel. Our total cost of revenue and operating expenses saw material optimization during the period. Cost of revenue for the second quarter totaled $11.54 million, down 57%. compared to $26.91 million in the second quarter of 2025, marking a year-over-year reduction of $15.37 million. For the first six months of 2026, cost of revenue was $23.4 million compared to $48.3 million in the first six months of 2025. Driven by this structural cost optimization, and higher revenue contribution, our quarterly growth loss narrowed substantially to $10.7 million from $26.9 million in the second quarter of 2025. As a result of these operational efficiencies and cost controls, our net loss for the second quarter narrowed by 69% year-over-year to $38.96 million, an $85.71 million improvement compared to the $124.7 million net loss reported in the second quarter of 2025. Net loss attributable to Faraday Future stockholders was $36.03 million for the quarter. For the first six months of 2026, Our cumulative net loss stood at $81.3 million, compared to $135 million in the same six-month period of 2025. These improvements reflect management's commitment to strict financial discipline under our five key transformations framework and stockholder-first philosophy, systematically driving down operating burn while building a clear path towards sustainable profitability. Turning to our balance sheet, as of the end of the second quarter, total liabilities were approximately $278 million, representing a decrease of approximately $61 million from $340 million at the end of the second quarter of 2025. During the three months ended June 30, 2026, The company completed two additional financing transactions. On April 17, 2026, the company issued the secured notes for an aggregate purchase price of $45 million and an aggregate original principal amount of approximately $45.8 million. On May 15, 2026, The company issued the 2026 May convertible SPA notes for aggregate funded proceeds of $25 million and an aggregate unpaid principal balance of $27 million. Of the aggregate proceeds from these financings, $42.5 million was deposited into accounts subject to deposit account control agreements and was classified as restricted cash as of June 30, 2026. Excluding the liability for these new fundings, the actual debt reduction exceeded $100 million. Total stockholders' equity remained positive at $1.41 million as of June 30, 2026. Importantly, during the quarter, we successfully completed $20 million in debt resolution. Vigorously resolving these liabilities is a deliberate effort to free our robotics business from historical baggage and legacy debt burdens, allowing it to travel light with a lean capital footprint and align market valuation with its standalone intrinsic worth. In terms of cash flows, net cash used in operating activities for the first six months of 2026 was $56.5 million. Concurrently, net cash provided by financing activities for the first six months of 2026 reached $76.37 million, up $21.3 million year over year compared to $55.1 million in the first six months of 2025. Let's move on to our capital markets updates. During the second quarter and subsequent weeks of July, we executed a series of decisive capital markets initiatives aimed at securing near-term operating liquidity, simplifying our capital structure, and keeping our listing status. On the financial front, we successfully secured $70 million in cumulative new institutional commitments in the second quarter. combined with our asset-light robotics deployment model. This funding provides the capital runway required to support our Phase 1 EAI robotics operational targets through the end of 2026. In July, we took aggressive steps to restructure existing agreements and curb potential equity dilution. On July 8, we executed warrant termination agreements with investors to permanently cancel roughly 5.36 million Class A warrants. This brings our cumulative permanent warrant cancellations to approximately 49.9 million units since December 2025, substantially streamlining our capital structure and eliminating future overhang. Furthermore, on July 9, we amended and restated our $82 million convertible note agreement. The revised structure splits the remaining second clothing into eight manageable tranches tied to incremental funding milestones of at least $5 million each, eliminates warrant issuances for the vast majority of participating investors, and removes VWAP-based pricing conditions. This amendment accelerates the drawdown of committed capital while significantly curbing dilution risk. Subsequent to quarter-end, we received $1.5 million in gross proceeds under this facility and converted $3.9 million in principal and $0.6 million in interest into 127,490 Class A shares. We further commit that, subject to compliance with applicable laws and contractual obligations, We will set a conversion floor price of $5 per share for all outstanding convertible nodes. To date, with the exception of certain nodes for which a floor cannot be fixed, such amendments are effective with respect to nodes representing about 90% of our target. Regarding our listing status, to satisfy Nasdaq's minimum bid price requirement and protect our listing status for our stockholders, The board approved a 1 for 150 reverse stock split, which became effective on July 24, 2026. Following this corporate action, we formally received confirmation from Nasdaq that the company has regained full compliance with the minimum bid price requirement. Going forward, we remain committed to optimizing our financing structure, aligning our capital structure with our operational milestones, and rebuilding long-term market confidence. Now let's discuss our recent progress on our AI system and corporate governance. In the second quarter of 2026, we continued to advance our company-wide AI governance framework, solidifying our foundation as an AI-native intelligent enterprise. By accelerating our AI-first culture and upgrading our AI-driven product, production, Technology and Intelligence System, we refined our management structure to cover AI application governance, risk classification, token cost visualization, and complete lifecycle data management. Furthermore, we deepened AI integration across core operational processes, driving measurable progress in workflow automation, productivity evaluation, task tracking and Cross-Departmental Knowledge Management to continuously optimize organizational efficiency. On compliance and internal controls, we systematically elevated our risk management, cybersecurity governance and information disclosure systems. These optimizations strengthen privacy controls, improve cross-functional auditability, and enhance the reliability and transparency of our financial reporting. By reinforcing these corporate governance controls, we ensure regulatory adaptability and strategic alignment as we scale our business and build long-term trust in the capital markets. With that, let's dive into the outlook for the rest of 2026. As we move through the rest of the year, we are executing across our five key transformations, spanning finance, Technology and Business, Capital and AI System With our robotic strategy upgraded to a four-core full-stack AI ecosystem, our focus centers on scaling commercial revenue, reducing total liabilities, and establishing a disciplined path toward long-term financial sustainability. Moving into the second half of 2026, our financial strategy is focused on Establishing a sustainable revenue model and achieving balanced optimization through three primary pillars, revenue and ecosystem growth. Accelerate the growth of all businesses across our four core full-stack AI ecosystem strategy, driving continual revenue expansion and steady improvement in overall growth margin driven primarily by commercial device shipments. and Accelerating Monetization of our EAI Robotics Ecosystem. Liability Reduction We re-emphasize our clear debt resolution target to reduce total company liabilities to under 100 million within the next three to four quarters, providing continued support for the growth of our robotics business. Operating Cash Flow Optimization We are building a differentiated growth model based on our strategic upgrades to continuously optimize operating cash flow. This approach supports near-term cash flow generation with limited additional capital investment while backing our long-term ecosystem expansion. On our strategic outlook, the FCC's new policy marks a pivotal shift in the U.S. embodied AI robotics industry, ushering in a new competitive era defined by domestic manufacturing, trusted supply chains, enterprise AI, EAI, real-world data, and open ecosystems. FF is uniquely positioned to capitalize on this historic strategic opportunity through its seven core competitive advantages. The four-form factor FF-EAI robot world built around six major product series and the one-brain, multiple-forms, and multiple-forms, multiple-capabilities strategies. The four-core full-stack AI ecosystem integrating the EAI brain, EAI devices, industry productivity solutions, and developer platform, and EAI data factory, is a 5 plus 1 ecosystem-based direct sales and user co-creation system spanning key customer touchpoints. Its compliance capabilities as a US-based company, its data-driven evolutionary flywheel powered by large-scale deployment and real-world data, its asset-light, operationally lean financial model focused on positive product growth margins and payment-before-delivery discipline. and its differentiated capital value supported by FF's NASDAQ-listed platform and the potential standalone value-unlocking path for its robotic business. Looking ahead, FF is committed not only to delivering superior robotic products, but also to building the most open, comprehensive and continuously evolving enterprise AI robotic ecosystem platform in the United States. By continuously strengthening our technology and business flywheels through real-world scenarios, real-world data, and real-world value, we aim to drive the upgrade and advancement of the U.S. embodied AI robotic industry and generate sustainable long-term value for our customers, partners, stockholders, and the broader industry. Third, on our product, technology, and Business Outlook. At the operational level, the company remains committed to its 4-year shipment target of 2,000 robots, while accelerating momentum in data services and industry solutions to further expand delivery scale and drive commercialization around the 4-core full-stack AI ecosystem. On the EAI devices front, We are accelerating deployment across key verticals including education, industrial and securities inspection, continuously expanding the robotics product portfolio and scaling commercial deliveries. The EAI automotive business remains one of FF's core businesses and an important component of the company's overall EAI strategy. The company will proceed with a highly disciplined and prudent approach, strictly aligning the pace of execution and capital deployment with the availability of dedicated funding, and will not accelerate the business unless and until sufficient funding has been secured. Meanwhile, FF will align its execution with the development plans and progress of its strategic partners. On the EAI Brain front, the company expects to further deepen the integration of NVIDIA's technology stack with FF's proprietary EAI Brain robotics platform and data infrastructure over the course of this year. We will continue advancing the group training and validation on embodied AI capabilities, including complex grasping and multi-step manipulation, while driving sonic technology from simulation-based training toward full-body robot control on real hardware and cross-platform migration across different robot form factors. On the EAI data factory front, the company will further close the complete loop encompassing real-world robot data collection, training, evaluation, deployment, and continuous learning. This will accelerate the formation of a self-reinforcing flywheel device-to-data-to-brain-to-solution-to-device, and build an embodied AI technology framework that is quantifiable, continuously iterable, and scalable across diverse robot morphologies, providing core technical support for the ongoing evolution of our autonomous eAI brain industry solutions and the broader four-core full-stack AI ecosystem. The EAI Data Factory is expected to reach a monthly production capacity of 2,100 qualified real-world data collection hours by the end of August, 20,000 hours by the end of December, and a total of 50,000 hours of data collection for the full year. On the industrial productivity solutions and developer platform front, we are building standardized, replicable, and Scalable Industry Solutions to Enhance Customer Value and Return on Investment , with planned geographic expansion across California, Texas, and the eastern U.S. within the year. Concurrently, we are continuously strengthening the developer ecosystem by opening up robot capabilities, skills, and industrial application platforms to attract more developers and partners to co-build the robotics application ecosystem. For the developer platform, we completed a full business closed loop, deploying our EAI SOAR framework, brand block modular architecture, Open SDK, and API interfaces in the second quarter. We officially launched the FF EAI Robotics open source and open developer platform featuring both general and user developer editions alongside four core developer tools. For the remainder of 2026, we are continuing to streamline our product portfolio to prioritize robotics products with clear commercialization potential and positive unit economics. Supported by expanding demand across our key use cases, specifically education, by the end of 2026, We aim to ship 2,000 EAI robot units, expand our portfolio to 100 skills, and grow our developer community to 200 members. Together with real-world data collection across multiple use cases, these efforts will lay a solid foundation for larger-scale shipments and broader data collection in the years ahead. Fourth, turning to our capital outlook. FF is seizing a major opportunity in the robotics market, and our EAI ecosystem is making solid progress. Yet our improved fundamentals and robotics potential are not reflected in our stock price, which remains driven by market sentiment. We believe the root cause is that the market continues to press FF on historical burdens and dilution concerns. Not on our prospects. To address this, we are executing a comprehensive capital value restoration program focused on unlocking robotics value, optimizing capital structure, resolving legacy debt, and strengthening operations. First, we are exploring standalone financing and public listing opportunities for our robotics segment. This would secure dedicated growth capital for our AI ecosystem while reducing dilution at the FFAI level, delivering direct value to our stockholders. Second, we do not want legacy debt from our post-IPO automotive history to constrain our early-stage high-growth robotics strategy. As mentioned in the finance outlook, With supplier and creditor support, we plan to reduce total liabilities to below 100 million over three to four quarters, improving our balance sheet and supporting robotics growth. New funds raised will be primarily deployed to support robotics business development, rather than to service historical liabilities. Third, we are exercising strict financing discipline. Subject to counterparty negotiations, We intend to accelerate our exploration of the shift from convertible notes to equity structures, prioritizing higher offering prices and reducing discounts and warrant coverage. For notes, we are locking in conversion floors and capping daily conversions to protect equity. ATM sales will occur at higher, more favorable prices. and fundamentally, we are driving robotics revenue growth and controlling costs to reduce external financing needs and advance our long-term debt reduction targets. Lastly, let's look at our AI system outlook. Looking ahead, we are accelerating our transition into an AI native enterprise across our management, financial and compliance systems. In our management system, We are expanding AI deployment across end-to-end operations, including R&D, manufacturing, supply chain, and user acquisition, moving from AI-assisted workflows towards full process automation and intelligent decision-making to maximize operating leverage. Within our financial and compliance system, we are embedding AI capabilities to enable dynamic real-time decision guidance, token cost tracking, and auditable financial workflows. Simultaneously, we are systematically refining our internal controls, cybersecurity, and information disclosure frameworks. These measures ensure complete regulatory adaptability, safeguard operational integrity, and reinforce long-term capital market confidence. We are entering a pivotal phase of commercial execution, regulatory alignment, and capital discipline. Powered by our four-core full-stack AI ecosystem, our Phase II built-in USA manufacturing roadmap, and our comprehensive capital value restoration plan, we are actively driving organic revenue growth reducing legacy liabilities and unlocking the intrinsic market value of our physical AI business. We firmly believe that the rigorous execution of our five key transformations will systematically elevate our operational leverage, strengthen capital market trust, and decisively realign our valuation with the long-term intrinsic value of our technology platform. To conclude, I will now hand the call over to John for the Q&A session.

Thank you, YT. We would now like to open the floor for Q&A. 1. What strategic opportunities does the FCC's new policy present for FF?

On July 28, 2026, the U.S. Federal Communications Commission added advanced robotic equipment including humanoid and quadruped robots manufactured outside the United States to its covered list. Foreign manufacturers and component suppliers will face substantially higher compliance costs, extended timelines, and increased legal risks, which in turn will incentivize them to seek deeper collaboration with U.S.-based companies. Management believes that this regulatory shift is highly aligned with FF's built-in USA strategy and presents a critical structural opportunity for the company. As the first US Company to achieve commercial deliveries of both humanoid and bio-inspired robots, FF has already established and continuously iterated its core R&D and operations for the EAI brain, data factory, industry productivity solutions, and developer platform entirely within the United States. Data collection and storage are strictly conducted in compliance with domestic requirements, giving FF inherent advantages in data security, cybersecurity, and model training. Leveraging its industry bridge strategy, FF effectively connects the U.S. market, global capital, cutting-edge technologies, and mature international supply chains. Capitalizing on this policy window, The company has formally launched the built-in USA acceleration program for its EAI robotics business, to be executed in three phases. Phase 1 preliminary deployment completed. The EAI brain, industry productivity solutions and developer platform, and data factory are now operational, laying the technical groundwork for ongoing core development. and proactively preparing for potential future ACTS-related regulations. Phase 2 Accelerate U.S. local assembly of robot units and FCC-compliant component assembled in USA with the goal of achieving domestic production on a shorter timeline and greater efficiency. This includes evaluating the conversion of our Hanford facility and exploring new site selections. Phase 3, ultimately achieve US manufacturing made in USA of complete robot units and certain components that fall under the FCC covered list.

2, as the embodied AI industry rapidly evolves, how does FF plan to sustain its first mover advantage?

With the continued refinement of industry standards, declining costs, and expanding application scenarios, The robotics sector is expected to enter a phase of accelerated growth. FF has built a closed-loop ecosystem centered on three core pillars, hardware, the brain and open platform, and data factory. This ecosystem operates through a positive flywheel, deployment, real-world data collection, model evolution, skill enhancement, and incremental deployment, continuously elevating intelligence levels and driving toward large-scale commercialization. High-quality real-world data is essential for training embodied AI. Our 2026 shipment target is 2,000 robots, encompassing both humanoid and bio-inspired models, distributed across multiple cities and diverse user scenarios to capture rich, authentic operational data. From our initial deliveries at the end of February through the end of July, we have cumulatively sold and shipped 394 units and we remain in a steady ramp-up phase. Our data assets are growing consistently, and we are leveraging this early data advantage to continuously refine the technical architecture of both the robotic brain and cerebellum building a replicable and scalable ecosystem tailored to the U.S. market. Furthermore, the recently announced FCC Robotics Policy has opened a critical market window that will help FF reinforce its first mover position, accelerate market share expansion, and strengthen brand recognition and customer loyalty.

3. Before Achieving Positive Operating Cash Flow How does FF plan to balance financing needs and share dilution?

The company intends to progressively reduce its reliance on expensive short-term debt and transition toward a funding structure anchored in operating cash flow, industrial partnerships, and long-term capital. Specific measures include operational optimization by executing our strategic plan We aim to increase revenue scale while tightening cost and expense controls, thereby steadily improving operating cash flow and lessening dependence on external financing. We have established core financial targets covering growth margin, operating cash flow, and debt reduction. Financing Mix Adjustment Subject to negotiations with relevant counterparties, we will seek to replace convertible note financings with equity-based structures were feasible and explore standalone financing for our robotics business to further reduce dilution at the FFAI level. Any new capital rates will be primarily deployed to support robotics business development rather than to service historical liabilities. Setting a conversion floor in compliance with applicable laws and contractual obligations We plan to establish a minimum conversion price of no less than $5 per share for our outstanding convertible nodes. This mechanism provides a clear ceiling on potential dilution from such instruments and helps stabilize market expectations. Through these measures, the company aims to gradually shift from a financing-driven model to one powered by operating cash flow. 4.

Why has the company set a debt reduction target at this stage?

We, together with our investors who are bullish on FF's robotics business and our industry partners, do not wish to see this early stage high growth robotics strategy constrained by the historical liabilities stemming from our post-IPO legacy and automotive operations since 2021. We firmly believe that the true value and commercial potential of our EAI robotics business are significantly higher than what is currently reflected in Faraday Future's market capitalization. To unlock this value, our debt resolution program advances along two parallel tracks, combining operating debt reduction with capital structure liability optimization. Through rigorous financial reconciliations, legal settlements, commercial negotiations, and warrant cancellations, we are systematically clearing historical operating burdens while establishing long-term debt management and internal control mechanisms. Building on the $20 million in debt resolution completed during the second quarter, these integrated efforts continuously improve our net equity position as we advance toward our roadmap target of reducing total liabilities to under $100 million over the next three to four quarters. Removing these legacy obligations across both operating and capital levels creates a cleaner, highly flexible balance sheet that enables our robotics business to move forward with a lighter legacy burden, accelerate commercial deployment, and unlock long term value for our stockholders.

This concludes today's conference. You may disconnect your lines at this time and thank you for your participation.