Exposing Boxabl | The Fraud of Elon Musk's Home.

Elon Musk once lived and may still live

in a boxable casita in Texas a 50

000 home that promises to revolutionize

the real estate industry and folks you

know I'm a big fan of revolutionizing

real estate in fact I have a housing

startup that would benefit from working

in partnership with a company like

boxable because we were really excited

about the idea of potentially having

affordable homes that we could add to

the backyards of properties that we own

or in the future we'll own so we can

increase the amount of affordable

housing that exists in America the

premise of boxable is fantastic and

being not only a real estate broker but

also a licensed financial advisor having

an actively managed ETF and a real

estate startup I'm a big fan of teaching

people about real estate and affordable

housing however that's where my

excitement ends because unfortunately

some of the things that I realized with

boxable just weren't what I thought they

would be now it's taken me a bit of time

to put this video together because I

wanted to make sure it was as

transparent as possible I think I and

our communities would benefit from

partnering with companies that could

manufacture affordable guest units they

would make permitting so much easier to

have one consistent plan to be able to

permit guest units buy them deliver them

build them done it would be phenomenal

the dream is excellent and it's

necessary to help solve the housing

crisis in America

but unfortunately what I ended up

finding out was that boxable is nowhere

close to helping us on that mission and

that's unfortunate because I wanted to

love everything about the company but

instead what I found is that one of the

three co-founders one of the sons is

dumping their shares in the company over

five million dollars of shares of the

company the patents the company says

they have they don't actually have and

the valuation of the company makes me

very concerned for a product that isn't

ready for prime time at all in fact the

current version of the boxable Casita is

permitted as an RV

God is a home because they can't get it

through permitting and that means all of

the existing intellectual property they

have

isn't anywhere close to Prime Time and

likely will never be that's because at

every step of the process in my boxable

factory tour I was told that here's how

we're doing things now but don't worry

we're completely changing how we're

doing things now and we're going to

Casita version 2.0 and we're going to do

it all better in the next version well

where is the next version

there is no next version yet that's

because even though the company spends

millions of dollars a year on research

and development at one point in my

interview

one of the co-founders told me the only

research and development team are the

three co-founders so it seems to me that

the three co-founders are actually

funneling research and development money

right into their own Pockets because

they are the r d Department despite the

fact that they are already taking

hundreds of thousands of dollars in

salaries and many millions of dollars in

stock based compensation

that at already an extreme valuation

now let's understand valuation for a

moment if you invested one million

dollars into a startup valued at one

million dollars the startup would get

one million dollars and technically your

cash is worth one million dollars

because you invested at net asset value

basically the value of the company

equals cash that's extremely rare to

find a company doing that because

generally the company will sell you

shares at some kind of diluted value

because the company is getting paid for

having established itself as a company

it's very rare to see a one-to-one ratio

in valuations it's something that I'm

doing with my startup but again my

startup would benefit from working with

a company like boxable we're not in

competition at all

now here's how normally startups work

let's say you invest a million dollars

into an AI startup worth 10 million

dollars the startup gets one million

dollars and you get 10 ownership well

technically that 10 percent is worth one

million dollars right it technically is

worth that but what you're really doing

is you're saying ninety percent of your

investment has gone to Brand value at

the company and 10 percent has gone to

actual cash because of that valuation

step up at 10 mil only 10 percent is

cash at the company and so therefore

ninety percent of your money is going

towards brand value this is called

dilution a ten to one dilution this is

actually extremely normal in the stock

market to see stuff like this any kind

of private Equity public Equity dilution

is extremely normal because you're

paying for the existence of the company

okay now there's flexible if you invest

one million dollars into boxable at the

over three billion dollar valuation they

have boxable gets one million dollars in

cash but your cash is only worth

318 dollars

that's because you're over

99.9

diluted by the valuation that boxable

has

now that's our opinion you should check

your math yourself on your public

filings but let's just say

the owner who's just so one of the

co-founders who just sold five million

dollars of shares to normal investors

did so at that three billion dollar

valuation now they say that the company

has backers like a DR Horton really big

institutional real estate players but

they don't tell you that those backers

actually invested via preferred and

convertible shares at a valuation of

around seven cents per share and now

people are paying about 77 cents per

share so in other words that

institutional partner invested at

one-tenth the valuation and was getting

paid about 10 interest in preferred

shares to make that investment

so

when we look at boxable and you listen

to this interview I want you to pay

specific attention to red flags most of

the products we believe that boxable

sources are from China of course box

will tells us that they Source things

from all over the place

the company also tells us that they have

over 60 different patents for their

technology that they're actually going

to redo because it's not good enough

but that's actually not true and is

borderline dare I say fraudulent when

you advertise saying the company has

over 60 different patents

but you don't actually say that it's

actually one of the co-founders LLCs

that owns all of the patents and they

take one percent of all the revenue that

box will makes

and boxable itself has zero on its

balance sheet for intellectual property

it kind of susses me out a little bit

boxable only had two customers in 2022

and 2021

and this year they're only selling to

certain Partners who are willing to take

boxable Casitas as RVs for temporary

workplace sites that's because you can't

permit them right now as they are for

homes and what's important to look at as

well is how much of the property that is

the boxable Casita still needs to be

built after it's delivered and unfolded

it's not just the finish work of drywall

and baseboards but it's also the sewer

the electrical lines the foundation for

the property the roof the siding and

cladding now some of the siding and

cladding may actually be waterproof and

blasted from as tested by boxable as

they say that could be believable but I

don't know if it would actually meet

code yet and that's probably why this is

being permitted as an RV keep in mind

also that when you see the factory this

is a company that says they have an over

three billion dollar valuation but has

equipment on their floor of less than 10

million dollars and in 2022 the cost to

manufacture a casita was about seventy

seven thousand dollars so it's no

surprise that the boxable Casita costs

are going up but that's just cost Minus

cost of goods sold the company also has

operating costs so it's going to be a

while I think before they're profitable

but not just a while before their prop

profitable probably going to be quite a

while before they actually have a casita

that an individual could take delivery

on so I'm not very enthusiastic for a

company that appears to be selling for

over 167 times Revenue with a massive

dilutivist expense and owners that are

actually dumping shares on retail

investors at this insane valuation so

I'm very skeptical while I think that

there is hope for something like this it

is not an investment that I personally

would make now keep in mind none of the

information in this video is

personalized invest investing advice for

you and my opinions on valuation should

not at all be construed as fact any of

the information that you gather from

this video regarding permitting or

investing or valuation or multiples or

costs should be deemed my opinion in

other words don't sue me bro do your own

research read through the investing

pieces the way I did ask their investor

relations the questions that you have

for boxable and let them answer these

but I think boxable should be

transparent about all of the inventions

and discussions that I just made and I

actually think they are because towards

the end of the video none of this is

hidden it's in their investor relations

documents with the exception of the fact

that they run ads saying that they hold

patents when it doesn't look like they

do other than that this information is

available in their documents and beyond

that it's also worth noting that in my

interview with the co-founders they are

willing to be transparent when asked so

I don't think they're trying to

purposely hide these things

I just think nobody's actually given

them a solid once over

and that's what I'm doing we are at the

home of the manufacturer of the home

that Elon Musk allegedly lives in in

Texas boxable we are here with the

co-founder how did you guys get Elon to

live in a box

Twitter obviously oh my gosh

no actually he did find out about us

through Twitter one of the channels he

follows I believe posted our video of

our house unfolding back in the early

days before we had a factory we just had

a few prototypes and uh turned out he

wanted to buy one so we sold him a house

wow so he got one of your initial

prototypes essentially yeah one of the

first three uh boxable casinos made

um he wanted to buy them I said I said I

have three I can give you one and uh

gave him the the one of the first

prototypes which we installed at SpaceX

in Boca Chica Texas wow that's

incredible well I'm excited to learn

more about boxable yeah excited to give

you a tour all right I mean we spent a

lot of time like kind of scouring the

Earth for all different building

materials and Manufacturing methods

because you know there's all different

requirements for buildings all over the

place and we wanted one universal

solution that would like fit everywhere

exceed everything so that makes sense

where did you guys get it all from like

the mines out here in St George they

were mining like crazy over there yeah

um you know really all all over all over

uh and as we scale up we're going to try

to kind of vertically integrate some of

that supply chain and bring more stuff

in-house do you guys want to let go

mining yourself or like putting together

the laminates or the yeah I mean we

laminate our own panels here

um but definitely you know mining raw

materials I think that's in the future

because because what we're trying to do

the scale is so crazy that I don't think

it's even possible to buy the quantities

of parts we want from things is it a

steel frame or aluminum frame uh it

doesn't really have a frame oh on the

inside even uh yeah because it's it's

basically a structurally insulated panel

oh so it's uh it's uh that's your EPS

yeah EPS foam uh it does have a lumber

frame around the perimeter but that's

not actually actually structural okay

that just serves as something for us to

kind of grab into with screws when we

connect the panel to panel that makes

sense okay yeah got it okay so so you

don't need like a like on an RV which

has a laminated wall panel you don't

actually need the aluminum frames for

the foam panels to sit in because it's

sitting within that wood frame basically

yeah we we're kind of continuing to

refine the design but definitely you

know very different than the way people

traditionally think about you know

buildings and stuff excited to see it um

yeah and you know one thing I'll mention

as well is we are starting out with the

Casita product but the company is not a

tiny house company we have kind of a

Grand Vision for a building system where

different sized rooms can stack and

connect to build most building types but

Casita is is seemed like a good place to

start and it turned out to be a good

place to start and we have this crazy

interest so we're running with that

right now so in the future for example

maybe you could get to that point where

like a Lennar home builder comes to you

and says hey you guys deliver you know

six seven eight pods per property we

want to sell they put it together do all

the finishes and build our communities

like that it's a sort of a vision that

you have exactly the plan and we

actually already have DR Horton which is

the largest home builder in the country

yeah I talked about number two yeah oh

Dr is your number one that's awesome

yeah they're an investor they ordered

100 units and that's exactly what they

want because they're basically a big

contractor they don't directly employ

any of their Builders sure and they

don't want to be in a six-month build

they don't want to have dozens of

subcontractors they don't want to have

weather delays if there was an easier

way for all the work to be done before

they receive any of it they love that so

that's why they invested in this now now

do they sort of like get stock option

after placing a big order or how does

that usually work uh so so they just you

know invested you know cash in the

company at the same terms as everyone

else at the same terms there's all their

keys a million dollars okay and then

they uh place an order for 100 units and

then they also hooked us into a bunch of

other resources at their company like

including their supply chain okay so for

example we can now buy stuff at their

pricing they're the biggest builder of

like cabinets toilets so it's it's

pretty good that's for like your

bathrooms and like you said cabinets

toilets you can yeah buy in bulk like

they do pretty much like I didn't expect

it when we first met them but they've

been extremely like helpful bending over

backwards and uh anything we need we can

call them and say hey do you have a

source for copper wire or wood or

whatever wow and jump right what are you

guys largest like supply chain hurdles

right now uh so we were kind of Born

Into the the fire because we started we

started manufacturing uh right when

covet was going on there there's

historic you know supply chain issues

and price inflation and it was totally

crazy uh so it was good though because

we weren't like an established company

hit with that all of a sudden uh we were

right as we were ramping up and gearing

up we were like oh this is what it's

like wow okay shipping containers are 25

000 from China and uh uh the big one for

us for quite a while was the EPS foam

which is like the core of of the wall

and all the panels

um they you we were not able to get it

anywhere we were like desperate to find

it but things are changing now and the

suppliers are now coming to us like Hey

we're ready to sell you stuff we have

the foam available for you okay oh

that's awesome wow now how do you uh

insulate them on the outside because

obviously it's it's uh you know you've

got your what it's like a one mil

laminate on the outside how do you

insulate those joints

um so when you look at our wall panel

and for example like the front wall of

the house it's it's one big panel all

laminated one piece basically

uninterrupted EPS foam through through

the whole core of the wall so that gives

you you know the thermal barrier uh

that's better than a traditional wall

because the traditional wall you have

like Lumber stud where energy is

transmitting through the low R value of

the of the lumber stud uh and then we're

about to transition into a next-gen of

the product because of the aps of the

whole product Oh the way you've designed

sort of the wall basically the wall yeah

so like what we're running with right

now is the same version that you know

myself uh Paolo and Kyle the three

founders yeah Drew on a napkin and and

guessed that before we had done anything

got it and luckily you know we we've got

a big Factory hired hundreds of people a

million dollars in equipment ordered

hundreds of units worth of stuff and

Luckily everything fit together and

worked and the product's great but now

we have like a year of real world

experience with the combined brain power

of everyone here and we're kind of

re-engineering it and we're going to

come out with this next gen that's going

to push everything in the right

direction as far as like Simplicity to

design streamlining manufacturing it's

going to be great yeah that's awesome

yeah let's go take a look yeah we'll go

check out the factory

uh before this I had a marijuana farm

and before that I had a Bitcoin exchange

business

basically I'm just seeing opportunities

jumping on things kind of mastering you

know all the all the info and then uh

you know doing pretty well for myself

and and this is one where I was doing

that marijuana business while I started

this at a certain point I just realized

like this is a crazy opportunity here

and I need to chase this down full time

so I took my family and moved to Vegas

to do it yeah this is the the first

factory this is the first thing okay

okay where's two the next building is

like

um right over there we can go outside

later oh so you have one and two here on

the same block yeah yeah it was pretty

cool like the amount of Warehouse

development that's going on in Vegas

sure there was just opportunity to grab

these buildings that were right next

door and I was like we got to get these

buildings next door so as we scale up

um okay and the the grand plan is that

this is actually just really a proof of

concept Factory and that we need to

achieve like true mass production scale

to really Crush down the costs and when

you look at like you know modern mass

production the best example is like

Automobiles and and that's what we want

to copy here and that's what we think we

can get to

so what how how are the margins right

now on them because they're selling for

what 50 60k 60k or something like that

right now well there's no margins right

now no you go sure because they're just

ramping up but what do you think you can

get them to I mean I think what with the

well so obviously we'll talk about with

the guantanamos y'all were I mean think

you're spending like 77k or so to build

them right so the people getting them

are getting a good deal yeah and and uh

since we started the costs have come

down the labor hours have come down I

don't want to jump into specific numbers

but I believe you know we will get to

profitability uh you know relatively

soon uh right now you know we're doing a

huge overhaul like I mentioned before

the uh the next gen product we're also

putting in about 15 million dollars in

manufacturing equipment uh opening the

second building all that's going to come

together later this year we're also

getting better at buying stuff sure um

you know just even just increasing the

size of the assembly line it's all kind

of getting massaged into place and the

idea is that we will have the lowest

cost building system ever done and if we

don't the whole company's just didn't

work and it's a failure so sure I guess

right here I mean uh where where does

where does it start it looks like you've

got it all labeled out here so staging

raw materials in on this side or what do

we got yeah so this is a really

important part of the factory right here

this is the kind of the lamination area

where all the parts of the Wall come

together into the finished wall do CNC

route those here yeah so that's a CNC

I've got two other cnc's over there and

we've got more on our way for the next

uh the next upgrade that I mentioned how

long have you been in this uh building

already you were just over the last year

you've been ramping this uh in in

production here less than 18 months oh

less than 18 months okay okay and right

now we produce two houses per ship two

per and you do one shift a day right now

I imagine yes okay yeah so uh and then

how did that compare to last year 22.

faster faster yeah I don't know exactly

I think if I remember looking I think

you were 143 for the first six months so

closer to about one a day maybe

somewhere on there yeah that would make

sense and right now we're not really

focused on going faster because what

we're doing here is this is a totally

new product type experimental there's a

huge amount of unknowns a huge amount of

risk and we have to really make sure

everything's perfect before we got it

before we ramp up so you know we're

going through all these changes with the

manufacturing equipment and the next gen

and at a certain point we're going to

say you know what we're ready we've had

enough real world testing now we're

going to focus on on ramping up and I

suspect that happens towards the end of

this year and we expect that we'll be

able to hit 5 000 Casitas between these

two buildings once we're ramped up wow

so 2500 each per year which then you're

looking at three six what seven eight a

day uh per per building almost yeah

the new Factory building is not

necessarily

just it's more of an extreme version of

this so what we're doing is we're moving

things around like a lot of the shelving

in here is going into the new building

for holding your raw materials yeah a

lot of the parts manufacturing like the

cmcs are going to the new building then

the assembly line here is getting longer

and we're just going to kind of move

things around and get more efficient so

this might be sort of the core line so

to speak and then all the racks with the

raw materials might go over there so you

could forklift drive across the parking

lot pick up the parts put them at the

beginning of the line here and go

through yep yep yep got it really

excited about that and you know like

some of that equipment we're getting

this whole uh manufacturing equipment

here that's all getting swapped out with

new stuff so this is where the panels

are getting laminated right now we make

one wall like so like for example the

front wall of the house takes about 20

minutes okay and of course that's way

faster than you can do it the

traditional method but once this that's

the laminated part right or is it with

the phone uh so that's like a fully

finished wall going from this kit of

Parts okay into a wall That's then going

to get connected to a floor or something

and built into the final and that's with

your wood frame where they're connected

basically those are at the corners got

it got it yep and then so so right now

20 minutes and then we'll be going to

about under five minutes per panel wow

and yeah forexing yeah yeah and uh that

will happen with that with very little

human interaction throughout the process

so we're going to speed up we're going

to cut down the labor basically we're

going to be dropping off pallets of wall

board on this side and finish picking up

finished painted panels on the other

side so it's gonna be pretty cool nice

so how much equipment I mean this looks

impressive we've barely walked you know

how much equipment would you say you

have here right now I think we're at

about five million dollars in equipment

okay and then we're doing another about

15 million that's the the so the next 15

is more equipment here more equipment

there as well and you said you're

replacing some of these machines yeah a

whole lot of this stuff is getting

swapped out just upgrade or whatever

yeah and basically we got in here and

said let's use the the minimum money we

can spend on equipment possible get

everything done as manual as possible so

that we can make sure we are the process

is going to stay the same before we

invest in this automated stuff and

that's why you're saying hey you've sort

of just come up with the Gen 2 version

so Gen 2 when when do you think that

goes into production all this stuff is

going to kind of come together uh later

this year so that'll be new building new

equipment next gen okay and that's going

to massage everything into place you

know labor costs material costs assembly

feed all that really exciting for

example one of the changes we have is

we're going from the current payload

design to what we're calling a universal

panel so right now each house has maybe

12 separate panels okay on each of those

panels has its own separate kit of Parts

sure what we're doing next is we're

going to one panel that's cut down at a

later their stage into the right size

and we're able to do that with any waste

and then that dramatically reduces the

the components that the number of

components that go into making those

panels lots of different stuff like that

that is going to contribute to these

like really big improvements that we

think we're going to see that makes

sense now in the front you have some of

the examples and they don't have siding

on them I know is there any issue with

like elements potentially going in the

gaps for hitting that foam whether it's

icing or rain uh it's funny you ask that

because we're going through our modular

certification that we have to do state

by state to get these approved and just

now I got back word that we passed the

water intrusion test okay uh so we

already knew that it water wouldn't go

through it but now we have the official

third-party test out that's great water

won't go through it yeah that's awesome

it's good and then you know those units

out front we have just the stock units

set up which I'll show you later and

then we have some that are kind of

dressed up so we have one with you know

stone veneer one some with different

roof pitches so you can start to

understand that it's more than just this

little Casita product so how many people

you have right here right now

um I think maybe like about 130 okay

currently working uh and then probably

probably another 30 or so in in the

office nice um nice so you know you can

see the these these parts these are your

end panels yeah yeah these are the the

End Lumber pieces

um and lumber pieces with the vinyl on

top is that yeah and and so like you

know a lot of this stuff is is changing

but you can see this is um this is like

that's a vinyl end piece yeah yeah nice

so you know a few different reasons to

have this shape um and this is

engineered which is great so it's strong

Lumber that you have anyway yeah and one

of the reasons yeah one of the that's

the main reason we wanted engineered

Lumber is because everything is

precision cut by CNC I mean you don't

want to do this at Home Depot anymore

and the other thing is it just wouldn't

fit yeah it needed to be like you know

it's always crooked when you go to Home

Depot and pick up a two-way so that that

makes sense yep that's why we picked

that stuff okay and then you know uh

these end caps create just like like a

shape for for the panels to lock into

place sure they do things like allow for

gaskets in there we have a shape where

like if water was to come in here it

wouldn't go up and then over and you'll

kind of see that how that goes together

later on so that way the wall could

almost breathe basically out of your

laminate yeah um and and then you know

all these parts are are cut by CNC

including you know these various shapes

on the EPS foam so you have these

delivered uh from someone else then so

you order the EPS the way you need it

basically uh we were at first okay and

then we realized we need to be cutting

this ourselves because you're cutting

these yes yeah we can save thousands per

unit so we just got that equipment it's

just been being put into use recently

wow that's over this way yeah we have

the we have the big blocks of foam we

cut them down ourselves and then

eventually we'll make the big blocks of

foam as well wow wow okay all right

that's very cool cool

so now getting into making the foam you

think will be profitable

is it it just it seems like making the

foam would be or just get the block kind

of thing but you all think there's a

potential there so there's there's two

issues one is our

plans to to grow and scale the company

we get to a point quickly where we can't

even find enough I get it uh because

we're yeah we're talking about and

shipping it that's hard too it's huge so

that's the second issue EPS foam is like

98 air and that's one of the reasons

it's a great product but also we don't

want to ship air uh so we're going to

ship in the beads expand it ourselves

and that'll save us another thousand

bucks per unit of materials wow wow

that's awesome yeah everything we're

doing is focused on pushing down the

cost without compromising on anything

nice so nice Okay okay so is it like

lunch right now because I mean there are

few there are fewer people here right

now what do we got 20 maybe on the floor

there's more there's okay okay okay so

this is your CNC for the laminates uh so

these cut down no these yeah

um that one over there cuts the interior

wall oh you're doing the vinyl

attachments here

yeah how are you attaching the vinyl to

the wood just glue glue yeah okay yeah

that makes sense actually it's another

Improvement we're doing where we kind of

realized in most cases we don't even

need the vinyl so we're taking it out of

the process completely for the next gen

oh wow we're just going to shape the

lumber okay the equipment so that'll be

another cost savings nice nice yeah well

hey less products the better and then

you don't have to glue it exactly

actually this is an example where we're

prototyping that idea so you can see the

lumber on this cart already has those

shapes in them without having to steer

your channels and that's your Machinery

here that's running the channels through

exactly that's going to cut down this um

so you know you have kind of the same

shapes we saw before

um this is this is this little spot for

where the rubber gaskets will get

inserted in to seal the whole thing off

the smell of sawdust reminds me of my

childhood because I would always sit

after school in my dad's Workshop I was

always saw this you made kitchen

cabinets

so what do you think of the future

you'll make your own cabinets it seems

like you want a vertical interview no uh

we kind of already are oh wow oh yeah uh

originally we went to Home Depot bought

some calories it was like six grand per

house yeah it's a lot yeah then we went

to China and bought our own cabinets the

price went down now we've actually

re-engineered all the cabinets to do two

things one reduce material and the other

uh uh speed up the assembly time okay so

it's going to be really amazing and like

simple changes like for example if you

went and bought two cabinets and you

stick them together in your house yeah

you then have a wall in this cabinet and

a wall in this cabinet sure but we only

need one wall yeah and then the back

wall because you already know the design

you're making so yeah exactly exactly

okay and then the back wall well that's

going against the wall of the house you

don't need a back wall okay

um the way the screws and the Fasteners

go in we want everything to click

together really quickly sure so you're

always just hanging them yeah exactly

the cost keeps going down and down on

that uh we're just kind of continuing to

to fight against and push everything

into place that's awesome that's great

yeah because you don't use drywall in

these because the inside is is it

another laminate on the inside yeah so

right now we have what's called

magnesium oxide board on the interior

wall and in the Next Generation we'll

just be switching to like party board

fiber cement oh okay yeah yeah like for

showers and that exactly yeah okay and

it gives us a whole bunch of different

benefits to do it that way but one big

one is you know sheetrock if you get a

flood in your house you see Rockets

damage really quickly sure mold you got

to rip it out yeah our houses if they

flood the water leaves you dry it off

and you're good you don't have any

significant damage hence the heart but

hardybacker is expensive don't tell me

you're getting into the concrete

business too

uh you know it's funny I have been uh

definitely thinking about how that plays

out in the term in the various companies

that will need to either acquire or like

really partner with really close yeah

because I it's been a while since I've

bought sheets but I mean I think a sheet

of drywall mold resistant was like eight

bucks and Hardy was like 40 or 50 years

I mean it's up there like a sheet of

plywood why don't you do plywood

if you look at our wall assembly we've

actually eliminated some parts so a

traditional wall assembly you might have

uh exterior you know siding uh OSB uh

Lumber frame Nails insulation sheetrock

um maybe some plywood or whatever ours

is just going to be concrete floor EPS

concrete board so you want to do the

concrete board instead of the laminate

yeah the next gen is just going to be

concrete board laminated to EPS foam

laminated concrete how thick is this

concrete board 5 16 I think okay that's

gonna be heavy

yeah it the the total weight doesn't

come in much more than where we're at

now I'm impressed wow right now we're at

about 14 000 pounds per unit okay which

is dramatically less weight than a

comparable sized modular home okay okay

all right uh you know it's important to

be lightweight for shipping costs and

heavy equipment yeah and so this is one

of the it looks like your hinges or or

where It Bolts together because I I

there's half of a hinge here basically

so this is it looks like one of the wall

units I'm guessing yeah so actually this

is kind of what we call the core of a

unit so this is a floor piece you can

see the floors uh and then uh this is

like a you know

six eight foot section yeah and then the

other section is a 12 foot floor section

that folds up and yeah this is this

hinges so what we've got here is the

structural I-beam through the center of

the similar to what you have here and

the ceiling uh this is just a pocket for

us to stick forklifts in so we can lift

up the whole house and move it around ah

interesting okay yeah okay so these are

your wider forklifts yeah I've seen

smaller forklifts this is the big boy

this is the big forklift the whole house

okay um and by the way that's actually

another part that's coming out in the

next jet

what are you just gonna do wood on each

side we figured out a better way to lift

it yeah and that's that's gone because

because it looks structural because yeah

I mean if you're just lifting it a few

times you don't need that much it's like

twelve hundred dollars yeah to just do

something you're gonna do once and then

and then the unit sits down and it never

moves again

um but this is important I mean this

this is uh where you end up with a

hinging eye beam yeah and the hinge is

stronger than the actual Ivory oh my

gosh yeah yeah yeah so you know all

those parts come in there

they get fed into this uh they get

adhesive this is your floor paneling

section I'm assuming so the panels the

components in the panels get assembled

together they get adhesive they go into

this machine which is a big vacuum press

it puts like 100 000 plus pounds of

pressure on while it cures and then out

come the Finish panels looking somewhat

like this and then we'll see the panel

Library over there after it comes out of

here we roll it over there and continue

the process got it

and right now you're doing everything's

sort of going to be expected to be the

same the same floor the same cabinet

same bathroom everything until you get a

scale is the Assumption yeah I mean when

we started boxable I thought maybe we

would sell like a few hundred casinos

never in a million years thought we

would have a 160 000 plus people wanting

these things so we're in the fortunate

position now where we don't have to do

anything different we can just focus on

this initial product get really really

good at it learn everything and then in

a future Factory expand to the full

building system sure where we would not

only have different Interiors but

different size boxes that can stack and

connect to build single families

Apartments basically everything oh go

ahead I was gonna say and we're getting

all the heavy lifting done for the

Builder developer and then they're just

taking these boxes deploying them

putting some custom finishing touches on

them they can sell the upgrades then too

exactly exactly like for example the

neighborhood that I used to live in in

Vegas we have you know you drive in the

neighborhood you see all these different

houses but you won't what you won't

realize right away is that they're all

the same house there's maybe two or

three models in there yeah different

veneers exactly exactly the mirror image

um or whatever yeah sure and people

don't need like a perfectly custom house

and and and and then you know in return

for that blow the budget out of control

and make housing unaffordable so it's it

sounds like it would be more efficient

to start with larger customers right I

mean that I think that's what you all

started with right 21 and 20 yeah 20

were One customer yeah so uh it's

interesting and and we were fortunate to

get these customers because without them

it would have been really difficult to

start well they give you the capital to

like here's the large deposit to get the

factory going right yeah and and even

things like the modular approvals that

we need to deploy these to end users we

we don't have those yet okay and it's

taken so long it's absolutely incredible

it's blown my mind and it's this

regulatory process that is stopping

Innovation and and we were lucky enough

to find these initial customers which by

the way one was the government

right they don't follow their own rules

so they didn't need the money okay so

what happened what what would you say to

the nyt right now look nobody really

likes the nyt I don't like him either

they on me too man I'm sorry but

you know so uh what happened in in the

first order with Guantanamo we we

shipped uh units down there and you know

the crew that wasn't a boxable crew uh

set up a few units at a few of the units

they forgot to put the roof on so we

have what's called a TPO roofing

membrane and and you're supposed to just

roll it over and secure it down and they

didn't do that for a few of the units it

rained some water went in they realized

that they fixed it and that was it so

that's what's pictured sort of on the

nyt cover where they show the the nailed

boards around the edge with the the what

looks like because instead of putting

the TPO roofing membrane they just threw

tarps on at the last minute to stop to

stop the water uh and the the the

reporter of that article her whole job

is to talk about Guantanamo Bay if

you look at all her articles she's

always making Guantanamo Bay look bad oh

um but but I after the article came out

I messaged her and I was like hey you

know you threw us under the bus and she

was like she replied back to me and said

I didn't mean to insinuate that it was

your fault I meant to make it clear that

it was their fault interesting and

actually if you look under one of the

the pictures on there the caption of the

picture it says you know workers at

Guantanamo Bay incorrectly installed

some of the units and it resulted in

water getting in uh but luckily like I

said the the houses are are mostly

waterproof inside and the only thing

that got damaged was some of the

cabinets which we just swapped out and

it was no big deal so you initially

delivered what about I think 30 by the

end of was it 21 and then did you finish

or 2020 maybe and you finished

delivering last year or are you still

delivering to them uh that order is

delivered in full that's done 156 houses

so pretty pretty amazing I mean when we

first got approached by the government

we had nothing I had a few prototypes I

didn't have this building yeah uh I

brought them here before we even had the

lease signed and it was an empty shell

wow yeah brand new empty shell and I was

like guys like you know you understand

that we've never done this before we're

not sure that we can do it we don't have

a factory uh you know here it is an

empty building are you sure you want to

do this and they were like yeah let's do

it and we managed to get in there uh

that was the government yeah the

government YOLO uh pull the trigger on

the building scale up hire hundreds of

people turn on production of this fully

experimental product you know order uh

hundreds of components from from all

around the world and and pulling off and

deliver in full so I think it's it's

amazing and you know the fact that we've

continued to kind of you know execute on

the vision and deliver on our promises I

think people see that when they look at

the company and they see me starting off

as a guy making these like you know

grandiose claims and then they're like

oh but then this happens yeah and now

we're here now we have two houses a day

who are you where are the what units

going to now it looked like uh you were

at two purchase orders in 2022 what

where are you guys now

uh so we ended up doing uh just a few

like onesie projects here and there but

landed another order that was kind of a

special order and it's for uh uh copper

mine in Arizona the company is called uh

Freeport McMoRan uh they're the ultimate

recipient of the houses I think they're

like a a 50 billion dollar mining uh

operation they're one of their previous

yeah they're one of the biggest

Employers in Arizona and they do copper

Mining and of course copper is needed

for electric cars so they're growing and

they need a Workforce housing solution

so we currently have units uh shipping

out to them they're they're mid setup

out in out in Arizona and so you'll have

an installer Network that you refer

people to then because you guys don't

install them you ship them yeah so what

happened there was we basically had a

developer slash project manager that

knew about boxable knew about the mines

Workforce housing need went to them and

said hey guys you should buy from

boxable we'll set it up we'll do all the

development so our actual customers this

developer who's selling the project or

who's who's doing the process completed

for the for the mine uh so we're just

shipping them units and they're doing

the rest do you expect that mostly

contractors will end up in your sort of

sales force

you know uh no matter you know where

these units go there always needs to be

someone doing the groundwork the nature

of housing is you know their site prep

required yeah for the most part I mean

it's minimized with our with our product

but uh yeah I think you know Builders

developers they're going to always kind

of be the middleman there's going to be

added costs so you know the consumer

wants you know to buy a casita for 60

000 for their backyard they're also

going to need to pay for site prep

permits any upgrades they want to do and

so that's definitely part of the mix

what uh what do you expect on average

somebody else is spending for like you

mentioned uh electrical lines Plumbing

lines water lines uh you know Foundation

roof whatever

yeah I think it it varies like very

dramatically based on the the end use

case uh for example if you're doing a

backyard unit where the sites already

developed utilities are already there

you're connecting it to a main house uh

it's not going to cost as much unless as

if you do raw land you got to bring in

utilities from the street

um then there's other things like we

have these certified right now as Park

Model RVs with a park model RV you don't

need a foundation right you don't need

to add any roof pitch to it you can

almost plug it in with an extension cord

so that's like the lowest possible cost

you could take one of these right now uh

rent a telehandler unfold it in your

backyard plug it in with an extension

cord hook up like a water tank and be

good to go but then like you said like

an RV like you're not it's personal

property you're not refinancing it

you're not getting a home equity line of

credit or whatever right yeah yeah or

you know you want to add in a foundation

you want to dig a trench for real

utilities maybe add some kind of roof

pitch and get perm it's you know the the

price kind of goes up from there we'll

see I mean it's uh big wide range of

different scenarios and for example I'm

also right now looking at uh doing

another project where we might buy an

old uh mobile home park okay and so the

mobile home park is roughly

I think uh eight hundred thousand

dollars for a hundred spaces they're all

ready to go so you know round up maybe

we end up at 10 grand per space sure and

then you come and you connect the

boxable Casitas in there's not many more

costs than that so you know the Box will

see the 60 maybe 70 80 90 something

around there so you're going to be your

all-in cost for that and then when you

talk about like a 30-year mortgage on

100 Grand you know it gets to the point

where this is a very low cost housing

solution as far as a monthly price do

you think that might be the direction

you ultimately go where you can where

you go get DMV registration rather than

let's say housing registration

so we did that but only kind of as a

reaction to the time it took us to get

the modular cert so as the the

government order was was getting closer

to be finished I'm like oh we don't

have modular cert we can't sell to

anyone how else can I get these approved

I went out and certified us for Park

Model RV we have rbia that inspects our

Factory and and approves them as as as

RVs yeah and that kind of brings them

more into the realm of like mobile home

type type vehicles and then there's

lacks rules and regulations surrounding

that and it's just another Avenue for

the customer and hopefully we'll have

every Avenue for the customer covered so

one day we'll have Park Model RV we'll

have modular maybe we'll maybe we'll be

able to get them approved through a

panelized uh certification at the local

level maybe we'll even do the Hub

manufactured housing as well so how long

do you think until maybe somebody like a

retail customer is looking at I can get

a permit on this in my backyard

I think that we might be a few months

away from Arizona State modular

certification for the RV style then no

for a modular for regular customers okay

and at that point we can actually sell

to customers right now the only way we

can sell the customers is the park model

RV which isn't ideal so once we get that

modular cert we can start shipping to

end users then we'll quickly do uh

California Nevada as well sure uh

unfortunately it is a state by state

thing I don't know why you know other

products don't have to do a state by

state approval and it's it's not it's

not good but a big part of what boxable

is doing also is going to be fighting

back and trying to change these

regulations and also showcasing a

project a product that that doesn't need

these regulations right well because if

you get to California they might turn

around and go you need fire sprinklers

there's a whole new system that has to

be put in right oh there's going to be

stuff like that for sure okay so okay

we'll work through it all yeah yeah I

mean that's part of the process so

what's um so right now it's really hey

where can you get the temporary use

cases like the mine maybe where they're

good with here's our industrial

temporary power grid or whatever plug

them in

that's sort of what you all thinking

right yeah yeah and you know we're

fortunate to have these two big

customers that allowed us to run really

fast and do this but

without those customers I don't know

where we would be because we might be in

a situation where we have this whole

factory set up and we can't sell a

single house yeah and that could be the

situation for like another competitor

that was trying to start up unless they

found these really special customers

like Guantanamo Bay Cuba or uh a huge

you know copper mine that they would be

sitting on their hands for over a year

trying to get their buildings uh modular

certified wow so uh what's what's back

here but in this gray box yeah let's

keep going that's it

so and where do you do all the research

I mean for like the next gen product

YouTube you're ready to stop I swear to

God oh that's awesome YouTube Google

calling people asking weird questions

that's kind of what it's been the whole

time and then testing stuff for real

testing okay got it yeah and you test

that I imagine so it gets a little

slippery here guys so yeah panels come

out of the lamination system here and

then we bring them up right here where

we kind of have a panel Library so

you'll see the different uh panel um

images there and and then what we're

doing is uh painting and sanding to get

rid of the Interior seam and then we do

some electrical work as well you're

doing that with like drywall mud but

these are drywall my pants yeah so

you'll see like this is a panel this is

a panel as it comes out of the

lamination machine yeah minus the

electric sure so what we want to do is

get rid of like the seams between the

wall board yeah um and where we're

actually trying to work on better

solutions for that for the next gen

that's more more automated uh but right

now yeah it's just drywall mud and are

you trying to finish it smooth with this

yeah you'll see how they look down here

after they get some paint on them okay

so drywall mud then paint and the paint

Blends it all in basically so so the end

user doesn't know if they're touching

this or drywall mud

yeah

okay okay you know you can feel also

like like how solid these are like

you're not you're not getting through

them

and this is the laminated you mentioned

the Magnesium or whatever right it's

also about another like yeah it's very

similar it's very similar to Hardy

Hardy's fiber cement board

and then of course EPS foam in the in

the core uh and then you can see stuff

like the electrical

so there's a network Behind the Walls

sure and that makes um install of

electrical easier in our Factory and uh

modifications easier in the field so and

then I imagine you would just sort of

train your existing employees on the

electrical or whatever you don't like

have need an electrician to come in to

do that very important Point uh we do

not have skilled labor in our Factory

okay we can take anyone off the street

and just train them as a technician to

do a do a job okay and that's the only

way you're going to be able to actually

push push the cost down of course if you

can use just you know regular Labor uh

to do something for as part of mass

production all right

huh

so is it mostly you and your dad who do

the research or who all does the

research so is uh me uh Paulo my dad and

Kyle Denman uh the three of us you know

you guys together do the research yeah

we worked on it um Paulo and Kyle are

you know Engineers they're experts in

like 3D modeling on the computer so Kyle

has drawn up all of this in in great

detail in the 3D model wow and then

we'll have meetings where we'll go back

and forth we're finding the design and

dialing it in

um you know constantly trying to change

things improve them

um and then I imagine obviously you get

a patent the like this new Casita design

right I mean because you're giving all

the tours it's like I feel like you're

like here's what we do you know how are

you guys gonna protect it yeah you know

a lot of companies are like scared to

show their stuff and I think it kind of

holds you back from opportunities we

have over 60 patent filings wow on all

the various stuff that we do here

boxable has 16 patent filings smokes and

uh beyond that there's a certain amount

of barrier to entry just in the sheer

amount of money you would need to do

something like this uh you know the the

permitting like I said and then also

what hasn't been filed yet what hasn't

been done yet so we're actually having

the pipeline right exactly if someone

comes in here and copies everything we

do they're already a year behind is what

you're saying yeah all of this is no

good we already figured a way better way

to do it all wow so we'll be

implementing all that and and that's uh

you're gonna sort of remake this

facility here into the Gen 2 as you're

ready to implement it yeah I mean

basically for the rest of this year

we're going to be changing everything

here installing all this equipment

um you know after that panel elimination

line we have a whole new paint system

that's basically a tunnel where these

panels come right out of the lamination

system and get fed right through a

tunnel and get painted automatically and

you know and then we have uh the

assembly line here where the payments go

together you have a conveyor system

you've got the uh the houses will sit on

and they'll move automatically to the

station in the future the conveyors

upgrades that are going on I see

yeah you can see how they end up getting

getting painted here so like there

they've mudded they've mudded the seams

yeah no it's pretty good

yeah I mean you can't really tell I mean

it just I mean a house has seams and

then you can sometimes tell where the

drywall is too so looks good

cool okay

and this is how you stack them up to

hinge them together yeah and just just

be just careful around here be aware

that there is stuff like hanging from

cranes and stuff so just please walk

carefully in this area

um

huh

these are your mini splits yep

so this is your inside unit

for your mini split exactly and and so

that way you guys can install The Minis

and then the outside units on a shelf

probably somewhere like getting outside

yeah the mini splits are great

energy efficient

but I put mini spots ever so I love

those things okay so I mean you only

really need one mini split for these oh

it's totally overpowered yeah and then

what what's the tonnage on those suckers

what about

um

I you did a demo of a two-story how do

you do a staircase in a in a so actually

the project we're doing for the

workforce housing right now those are

all two-story units but they're separate

Apartments so they have an external

therapist got it got it and then that's

a builder show we connected three units

together it was a two-story it's gonna

show like one single house and that had

an internal spiral stair okay uh we

could do regular stairs you just cut it

out of the floor though yeah it's really

good yeah but but for demo unit for for

these smaller units it's kind of a waste

of space to put in a really big

staircase but down the line when we have

our bigger units because these are 20 by

20 but we'll go 20 by 30 20 by 40 20 by

60. you think you can get these out wide

and still get them in a container

basically well so they'll all be 20 and

that folds up to eight and a half but

then on the length we can keep going

sure and then on the bigger side of that

like a 60 by 1200 square feet in one

room yeah in most use cases you're never

going to need a room that big and you'll

end up subdividing it so that makes

sense um but yeah so here's kind of

where this assembly line starts and you

have uh you know these various stations

where the the same task is being done on

the different units uh every time so the

guys are you know really good at it we

keep dialing in the process we make sure

the right tools are there

um these are your backless cabs no they

have bags these are still their current

version of cabs this is like a middle

generation we have another gen in the in

the pipeline coming in

um but you can see like these are kind

of getting pre-assembled and then

they'll be bolted in there pretty

quickly

um another thing worth mentioning is

that uh this is what we call the core of

the unit so that's where all the all the

magic happens in this section of the

unit and that's the part of the house

that is not folded up this is where you

guys are also water testing now and yeah

they're doing for the PEX pump they're

doing they're doing testing and

everything and of course another

advantage of factory production is the

quality control level that you can have

the Precision yeah ordinarily you just

get a building inspector

Plumbing works right that's so you could

actually test it here good yeah I mean

the level of quality you could see in a

factory using like CNC to cut is is on

another planet then what is going to

happen on on the site yeah um yeah I

agree with you and and you know at the

end of the day our our pitch is you know

site construction is not sustainable

it's not scalable you know you're never

going to be able to achieve the amount

of housing needed by doing it that way

it has to be done on an assembly line

because assembly lines are proven to

rapidly produce products at the lowest

possible cost and that possible it was

just about solving the problems that

have stopped housing from working on the

assembly line of course of course that's

you know shipping is the big one and

then there's a lot of other stuff

because you do have manufactured homes

that exist yeah but they just haven't

gotten competitive with the shipping I

think is your Edge that you're talking

about yeah so you have about 10 of the

market that is actually Factory built

housing

they've really kind of gotten stuck in

stuck to gain market share and you'd

assume that if it was better they would

take over because they'd have a lower

cost product right between the fact that

they are shipping these wide loads which

are incredibly expensive and that limits

the size and scale of the factory

because then they have a limited

shipping radius uh they're also just

using the traditional methods there's no

innovation on the building materials

obviously we have all different building

materials they're just using Lumber

frame but doing it inside makes sense

yeah yeah okay all right anything else

to see this way yeah yeah um another

example of something we're doing

ourselves is the shower so you'll see in

here uh the shower's got the boxable

logo on it so that's a fiberglass

enclosure there oh and then you guys how

did you get the custom boxable logo yeah

so so we didn't find a great solution I

want a custom logo in my shower yeah

right sorry you were going to say you

found a yeah it's another example of us

you know taking things in-house we

didn't find any great Solutions out

there and we said let's just engineer

our own and we'll get a bunch of

different advantages by doing it that

way can I go in here oh thank you huh

yeah that's awesome so you actually okay

this is your your vent right because you

don't have a ducted mini split it's just

this is your exhaust vent yeah I

understand okay and then

you're making fiberglass panels in house

or how did you or did you you're doing

The Impressions trying to shower from

China but it's our design okay oh okay

you guys designed it I understand I

understand okay yeah okay certain stuff

it makes sense to build to actually

manufacture ourselves sure

um but a lot of stuff we need to design

ourselves

and how do you end up finishing like

just with like a molding or something

like that the plumbing between them or

because I know obviously there's bass

missing here and the trim mold and that

is we'll see him in the next one deal

okay all right that's the best way to

explain it it's prettier yeah we'll go

look at it

oh and your your water heater is

actually in

the kitchen

yeah you know I wanted to use like a

like a tankless but they're expensive

the power demands that was the real

issue really so if you have a accessory

dwelling unit yeah then you're still

working off the power that's already on

existing on the house so 200 amps or

whatever sure and I didn't want to go

and then have a really big Power demand

and bump over that number and then it

requires new power to run from the

street and increase the cost so that's

how you're trying to keep that down okay

yeah but now okay

um

alternatively if somebody did run

another line then they could go Tangles

or they just had enough power you know

okay um but right now this option is

going to come with the 130 or whatever

it is yeah and we did uh all electric as

well you know we could have done gas and

that would have followed that issue as

well wait do would there be a cooktop

yeah yeah we'll see we'll see that in

that okay all right or in the demo unit

out front okay

this is actually the big the big floor

oh uh interesting wait so you're your

your water heater is actually behind the

range so you're not going to do a

built-in range because you didn't do the

countertop all the way actually we have

to move it because the modular certs uh

based on the code yeah it can't be there

you can't block the water heater you

need access to the water heater and even

though we have it through an access

panel they were like it's not enough the

code says 30 inches so we're moving it

soon uh because code wants you to drain

the sucker every year nobody does yeah

yeah because that's because in order to

drain it you have to take off one of the

top Valves and drain it off the bottom

yeah and I I know we were like all right

well you just moved the the oven yeah

but they're like you can't move the oven

it has to have access without moving

without moving the oven yeah so that's

getting moved interesting okay so not

sure yet where that's going I think in

the bathroom um well it's just another

one of those things that we have to work

through TBD got it got it okay I like

the Lazy Susan it also doesn't have I

think that's going away as well

where's the Lazy Susan going that's

right those are expensive they're

they're not easy honestly like

nobody's going to look at a place and go

there's no Lazy Susan you know if it's

there they'll notice it all right all

right what else we got we got big stuff

that looks like it's gonna fall I don't

want to stand next to it too close

yeah so here's all your Romex going

through now how do you guys handle the

heat transfer on this because if all

these loads are going that's a lot of

heat bundled

I don't know TBD the tbj TBD okay

approved it's approved okay all right

that's all right very well okay uh what

is this this is what the wall goes on

uh so so um these are just big screws

that that kind of fasten fasten it

together this will fasten the ceiling to

the walls got it the floor to the wall

this is the floor this is your I-beam

yeah so this screw ends up going all the

way this is the other flip part that

attaches to the hinge we saw exactly

yeah yeah and the reason we have an

I-beam through the floor and the ceiling

was to reduce the span of the panels

sure that they could be smaller panels

and they didn't have to span 20 feet

they only span 10 feet and rest on the

I-beam okay yep that makes sense okay

all right

yeah

yeah so I now you're seeing some of the

other panels starting to go together

into the house

um like I said we're folding up all the

empty space and we're not folding

kitchen bathroom everything else so it

gives us you know room for activities

and how many of these are you able to do

right now at a time is it two a day we

output two per ships okay okay wow

okay

and then this would be for your sub

panel then here it's okay to walk over

here imagine okay this is like you know

a mini split line and then this is where

the power the Box will go this is where

your sub will go okay so if somebody

wanted to deliver a main they can bring

Cole domain and they do have your own

power over here your own 200 or whatever

yeah okay cool

and then you got the windows over here

pallets of uh dual pane windows

oh yeah we got a lot of stuff yeah and

it's all gonna get um kind of shifted

right now we have 10 stations here okay

and we'll end up with 20 stations plus

feeder lines wow once we reorganize the

two buildings oh look at this employees

are great this is awesome so you want to

get into the foam making business yeah

part of our plans in the future I think

definitely has to be uh integrated Foam

Factory and the reason is we're going so

big with this like I mentioned before

this Factory is just proof of concept

yeah we're trying to get into a one

billion dollar Factory next wow so we're

currently trying to raise one billion

dollars to build the world's largest

house Factory right now because right

now

you have uh what is it

how much inventory how about how much

Machinery maybe like 10 in total of both

so you want to 100x the factory

investment basically yeah we need to

where are you gonna build it uh we have

um um requests for proposal for a whole

bunch of different sites right down the

street from here okay basically out in

the desert raw lands gonna go out there

we're gonna build hopefully build uh

millions of square feet of Warehouse

yeah and turn on an absolute monster

yeah and that's that's what we need you

know it's a no-brainer okay

it's it in my opinion it's it's a it's a

no-brainer that we should be building

houses just the way we're building cars

yeah and we think our products is

compatible with all those principles I

like how you have a crane that goes

basically up and down the line

yeah yeah well that beats moving a crane

around found out that that was

overkilled ah well it looks cool so next

gen we'll have small

roller creams got it okay gotta use that

to you know put the panels into place

and unfold the house and all that nice

nice okay we're getting to the end of

the line here so six six that's nine

final units

um just getting some final QC uh we

could we could probably walk in this one

yeah let's take a peek and then they'll

fold them up and they'll send them out

back oh you cocked these joints oh no

this is the caulking

this is the steel to steel and it just

we just repeal the plastic off and it

looks great so this you got the

waterproofing on so like the water can't

get in between this joint yeah wow okay

but people obviously still add siding

just for cosmetic purposes then uh yeah

I mean you'll see the ones out front

where we added something but you don't

necessarily need it okay

what we're trying to create is like a

universal building box that's

architecturally neutral that gets bulk

of the heavy lifting done for the

Builder are they retrofit windows or

no no you have them flange mounted okay

never new construction Windows yeah we

put we actually glue them in put glue

around really stick them in

um okay

all right

sorry

hey guys

hi so here we are we're just doing some

uh some finishing touches and the next

step is this unit will be folded up and

shipped out oh this is where you get

lots of the storage I like that so

you've got that in here that's great we

got a ton um and then we'll have the the

oh yes you box it up you got the little

box in the corner there to mold it in

see look at that yeah you spotted that

boxes there Christian could you show

that because that's that's pretty neat

that's what we were showing the last one

in the corner in the gap between this

unit and the shower the little box right

there that's where the Plumbing's going

through so that's finished up nice very

cool

okay awesome

and you have two angle valves there

three angle valves there is that is

there a washing machine somewhere there

will be or is that where does the

washing machine oh right there oh it

comes out on this demo unit ah okay and

then we're actually able to get all the

appliances in as well in the folded up

unit so they'll be like a fridge and an

oven washer all in here wait

this is where the seam is yeah so when

when this is installed yeah they're

basically going to come in they're going

to drop a trim piece in here they're

going to cut this and it'll be done okay

so then then you don't feel the divot

because it has to be filled in what do

you fill it in with there's a little

trim piece that will come oh a wood trim

piece or something or something that

just sort of wedges in there yeah yeah

okay got it and then this is the other

hinge where because it all folds up onto

this here so do you just get rid of

these uh this side is actually just

covered by cabinets and stuff oh

cabinets

the next gen we have a new hinge design

that's hidden within the wall panel oh

okay and um yeah then it's going to fold

up you basically end up like six feet

here and we're gonna have six feet by

the length of the unit to put anything

we need to in it so you know this is

kitchen bathroom other units could be

other stuff uh the rest of the space is

all fully compressed down and it's so

important you know if you can't if you

can't ship you can't scale production

and you can never get efficient and then

we're stuck with a situation where now

our housing is very slow and expensive

so I mean when this unfolds you've

obviously got the hinges here so the

installer has to come drywall this or or

what happens uh we have some covers for

those hinges that pop out

um a lot of this stuff kind of changes

in the next gen okay you end up with

some trim pieces

um you you can you can do some just

regular repairs

so whoever's installing it is going to

generally finish the seams I guess do

the finish work yeah yeah and like for

example this seam down middle yeah that

actually doesn't need to be there it

probably won't be in the next design

because that doesn't actually fold

obviously the fold is happening there

and there um and then who would put like

I guess the Finish installer would put

in baseboards as well then and finish

that yeah that's part of the

instructions you're going to come around

with these uh screws you unfold it and

then you screw in all those and you put

on the baseboard okay um and like pop

the baseboard and all that afterwards to

finish guys like I mentioned this is the

first generation that we are running

with that we designed before having done

anything at all and luckily it all works

uh yeah but now we have all these

upgrades based on everything we've

learned yeah and the next gen is going

to be amazing

um you know one of the planned upgrades

in the future for example is you're

gonna unfold the house you're not

actually going to use screws to lock

into place we're gonna have Allen keys

so the whole house is going to get set

up just look at Allen key you're gonna

go around and turn it Allen key in a few

locations and the hook will go on the

wall and grab on so when you unfold this

this is how you actually attach the

foundation

uh not the foundation but that's how the

wall goes to the floor wall to floor

your foundation I mean yes yes okay okay

uh and then where are those pla are

those plates for floor to real

Foundation

um that actually the the metal plates

you pointed to earlier that's what the

real use of those are those are those

are Foundation connections those are

your connections

and and I mean California is going to

give you a lot of seismic headaches I

imagine you all are thinking about that

so the

the house is just

so like we could drop these in Miami

Florida or Guantanamo Bay Cuba where

they have crazy hurricane issues that's

true and they can handle it uh it's

incredibly strong if I kick this wall

I'm not getting through it sure um so

because obviously the concern would be

if like the outside wall somehow shifted

or whatever even an earthquake and the

foam is exposed then the foam is exposed

um so we got to keep the outside

together

yeah yeah I mean when you're talking

about a laminated panel with a

structural adhesive I mean nothing's

moving it in a laminate you have

different like Composites that are

basically becoming one one piece sure

sure it's it's the two outside layers in

the foam yeah the whole thing's just

just filled with glue have you done the

seismic uh yeah yeah because I know I I

know that we only have one test left for

a modular cert that's totally happening

this week okay uh so I know seismic's

being done okay um and then uh yeah

we've done you know every kind of test

Under the Sun uh as far as taking our

panels breaking them measuring how they

how they withstood the various modes and

stuff wow wow yeah I wonder how flexible

it is because is the foam seems like it

would be very rigid

and like one of the reasons we have like

for example Miami is doing uh cinder

block because of the hurricanes and in

California we've got Lumber so that the

house can move

I wonder how that works I think if you

go to like a really tall skyscraper they

have some of those crazy foundations

with like shock absorbers on them and

stuff yeah and I think that could be

achieved with this okay based on how the

units are connected together and how the

foundation was set up but like for

example right now this whole unit is not

sitting on the ground it's sitting on

some like six wheels so so right here

last step final stage of the assembly

line they're basically just going to

fold this thing up uh wrap it in plastic

and send it out the door so you can see

it's uh okay so it's going to get folded

yeah they folded back the roof already

so the three pieces there and uh we can

take a walk outside and see let's do it

up units yeah absolutely oh and here are

your stencils that's awesome I think

we're swapping those for stickers next

oh there you go yeah a spray paint

and the scooters to get around that's

awesome

three wheelers I want one

that looks great there's your other is

it directly this one next building

behind that did I spell it behind that

yeah okay okay so you'd have to drive

the forklift around

if you were moving between the two or

just deliver where you need it bring the

stuff back and forth that needs to go

trucks between the two yeah okay got it

and uh so here you can see a bunch of

units waiting to get shipped out

um you can also see our our trailer

system that we built so

um these are your chassis right here the

the flat you've built the chassis yep

exactly and did you patent those things

too yes there you go

yeah so so of course we have

um you know a 20-foot unit that folds up

to eight and a half feet wide uh then it

can be shipped Highway legal without

extra permits or or flag cars Flags yeah

and then not only are we shipping a

highway legal load but we're shipping uh

a highway legal load that would usually

be two over wide loads because the 10

footer isn't OverWatch number two and

then we're also able to tow them with a

pickup truck not a big rig or if we use

a big rig we can actually put two on one

trunk uh and then beyond that we can

actually tow four units with a Tesla I

see you have them Daisy chained there so

if you look at the picture of the video

we just put on on uh Twitter uh we we

Daisy chained them and drove around the

parking lot but you said they're 14 000

pounds each yes and you can tow four so

15 you're looking at six legally oh okay

but just to Showcase yeah yeah yeah oh

your system transportable they are

I understand

um okay so here are units uh ready to

ship out so you can see of course how

many deposits did you guys say you had

already like uh paid deposits probably

about eight thousand wow 8 000 paid

deposits yeah and then the the full

names is 100 about 160 000. like people

who are interested expressed interest or

whatever yeah okay wow yeah it's been

crazy yeah and then you could just spray

paint sort of your your name on them uh

while they're shipping okay and you're

you guys are leasing the building so

what if you guys want to move up to a

bigger room when your lease expires you

can just move yeah we've got like five

and five here

um probably

by the time that bigger Factory's online

you know I don't know will we just keep

this and let it keep rocking maybe we'll

see what happens so what's the scoop

with the roof do you need it is it are

most agencies requiring a pitched roof I

think you mentioned that yeah so what we

have now it's uh uh snow load rated

um insulated waterproof roof with a TPO

roofing membrane that comes from

forgetting the name of the company but

it's got a long warranty and all that

and this membrane is is like uh usually

used in commercial roofings okay okay

but because it is flat uh in most cases

if you're going for like a fully

permanent build yeah and not a park

model RV or something you're gonna have

to put some other Roof System on there

so we'll end up selling those as well

separately or you can just have a

regular roof contractor come out

um and and do different things based on

you know do you want it to match the

style of your existing house right or

whatever you want that makes sense and

uh

is is the because I'm thinking about the

from the foam frame is going to have to

carry that roof load which will probably

be framed out with Lumber it's very

heavy what how does that work

uh so so the panels are are incredibly

strong you know not only could they

handle a roof but they can handle

another house on top you know because

we're doing the two stories okay and uh

we even just the flat roof as is does

have a significant snow load rating on

it as well

um so I mean it's it's good to go as is

but just because there's so many

different use cases there's so many

different jurisdictions we didn't want

to have a set roof style from the

factory I think we'll end up with a

really low pitch uh Roof System Kit that

we sell that'll be pretty cheap okay um

that will be for most use cases like you

know Southern California Nevada areas

where they don't have big pitch

requirements because of heavy snow

um I think I also think an end user is

going to want to know from you guys that

when I buy this and when it gets

delivered in order for me to get my

permit and I need a roof that the roof's

actually going to pass the permit yeah

yeah and part of the the rollout to the

general public is building all that in

you know the the financing the

contractor the the approvals and making

that user friendly for them and so your

your dad you and it's Kyle you started

the company yeah okay yeah it was about

um 2018

2018. back then just had really drawing

in a website and then uh ended up

getting invited to go to the Builder

Show in Las Vegas bring a house we just

went actually a few weeks ago again

um and and back then we didn't have a

house or anything and we had a meeting

and we're like should we do it and like

commit to it and build a house and then

we're like yeah let's do it and then

we'll end up going ahead and building

the first prototypes and deploying them

and everyone was excited and she kept

running with it from there and scaling

up wow that's incredible now uh you

think April for Gen 2

or maybe a little later I don't know I'm

thinking like you know middle of this

year okay um we'll see I mean there's so

many moving Parts with it is that is

your design final for that or still

working on that pretty much because with

all the equipment we've ordered is for

the new design oh there'll be some small

changes uh probably forever you know

sure every year but um but yeah we've

ordered you know 15 million plus in in

equipment to build this this new the new

design got it which hopefully

dramatically reduces build times cost

increases structural ratings reduces

Parts all that good stuff gotcha this is

also your office then so if somebody

calls in with customer service questions

or whatever is that all through here

yeah we have

um you know a few customer service staff

investor relations uh in here we also

have a few tour guides that give tours

because we have people every single day

that come for tours wow

um then we have a few

uh off-site people for customer service

as well we do have you know 160 000

person wait list 40 000 investors you

know massive amount of inquiries so we

have to deal with all that and talk to

everyone and what's your average

investment

so I mean I guess you raised 140 mil so

so there's two offerings there's reggae

which is not accredited which we sold

out quick

um you can do 75 mil per year yep and

then we did direct D it's about half and

half

um I guess the average is like 5 000 or

something five okay um if you just

divide it but then if you look at the

reg a the average is lower versus direct

D the minimum makes a thousand okay on

the right d okay so this is your finish

unit this is a casita set up and and

ready to go and you know take it take a

step inside take a look

very important okay so here's sort of

the the hinge covers

see how it's all kind of finished off

okay so you know you've got the hot high

nine and a half ceilings uh 20 foot

rooms

uh bed couch kitchen full-size

appliances

everything you need yeah oh you even had

something Abu well we'll be in need of a

lot of AIDS in the long term California

needs them especially it's ridiculous

huh

did you know California is giving grants

to people

to build adus 40 000 each uh I did not

hear about that

um California I don't trust them as far

as I can throw them out it's only in

California but if uh if they can pull

that off that'd be great because that

that would make it more affordable to

add adus and more housing yeah uh so

that's great now are all of them coming

with the extended countertop is that the

goal yeah yeah oh that's awesome yeah

this just pops in

um you know basically all the appliances

are jammed in here yeah this is

installed so there's your discount that

goes in uh cover that hinge you

mentioned before and then you know

furniture

separate

um and this has the the cross seam uh

like we saw being built yeah you can see

it just being kind of mudded and painted

and then the water heater is under here

but you got our Euro style door oh These

are nice so uh this is then does it ship

with the Euro door

uh ships everything just just like this

uh this would be a stock unit minus

Furniture so I actually don't feel the

seam on this one because either or where

is it somewhere over here it is

somewhere it's somewhere there

that's good you found it

McKay found it

uh hey that's awesome okay yeah yeah so

a little bit there okay wow yeah we got

the barn door and this is where and

again the shutoffs were over there for

that got it and your dad he was uh doing

something related to like designs for

this uh well maybe not necessarily for

boxing but he's working industrial

design or whatever yeah so his

background is intellectual property

licensing where he would basically

invent stuff patent it and then sell the

patent I see and uh so this was uh kind

of one of no oh he's he's an engineer

I got you so he actually came up

originally with the folding house design

I was one of those patents back in the

day and then we took it and ran with it

wow they are now Consulting with uh

Monroe's team uh Sandy Monroe and his

firm that's really cool that's actually

who we just kicked out of the conference

room so we could sit here wow I feel

honored uh uh but now I also feel bad

that'll be fine

um how long have they been Consulting

for y'all uh so we did the original

walkthrough with Sandy and we posted

that on YouTube like maybe a couple

months ago okay uh and you've still

hired them so that's that's when we

started with them and uh definitely you

know great guys like I said the goal

here is automobile style mass production

so we have not only them uh we have we

have Porsche and then some of our

employees came from automobile

manufacturing before that because what

we're doing here it's not uh it's not

that crazy I mean building one one house

from per per minute shouldn't be that

that crazy this is standard operating

procedure that's your goal one per

minute in the in the future we're just

looking at what they're doing with cars

yeah our houses are not even as

complicated as cars we should be able to

exceed you know all the stuff they're

doing you know the labor costs the

production rates it should be a

no-brainer the quality level

yeah yeah that's that's a that would be

awesome and uh Sandy's obviously really

good at uh manufacturing and cars and

Consulting and youtubing too yes yeah

he's yeah he's funny he's great uh he's

also uh he also helped uh I think uh

consult with uh arcimoto and and I mean

he's been around with so many of them

what uh what were some of his thoughts

and suggestions

um you know he he came we did the the

the walk through with him and just just

posted it online

um I'm looking forward now to to seeing

you know what the actual full team comes

back with and all the improvements that

that they have so so you hired them to

make improvements to the Gen 2 version

I'm assuming yeah it's really um about

the manufacturing process how you should

set up the new line yeah yeah not just

Gen 2 but beyond that you know we are

planning to do you know the biggest the

world's biggest housing Factory uh so

we're also asking for that their help

planning that

got it got it and you said you've raised

what about 148

yeah over 140 million uh raised that all

basically on the on the website by

getting the word out on social media

it's being uh absolutely incredible for

us in in fueling all of this and making

it possible and you know if we didn't

have all these people interested in what

we're doing we would not be here right

now yeah yeah that makes sense uh so

social media has been really the way to

get this out and how's the construction

industry been responding I mean you've

got Dr Horton for a million dollars

that's awesome what round did they

invest in by the way uh so not the

current round but the one before that

was that uh the ones that converted yeah

they invested in the convertible note

rounds ah but the same terms as everyone

else and

um you know they

having them invest means a lot because

they know building construction better

than anyone they're the biggest builder

in the country they know what makes

sense what doesn't make sense and the

fact that they looked at us and said you

know what these guys might be onto

something we want to get on board now uh

it says a lot about about what we're

working on and they've been a great

partner so far not only with just the

investment uh the order of houses and

then giving us you know access to their

other

um you know applications and things yeah

yeah absolutely and what so you said you

have like 60 patents there's

Transportation there's the folding

um what else I mean I'm sure there's so

many things I don't see Foundation roof

yeah it's it's a lot of different stuff

it's a lot of technical stuff it's you

know the design of the product it's the

manufacturing process it's it's the

shipping the building materials I mean

the shipping is is awesome yeah it's

probably like hundreds of pages and all

that patents oh my gosh that's crazy how

do you guys uh how much are you

expecting it's generally going to cost

wide load versus your style of shipping

let's say here to Cali here to LA

well you know the shipping issue is what

makes

scaling of factory production of

buildings not work yeah it's the single

reason why houses are not just mass

produced in a factory like everything

else if they could actually ship these

things cost effectively then we would be

Mass producing buildings on the scale

that we're Mass producing automobiles

televisions sneakers everything else so

you know what we've done is we've made

it work you know our product our first

order shipped across the truck across

the entire country of Florida and that

still made sense for them to do that so

you know not only are we getting for

Guantanamo yeah okay not only are we not

doing a wide load and the problem with

the wide load is it's basically an

illegal load for the highway so you end

up needing not just the truck driving

the load but you need a follow car so

another car and another driver obviously

that costs more then you have restricted

routes restricted travel times route

planning permits some states actually

require a police escort it is like

totally uh not scalable if you've ever

seen one driving down the road you can

understand and why what we have is just

a standard Highway legal load and right

now we're shipping to Arizona to per

truck so I mean that is the lowest cost

it's ever going to get right it's

amazing and that's what's going to allow

us to scale up production have you know

huge automation have a huge assembly

line push the labor costs down next to

nothing increase our bulk purchasing

sure and just get all these principles

and efficiencies that traditional

Builders will never have so you ship the

actual box but then the baseboard and

the interior Cabinetry comes in a

separate box or it's inside of it

somehow or you just order on site for

some of these other things you might

need so uh cabinets Plumbing electric

windows flooring all that's done in the

factory uh what happens on site is

basically unfolding of the units placing

of the unit uh you know a few touch-ups

a few trim pieces the drywall and the

mudding or whatever baseboard and that

there's a few spots where you might want

to do like some some simple repairs on

on mudding but even in the next gen that

that's all gone

trim pieces

um I think we're going to end up with a

few kind of plastic you know accent trim

pieces

um like what they used to do with sort

of the um oh and like commercial offices

you see the they've got the little trim

t-bar yeah there's a number of things

and even just design like for example

like look at this wall here yeah so you

see how this is part of the design sure

that doesn't have any mod in it and it

looks fine you would never know this in

a question okay so we'll we'll see how

how it rolls out in the next gen no

demos yet of next gen just just concept

right now

yeah um and you know a lot of that

differences are kind of going on behind

the wall people aren't gonna gonna see

the difference because the project looks

great as it is but uh the improvements

that are coming in next-gen are in

things like the the reduction in

components uh the speed to manufacture

the structural ratings you know all

these engineering changes got it why

don't you just stay with mobile uh if

you go in that RV mobile home Market

where I mean there are so many units

from the 70s and 80s that need to be

replaced it would be such an Easy Market

to start selling thousands in these two

you know we're we're going to put it out

there we're going to sell to anyone that

wants it and see see where the customers

come from uh as far as like the the use

cases I mean there are so many we we

have 160 000 names on the waitlist and

each one of those people has a different

use case where they're saying I want to

do this for that I want to do this with

it so well we'll see but that's

complicated for manufacturing and scale

like everybody who buys for example like

uh Tesla Model 3 it's the same thing for

every single model 3 essentially yeah uh

maybe a different hubcap or something

like that but if people if retail starts

getting into customizing these things

that seems like it would really not

customizing just like what they're going

to do with it their use purpose yeah

okay but definitely we have enough

demand where we can stick to this one

you know standardized product it's like

how many do you think you're gonna get

out this year

uh so we produce let's say eight per

week okay

um if we maintain that production rate

that's what we'll maintain yeah but I

suspect we'll ramp it up towards the end

of the year after that new equipment

comes online after we you know finish

rolling out the new building and uh not

really sure what what that number is

going to be and that's this year that

you're doing the 15 million upgrades or

whatever oh yeah it's all changing this

year so if if if you're I mean you're

you're probably looking at Burning

probably somewhere around 25 to 30 mil

over the next year and just upgrades for

automation but then also the loss on on

the existing early models yeah I think

um definitely spending money on

equipment and then as far as like the

unit economics uh everything's kind of

headed in the right direction you know

labor cost I think last month we had our

lowest labor cost month per unit ever

per unit yeah yeah you know what are you

looking at

labor cost per unit yeah

um

I don't want to say a number that might

be wrong would you say it's less than

10. I think our direct laborers around

around that number right now

um and and and we expect it to go down

quite a lot like as I described the

various equipments sure yeah I mean a

ton of Labor is getting removed from the

process a ton of components are getting

removed it's it's all getting uh simpler

and faster and then you know just the

material cost based on engineering

changes is coming down uh we're getting

better at buying things

um you know we're going to keep kind of

massaging it into place and you know

hopefully come out you know profitable

uh relatively early on as far as like

the the life cycle of the company you

know because if you look at other kind

of Hardware manufacturing startups uh

great examples like like Tesla I don't

know when they became profitable sure

but I think it took a decade or

something takes a while so I think I

think we'll be it'll be happening for us

uh you know way sooner than that which

is pretty extraordinary yeah yeah

absolutely it seems like for me the a

big hurdle is that permitting what

you're going to go through with States

what they're going to put you through I

imagine y'all are fully aware of those

headaches it it's been a nightmare so

far yeah and uh really frustrating it's

taken way longer than we would have

liked it's one of the reasons we're not

you're not seeing more units in in an

end user of course retail customers is

because of this permitting stuff and I

think it's going to be like an ongoing

fight like you know no different than

maybe Uber or Airbnb having to fight

against you know taxi regulation or or

rental regulations I think box Bowl will

be fighting against building code stuff

because what they're what the codes are

designed for right now is like an

environment where you have a fractured

you know thousands of individual

Builders all doing all different stuff

you know you have Supply chains you have

building departments and when you look

at box pull a lot of that stuff is just

kind of not needed anymore you know we

are going to have this you know

established quality control environment

where everything's standardized a lot of

these unknowns that the regulations are

meant to uh solve protect four are not

going to be in the mix anymore so it'll

happen and I think you know

it's not just us that want to change it

I think you know The Regulators that

want to change it the politicians want

to change it they want to make housing

make more sense but the simple fact that

we have to go through 50 different state

agencies to get our one building

approved right is crazy and what other

products do you see that in well and

then they update every two years to four

years depending on what cycle you're in

so you're constantly fighting that yeah

yeah yeah it's it's uh it's all part of

it but you know on the flip side we're

in a situation now where there's so much

demand for our product if there's a

regulation issue in one area we just

won't go there right now just sell just

sell somewhere else and there's plenty

of demand and you think you're close in

Arizona you said

yeah I think that's the first statement

yeah that's for modulus so is that going

to be modular on Foundation or uh

yeah there's there's basically uh three

paths uh you know this Park Model RV

which we already have yes uh modular

okay a modular is equivalent to the

regular residential building code

um that's the main thing that we'll be

getting around the country uh and then

you have manufactured housing which is

what a trailer park home would be under

and that's actually a federal HUD code

and and there's a drawbacks to that too

uh oh and there's one more path which is

um basically a local building code that

would possibly consider us as panelized

sure building so we're just trying to

pursue all of this so that we can show

our customers hey here are your choices

here are approvals our certifications

and they can go whichever route is

easiest for them oh for the customer

yeah for the customer oh so the customer

could potentially go hey here you could

go through the panelize process or the

modular process and we'll arm them with

all the documentation they need to say

here it is

um and then you have cool stuff going on

like in California and La they're

allowing for pre-approvals so so a

manufacturer like us could go to the the

city of La and and get our buildings

pre-approved so the homeowner literally

goes in they don't even need a building

permit they just say I'll take that one

and it's on a list that's the way to do

it because the last thing you want is to

start delivering these things and then

you're in the permit process for two

years in California yeah yeah and you

know we originally thought when we

started boxable you know we have this

building system that we think can build

most buildings where do we start uh

maybe we'll go with our smallest room

module which is the Casita and we'll

Target that towards adus so California

is super pro Adu they've passed laws to

basically enable those and legalize them

all around the the state they've reduced

things like setbacks and permitting

requirements so it's kind of opening the

floodgates for those adus okay and you

think you're cost competitive on the uh

I mean if if I've got to do a foundation

and a roof utilities

Landscaping siding really the difference

between you and conventional is me stick

building it uh drywall stucco although

you might do siding it or stucco anyway

on yours so the difference is is really

just the inside it's it's again the

studs the insulation the kitchen the

floor that stuff is done and you think

you can be cost competitive versus

conventional on that you yeah so site

prep you know that's always got to be

done I'm sorry Foundation um we can