Operator: Thank you. And one moment for our next question. Our next question comes on the line of Austin Moeller with Canaccord Genuity. Your line is open. Please go ahead.
Austin Moeller: Hi. Good afternoon, Wahid.
Wahid Nawabi: Good afternoon.
Austin Moeller: My first question here, are the Switchblade 600s that are being sent to Ukraine as part of the aid package, are those coming out of the DoD inventory, or have you been able to produce more in the fall?
Wahid Nawabi: So, Austin, we continue to produce Switchblade 600s as we speak. There are some limited quantities in the U.S. DoD ‘s inventory. Some of those have been supplied to Ukraine. And then — but there’s significant more numbers that we’re producing that we have been delivering to the customer in the last couple of quarters. U.S. DoD ‘s inventory of Switchblade 600 remains very low in general. It started out to be quite low, because it’s fairly new inventory for them. But we have plenty of capacity to produce more other than the warhead. The warhead is the main gating factor there. And of course, the U.S. DoD contracts has been another one. So, in general, the latest package that was announced by the President Biden’s administration on February 24th included some Switchblade 600 and/or JUMP 20. Those we would be delivering to the U.S. DoD and then they will be deploying them to the Ukraine forces.
Austin Moeller: Okay. That’s helpful. And then, just since the announcement from Lithuania, what progress have you made on switchblade FMS sales to other European countries, and do you expect some of those to show up in the fourth quarter and in the first quarter of 2024?
Wahid Nawabi: So, Austin, all switchblade sales so far has been through the U.S. DoD’s FMS office, foreign military sales so far. As I mentioned on my remarks, Ukraine has received them already, and then Lithuania publicly announced that they’re going to be purchasing Switchblade 300 and 600. We expect that to be about $45 million worth of orders, FMS orders, that is, and that’s not reflected in our backlog. All those — those sales plus many other countries, we have several other countries that we’re engaged with. And over the next several quarters, not just several weeks or months, we will continue to convert those into contracts. Most likely majority, if not all of them, will be FMS contracts so far it seems like, and that is going to be a pretty large demand for switchblade into the fiscal year 2024 and beyond.
I consider the Ukraine conflict and event a mind shift, a real seismic mind shift in the minds of political leaders and military leaders on what loitering munitions could do and specifically on switchblade. And as you know, we’ve gotten U.S. DoD’s approval to be able to sell to 20 plus countries, and I see that more and more of those countries are requesting Switchblade 300 and 600 and more of them will convert into contracts in the coming quarters and years to come.
Austin Moeller: Awesome. Great quarter and thanks for all the details.
Wahid Nawabi: Thank you, Austin.
Operator: Thank you. And one moment for our next question. Our next question comes on the line of Louie DiPalma with William Blair. Your line is open. Please go ahead.
Louie DiPalma: Wahid, Kevin and Jonah, good afternoon.
Wahid Nawabi: Good afternoon.
Kevin McDonnell: Good afternoon.
Jonah Teeter-Balin: Hi Louie.
