Justin Clare: Got you, okay. And then I guess just lastly, here. I wanted to understand the kind of cash flow, breakeven scenario and the model you’re thinking about, I think I heard that it was $35 million in revenue with gross margins, near 20% but correct me if I’m wrong, so it’d be about $7 million in gross profit. And then, cash off exit say $7 million would get you to a breakeven? Is that the right way to think about it or are there different pieces?
John Kosiba: And I think, I think you might have misheard that part of the script. So what I said was, we see scenarios where gross margin can approach 25%. And we see operating and expense models closer to $9 million. So the breakeven is assuming a 25% gross profit with $9 million of cash on books.
Justin Clare: Got you, okay. Thanks for the clarification. I’ll pass it on.
Operator: The next question is from Chip Moore with EF Hutton. Please go ahead.
Chip Moore: Good morning, hi Daniel, John.
Daniel McGahn: Hi, Chip.
Chip Moore: How are doing?
Daniel McGahn: Great.
Chip Moore: Wanted to follow up on the sales leverage potential from NEPSI and Neeltran you did a good job of outlining that again, Daniel, I guess, just curious on that cross selling, how has that progressed but versus expectations better than you expected outlook looking forward?
Daniel McGahn: Yes, I think that’s exactly what we’re trying to get at, as we set an expectation we did this that we thought that these things would happen. Now we’re seeing them, right. And we’re seeing this specifically in semiconductor. And we’re seeing them specifically in this new space for us the metals, mining and material space. The good news is when we look at semi, which is really a combination of D-VAR, and the offerings that we inherit from NEPSI. Those today are at similar margin, which is great and that’s what we had expected. When we look at the mining in the metal material space, which is the example we’ve been using for Neeltran, that’s a combination in MC and Neeltran and I tried to do it both ways, depending upon how people think about it.
Because as we looked at it, I did – in the prepared remarks, I looked at this we looked at it as a additional expansion of what we already have begun with NEPSI that we saw Neeltran kind of continuing on that theme with even greater lead sales like a trend. But then I brought it back to just kind of compare directly those two markets and just we get $5 million of one, we’ll get another 20% or $1 million of another. And we set all these things when we did the deals. And now we have in examples, and it’s not one or two, it’s quite a few of them in the backlog, the challenge, as I pointed out, and the challenge that everybody, obviously seeing here is, how do we have the backlog that we have on the books with Neeltran. How do we digest that process and move to better priced higher margin our backlog.
And that’s really why we’re confident today, in updating operating models, talking about breakeven, these are things we have not done in a couple of years, right, maybe three years. We want people to understand that John and I are highly confident, based upon our backlog. And based upon how we’re usually able to deliver product at a pace, that if those things can both happen, we’re not really far away.
