Lucas Pipes: Very, very helpful. The $100 million revenue. What size of building would that be? Thanks a lot Wes.
Wes Cummins : That’s the just the current build. The 5 megawatts if we owned all the GPUs and did a leasing business more of an integrated model, like what you would see with an AWS, it would be, I said $100 million, it would be well north of $100 million.
Lucas Pipes: The 5 megawatts, that’s super helpful. West and team really appreciate the color and all the best of luck. Thank you.
Wes Cummins : Thank you.
Operator: Thank you. Our next question comes from the line of Rob Brown with Lake Street Capital. Please proceed with your question.
Rob Brown : Good morning. Wanted to get a little more color on the Jamestown facility as you consider that $14 million revenue above, it sort of nameplate capacity. What drove that? And do you see that continuing?
Wes Cummins : Yeah, good morning, Rob. Thanks for the question. So, just higher efficiency in the quarter for us was part of it. There was a little bit of a price lift. We do have the ability to increase price somewhat on our customers because we do have €“ I think we’ve talked about this before. Last quarter, you saw a lower gross margin for us and it’s kind of the lagging effect of, energy prices move around some at that facility and then we do pricing changes for our customers, but it’s lagging. And so, we catch up with the pricing change. And then, so, you could see that go – fluctuate up and down. We are turning on a little bit more. So we have with about 6 megawatts of Marathon containers at that facility that we expect to turn on any day that will boost the operations there a little bit.
But I think that, kind of that level that somewhere in the in the 13 to on the on the upper bound, maybe 15 million or 16 million of revenue is reasonable on a quarterly basis from Jamestown.
Rob Brown : Okay, great. And then, just wanted to get a little bit in the cash flow of the customer prepayments and deferred revenue. Is it that would happen over 12 months, how long does it take to sort of burn off that balance sheet prepayment and sort of normalize the cash flow on the – against the €“ that you are reporting?
Wes Cummins : Yeah, so, basically, from the customers when their contract turns on, when we energize that portion of the contract, we begin to amortize that prepayment back to them. And so, we get – it’s four months, it’s fairly simple. So it’s four months of prepayments we amortize back over 12 months. And then, once we go through a full 12 months, that that deferred revenue will be gone off the balance sheet. Obviously, from a P&L perspective, you get the deferred revenue and you still get the same earnings impact. From a cash flow perspective, you should, think about as we’re building a $100 million run rate for the first year of that run rate, the cash conversion from EBITDA to cash flow is going to be lower. But there still will be significant positive cash flow for the company as we amortize that back to the customers and then, when after you get through that year the cash flow versus the EBITDA should move up more towards you know 80% or 90%.
Rob Brown : Great. Thank you. I’ll turn it over.
Wes Cummins : Thanks.
Operator: Thank you. Our next question comes from the line of George Sutton with Craig-Hallum Capital Group. Please proceed with your question.
George Sutton : Thank you. Wes, one thing I wanted to just clarify, because we had multiple clients concerned about the proposed permitting framework in Texas, the Texas Legislature. You are, well, beyond that the modest delay we have had has nothing to do with that. That is a correct statement?
