It’s also interesting to note that we’ve seen tremendous interest in having a premium people mover from people that run premium properties, people that shuttle VIPs around, people who have corporate campuses with corporate executives. So the Valet is next and the Valet will debut at the PGA show the third week of January in Orlando. So you will see there not only the Vanish, but you will see the Valet there in the flesh. And of course, we will show design imagery of what the Vapor will be later in the year.
Brian Lantier: Okay. Great. And if I could just follow up with one question for Dave. The conversion price on the preferred shares and the warrants is that $2 now?
Dave Hollingsworth: It is. It was ratchet down to $2.
Brian Lantier: All right. And when we talk about gross margin breakeven per unit in 2024, just a ballpark estimation of what that means in terms of capacity utilization? Would that be when you’re at 70% capacity in the plant or is it at 35%? I’m just trying to get an understanding of what level of sales we should be looking at before we see that breakeven realization?
Dave Hollingsworth: We’re forecasting about four vehicles per day right now with the capacity of what we believe to be nine vehicles with a fully staffed, fully running production line. So I think that’s close to the answer I can get you right now. Of course, it will take some time to ramp up to that. But that’s what we’re expecting in 2024.
Tom Wittenschlaeger: Brian, [indiscernible] factory capacity approximately.
Operator: The next question comes from [David Party], Private Investor.
Unidentified Analyst: I had another question regarding that breakeven calculation. So you’re saying four units a day, is that based on limitations as far as your production or what you’re seeing as far as demand in the marketplace?
Tom Wittenschlaeger: Well, it’s — so the demand we see in the marketplace is substantially larger than that. For us, when you go from LRIP into full production, the thing that you have to master every time, and it’s different every time you do it, is ramping the supply chain to have all of those parts arriving as near simultaneously as possible. And so when you’re ramping a supply chain and while you’re getting smarter and smarter and more used to from a learning curve perspective, the building process of these units, you ease into it in a way so that you don’t end up with — as Ford did a while back, you don’t end up with a ton of inventory sitting on your lap waiting for one piece come in, right? So ramping up to that is really mastering some synchronicity in the supply chain, which just takes very, very — takes an amazing amount of attention to detail and is the reason that you like to ramp in a controlled fashion rather than just jumping to a higher level.
Unidentified Analyst: Okay. So you’ve got even greater demand, but you’re just being careful in making sure that all the parts are available and you have all the processes dialed in so that you can continue to ramp up. That sounds good. Will the Valet and the Vapor have to go to the same homologation process or do they kind of piggyback because of the same platform of what’s already been done?
Tom Wittenschlaeger: Well, my guess is that clearly, the Valet will be a piggyback situation. It is literally — from a parts perspective, the parts on the Valet are identical to the parts on the Vanish, literally. The only modification to the Valet is the insertion of a frame section and the shortening of some body work, that’s it. So I believe that, that will clearly be a piggyback. On the Vapor, we just have to see. Again, the Vapor will also be absolutely identical parts. So the same motor and the same controller, same wheel, same tires, same everything. But because I’m not certain what the answer to that is, I’m simply going to say we’re going to find out for the Vapor. But for the Valet, I would expect it to be a big piggyback.
Unidentified Analyst: Okay. So could I ask another question?
Tom Wittenschlaeger: Sure. [indiscernible].
Unidentified Analyst: So this breakeven you’re just talking about the Vanish, not these other units and that — is that correct?
Tom Wittenschlaeger: Yes. That’s right.
Unidentified Analyst: So when should we see substantial income or revenue from the Vanish? It sounds like maybe second quarter?
Dave Hollingsworth: Well, currently, we don’t give out any projections on revenue, but we do expect a consistent ramp throughout 2024 as we build up our manufacturing abilities and dial in that supply chain like Tom was talking about. It won’t be completely linear, but we do expect to see that ramp continue through the end of 2024.
Operator: [Operator Instructions] There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Tom Wittenschlaeger for any closing remarks.
Tom Wittenschlaeger: Well, I would like to thank all of you for participating on today’s call and for your interest in Ayro. We look forward to sharing our progress on our next quarterly conference call when we report for year-end 2023 financial results likely in March of 2024. Thanks to all. Have a great day.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
