Annmarie Gayle: Well, I’d like to correct what I said, that I saw really good signs of rentals rebounding in the first quarter. And we’ve got ongoing projects on rentals. So, I don’t know where we will be in relation to the previous first quarter. So, I’ve not commented on that.
Unidentified Analyst: All right. Thank you very much, Annmarie.
Annmarie Gayle: You’re welcome.
Operator: Our next question is from Richard Deutsch with Sutter Securities. Please proceed.
Richard Deutsch: Yes, thank you for taking my call. You’ve got such a deep, long-term development program. There’s a lot to look at. But my first question would be, what is left to do to commercialize the untethered system? And if the untethered system is commercialized, is there any reason for anybody to still use the tethered system? I’d like to differentiate between the two. Thank you.
Annmarie Gayle: Thanks for that question. Well, the way to think about the customization work that is ongoing, it’s more a workflow process than anything else. So, the workflow for a diver who is, let’s call it, a special force diver who is doing something a stealth operation, the modus operandi or the workflow for that diving setup is completely different from the surface diving, which is the tethered system, where you’ve got a topside involved in the equation. So, the untethered system, it’s really about for a different workflow, then we have to get the product certified for that particular application, which is ongoing. So it’s not — I wouldn’t think about it as commercialization. The product is taking our base product and then customizing that for their particular application.
Really, that’s what the program. And then also what they call hardening. So, when they dive the system, they’ve got eight systems and they’re diving these in anger. And when they dive, then they might come back to us and say, “We don’t think the IR lights were effective here. Can you look at a different IR light, because we couldn’t see there.” So, these are the things that we are — they’re diving, coming back with feedback and then we are making changes based on their experience. So, the expectation is that once they come to the end of that evaluation process, because we’re working hand in hand with them, we would expect by that time all of the things they want to see are done and then they can move on to production system. So, that’s that process.
And as I said, the tethered system is all about a different type of diving where you have a topside involved.
Richard Deutsch: Okay. So, is the untethered system then basically completed in terms of its capabilities, and you’re just going through, as you said, the hardening and the certifications? Or is there still more technical work to be done before it is ready for commercialization?
Annmarie Gayle: It’s largely done, but for the 3D data side, which is also new for that market, then there are certain hardware developments for — it’s a processing box more than anything else to do with the data communication and transfer. There is a part of that development, but we are well along the way with that. I would say that in terms of the products, it’s almost fully formed, but we still have about 5% to 6% development work, and as I said, a feedback program. So, we would expect in this year to complete all of the requirements for that market.
Richard Deutsch: And finally on that sector, what is the range of the untethered system?
Annmarie Gayle: Well, the depth reaching for the system is 330 feet, 100 meters for the tethered system.
Richard Deutsch: So, the untethered is 100 meters?
Annmarie Gayle: 100 meters or 330 feet.
Richard Deutsch: Okay. Thank you. Thank you very much.
Annmarie Gayle: You’re welcome.
Operator: Our final question is from William Bremer with Vanquish Capital Partners. Please proceed.
William Bremer: Good morning, Annmarie, and welcome, John.
Annmarie Gayle: Good morning, Bill.
John Price: Thank you. Appreciate it. Good morning.
William Bremer: Annmarie, you spoke a lot about the technologies, international activity. What is currently happening here in the North American market?
Annmarie Gayle: Well, if you look at our growth pillars really, the biggest, and if you look at our revenues also, you will see actually revenues from North America for equipment sale was higher than Europe actually. So, what’s happening in North America, it’s mainly the defense underwater vehicle programs that we have there. So, it’s a lot of the applications that we have in North America, it’s around underwater vehicles, and of course the DAVD solution.
William Bremer: Any activity within the infrastructure market of North America?
Annmarie Gayle: Yes, we’re seeing — I mean, in terms of infrastructure, as you call, laying cables on the seabed, et cetera, we have quite a lot of ongoing business activities. Look, make no mistake, when the offshore renewable markets, I mean, the U.S. has the biggest budget for energy transition and some of that is going to get spent. When that all happens, the Echoscope is at the center of that, because the Europeans are coming to the U.S. with — they’re the ones with the experience, and they all have used the Echoscope on their projects in Europe without exception. So, we feel a high level of confidence in the — that the offshore renewable markets in North America is significant for the business and also planned within our growth strategy.
