David Sasnett: It’s called the input method.
Frederick McTaggart: Input method. So I mean, although we have had some substantial payments from the client upfront for mobilization and various insurances that sort of thing that were required for the project. We’re in the development phase right now. So, we’re not incurring a lot of costs relative to the size of the contract that would allow us to book any meaningful revenues on that project. Yes. I mean I think, we’re in the process of designing the piloting study and doing public outreach and that sort of thing. By this time next year, I think it will be a different picture, will be booking some meaningful revenues from the development phase, which that totaled about $11.5 million or something out of the contract. So, the construction revenues are still probably a year and a half away. And then we start booking the balance of that, which is about $138 million.
David Sasnett: Yes, the construction revenue itself is subject to adjustment, because contract has inflation clauses in it. So when we finish the design phase development phase, we’ll – and we’ve had the final design for the plant and the cost will be adjusted based upon CPI and things like that, so that we’re not hit for inflation over the design period. But the big impact from Hawaii will have an impact in 2024, but it really start construction starts towards the end of 2024 or 2025.
John Bair: Yes. That’s good. That’s – you’ve elaborated a lot on what I was thinking on this, when construction starts and so forth. So that’s very positive. Another question. You alluded to a pretty full pipeline of bid opportunities and so forth. Do you think that is as much a function of the federal the supposed Inflation Reduction Act and federal money is flowing into that? Or do you think it’s more or just as much just the absolute need to develop new water resources capabilities?
Frederick McTaggart: The only project that we’re aware of, I mean, that I’m aware of personally that’s receiving those types of funds from the federal government is the Hawaii project. So presumably, that wouldn’t have moved forward if they weren’t able to get those sorts of commitments for the funding. But these other opportunities that we’re seeing are either with private clients or projects that are just sort of in the normal course of business. I mean, it’s not that I know that they’re getting any supplemental funding from those federal sources.
David Sasnett: Yes, we haven’t heard anything from our prospective clients that this is any federal money is involved in this. It’s really just projects that are driven by the need, not necessarily by extra funding available.
John Bair: That’s interesting. That’s very interesting. My last question is you got a nice chunk of cash there. How do you have that positioned? Are you in short-term treasuries, how are you addressing that?
David Sasnett: Well, for the U.S. funds, I mean, we have cash in several different locations. John significant cash balances historically in the Bahamas in Grand Cayman and in the U.S. We don’t move money around between countries that often, especially not between the U.S. and our foreign subsidiaries, because of tax considerations. We’re sort of limited as to how much we can earn on our money in the Grand Cayman. The banks there aren’t paying what they are in the U.S. But we’re in a nice return money market returns on the money we have in the Bahamas. We’re also opening up interest-bearing accounts in the U.S. Because PERC generating a lot of cash right now, and we’ll be starting. You’ll see us reporting more interest income going forward as we invest those balances in the short-term, very secure type of money market accounts.
John Bair: Sure. Very good. Thank you very much for taking my questions. Congratulations again on really strong momentum and very positive outlook so.
