Brian Mackey: The appeal of FRA to the market is fairly obvious. And one of the benefits of where we stand today is that the properties of the material were well evaluated and tested by the Triton team. So, the appeal of those, the material performance is known to the market and is of interest. And what we’re able now to do is indicate that we’re a reliable, dependable element of their supply chain. If you’re a helicopter OEM and you’re interested in that material because of its performance benefits, you’re not going to take it on, unless you’re sure that that supplier is going to be around for a long time. So, we’re able to do that and address these market requirements by offering this material that is already of interest to them, because they need lightweight, they need durability, and that’s what this material provides.
So, it’s driven by what these aerial applications, first of all require, but we also expect there will be other applications as well as we play this forward.
Unidentified Analyst: Okay, great. Thanks. Appreciate that. That’s all.
Operator: Thank you very much. Your next question is coming from [Davis Marcie] (ph). Davis your line is live.
Unidentified Analyst: Hey, good morning, guys. Thanks for the call. The question, historically, you’ve had a 40-40-20 split between departments. Do you see that remaining consistent? And which kind of product lines are you seeing the most demand for going forward in growth capacity?
Charles Griffith: Yes. So, I think, obviously, for the short term with the completion of the Kinetic Protection Armor order for the aircraft carriers, that 20 piece is going to make it more like 50-50 with the other two division or maybe 48-48 but whatever with the others. But I think that we do have — we’re very optimistic that there will be something more coming down the Armor pipe either with Kinetic protection or as we continue to work on other armor applications with other possible customers. But I think in terms of the rest of it, I think hermetic packaging certainly has the opportunity for more growth. It’s a bigger market. And we have — as Brian mentioned earlier, we have — I think seven of the eight FAIs come in the — or first articles that we did in the first quarter come from the hermetic packaging side of the business.
So, that certainly has the potential for more near-term growth. I think the other aspects are probably more in the long-term more than long-term area in terms of growth the FRA. The shielding those certainly, the FRA, we may see some small, small amount of revenue before the end of the year, but it’s really not going to be material until we get into ’25, ’26 that kind of thing.
Brian Mackey: Yes. And the armor opportunity is ahead of us, we could quickly bring that back to the historic ratios. So, as we wrap up this order, we have ongoing conversations in that direction. Unfortunately, it’s lumpy, and we have this current situation, but very real opportunities that could bring that ratio back to the original number that you mentioned in that range, plus or minus.
Unidentified Analyst: Got it. And then what kind of capital requirements you’re expecting for this year? And do you expect to reach profitability for the full-year 2024?
Charles Griffith: So, I think in terms of the capital requirements, we’re in good shape with that. We — the 5-axis machine, basically, that money has already been allocated. As you can see from our balance sheet, we’re in very good shape from a cash standpoint. So, even if God willing — somebody came and said, “Hey, we need you to start making FRA for us at a really high volume, and we needed to go out and buy a new infiltrator for $1 million,” that wouldn’t be a stumbling block. We could easily handle that. But I think in terms of just generally speaking, we’re in good shape on the capital requirement side. We’re able to get what we need to get when we get it, and that’s not a problem. Regarding your second question about profitability, that’s a good question.
At this point in time, I’m not sure. We certainly are expecting, we projected profitability over the last three quarters in total. And that’s — but it’s not going to be like two years ago where we had $2 million of profit at the end of the year. It’s going to be much more narrow. And certainly, if things go poorly, it could shift to the other side and could be non-profitable year, but we’re hoping that we can get profitable for the last three quarters anyway. But it will be tight.
Unidentified Analyst: Great, thank you.
Charles Griffith: Okay.
Operator: Thank you very much. And your next question is coming from Greg Weaver. Greg, your line is live.
Greg Weaver: Hi, good morning, Brian, Chuck. Just a quick question, so, the 5-axis tool, the press release has it as an award. So, that money was an award, not a loan, right?
Charles Griffith: Correct. And we’re — so basically they’re covering — we have to cover what they’re awarding us. So, basically, we’re talking about a $400,000 piece of equipment, including installation blah, blah, blah. And we got half of it.
Brian Mackey: Yes. It’s a dollar-per-dollar match requirement. So, we are receiving the $200,000 from Massachusetts with the commitment to spend that much. A portion of that is on labor and other things. So, in aggregate, it’s a $400,000 spend, but it’s not a loan. It’s not — there’s no obligation to return it or anything like that. It’s putting it to good use to add jobs to the manufacturing community of Massachusetts.
Greg Weaver: Okay, great. That’s great. And on the testing constraints you referenced, right, you’re trying to make sure the parts are good before you ship them out. Is that a temporary situation? Or is that an ongoing thing now just in line just to be sure? And are you buying more equipment to help use the bottleneck there? It sounds like it’s a bottleneck.
Charles Griffith: Yes. So, it is a temporary situation. We basically what it’s requiring is that some of our production equipment is going to make, in this case, base plates for further testing. So, instead of making them and selling for the customer, we’re making them and then we’re testing them. And we — during the initial part of the problem where we’re trying to find the solutions, we would do like 50 pieces at a time. In the first quarter, we made a decision, we’ve got to start getting — we think we know where we’re going. Now we need to start getting statistically significant runs. So, instead of 50 pieces, we’re looking at 500 pieces and 500 more and 500 more. So, that’s a significant amount of production that would otherwise have gone to a customer at a pretty good amount.
