If you can go to the next slide on Slide 10, so yeah, we just went through year-over-year changes. So now we look at quarter-over-quarter. Again, for Q3 revenue was $2.1 million, increased by 12.6% compared to $1.9 million for Q2, due both to higher product sales and services. Gross margin percentage for Q3 was 41%, due to a small inventory write-down and otherwise would have been 42.2%, compared to 24.6% in Q2 of this year. So on an adjusted basis, gross margin would have been up 71.5% quarter-over-quarter. The increase is primarily due to sales that used previously written-off inventory, as we just mentioned. Total comprehensive loss, again for Q3 was $5.5 million, compared to a comprehensive loss of $6.9 million in Q2 of this year. And again, we’ll recall that there was a small non-cash write-down of inventory in Q3 and a write-down of not receivable.
So if we excluded that, loss would have been 5.4% while in Q2, we had a write-down of inventory of $122,000. So if we excluded that, so it’s a fair comp, Q2’s loss would have been 6.8%. So our loss this quarter was quite a bit better quarter-over-quarter primarily due to higher revenues and lower operating costs. And then on the next slide, looking at our balance sheet, you can see our total assets decreased from $14.6 million at the end of 2022 to $9.1 million, which was largely due to the use of cash. Working capital surplus at the end of this quarter was $2.7 million versus $10 million at the end of 2022. And you can see we continue to have minimal debt. Company’s cash balance, it was at $2.5 million compared to $7.8 million, compared to December 31 of last year.
And as Chad mentioned at the outset, we did complete financing for $3.5 million. And with that, I’ll pass back to you, Cam.
Cameron Chell: Thank you, Paul. Scott, I’ll turn it over to you, if that’s okay.
A – Scott Larson: Yeah. Thanks. We have had — as is kind of typical for us to get a bunch of questions that come in prior to this. And so we have a number of questions here will try to get to as many as we can. Of course, — can has already answered, I think, several of them as Paul with regard to the numbers and the results and so forth. So — but there’s a few here that are different. Cam will start with you. What are the new areas that we’re seeing most opportunities and kind of large opportunities in the pipeline? Where does that come from? What is it within corrections, facilities, energy, scanning just a little color maybe on some of the new opportunities that we haven’t seen in the past?
Cameron Chell: Yeah. So I think the thing to note is that most of the opportunities are coming from government, one form or the other. So we certainly have a nice flow of inbound commercial that are working through the system that we’ve obviously closed a few of them. But if we look at the systems that we have closed, and if we look at our order book that we know that we have and those very sizable needle movers now that we’ll be pushing through on production, they’re all government — I’d just say, they’re 90% government-based. So that wasn’t as predominant before in terms of the pipeline, but that’s what is coming through on the close. And from that, it’s lots of agency work and the vast majority of it now is military work.
So whether it’s airborne or Army or Air Force or marine or like all of those different groups and they all have sizable orders. They really like utilizing the air center that we have. And yeah, that’s — it’s — again it’s not uncommon to history where we see that the military adoption really set the tone and build the use case for what that also that comes in the commercial sector as well.
Scott Larson: Okay. Can you provide a little bit of an update on the production facility in Saskatoon. You did talk about it, but maybe a lot more color what’s the capacity supply chain issues that have come up in the past, maybe a little more commentary on some of those issues?
Cameron Chell: Yeah. So I think Paul Mellon [ph] and team have done an excellent job in terms of the design of the product right from the ground up from a few years ago when we started working through our plan and around the design that we had to have so that we ensure that we weren’t going to be in a situation where we were already dependent on supply chain that we didn’t have some sort of management influence or swappable equipment for processes, too. So with the advent of the new plant in Saskatoon in particular, we’ve now even eliminated that more because of the actual manufacturing additional capabilities that we’ve built in there. So our plans organically should be able to do $45 million a year worth of production. And beyond that, we can push everything up to contract engineering you need your initial couple of plants at least to be able to do those types of numbers and get your certifications of our ISOs and build your prototypes and get your initial production runs off before you could be in a position to put it out to contract engineering.
