So I still do expect that as this recovery does start to take place, that we’ll come out of it with more share on the other side of it than we went into.
Brian Dobson: And then just to ask another follow-up question on the trucking industry. It seems like there’s a significant opportunity there to reduce idle times. Could you maybe speak to the, call it, cost benefit for these truckers to transition to lithium-ion? And maybe give us a little bit of color on the conversations you’ve been having with some of those key players?
Denis Phares: Well, obviously, the conversations have been very positive, given their willingness to move so quickly, especially on the time line of this industry. And it really is an analysis of how much fuel they’re burning during idling. And that’s it. The industry as a whole can save billions of dollars if they switch over to the electric APU option and basically eliminate idling. So what happens is as you’re driving, some of that is — some of that energy is going from the alternator to charging the battery so that when the truck is off and you’re basically in standby mode, you can power all of your appliances there, including your air conditioner and other devices, basically overnight. So it definitely pays off pretty quickly. And it’s something that, in addition to the payoff, there are increasing regulations, air quality-type regulations, fuel burning regulations, where idling is just not allowed anymore in a lot of places.
Brian Dobson : Yes, excellent. And then just this one final question. In terms of the dry electrolyte, you had mentioned that you’ve been receiving indications of interest. Do you think you can just tell us which sectors of the economy those indications are coming from? I know it’s still very, very early.
Denis Phares: Yes. The interest has come from the consumer electronics sector, the vehicle sector and the data center backup sector. So we’ve gotten quite a bit of interest here. These are end customers. In relation to the last question, these are not cell suppliers, but rather cell end users or pack end users that have expressed interest.
Operator: Your next question comes from Jeff Grampp from Alliance Global Partners.
Jeff Grampp: I have a question on the Dragonfly IntelLigence. I think you mentioned in the prepared remarks that you shipped your first batteries there recently. I’m curious. What kind of capacity do you guys have to manufacture those? Maybe it’s a proportion of overall capacity, if that’s the easiest way to look at it. And if you could just kind of characterize the overall demand for batteries with that feature set?
Denis Phares: Well, that’s a good question. In terms of capacity, we’ve basically replicated a line that is able to produce these batteries with that IntelLigence feature. So we can basically produce what we’re producing now in addition to what we’re producing now, so we can double production, and basically half of that will be with the IntelLigence feature. In terms of what the actual market looks like there, there’s a couple of areas where we think it bodes very well. And the first one is in the marine market. A lot of the hindrance to the incorporation of lithium in the marine market has been insurance issues. And insurers have been reluctant to insure boats with lithium-ion batteries. The American Boat & Yacht Consortium came out with a set of standards to try to address this issue, try to actually standardize what lithium systems should look like.
And that’s what we’ve — one of the things that we’ve addressed with the IntelLigence system is that. So the marine market itself is enormous. The aftermarket in marine is similar to RV, probably a little bit bigger, in the billions of dollars. So we see a lot of potential there. In addition to that, the stationary storage market where remote monitoring is important, where accurate state of health, state of charge determination is important. We don’t have much traction in that market now, and we hope that this feature will help us to accelerate there as well.
Jeff Grampp : Great. And my follow-up, right, is to the guide for Q4. It looks like you guys are projecting some sequential deterioration on the gross margin side. Is that a volume factor just with the lower sequential revenue? Or maybe some reversion mix away from DTC? Just wondering kind of the main driving forces there relative to the strong margins you guys had in Q3.
John Marchetti: Sure. Yes. I mean, part of that, I think, is very much just the lower overall volumes that we’re trying to account for there. There’s a couple of year-end inventory items that will get folded into that as well, but it’s primarily because of the lower unit volumes that are expected.
Operator: [Operator Instructions] There are no further questions at this time. Denis Phares, please proceed with your closing remarks.
Denis Phares: Thank you for everyone joining us today. We look forward to sharing additional details with all of you in the coming quarters. Have a great day.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for joining. You may now disconnect.
