In particular, in the shorter duration side where they’re charging and discharging and leveraging time of day and variations or volatility in time of day pricing. So that is a product that we’ve begun to implement with some customers so we can get some good history with it sort of from a looking backwards and looking and how we could have helped them versus the results they’ve achieved. And then going forward, it’s essentially a module as a part of our broader energy management system that includes other asset management and other optimization capabilities. So in terms of the second part of your question, I would say that I would characterize this as something that is in a live testing phase at some customers now. And it will be something that I think can help be a differentiator for people that want to turn on certain capabilities over time as we complement our innovation on the hardware side with software.
Thomas Boyes: Appreciate the color there. And then just maybe one on some of the other partners that you have announced for kind of that licensing and royalty agreement in Europe and Cypress. So just any kind of timing there, what do you think is maybe holding back some momentum in those markets?
Robert Piconi: Yes. Well, we just announced those just within, I guess, about nine months ago. So typically, just like with China that we announced right away as we went public. They’re just now announcing development in projects and then there’ll be royalty streams that would start to come as they get built out. So on those things, you can assume that from announcement that you would be looking at a minimum of 18 months to 24 month type of time frame of when both first projects would be get announced and some royalties would begin. And as I said, if you look at those announcements that were made, they’re essentially about nine months to a year behind the China time line. So I would say, we’d be looking at impact of some of these things toward the second half of 2024, but more, I think, in better volume in 2025.
And we’re going to try to give you some good guidance on that as we work toward providing to investors in our Investor Day sort of a three year plan on the various parts of our business. Because we, I think uniquely, I imagine create a challenge for some of you given the different streams of business we have in terms of the EPC side of the business, the licensing side of the business and even some of the other unique solutions that we’re doing and how we’re monetizing gravity, for example, and other services. So we’re going to provide, I think, some updated more segment type of guidance over a three year period here as we get closer in the coming months also in providing guidance for our 2024 at our next earnings.
Thomas Boyes: Perfect. Thanks again. I’ll jump back in queue.
Robert Piconi: Thank you.
Operator: The next question will come from Stephen Gengaro with Stifel. Please go ahead.
Stephen Gengaro: Thanks for taking few more questions. So, I guess a couple of things. One is, maybe it’s easier to ask this way. When we think about your quarterly revenue, I know it’s going to be lumpy and there’s a lot of moving pieces. Is there any way to think about a baseline number? I mean, obviously, it went from 11 to 40 to 170, right? So trying to model it, it’s really hard. I mean, is there any kind of baseline number from revenue recognition we can think about? I mean even your fourth quarter guidance right theoretically, $100 million window there based on the full year guide. Is there anything you can add there, either specifically in the fourth quarter or just in general?
Robert Piconi: I would say generally on the shorter duration projects. So whether they’re the hybrids and battery Stephen, we’re executing those. And if you look at Wellhead, which we announced, I think, signed at the end of August last year, September and had it mechanically turned over in June. So I’d say on the shorter duration in terms of rev rec, it’s anywhere from nine months to 15 months, it depends in some cases, on some customer control timing. And yes, I know it’s difficult because these things are lumpy from a formal accounting rev rec perspective. As you look at the project and look at our rev rec this year, for example. We’re rev receiving some of the initial services and value add the payment milestones to customers differ a little bit than the POC accounting.
And then as we get closer to the CODs, that final six months is where most of a good chunk of the revenue will come because it’s tied to larger deliveries at the site and things where we begin to add value to equipment. So I would say that what’s important to pay attention to is the COD, the customer COD that we would share. And typically, we do share those unexpected timing of when we’ll be turning over. And if you do the math on the rev rec and turning coming back between nine months to 15 months from that project, we typically like we’ve done for PG&E. We’ve given guidance because it’s public information, PG&E on their hydrogen project, where it’s publicly should be delivered in June of next year. So I think that’s a way to do it. But one action that we’ll take with you is we’ll get offline and maybe into next week.
I’ll be happy to participate when I’m back in the U.S. and coming back on Friday. And let’s get a call next week and we can provide a little better guidance to make it a potential a little easier for you on that in terms of assumptions.
