Today, we’re carrying quite a bit of inventory and working capital relative to our sales, but we expect to get more efficient with that as time goes on next year.
Colin Rusch: Thanks so much. And then, Eric, if you look at the potential with a lot of these customers, obviously you’re going to get through kind of the first hurdle with some of these customers from a diligence perspective because of the Honeywell relationship. But then what’s your expectation around your ability to move those folks through the funnel to contract and the delta in terms of the pace of how that can happen here over the next several quarters.
Eric Dresselhuys: Yes, that’s a great question, Colin. It’s something we spend a lot of time talking about. I put it into two different categories. I think that for commercial industrial applications, so behind the meter type applications that are typically smaller projects and maybe a little bit more one-off, I think those have moved relatively quickly. We’ve had sales cycles as low as a couple of quarters, and the transaction from the buy decision to implementation can go more quickly. That’s I think in part driven by things that are connected to the low voltage network tend to have a little less challenge on permitting and grid access and things like that, whereas I think the large utility scale projects are going to continue to be a little bit more plotting in terms of their total process to go from contact to implementation.
That’s some of the big projects we’ve announced, and why we’ve liked some of the projects like SMUD, as a good example, is that it lays out a roadmap that goes over multiple years and I think will help accelerate the time to convert from implementation to operations. With a Honeywell on board, I think that takes out a big chunk of the kind of the bankability. And are you going to be around kind of questions that always come up when you’re a new company in a space, having the endorsement, the ability to buy the product through Honeywell, I think will accelerate that for some number of the customers.
Operator: Thank you for your question. Next question comes from the line of Chris Kapsch with Loop Capital. Your line is now open.
Chris Kapsch: Yes. Good afternoon. A couple of follow-ups just on the Honeywell relationship also, while you said, which makes sense, that diligence process on their behalf sort of validated your technology. I’m curious if that also that diligence process sort of validated your commercial strategy to transition to EWs, and if there’s specific examples of that in terms of Honeywell commercial strategy. And then, also just sort of following-up on the transition to EWs, Tony, you mentioned some efficiencies with respect to working capital as you scale that transition from ECs to EWs. Just wondering if there’s also an opportunity once you cross that Rubicon to maybe deepen the ascent in terms of gross margins. And is there also some capital efficiencies that come with that transition? Thank you.
Eric Dresselhuys: Yes, I’ll take the first part of that, Chris, and then Tony can chime in as need be and just don’t take this the wrong way, we’re — EWs today, we’re transitioning more to ECs. So the reverse of what you said, but.
Chris Kapsch: Okay. That’s what I meant.
Eric Dresselhuys: That’s on us for the name of that we’ve come up with. Don’t feel bad about it. Yes. We talked a lot about EWs and ECs with Honeywell. I won’t try to preempt anything that they’re thinking about in terms of their strategy, but there was a great meeting of the minds between us and them on the need to get to greater scale and to lower costs on a per kilowatt hour basis. And the EC really drives our ability to do those two things. The thing that’s really valuable for us as it gets into some of these capital questions is that the core technology, the way we build a stack and the proton pump, the electrolyte we use, those are the same across any form factor. So you’re really just looking at the balance of system and trying to consistently — constantly find better and more efficient ways to build the balance of system, to lower total cost and to improve performance.
