Now, as we get to higher and higher volumes, the idea of diversification in the supplier base gets a little easier to execute than it is for us today. But we think we can get a lot of that diversification and kind of surety of supply by working with larger vendors who have multiple facilities in the first place.
Colin Rusch: That’s actually super helpful. And then in terms of debt providers and underwriting standards along with potential insurance providers for some of these products, can you talk about the maturity of those processes to really look at performance of the assets in the field and how comfortable those underwriters are getting with the technology and how these assets are performing at this point?
Eric Dresselhuys: Yes, sure. So I’d answer it in two parts really. We’ve had a lot of engagement with people who do underwriting at the project level and that’s both for independent power producers but also kind of more traditional legacy producers. And we’ve broken that out into two parts. There’s one kind of just a general product breakdown where I think we’re very mature and certainly the agreement we have with Munich RE and all of the diligence we’ve been sharing with people for years gives a lot of comfort on that front. As we get more and more operating cycles in the field, that helps drive the bankability study in terms of performance, the number of cycles that we get. And I look at that, I think it’s getting increasingly comfortable for people but there’s almost no limit to it.
The more product you get in the field, the more different operating environments that you demonstrate and the more cycles you put on the unit, the better that gets. And so it’s just kind of part of our everyday work.
Operator: Our next question is from Corinne Blanchard with Deutsche Bank. Your line is now open.
Corinne Blanchard: Hey, good afternoon. Could you talk, two days ago there was a filing saying that the stock price basically doesn’t go further much up. I think there is maybe a risk of it being delisted or going on the OTC. So just trying to get a little bit of color and what could be the different scenario happening from that filing?
Eric Dresselhuys: Sure, and thanks for the question. Yes, we’ve received a notice from the NYSE which we’ve responded to. It’s got a relatively long kind of observation and cure period to it of about six months. So there’s no immediate action that’s required. So we’re monitoring that. We have a number of options to address it if it doesn’t kind of cure on its own. But we certainly don’t have any intention of being delisted or trading down to alternative platforms.
Corinne Blanchard: Okay, thank you. And maybe the second question, and sorry if I missed it earlier in the Q&A, but can you give a little bit more color as well about the 40% cost reduction, maybe the timing and how you’re thinking of implementing it?
Tony Rabb: Yes. Hey, Corinne, this is Tony. The 40% cost reductions that we’re expecting to achieve this year are similar to what we saw last year in terms of the various projects that we have associated with cost reduction initiatives. So again, there’s going to be some more design-related initiatives and generation changes that will simplify the EWs as well as remove some of the material that’s in there. And we also expect to continue to reduce the cost of our electrolyte. So there’s a number of projects that are all going to be realized throughout the year, as there are multiple of these projects, in addition to some supply chain-related projects where we’re continuing to evaluate alternative vendors who can provide us better or cheaper materials. And so as we realize those throughout the year, that’s how we’re going to be able to take the cost of the product down by 40% by the end of the year.
Operator: Our next question is from Brian Dobson with Chardan Capital Markets. Your line is now open.
Brian Dobson: Yes, thanks very much. So you had mentioned earlier in the call that your 4Q delivery misses were mostly from client disruptions. Would it be safe to assume that we should view those deliveries as delayed rather than missed entirely?
Eric Dresselhuys: Absolutely. In fact, both of those have already subsequently been delivered, and we expect to recognize them in Q1.
Brian Dobson: Yes, very good. I think that that’s an important point. And just shifting gears a little bit to your agreement with Honeywell, have you seen any — I know it’s early, but have you seen any early synergies from having access to that company’s sales channels, or have you received any early feedback from your new partner?
Eric Dresselhuys: Sure. No, I think there’s been really positive feedback, and a couple of things kind of have popped up. Certainly, Honeywell has a vast experience, technically, on products similar to ours across a range of industries. And so, the interactions with our technical teams have had on a joint development project basis and evaluating things to do together is the first thing. From a channels perspective, they have great access to tons of channels across the space. I’d say two things have kind of come up. One, of course, very large customers sometimes have a strong preference to dealing with very large suppliers. And so, Honeywell has a lot of great relationships with very large customers, and that’s opening up some doors.
But then also things like, you know, I think military bases and government contracts, there’s a lot of connections into those. So, I think you’re absolutely right. It’s early days, and they’re a big ship. So we’re working hard across the teams on both the commercial and the technical side to kind of get specific things locked in and ramped up. But we feel really good about the progress we’ve made so far.
Operator: We have a follow-up from Thomas Boyce with TD Cohen. Your line is now open.
