And these are, for example, for companies like Subaru or Caterpillar that are lifting heavy industrial items and need that heavier capacity. So we see really expansion of opportunity given those models that we’re just now starting to roll out over the next year. So we’re optimistic for next year, but of course, cautiously optimistic, but very, very bullish over the next several years as all those factors I mentioned gain momentum.
Matthew Galinko: Great. Thank you. I’ll jump back in the queue.
Operator: [Operator Instructions]. Our next question is from Jeff Grant. Please proceed with your question.
Unidentified Analyst: Hey, guys. Thanks for the time. Ron, in the release, you mentioned exploring and developing some partnership opportunities that could include vendors, technology partners and just kind of I guess, other various opportunities. So I’m wondering that can take a lot of different directions. Can you give us either maybe some examples of what you’re assessing or maybe just kind of high level the benefits you’re looking to achieve through any of these kind of opportunities that you guys are thinking about?
Ron Dutt: Yes. Sure. No, I know it’s keen because it goes with our strategy, which John mentioned many times is to build scale. And we’re executing to our plan right now, building scale organically, but certainly developing partnerships where they make sense where it fits with our strategy and with their partners, we have — that we can trust and work with. So I mean, I’ve done a dozen acquisitions in my time, and I could tell you it’s easy to do one, a bad one. And integration is a big part. But the two areas that we are in early stages of are expanding our capability with, for example, automation of modularizing ourselves [Technical Difficulty] such projects as well related to production and leveraging the most efficient source to those ends.
And also, we have a partner who is interested in licensing our packs in South America. We’ll see the very early stages. We’re not committing on anything. I just want to give you some color of some of the types of things that we could do. Another one is technology. Billions are spent all over the world trying to get the next best increment of technology in the cells, lithium battery cells, and we have some discussion going on one opportunity. So I think it’s a little bit like in the world of acquisitions that some of you know. It’s important to really explore these relationships because the timelines can be pretty long, but it’s certainly part of our long-term strategy.
Unidentified Analyst: Great. That’s super helpful. I appreciate that. And for my follow-up, you guys mentioned and highlighted the inventory being able to be worked down a little bit sequentially. How much more room is there to have that be kind of a source of cash or a bit of a tailwind on the cash generation side of the business in fiscal — in the upcoming fiscal year?
Ron Dutt: Yeah, Chuck, can you handle it?
Chuck Scheiwe: Yeah. We continue to work through that, and we do see some opportunity to continue to monetize some more of that. What we’ve been seeing lately is orders shifting around. So finished goods is higher than we would like it to be. I think we’re running $4 million to $5 million typically. It should be down more around $2 million to $3 million. So there’s some space there. And then what we continue to do as we grow larger, we’re able to push some inventory off the balance sheet to — like we have a Chinese supplier of truck adapters that hold it in their own inventory on their — at their risk. So we can start to look at more relationships like that or through common off-the-shelf parts and have them actually roll out to our property and stock rather than us making orders. So we spend a lot of time working on tweaking that to just get the most out of that. But there’s definitely a few million there, a couple of million.
Unidentified Analyst: Great. Thank you, guys. Appreciate it.
Ron Dutt: Thanks, Jeff.
Operator: Thank you. Our next question is from Sameer Joshi with H.C. Wainwright. Please proceed with your question.
Sameer Joshi: Great. Thanks. Ron, Chuck, congratulations on the progress. I just had a couple of questions. I think you mentioned the AI initiative for the SkyBMS. Should we look at this as additional functionality to remain competitive? Or should we consider this to be an effort to improve margins by — like selling this as an add-on service?
Ron Dutt: I’m sorry, our sound wasn’t very good. Could you repeat that? I couldn’t quite hear it.
Sameer Joshi: Yeah, yeah. So basically, the AI initiative for the SkyBMS, should we consider it to be additional service that could be improving revenues? Or is it to give additional functionality that will make your product more competitive?
Ron Dutt: Yeah. It’s really both. I think it’s very exciting. You read about AI every time you pick up something nowadays. But we have this — our SkyBMS is our battery management system, firmware software. It connects the pack to the cloud and then from the cloud goes anywhere and everywhere. And the capabilities that, that affords are just limitless. And we are real keen on it. Our CTO has been leading that effort for a number of years now. And we’re seeing — given our experience, we’re a prime mover in this. We’re the first ones to have UL-listed batteries in 2014. And — so having that experience and the understanding of the spectrum of use, opportunities, environmental factors and our BMS is allowing us to identify patterns early on, communicate them, communicate needed any necessary fixes to packs to support people or to the customer before a pack might go down, if not attended to, can identify service patterns that are needed, can identify the remaining length of life of packs so that they can balance the use of packs over different pieces of equipment, some use energy faster than others.
And in short, to help the asset management of their fleet. Now, we believe this adds a lot of value. We’re starting to sell it. It does help with margin as well because it’s essentially software based. So that certainly is a plus, both the revenue and the margin. And I’d say strategically, it’s particularly important because our customers — we have a long-term relationship. And these Fortune 100, 500 companies, selected us because of our ability and proprietary technology to have — continue to have leading technology for them in the future because it’s very disruptive for them to change vendors. Now they can always add a vendor. But to change vendors is very, very, very difficult. And the final point is that one of our largest customers has asked us to partner with them in implementing a joint AI or SkyBMS or telemetry, if you will, with the telemetry of the forklift because it has planned maintenance and other information needed to manage that asset with ours and have it all in one location and one spot.
