Rick Wheeler: Minimum volumes? I don’t think we have anything, any terms or conditions or anything along that line in these business arrangements.
Scott Bundy: Okay. And Robert, noncurrent inventories jumped a bunch. Can you explain what noncurrent inventories are?
Robert Curda: It’s an inventory that we don’t expect to consume within the next 12 months using our historical usage as an indicator of what could happen in the past. And to be frank, what a lot of that increase in inventory. It’s related to components to build items that are going to go into our rental fleet, which is a noncurrent asset to begin with. So we’re placing those components that are likely going to end up as a noncurrent asset in the noncurrent inventory.
Scott Bundy: So that would be Mariner, for example?
Robert Curda: For example, yes, sir.
Scott Bundy: Okay. Got it. So Rick, last quarter, regarding Quantum, you made reference to the fact that there may be more clarity on some of the endeavors in the near future related to perimeter security, energy transition, carbon geothermal mining, et cetera. So what’s fascinating to me are the job openings at Quantum. Can you give us — no Board allows the kind of job openings that you guys are having without some visibility. Can you give us some idea of what’s going on there?
Rick Wheeler: Well, I mean, these contracts that we’re already working on has certain requirements to it. And we’ve actually had some talent that unfortunately, we had someone pass away in one circumstance. So there are some definite technical skills that we need to assess and put back in place. So I think that’s where these are with respect to these technical matters that we need those scientists for.
Scott Bundy: And the more clarity part, do we have more clarity about some of these areas?
Rick Wheeler: We do, but it’s not something we can yet discuss. I mean the three months, but between then and now is just not enough to have that manifest. But the pipeline of those discussions that we’re having for some of these things is definitely deepening. And I know that sounds frustrating, but it’s just the way it is. We can’t really talk about some of these things at this point.
Scott Bundy: PRM, do we hear anything regarding the outlook regarding PRM?
Rick Wheeler: We do. Those discussions are very active. And in fact, we’re even having some more discussions. But the thing is, none of those are going to generate any revenue in fiscal year 2024. And so that’s not anything anyone should anticipate to be the case. There is likely to be some tenders that come out in fiscal year 2024. They’re not going to generate any revenue within that year though, they will be for future deployments. But you likely will hear about some tenders coming out in the next year.
Scott Bundy: And are we talking multiple tenders?
Rick Wheeler: That is certainly the possibility, and we are evaluating our capacities as it relates to that. We feel comfortable at this point in time with the timing of when we think some of those tenders might come out. But yes, it’s certainly the case that we anticipate it could be more than one.
Scott Bundy: My last question. So regarding a tender where a contract was made I think one of the issues with you guys was you weren’t comfortable with the risks associated with that particular contract and decided not to play. Are we feeling more comfortable about how we can address some of the issues that may be going forward like the one that was outstanding?
Rick Wheeler: I think so. I think that really, there’s sort of movement on both sides of that equation. There’s, I think, better comprehension of what we were presenting as unacceptable risks there. And then I think on top of that, we’ve sort of evaluated some other business approaches to how we might accommodate that.
Scott Bundy: I’m sorry, I do have one more. So in the event that there was a contract, which is, let’s call it up to 2025, would we have the current capacity to handle it?
Rick Wheeler: I believe so. Yes.
Scott Bundy: Thanks, guys.
Rick Wheeler: Thank you.
Robert Curda: Thanks, Scott.
Operator: And we have our next question from Donald Collins with Ironwood.
Donald Collins: The past few years have been challenging ones for you as the oil and gas industry experienced a downturn but you persevere capital invested in new technologies. Now that the markets have recovered, you’re seeing some good profitable results. So congratulations are due to you and the entire Geos team.
Rick Wheeler: Thank you very much.
Operator: And our next question comes from Michael Melby with Gate City Capital.
Michael Melby: Hi, gentlemen on the good year and the good quarter. Could you comment — do you plan on being free cash flow positive in fiscal 2024?
Robert Curda: Yes.
Michael Melby: And maybe you could expand a little bit if that’s the case on what you need to see to return capital to shareholders. It looks like you have excess cash now and plan on generating more this year.
