Fraser Atkinson : Well, we have a large customer you’re probably referring to had paused the intake of our cabin chassis and I think that was in the August time frame. Right now, where we said we have over 50 CCs that we have available for delivery at the appropriate time. I think more importantly, part of what Claus referred to in our opening remarks is, number one, he’s got a number of orders and even a greater number of quotes just on the CCs. So we’ve got a rapidly developing market for our EV Star cabin chassis. And we’re also utilizing that for our Nano BEAST, for our production with Lion Truck Body. So it really has a broad application and 1 that has really grown over the last 2 or 3 quarters.
Craig Irwin : Excellent. Well, congratulations on the progress, and I’ll go ahead and hop back in the queue.
Fraser Atkinson : Thank you, Craig.
Operator: [Operator Instructions] The next question comes from Tate Sullivan with Maxim.
Unidentified Analyst : This is actually Justin Smith in for Tate Sullivan today. Kind of just following up on the last question. I was just wondering if you guys were able to provide any details you’re still looking to deliver all 1,500 of those units to your larger customer in regards to the cabin chassis units?
Fraser Atkinson : Well, we don’t give forecast. We don’t provide any guidance in that regard. And I think the answer that we had on the previous question would be the same in that. We have vehicles or CCs ready right now. We have CCs that are in the queue that are being either completed or substantially completed that could add to that in the follow-on quarter in January and February, and that will be something that we’ll be working through over the next week or 2 in terms of this quarter and next quarter.
Unidentified Analyst : All right. Great. And then kind of following up on that as well. Are you able to provide any information on those units to start coming out if you think your gross margin for those will be better or worse than the gross margins for your electric school buses that are going out right now?
Fraser Atkinson : Well, the higher volume contracts we’ve had margin compression or the margin is lower due to a price that wouldn’t be the same if we had a one-off or 2 off. And the reason we do those is that as we are able to get deliveries that are consistent and continually ramp up volumes related to each of the products, whether it’s a Nano BEAST or a BEAST or cabin chassis is as we’re able to get repeatable deliveries. That’s where we’re going to enjoy a higher gross profit.
Operator: The next question comes from Greg Lewis with BTIG.
Gregory Lewis : I’m not sure if this question is more for Mike or Fraser, but clearly, you’ve been walking through some of the challenges on the decremental margins, and we’re ramping West Virginia. Is there any kind of thoughts around what type of volume we need to be coming out of West Virginia in terms of bus sales, we think that starts to be margin accretive?
Michael Sieffert : So maybe I…
Fraser Atkinson : Yes, go ahead Michael.
Michael Sieffert : Yes. Just we haven’t — just to be clear, we haven’t really talked through margins of school buses coming from West Virginia. I would say that the margin compression that we saw this quarter, specifically, it was, I’d say, more related to specific parts inflation as well as deliveries of new vehicles like new products — so less to do with our school bus sales in the quarter. Our school bus sales this quarter actually generated a margin that was higher than the overall margin for the quarter, just to give you an indication. As that facility ramps up, certainly, we would expect there to be better economies of scale. But at this point, we haven’t broken that out specifically, Greg. So there’s probably not a lot of additional detail I can cover. Fraser, I’m not sure if there’s more you’d like to add there.
Fraser Atkinson : Well, I think the — we’re just getting organized to start the BEAST production with the first vehicles for that side of the School Bus Group coming off the line in early spring of 2024, I believe, is our target. And with — until we get through that first and second cycle and look at how we’re going to both ramp and manage our costs, we’ll have a much, much better idea of where we are. The positive in that group is that, is that both at the state level like on the New York State contract that we’re on that Brendan talked about, and Michael Perez talked about is — and the California programs and the school bus program, they all have price points that are very supportive in terms of what our cost structure. In other words, before those, the vehicles were probably be selling for a little less than what these mandates and incentives are providing.
Gregory Lewis : That’s super helpful. And then just following up on that. Clearly, the initial buses rolling out of West Virginia are all going to West Virginia. As we think about that, at what point is that — is that a back end of ’24, maybe calendar year ’25, that when we start selling to non-West Virginia school bus — municipalities or customers?
