Chris Souther: Got it. Okay. Maybe just a last follow-up here and then I’ll hop in the queue. Just the unabsorbed investments you’re making today, how much more of that do you think we need over the next, call it, 6-month year, 2 years in order to be able to hit the growth plans that you guys are hoping?
Fraser Atkinson: Well, the commercial sales which represented the predominant activity for our most recent quarter essentially didn’t have any school bus sales. We also have opportunities with our passenger vehicles, both the EV Star, the EV Star Plus and our EV 250. So those also would be incremental. So that’s all of what, I think in Michael’s comments.
Chris Souther: I was trying to get to the cost side, like you’ve made some of these additional investments, there’s probably still some more ramp-up in West Virginia. I just wanted to get a sense of with the plans, like how much more OpEx do we think we need to invest on a quarterly basis to read some of these plans? Are there expectations that there will be kind of additional kind of step function changes in OpEx was rather what I was trying to get at.
Fraser Atkinson: Yes, the December 31 quarter represents probably the bulk of that step up. So going forward there’ll be some tweaking. We have probably a couple of positions that we’d like to fill. But otherwise, the majority being 75%, 80% as in our numbers and represented in our business model.
Operator: And our next question will come from Tate Sullivan of Maxim Group.
Tate Sullivan: You mentioned 30 school bus deals in 8 states. Are those deals that you are currently in the process of bidding on or have been awarded? Or where are you in that process of those 30 deals?
Fraser Atkinson: They all represent deals that we can see a path to getting not just signed contract but deliveries and so the bulk of them are where we are the primary or sole platform in terms of the OEM provider. And yes, that sort of is the representation. And as we said, it’s more than the 30.
Tate Sullivan: And then you mentioned some price points or maybe I misheard or this, is it the rebate through the EPA program, the $375,000 for the Type D bus, or is that roughly the sales price or average price for those vehicles?
Fraser Atkinson: Well, the EPA program provides for the Type C or D. We, of course, just have the Type D but the type C or D electric is $375,000, that is what they provide. To be priced at anything other than that, to be priced higher creates a very different dynamic in the marketplace. So it is somewhat level set the field on that product. On our Nano BEAST Type A, we’re looking at EPA funding of $285,000 and that was higher than where we, with our various dealers, had been targeting where prior to the EPA program coming out, it was more typically in the $260,000 to $270,000 type ballpark and $265,000 tended to be a number where some of the other Type A electric school bus manufacturers had also priced their products. So that side, we’ve seen a bit of an uptick as a result of the funding from the EPA program.
Tate Sullivan: And shifting gears to the deferred revenue and it was the first time it was flat on a quarter-to-quarter basis in 3 quarters. Is this going to stay flat? Or are there scheduled additional upfront deposits or is this account for the near-term amount of deferred revenue, if you can address that?
Michael Sieffert: Deferred revenue isn’t a metric that we try to predict. The way we look at this, though, is that it’s something that does represent future sales. And so I think what we communicated was that over $12 million of that represents current deferred revenue which is effectively what we anticipate will be converted into… or sorry, over $11 million is what we anticipate will be converted into sales over the coming year. Now that number will certainly be replenished throughout the year but it’s a difficult one for us to forecast.
Fraser Atkinson: But it’s important to note that it’s unlike some, like accounts payable, represent liabilities or obligations to pay and directly affect our cash flow. In the case of deferred revenue, it has an obviously a different impact in terms of our liquidity. So it’s worth highlighting in the context that if one tracks this separate and apart from our working capital that one can see less of an impact on our cash requirements from the balance of our working capital requirements.
Tate Sullivan: You mentioned, I believe, that you collected a bulk of accounts receivable already this quarter. I mean does it bring it back down to the $3 million or $4 million level or can you comment on that?
Michael Sieffert: Again, it’s not something that we want to comment on mid-quarter. I mean we’re certainly anticipating a good solid sales number again this quarter. And so of course, as you’re collecting AR, you’re creating more AR which is not a bad thing. So we’re comfortable with our current liquidity. I think that, that’s the key message that we’ve collected a number of those receivables that were outstanding at quarter end. We’re actively pursuing other business and generating sales. And so we have a healthy liquidity given what our current needs are.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Fraser Atkinson for any closing remarks.
Fraser Atkinson: Thank you. So thanks for everyone being on the call and for those that dial in for our pre-recorded version of our earnings call. We appreciate your support and appreciate your patience with our company as we build our business. We’ve been consistently reporting a gross profit in the 20s, along with operating expenses that are a fraction of our peers. As Michael noted, since the end of the quarter, we’ve raised over $3.5 million off of our ATM on a very opportunistic basis. And as well as the finished goods inventory where we are expecting to complete deliveries over the next several quarters is going to help accelerate the growth and the record revenues that we reported in the most recent quarter as we dial in the school bus and expand our commercial vehicle group as well as opportunities with shuttle and passenger vehicles. So with that, we thank you for your support and look forward to chatting to you in the near future.
Operator: The conference has now concluded. Thank you for attending today’s presentation. And you may now disconnect.
