George Sutton: Now relative to the capacity that your buyers have on the brokerage side, how much — assuming this lender that you’re specifically referencing and related to the charge-off — I’m sorry, related to the higher assumptions — loan loss reserve. Thank you. Very different than a charge-off for those listening. If they don’t have capacity, how much does that impact your ability in the market to get that sort of normal…?
Brian Cobb: So the absorption rate is still very, very strong. We’re getting bids on everything we put out. The pricing has gone down to more normal levels. During the pandemic, there wasn’t enough supply and people were paying very high prices and thinking that the collection curves were quicker than they are now. But the absorption rate is 100%. We haven’t had a portfolio that we’ve been unable to get bids on. And so a lot of these people really couldn’t spend any money during the pandemic. And now all of a sudden, they’re basically back in business. So I think there’s a solid base of buyers right now.
George Sutton: Quick question on the biotech side. So we’re somewhat stunned by the number of auctions that you’ve had. How much is that impacting the buyer side in terms of their willingness to pay up in these auctions? And understanding that if I don’t buy today, there’s a number of other auctions coming.
Brian Cobb: It’s been really good because most of what we’re doing is not for the Fortune 1000, big Pfizer’s of the world, the Amgens of the world. Most of what we’re doing is for companies that are struggling that basically have newer equipment. So because we’re selling much newer equipment because we’re getting it from venture-type companies to equipments 1, 2, 3, 4 years old, we’re getting very aggressive bids. And what happens that people may not understand when times get tighter, there’s an increase, not a decrease in the volume of people that will buy used equipment. So people that won’t look at used equipment when they’re getting $20 million funding from their VCs, and they can buy everything brand-new, shiny without any kind of worries are now not getting that kind of money.
And so as they’re trying to basically balance their supply chain, they’re more and more looking at used equipment. We’re selling used equipment now to guys that are buying used equipment for the first time.
Operator: [Operator Instructions] Our next question is from the line of Michael Diana with Maxim Group.
Michael Diana: I’d like to just — you talked about absorption rates. In other words, the demand for the charged-off loans. And you said the absorption rates were still high, although the pricing maybe is a little softer. So can you remind us how you get paid on these sales of the [charged off loans]. And how that dynamic will impact your revenue?
Brian Cobb: So we’re never a principal, we’re never at financial risk at all, we’re 100% a broker. There as we give no guarantees on the pricing. We try to give them guidance on what we think it’s worth to make sure that they’re going to be happy with our performance. And we get paid basically a commission — a seller’s commission. So it’s the same way that CBRE or Cushman & Wakefield would get paid a brokerage. So it’s a brokerage fee and we get paid at closing. So if — so we’re really focused. We make more money 100% on volume. So if the pricing is lower, that is not as being an impact as long as we’re selling more and more loan portfolios. So if the pricing goes from $0.10 to $0.08, it’s not that huge difference in how much money we’re making. The difference is if we go from doing 200 to 300 offerings in a year.
Michael Diana: Right, right. So you get a fixed percentage of the amount sold. Right?
Brian Cobb: Yes.
Michael Diana: So as you said, you can make it up and by right, even if the prices.
