Thomas Healy: Yes. So at least at today, the buildup of the build material into the generator, there’s — it’s kind of a spread between — some of it is the actual powder cost. And as you’re mentioning, there’s cobalt chromium that we’re using for some of the components, then you have the actual linear motor side of it. You have all the balance of plant components. And then there’s a pretty sizable amount that’s actually in the cost of running that additive machine. So, while there is an aspect of if cobalt prices go up, then that will impact our powder costs. We’re not in a situation, though, where it’s like 90% of our BOM [ph] is based on one of these components or something like that. So, it could have some impact, but we don’t see it as a material amount.
With that being said though, even just for the very initial production units, these beta parts that we’re producing, we’ve actually already started shifting some of the components off into other materials. So, for instance, the chiller side of it, we’re actually shifting that to using aluminum, which is a lower-cost solution than some of the other powders out there. So, we are being cost conscious in that way of making sure that we’re selecting the right materials to meet the performance but also have a solid build material cost.
Operator: [Operator Instructions]. Your next question comes from the line of Bruce Gillixan [ph]. Please go ahead.
Unidentified Analyst: Thank you very much. Old-time structure here was really excited about the hybrid truck. Is the KARNO Energy machine going to be incorporated into the truck or is the truck line shelved for now? And why would we shelve it when there was so much potential for it?
Thomas Healy: Yes. So, I appreciate the question. So, as we shared last quarter, we are taking the powertrain technology that we developed and stopping the development, putting that technology on the shelf. As we mentioned on today’s call, we are looking at, are there still ways to potentially work with others, sale of the asset sale of the — some of the technology or royalties, things like that, to see if there is still a way to leverage that technology. But we do see potentially long-term that there is the ability that we could even bring that back. However, the reason really for driving that shift last quarter was because we saw a lot of challenging economics facing the EV trucking space. And even since last quarter, we’ve continued to see it probably even get worse, at least sustain kind of but probably even get worse.
And so, from that standpoint, we are confident that the shift we made was the right shift for shareholders. And we’re excited to get the KARNO commercialized as we shared on today’s call, a lot of positive progress being made towards that. and then we’ll assess as we go forward if there is an opportunity to bring the powertrain solution back. And as you mentioned, potentially couple that with the KARNO as the range extender.
Operator: We have no further questions in our queue at this time. Thomas Healy, I’ll turn the call back to you for closing remarks.
Thomas Healy: Well, thank you, everyone, for joining today’s call. As we highlighted today, we have a lot of exciting development plan for 2024. Most notably is actually getting units out deployed these early field units and getting feedback from those customers and establishing those partnerships to really bring us into 2025 and start scaling the ramp-up of the delivery of KARNO generator. So, thank you for joining today’s call, and we look forward to chatting with you again soon.
Operator: This concludes today’s conference call. Thank you for your participation, and you may now disconnect.
