Michael Sison: Okay. And then a follow-up on Ozark. How does the backlog work for that business as you head into the summer?
John Fortson: Very, very It’s not paying, right? And you need to be careful of this. Gross margin business. right? So, it’s very, very seasonal, just like our payment business, right? The asphalt pavers, painters, strikers, what have you, they really start buying in the fourth — the first quarter of the year in advance in Q2, Q3. And depending on the market, may buy some in Q4, but it really falls off.
Michael Sison: Okay. And you expected to see some deflation that can maybe boost margins a little bit in that business as raw material costs have, I think, have come to, generally speaking.
John Fortson: We don’t necessarily see that.
Operator: We have a follow-up question from Jon Tanwanteng from CJS Securities. Please go ahead. Jon your line is now open.
Jonathan Tanwanteng: Hi, guys. Thank for taking my follow-up. Just wanted to.
John Fortson: Sorry about that Jon. Somehow you got cut off. So, we apologize.
Jonathan Tanwanteng: No worries. Just wanted to follow up on the Euro regulation update. You mentioned that it was coming a little bit earlier than you expected, which is great to hear. But I was wondering about the rest of the world following Europe. How quickly does that generally happen and kind of what kind of volumes you’re talking about? Because that’s a pretty meaningful opportunity just in the number of units in vehicles. So how do we understand what the implications of that are, if that happens and rolls through?
Ed Woodcock: Yes, John, this is Ed. It usually will take probably lagging what Europe does. The rest of the world probably would be two to three years, four years behind that. Just because you’ve got some rather large countries, such as India, Southeast Asia region as well. And Russia as an example, Ukraine is an example that are using them as well. But I think they all each have their own time line and they have their own priorities of when they want to adopt a new regulation. So, the they would be adopting the European requirements, but I think there’s a spread of time frames it will happen post Europe doing much.
John Fortson: Sort of gradually spread out over three or four years.
Jonathan Tanwanteng: Got it.
John Fortson: You’re thinking of somewhere around 12 to 15 countries that follow the European requirements.
Jonathan Tanwanteng: Okay. Great. And do you have a similar share in those markets that you do in Europe right now?
Ed Woodcock: Yes. I mean the — what a lot of the — I mean, if you think of what’s happening in India. India is still using a rather antiquated regulatory package. We are engaged with the Indian government to help them understand what the opportunities will be to move with not only what Europe does, but potentially with what the U.S. does, but it’s a slow-moving change in some of these countries. Others are fast. But again, we do expect to change to happen over time.
Jonathan Tanwanteng: Okay. Great. And then could you give us an update on your other alternative uses and the markets for carbon and how does it developing?
Ed Woodcock: First and foremost, would be our activities with Nexeon, and this is relative to making the silicon anode for battery electric vehicles. We are well engaged with Nexeon and working hand-in-hand with each other to evaluate products that we’re developing for Nexeon to use. We’re trying to continue to manufacture these. We’ve done some scale trials at some of our plants on them to make sure that we can meet the requirements and also the type of porosity that is needed for the silicon anode to work. From a — I think we’ve probably got another year, two years of work before it becomes marketable, but we are behind them and helping them as best as we can.
