Jeremy Kwan: Great. And I guess maybe moving to the just the financials. I know you mentioned non-GAAP gross margins of 33%. But so this is the inventory adjustment that you mentioned in the $1 million write-off of inventory order fees. So if we take that out, we get to 33% non-GAAP. Is there any reason why this isn’t this will show up in the non-GAAP net income because it looks like the costs are excluded from — they’re not added back, I guess, when you show the non-GAAP net income?
Ashish Sharma: Yes, we made a point of pulling it out of EBITDA for that purpose. And as you said, it will come out of the COGS line specifically to mobile solutions to get to the 34.6, and that’s how we recorded it.
Jeremy Kwan: Got it. Okay. And is there — there’s — is there going to be any, I guess, impact going forward from these charges? Or is there a potential for any kind of, I guess, benefit on the back end of it?
Ashish Sharma: I couldn’t hear the first part. Is there any benefit on board? Is that — what was the…
Jeremy Kwan: Sorry, on the back end, I guess, if you can take a charge now, is there some chance that some of this could be to cover.
Ashish Sharma: Yes. Yes, absolutely. I mean the charge is a P&L charge. It’s not a disposition of inventory. It’s not a destruction of inventory. It’s just based on how much inventory and raw materials we have today. And what we’ve sold in the last 12 months? And what the sales forecast is now going forward. And so you say, okay, it looks like we will not be able to clear that amount, so you take a reserve. And to your good point, if something happens and there’s a Blue Bird or things break really well and positively, then we’ll see some upside. But we’re obviously not planning on making things with a Blue Bird or Upside, and that’s essentially why there’s a reserve.
Jeremy Kwan: Got it. Great. And maybe two more quick questions, one would be on the $2 million OpEx that’s coming out. Can we see that fully realized in Q1 of next year? And maybe would it be fair to say something like just a fraction of that in Q4.
Ashish Sharma: Yes, that’s exactly right. A part of it will be in Q4, just based on the fact that it’s early November and then the full benefit in Q1 spot on.
Jeremy Kwan: Got it. And the last question would be just looking at the — your working capital went down quite a bit, which is nice on the cash flow side. I was surprised to see accounts receivable dropped $8 million and how we reconcile that with late shipments in the quarter? Were you able to collect really quickly on those shipments? Is that kind of what happened there?
Ashish Sharma: That’s exactly what happened. We — as we said before, on the other side of the table, we have large carrier customers that we sell to and through. And this quarter, we had one or two that paid very quickly on a lot of stuff. And so our DSOs improved tremendously. We had very large cash collections. Awesome, right? We’d much rather have cash earlier. It’s a nice dynamic to have, but it’s obviously not — it’s a bit of an anomaly to have that improvement in a short period of time. And so you see a huge pop in cash.
Jeremy Kwan: Got it. And sorry, one last question, if I could squeeze it in. Do you have new breakeven targets whether for adjusted EBITDA or on a free cash flow basis?
Ashish Sharma: Well, our commitment and our focus is on maintaining profitability in the form of adjusted EBITDA. So that’s an important metric for us. The EBITDA — adjusted EBITDA positive. We’re also focused on the cash burn and particularly as we exit this quarter and head into next year of generating free cash flow. So that’s a target for us as we plan out and set ourselves up for Q1.
Jeremy Kwan: Very good. Thank you very much.
Ashish Sharma: Yeah. Good questions. Thank you.
Steven Gatoff: Thank you, Jeremy.
Operator: This concludes our question-and-answer session and concludes the conference call. Thank you for attending today’s presentation. You may now disconnect.
