Shawn Canter: Yes, we need – sounds like it might be better. Go ahead and start with your response from the beginning, please.
Shawn Canter: Sure, sorry about that. So I’d say as we grow our revenue, we expected to grow both by adding new customers, so that’s customer diversity and growth [technical difficulty]. We believe we’ve already increased – keeping increased customer revenue, diversity, and you can see that in our numbers, a period, for example, ending September 30, revenue from customers representing more than 10% of the total revenue for the period went down from 81% to 69%, indicating increased diversity. And it’s worth noting, again, we grew both revenue up about 245% and paying customers up about 28%. And maybe I’ll just make one last point, which is that many of our customers who use KURL’s patented products often rely on these products to satisfy their compliance and regulatory requirements.
They need our product, satisfy those requirements so they can be in market. And so we believe that while certainly sometimes we can have a customer constant as any particular customer may be ramping up its own production. And thus it needs more of our products. Relationships can be very sticky. Maybe I’ll leave it there. Thanks.
Stuart Smith: Hey, Shawn, before we get to you again, this is Stuart. We will need you to move again to a better location. If you don’t mind, I apologize for interrupting. Theodore, go ahead with your next question, please.
Theodore O’Neil: Yes, I was actually able to understand a fair amount of it. So that did answer that question. I was wondering also if you can give us an overview of what an overview of your cell check platform and how you’re planning to integrate AI into it?
Michael Mo: Yes. I will take that one. Thanks a lot for your question there, Theodore. Appreciate it. Our cell check platform is designed to provide real-time information on the health of a battery path. And in addition, we use sensor information data to allow for deeper analytics for numerous factors such as say, degradation over time, looking for correlation of impacts of temperature changes versus performance capability, et cetera. So of course, now that there’s much easier access for using AI to analyze multiple data points simultaneously, we’ll use that to help draw out opportunities for product enhancement. So AI will be used for the analysis of our data, but not actually integrated into the hardware, if that makes sense.
But with that said, we do have AI integrated into our KULR VIBE platform. And that’s in our software. And this allows for a real-time algorithm adjustments to be made that further refine our ability to provide the optimal solution to achieve incredible track and balance results.
Theodore O’Neil: Okay. And the Army contract you announced on October 30th, which is being extended, you said October 30th, you said would be extended. When it goes into production, what’s the opportunity there for KULR?
Michael Mo: Yes. Hey, thanks, Theodore. This is Michael. I’ll take that. So the current contract is a development contract in nature and it extended and we expect to have other development contract on top of that. The prototype production likely start late 2024 into 2025. We started with Army on airborne and UPS applications. Army is very interested in increasing the power and energy density of the lithium-ion battery, but the lithium-ion battery safety is a top concern. As you may know, that they’re one of the largest consumer batteries in the world. So once we can prove out the lithium-ion battery that we produce to them is safe and meet their energy needs, we believe the opportunity opens up from the current approximately about a $100 million opportunity for these applications to a much, much larger opportunity across the army platform.
Theodore O’Neil: Okay. Thanks very much.
Michael Mo: Thank you.
Stuart Smith: Thank you, Theodore. We’ll now move on to Managing Director and Senior Research analyst at Alliance Global partners. That’s Jake Sekelsky. Jake, the call is now yours. Go ahead with your questions, please.
Jake Sekelsky: Hey guys, thanks for taking my questions.
Michael Mo: Hey Jake.
Jake Sekelsky: Just starting with the contract announcement with the American EV truck maker. And I recognize that specifics haven’t been disclosed. I’m just wondering what the timeline might look like from the testing phase to the product implementation phase. I know sometimes it’s tough to gauge when partners are larger parties. But I’m just curious what your thoughts are here?
Michael Mo: Yes we have started engaging with the customer and we’re likely to perform the tests in Q4 of this year. So that’s the quarter we’re in right now and going into 2024. And based on the test results and we will continue our engagement with the customer after we have the chance to analyze those results.
Jake Sekelsky: Okay. So you guys, it sounds like you’re hitting the ground running there.
Michael Mo: Yes Jake.
Jake Sekelsky: And then Shawn, I think you touched on this a bit, but it looks like cash consumption has come down quite a bit year-over-year, while you were still able to continue to grow revenue. I’m just curious if you feel there are any additional areas where expenses could be cut further without sacrificing growth, obviously heading into next year?
Shawn Canter: Sorry. They just patched me into my phone to try to get a better connection. Can you just give me the question one more time?
