Jake Sekelsky: Yes, no problem. So I was just saying, you touched on this earlier on cash consumption coming down a bit year-over-year without sacrificing revenue growth, obviously. I’m just curious if you guys feel like there’s any additional areas where you could cut some expenses further without sacrificing growth heading into next year?
Shawn Canter: Sure. Well, I can tell you that we are constantly reviewing all of our processes and procedures. And we’ll continue to do that in order to become more and more efficient. I think that in addition to that, as we are growing and gaining scale, I think we’ll be able to continue to improve our margins, and you’ll see those hopefully continue to improve as we move forward. So, while we’ve done a lot of work so far I think this is a focusing on growing and focusing on optimizing our resources across our various platforms will continue. So there’s no specific area we’re targeting. We’re always looking at all the areas and how we can run more leanly and efficiently.
Keith Cochran: Hey Shawn, let me just stand on there. This is Keith Cochran and thanks for the question there, Jake. You know, the other thing to keep in mind is most of our product revenue is variable cost. In other words, we use outsourced manufacturing for that. So we’re able to scale without a lot of significant investment into machinery and personnel. So we can flex there up and down on a variable cost basis. So that’s one of the strategic approaches we started from the beginning.
Jake Sekelsky: Got it. That’s helpful. Thanks again, guys.
Stuart Smith: Thank you, Jake. And now we’re going to welcome Michael Lake Sr. [ph]. He’s the managing Director of Benchmark and Emerging Growth Research. Michael, the call is now yours. Please go ahead with your questions.
Unidentified Analyst: Thanks. Good afternoon. Can we talk – your contract service revenues came in strong R&D was up a little, but R&D is also an indicator of future revenues. I believe Shawn, I think we talked about that. Can you first talk a little bit about the R&D pipeline, if customer opportunities there, if it’s anything different than what we have in contract services? And then on the SG&A, decline down to 4.8 from 5.6 last quarter. Can you talk where you cut those expenses out and what we’re doing there? And then, have the ability to keep SG&A at these levels. And then just lastly, can you talk a little bit about the cash position, the cash flow and any types of cash inflows and outflows that have coming up near term and how we’re going to handle that? Thanks.
Shawn Canter: Sorry Mike, lot of questions in there. So I think the first one was about R&D and how that is an indication of growth. And so yes, I think and Mike and Keith obviously jump in here too. But our R&D expenses are associated with the work that we are doing in order to satisfy the increasing customer demand poll that we’re seeing and going after those contracts and going after those solutions that those customers demand from us. So I think you’re right. I think that while we certainly are – as I mentioned for Jake, we certainly are cognizant of maintaining our – trying to keep our costs as lean as possible. What we don’t want to do is we don’t want to sacrifice growth. And so where appropriate, we will invest in satisfying that customer demand.
I think the second question was around SG&A. And so on that front, as I said, we continue to look at all of our processes where we can reduce costs or improve efficiency, which results in cost savings, we will continue to do that.
Keith Cochran: Hey, Shawn.
Shawn Canter: Yes.
Keith Cochran: Let me jump in on this a little bit. Thanks this is Keith Cochran here. Yes. One of the things that we’ve been able to do on an SG&A is really cut some of our marketing costs. And the reason we’re able to do that is we’re starting to get very good brand recognition out in the industry. And we’re getting to a point now that we’re kind of full. If you know what I mean, we’re really not having to beat the doors down of other OEMs, they’re coming to us proactively. And some of the most recent large announcements that we’ve made have been from people that have actually come to KULR to seek our capabilities. So marketing is an area that we’ve been able to really reduce costs. That’s sustainable at least for the foreseeable future.
So now we’re taking that capital and redeploying that back into R&D. And then on the R&D side of the business, we’re getting great leverage from the last two and a half years of investment that we’ve made in the KULR One platform. And so what we see there is we’re able to get much more efficient with those R&D dollars, because from one battery pack to the next battery pack we’re starting to get into situations where it’s almost a replication of previous work done, so that improves the efficiency. So just kind of hope that answers your question a little bit.
Unidentified Analyst: Yes. No, it’s perfect. And then just on the cash and the cash uses coming up, can you just go over that and where we stand?
Keith Cochran: Okay. I’ll refer that back to the Shawn.
Shawn Canter: Thanks, Keith. Yes. So in terms of cash we continue to, as you see, grow the business, optimize our costs. So between our cash, our receivables, to current visibility in terms of what the pipeline looks like, our various partnerships and initiatives we feel like we have – we’re in a good position to continue to finance the growth of the business and we’ll continue to use the cash flow generated internally and to the extent that external financing is appropriate. We’ll do that to continue to meet the growing customer demand that we’re experiencing.
Unidentified Analyst: Great. Congrats on the quarter. Thanks.
Shawn Canter: Thank you.
Keith Cochran: Thank you.
Stuart Smith: All right. Thank you, Michael, for your questions. Next, we have questions from Howard Halpern. He is a senior equity analyst with Taglich Brothers. Unfortunately, Howard’s not available to ask his questions today. So I will do my best to play the part of Howard. Here’s the first question. Do you believe the most recent announcement with Velos to provide your KULR VIBE service as an added enhancement to the VELOS V3 UAV helicopter will provide you with an opportunity to accelerate the rollout of this offering to other helicopter companies, as well as branch out into other verticals?
