Theodore O’Neill: Okay, that’s helpful. My other question is that, you’ve opened an online marketplace. Which customers is this aimed at and who’d be buying online versus going directly to you and trying to negotiate some kind of contract?
Michael Mo: Yes. Well, thanks for keeping it real up to date, because I think our online store just opened up a couple days ago.
Theodore O’Neill: It did, yes.
Michael Mo: Yes. Thank you. It is for both B2B and B2C customers. We’re getting a lot of enquires from fire departments, hazmat teams, dangerous goods teams, companies as well as consumers directly inquiring about the SafeCASE. So we established the online store. We believe it’s a good way to directly interface with our customers and can serve them in a scalable way. And in addition, we’re also working with online and offline distributors who are focused on hazmat safety, dangerous goods industry. So stay tuned for more business partnership announcements in the future on additional distribution channels for us.
Theodore O’Neill: Okay, thanks very much.
Michael Mo: Thank you, Theo.
Stuart Smith: All right, Thank you, Theo. And now we’ll be joined by Michael Legg, Sr. He is the Managing Director at Benchmark in Emerging Growth Research. Michael, the call is now yours. Please provide us with your questions.
Michael Legg: Thanks. Michael, Shawn, great job [indiscernible] get off the balance sheet. I know that has to be a large part of your focus at the end of the 2023 and the end of the 2024. And want to try to understand how much of that focus, now that you have that off the balance sheet and put back strategic growth getting more out the door. And, obviously the revenues in the fourth quarter were down sequentially from the previous quarter. Was any of that impacted by the cash on the balance sheet or ability to get product out the door? Kind of want to get into the revenue run rate where we’re at now and how you see that going forward. So let’s just start there, please.
Michael Mo: Yes, Michael, thank you. Yes, I’ll take that. So, I mean, the outstanding debt that we had throughout 2023, also first part of 2024, which we just got completely paid off and retired, was very, very consuming for the management to solve that. In my prepared remarks, I talked about how that really choked off access to capital, that really forced us to work very closely with our customers and partners on our operations and cash flow. I would say that that had an impact in our performance leading to the second part of 2023. And we had to cut workforce. We had to put certain programs on hold to focus on the right programs to serve — I mean every customer is a good customer, but some customers are more urgent so we have to prioritize if you will.
So yes, I know I had a real impact on not just the management time frame — the resources, the mindshare, but also operations. But we’re certainly glad that that’s out of the way. And Shawn and I and the entire team can really focus on the business. Meanwhile, super proud of the team in executing on the technology side, on the infrastructure side, operations side, and getting huge growth in customer engagements, huge growth in revenue per customer, and I think we’re just setting up the stage for a very strong future growth.
Michael Legg: Great. And when you look at all these new contracts you’re bringing on, What type of visibility do you have into those for when deliveries will be? And how much lead time on that do you usually have?
Michael Mo: I would say that the engineering service contracts are hopefully getting shorter and shorter. Like I said, the Nanoracks delivery was nine months. So some of these engineering service contracts still, I’d say conservatively, nine to 18 months, design, qualification, testing, prototype, so forth. And then you get to starting to ramp. And so, you’re looking at 2024, getting the 2023 customers to ramp, and then you get 2024 customers, or end of 2023 customers start going to pilot productions in 2024, 2025. And yes, I think that’s probably a 12 to 18 months [indiscernible] story, Mike.
Michael Legg: Okay, great. Congrats and nice to see all the progress and look forward to 2024.
Michael Mo: Great. Thank you so much.
Stuart Smith: All right, well with that, that was our last set of questions from Michael and we want to thank Michael, Theodore, and Jake for providing their questions to us here today. That now concludes our call. Ao I will turn the call back over to our operator Tom to end the call.
Operator: Thank you, Stuart. This does conclude today’s conference call. You may disconnect at this time, and have a wonderful day. Thank you for your participation.
