Matthew O’Keefe : Okay. Got it. And if I may, just on the CapEx for the process and warehouse buildings, you suggested that was tied to the DOE loan. Is it just that the DOE needs something more in terms of security like lands to — as part of the loan requirement?
Ajay Kochhar: Pardon Matt, it’s Ajay. Yes. So as Tim articulated and briefly, we usually try to do this. And for our folks it’s usually much simpler because they’re smaller and more typical buildings. So, our original approach and its been along the way, our financial statements is we wanted to do this building leasing arrangement, which would have refunded us a good quantity of amount — of the amount that we spend to actually build the buildings. And then the idea was that, that would convert it to a lease. So, it’s a way to basically refund CapEx, and it’s been articulated in the presentation, we’re not a real estate company. So, we really want to make money out the stuff in the buildings. However, as you can imagine, that arrangement would have a set of creditors and the DOE is another financing party as part of the project.
So, it’s always been that way along the course. But as you can also imagine, getting the short strokes on documentation, it, frankly, it was very complicated. So that’s why I referred to them as complex financings. And having this its not ideal, the way this has happened, but we have an opportunity to rebase and do this in a way that makes a lot of sense. And I mentioned that, it would help with simplifying the overall complexity that we were facing as part of DOE transaction.
Operator: And we’ll take our next question is Ben Kallo with Baird. Please go ahead. Your line is open.
Ben Kallo : I just — I want to understand Ajay, just on Spokes. What — and I think you said in the prepared remarks what was paused and what wasn’t. But could you just run me through that? And then like I think Adam asked a question about just commitment, capital commitments to the hub, and other EVE capital commitment, the Spokes that saw out there?
Ajay Kochhar: So maybe to take the first and then Debbie could take a second on the Spokes.
Tim Johnston: Yes, no problem. Ben, nice to talk to you. And so, when it comes to the Spokes with we’ve paused one spoke in Ontario. This was our first Generation 1 Spokes which is the smallest of our network. And so, as part of this strategy, we decided to pause that asset. And the other Spokes in North America remain operational.
Debbie Simpson : Yes. And on future CapEx then. So, you’ve heard us talk in our disclosures before we had plans underway for a second line in Germany Spoke and we’ve also got plans. As you know, we have a location in Norway, and we planned underway for France, and we were looking at site selection for Hungary. So, we paused those initiatives until we complete this comprehensive review.
Ajay Kochhar: The hub is the main capital spend for us. So just relatively.
Ben Kallo : You answered a question about Black mass sales versus build inventory. I just want to understand, with the operating spokes, if the Black mass sales are profitable on those individual Spokes? And then I have one follow-up.
Ajay Kochhar: Yes. So, the way that we’ve looked at the portfolio is: one, prioritizing customer needs. So, we have customer obligations where we need to service battery to be recycled; two, we’ve looked at — the spokes that have the best economies of scale. So it’s focused on low-cost conversion ability to get to further — through further ramp up, et cetera; and three, vis-a-vis profitability, I think I’ll hold on comment on it to anything outside of our FS, but just suffice to say that the way that we’ve optimized the network, and we’ll continue to look at is intended to be liquidity generating over time and liquidity, managing as part of our cash preservation line.
