So taking water bottles and turning that into fibers. So the ability to get fibers back into fibers is something of huge interest to them, and that’s obviously Loop’s technology can provide that to them. So there’s a strong interest there not only to sell them the final material but also to be able to recycle the waste that’s generated at their facilities. So we anticipate to have quite a few fiber customers from the facility, but then there’s also the bottle grade customers that we work with around the world that all have needs in Asia as well. So €“ but we do anticipate having I would say, majority of the volume already contracted before breaking ground.
David Quezada: Okay. Excellent. And maybe just one more for me, if I could. Your R&D expenses were down in the quarter, which I think is consistent with your plan to reduce the burn rate. But could you comment on just €“ are most of the R&D activities that you that you need to undertake for your upcoming projects? Are you mostly complete at this point? Or I think you mentioned you’re still doing some R&D or some testing for feedstock in Korea. Just wondering how you expect that R&D expense to trend going forward?
Daniel Solomita: So the biggest €“ in our cost cutting and our cost reduction, the biggest thing that we’ve done is we just reduced the hours of operation for €“ from the production facility in Terrebonne. The production facility in Terrebonne, the nameplate capacity is 1,000 tons a year, roughly 2.2 million pounds a year of capacity is what we can produce at the Terrebonne facility. The facility was never built to generate profits, but it’s built to be able to showcase the technology at a commercial scale and supply customers with commercial volumes. And we’ve been successful in doing that. So the plant worked well. We built it out to a scale that anybody can come and see and our partners can do due diligence or customers or companies like SK Global Chemical, can do full due diligence on the technology.
And so that’s been completed. So by reducing the hours of operation, instead of running the facility 24/7 slowing down, having full night shift, having four shifts of workers. I mean that’s a very big expense, and you can’t generate a profit because the volumes are too small. And so really, it’s just about reducing the hours of operations. So we’re still producing material. We’re honoring all of our existing customer contracts with on shoes, and we had some material with other brand owners, and we have some upcoming events as well with other brand owners coming up. So we still have the operation and know that R&D expense is really the operations running at the plant. So we’ll always keep the facility open to be able to test feedstocks as that’s always really important.
That’s an important part of the business. So being able to qualify any feedstocks that come in from Korea or any other part of the world that needs to be characterized. So we do it first at our lab scale and then we do it at the production facility in a few tons at a time. So the R&D and production expenses kind of mix together in there. But you need to keep this facility open to be able to produce material for the customer. So you mix in the customers with R&D because we’re testing feedstock. So it all blends in really well together. But there is no need for us to be running this facility at full capacity producing 1,000 tons and trying to get it out there. Today €“ in the world we live in today, it’s €“ cost cutting is an important measure.