Tyson Bauer: All right. Thanks a lot, gentlemen.
Operator: Our next question is from Ross Taylor with ARS Investment Partners. Please proceed.
Ross Taylor: Yes, thank you. A couple of questions quickly. Since you just sort of talking about real estate and the loan against it, where do you stand with the idea of selling that asset or sale of leaseback that asset to capture a more significant amount of capital from it?
Rob Capps: We — frankly, Ross, we are investigating that as we speak for — we have two pieces of real estate, the [indiscernible] facility and also in here in Texas in Huntsville. So, we are investigating that. Obviously, the banking situation, interest rates kind of went in the wrong direction for us in the last couple or three months, but I think there certainly are possibilities there. So that’s something we’re pursuing.
Ross Taylor: Okay. Second, with the increasing focus by world navies on underwater autonomous system, it would strike me then they need to do substantial increase in mapping in areas in which we intend to operate, particularly in areas like the South China Sea. Are you seeing or do you expect to see an increase in demand for your capabilities, your products and technologies from people like the U.S. Navy perhaps the Koreans and the Japanese who will need to be operating in areas that are contested, expected to be home for a lot of these underwater systems?
Rob Capps: Without being specific, the answer is yes, most definitely. That is definitely driving activity for us.
Ross Taylor: Okay. And do you think that would be a short or intermediate term time horizon?
Rob Capps: I think we’ve already benefited to some extent, but I think we’ll see that to continue on a significant basis. So that will continue. We’ll see current as well as intermediate and long-term benefit from that.
Ross Taylor: Okay. What’s the total outstanding value of the deferred preferred dividend at this point?
Rob Capps: So, it’s $44 million, $44 million, something like that, including the dividends — deferred dividends.
Ross Taylor: What’s the preferred — what is — what do you owe on the preferred dividend?
Rob Capps: Approximately $4 million, $3.8 million, $3.9 million.
Ross Taylor: $3.8 million. Okay. I mean that’s, once again, still a substantial portion of the outstanding or the value of the common stock. It does strike me as for those of us who own common stock to get value out of that, we really need to keep that from happening. The end game of this company most likely is a sale of the business unless you can meaningfully increase the top and bottom line. It’s hard to — at this stage, the market cap just doesn’t justify being public, quite honestly, it probably is worth a lot more to someone as a private business. And with the way it works, the preferred holders are going to take — get first cut — basically first payout as well as the deferred dividends being paid out before anything trickles down to the equity holders.
So, the faster you guys can come up with a way to stop that and start to create wealth for the common holders, I think that as a long-suffering common holder, I would appreciate those steps. It strikes me as we’re kind of in a situation where this company has meaningfully undervalued, but the way to get it, it’s likely going to be sale if we can come up with a pretty near-term solution for turning this into something that people want to own.
Rob Capps: Understood completely.
