Andrew Astor: Thank you, Robert.
Operator: The next question is from Joseph Schuler with JAS Investors. Please go ahead.
Joseph Schuler: Hello. Question €“ two questions, but one is on SRP. Just thinking on a cash flow basis, was there expense to metros in the last couple of years, obviously, the initial investment, but was there an expense in addition to that, where that might be eliminated going forward?
Andrew Astor: Absolutely. SRP exhausted – its exhausted its funds. Nephros agreed to lend it up to $1.3 million that loan balance is now close to 1.5. And we’ve been funding SRP at a rate of about $150,000 a quarter, $150,000 to $200,000 a quarter. And so that will now come right out of our expenses, and I expect that Q2, just like with PDS, we were able to remove 300,000 or so of cost, I expect to remove about 150,000 or so – of cost in Q2 and forward.
Joseph Schuler: Thank you. Just since you mentioned that the $1.5 million or whatever that number is, what is the — what is Nephros standing and list of creditors to the degree there is anything left? Or do you feel there’s nothing left on that? In other words, where is it a loss? Or is it – do you think the funds can come back in?
Andrew Astor: No. It’s on there…
Joseph Schuler: Okay…
Andrew Astor: Yes, there is no – there are virtually no assets except, of course, the technology, the IP, the machines, which – and so all of that and Nephros is the sole creditor of SRP. And so what is almost certainly going to happen is that SRP will wind down and lease to exist as a separate company and all of its assets, including those I just mentioned, will roll into Nephros.
Joseph Schuler: Okay. One other question…
Andrew Astor: But there won’t be any cash, sorry.
Joseph Schuler: I understand. Revenues have been around $10 million a year for a few years. Where do we get out of that, is it – do you see that as wherever it might come from? Do you see that as a possibility in the coming year?
Andrew Astor: Do I see growth from that $10 million of possibility? Yes. Absolutely, absolutely. I – we are focused on only two things. One is watching our cash burn and two is growing that number. And so the only place that we’re investing right now is in our sales team and our sales capability. And as I said, we’re not discussing our results in Q1 yet, but the first few weeks of the year are – have been promising to me. And so I do expect to see that number growing this year.
Joseph Schuler: Good luck going forward. We’re rooting for you.
Andrew Astor: Thank you, Joe. All right. Take care.
Operator: The next question is a follow-up from Robert Smith with Center for Performance Investing. Please go ahead.
Q €“ Unidentified Analyst: Yes, Andy. So can you share with us the R&D budget, which is around, what, $1.5 million or so. I mean, how is that being spent?
Andrew Astor: I don’t think – well, it’s $1.5 million, including SRP and that part will go away. It’s probably – and I don’t have it in front of me, but I think it’s under $1 million right now on the filtration side. And the – it’s being spent on product development and making sure that we’re staying current with technology and offering the best current products to our customers. So it’s a – I think it’s a pretty modest budget. And it’s pretty much cut as much as we can or it certainly will be at the end of this quarter when SRP goes away.
Q €“ Unidentified Analyst: All right. And do you – when you say it’s basically refinements and are you working on anything? Anything that might be interesting, not speaking about near term, but for the future?
Andrew Astor: Yes, I think we are. I do. And I can’t really say very much more about it than that.
Q €“ Unidentified Analyst: All right. Probably trying to look out. Thanks.
Andrew Astor: Thanks, Robert. You bet.
Operator: This concludes our question-and-answer session, and the conference is also now concluded. Thank you for attending today’s presentation. You may now disconnect.
