Mike Shlisky: Sure. Yes. They often work in tandem and there’s some great infrastructure already in Connecticut, I’m told. Maybe I can ask one, just one last one about the various hydrogen, kind of the temporary modular stations you’ve got around California and elsewhere. Can you give us a sense as to eventually if you’ve got this scale, what would the cost of a more permanent station be? And do you intend to have partners still for at least some of those stations? And kind of the timing of kind of when a temporary or kind of modular solution might turn into a full-scale building.
Steve Girsky: So I’ll start. So each modular fueler can do 20, 30 trucks. You put two of them in. You could do 40 to 60 trucks a day. And then the station, like call it First Element in Northern California, there’s some others, they could do 100 to 200 trucks. So we want to build, the strategy is build density and either make the show the partner or the financier that the economics are viable here and then go in with the whole station. The station costs, farmers net depending upon incentives and things like that could be 3x, something that, and it would be more efficient. So we want to get to the station, but again, to get partners, to convince partners that this is financially viable, we need density and the modular fuelers are a very cost efficient way to get us density.
Mike Shlisky: Okay, sure, certainly. Thanks for the answers guys. I appreciate it. I’ll pass it along.
Steve Girsky: Thanks Mike.
Operator: Our next question is from Greg Lewis with BTIG. Please proceed.
Greg Lewis: Yes, thank you and good morning. Thanks for taking my question. Hey, Steve. The first one was around about uptake with IMC. Obviously, they’ve had some vehicles for a little while now. Is there any way to kind of see what they, how those utilization or uptime on those vehicles has been trending over the last few months?
Steve Girsky: We can get back to you with that. Not their vehicles in particular. We can get back to you in general what uptime has been.
Greg Lewis: Great.
Steve Girsky: Let us get back to you on that.
Greg Lewis: Okay.
Steve Girsky: We have that for the fleet in general. I don’t want to speak to specific fleets because it’s sensitive, but we could, so we’ll get back to you with that.
Greg Lewis: Okay. And then as I think about the hydrogen, the network built out, I mean obviously we have the location in California and Canada. Is that something where you’re able to share kind of the hydrogen volumes moving through those fueling stations and kind of that trend?
Steve Girsky: I don’t think we’re sharing that information right now. I’m not, it’s competitive. It’s mostly internal. I mean you could see if someone wants to camp outside Ontario, they could see what’s going on out there, how many trucks are rolling through and things like that, but we’re not sharing that in general.
Unidentified Company Representative: And Greg, as a first mover, you are partnering with other partners in terms of suppliers. So we’re testing and validating the fuelers. And so as we’re gathering data, we are, we’ll be more comfortable sharing what the utilization will be there.
Greg Lewis: Okay. And then just, I’ll just ask another then. As I think about the repurchases of the beds that were announced during the quarter, is there any way to kind of view that in terms of, was that just transitory, i.e., we had to buy these back from the dealers, but we expect those to be deployed, or were there some other types of, is there other competition that drove that, just kind of curious on your views around that, and if there’s a potential for that to reverse, maybe over the next 12, 18 months?
Steve Girsky: Yes, I’ll take that, Greg. Anytime you’re building out a dealer network to sell a new technology product, you’re going to have pruning and optimization of that network. And it was nothing more than that as it relates to this specific dealer, and we repurchased the 15 vehicles. We also use that as an opportunity to build a reserve based on experience for future returns. But we intend to resell those 15 vehicles, and it’ll go back out into the network. Unfortunately, it muddies up the top line, which tried to explain. I mean, we actually beat our top line guidance at 15 million for the fuel cell trucks. We were at 381,000 average sales price versus 351 in the prior quarter. So really a good news story making traction, but it was muddied up with the bad returns.
Greg Lewis: Yes, absolutely. Thanks for taking my questions.
Steve Girsky: Thank you, Greg.
Operator: Our next question is from Winnie Dong with Deutsche Bank. Please proceed.
Winnie Dong: Hi, thanks so much for taking the questions. So I understand the points of scale to profitability, as you mentioned, the prepared remarks, but I’m just wondering how we should maybe think about gross margins for this year. And I think you have this ability to wholesaling $350 for the year. So how should we think about this year’s gross margin versus I think the previous [Indiscernible] negative 80 to negative 100 for the year? Is that still the right part or how should we think about that?
Steve Girsky: Yes, thanks for the question. I mean, we intentionally stayed silent on the fiscal year guidance because, trying to work with our supplier partners without the scale to get them to optimize costs as well as other costs of revenues like warranty experience, it’s just really hard to pinpoint what that number is going to be because there’s just too many moving parts. So come back to how you can measure us is looking for the sustainable order block. Now, talking about what I think it looks like going forward, and certainly at some point we’ll come out with more detail, but I see 2025 building significantly more scale than the 300 units to 350 units that we’re guiding in 2024. And then I see 2026, even more volume after that.
And so at that point in time, then you can really start to see positive cash generation, positive gross margin, but hopefully it’s understandable to go to our supplier partners with a new technology with such small volumes and add some to lower their cost. That’s just not practical.
Winnie Dong: Got it, that’s very helpful, thank you. And then maybe a question on the battery [ph] supply, understand that you’re repurchasing some of the units right now, but you also indicated that your ability to sell on-hand inventory will be dependent on future battery supply. So I was wondering if they can elaborate on what that means, particularly on the battery supply point, thank you.
