Jaeson Schmidt: Okay. That’s really helpful. Thanks a lot guys.
Shai Lustgarten: Thank you. Appreciate it.
Operator: Thank you. Our next question is coming from Moran Pober with Acquisitions.com. Please go ahead.
Moran Pober: Hey, Shai. Thank you for answering my question. So first question is what are the AI sales in 2022, compared to 2021?
Shai Lustgarten: AI sales in 2022 year-to-date or better say in Q3 is more than — is about $4 million actually, compared to half of it in 2021, so basically 100% increase.
Moran Pober: Nice. And what’s the plan for next year? Like how do you see 2023?
Shai Lustgarten: We want to continue keeping our objective to double that next year. So if we saw doubling — we’ll see more than doubling ourselves this year, we’ll at least see — or our objective is at least to see that doubling next year.
Moran Pober: All right. Sounds good. Congrats. Looking forward to see that.
Shai Lustgarten: Thank you, sir. Appreciate it.
Moran Pober: Thank you.
Operator: Thank you. Our next question is coming from John Ragard with Spouting Rock. Please go ahead.
John Ragard: Yes. Thank you. I have a couple, first one is if, Shai, that you could give us a little bit of quantification on the — how supply chain impacted the business in both the revenue and the cost of sales in the third quarter? Did you miss some shipments, because you were short components? And were there additional costs incurred to get product to the facilities to complete things as well?
Shai Lustgarten: Yes. So yes, we have, if I need to quantify that, we’ve missed probably $2 million in shipments, due to different reasons in supply chain. It’s — I would say, a lack of products that some of the OEMs we work with partners, we work with — had to — our still facing challenges. On the component level of our systems, we usually are able to meet the objectives of the deliveries as we find alternatives being designers. But some of the solutions we sell still have part of the solution or products of other OEMs as well and as a total solution provider. When we meet certain products, then that could affect the delivering that happened and like I said to quantify that it would be about $2 million. So we could have basically sold $29 million, but still happy with the fact we’re able to show a record-breaking sales revenue of $27 million, that’s regarding the revenue.
Regarding the gross margins, I would say about expenses that relate to expedite deliveries, expenses that relate to of unique shipments that you need to — that you incur, because you want to make sure not only you meet the revenue objectives, but more importantly to serve your customers. That cost about, I would say, roughly close to $600,000 or $550,000 this quarter. So basically, you could — this is a good question, because basically if you look at the adjusted EBITDA, you’re already breaking even or a little bit already positive. But again, we’ll probably need to see that next year. How do I see this going forward? I can’t say, if we’re going to finish all these challenges, but I can say that the world is doing much better and we as a company are doing much better as well.
And I’m hoping that we’ll continue to be able to show the growth in all parameters.
John Ragard: Thanks. One more if I may, as it relates to Q Shield and the safe cities, what is a prudent pace at which you and your distributor can install new cities that are under contract and continue the high quality and reliability of what you’ve had. We’re just trying to model out the future and get a kind of get a pace of how many installed and revenue generating cities there will be as we go forward?