Eric Stine: Maybe last one for me. Just on the EV opportunity. I think I’ve asked this before, but just curious, obviously, your customers, many of them requested these capabilities from you. Do you expect this to be a decision that’s by company over their footprint? Or is it more kind of a site-by-site decision?
Mike Jenkins: I think it can work both ways. I think it really depends on how they run their businesses and how centralized or decentralized they are as a company. I think some will go basically across the country. And we’re having some conversations with folks like that and others, it will really depend on whether or not they have a fleet location out of that facility, et cetera. So I think it’s going to work both ways.
Operator: And our next question comes from the line of Amit Dayal from H.C. Wainright. Your line is open.
Amit Dayal: Just on the EV topic, is pipeline more sort of corporate and enterprise? Or is there some government-related opportunities as well?
Mike Jenkins: Yes, there certainly are both private and public opportunities. We currently do business with municipal governments. That’s part of kind of the legacy of Voltrek as well as with private companies. And so we see growth in both areas. We were recently at a federal government trade show. And there was a tremendous amount of conversation about the electrification strategy of the federal government for their own use and facilities. So I think downstream, we’re going to see rapid adoption in both areas.
Amit Dayal: And then on the Voltrek earnout, could you remind us what remains to be paid out, et cetera?
Per Brodin: Yes. We made the payment I referenced in September of $1.5 million toward the fiscal ’23 earn-out, and then there was another $1.5 million paid in October towards that $3 million earn-out. There will then be the opportunity for a fiscal ’24 earn-out, that amount would be paid in the second quarter of calendar — second calendar fiscal ’25 to the extent it’s earned, that is a $3.5 million opportunity. And then the following year, there’s a $4 million opportunity plus a kicker for a cumulative — on cumulative EBITDA earnings over the first 3 years of ownership, which could be a max potential of an incremental $3.15 million that would be paid at the same time as the fiscal ’25 earn-out opportunity.
Amit Dayal: And then maybe just on the service and maintenance segment. I know you’re going through a lot of sort of renegotiations, et cetera. But are you also actively trying to add new clients at this point? Or are you sort of trying to clear out your existing setup with the legacy contracts before you move to adding new customers?
Mike Jenkins: Sure. Well, we actually did add quite a bit of new business with our #1 customer, as we talked about on the preventative side for 2,000 locations. So that was a big add to the team in terms of new volume. So right now, we’re certainly digesting that. We’re building out and shoring up our resources around that. And then at the same time, focused on profitability for the legacy business. We do see growth opportunities out there, but we certainly want to approach this a bit step-by-step and address the profitability of the legacy business as our first order of priority right now.
Amit Dayal: Once, if the service margin is normalized for you guys, how much of a lift should we expect to the overall blended margin?
Per Brodin: Well, I think if you look at the blend, think about the blend of the margin, we expect to ultimately get back to what we’ve experienced as a more traditional service margin for that business. So that’s not going to happen over the next quarter or so as we continue to renegotiate these contracts, but that’s where we are certainly targeting that this business is headed.
Amit Dayal: Okay. And I’ll follow up on that 1 later. But that’s all I have for now.
Operator: Our next question is from the line of Alex Rygiel from B. Riley Securities.
